Bulletin: AXA's Disposal Plan For AXA IM Doesn't Affect Group Capitalization And Earnings; Mid-Year Results Line Up With Forecasts

MILAN (S&P Global Ratings) Aug. 6, 2024--S&P Global Ratings said today that AXA's plans to sell its asset management business AXA Investment Managers (AXA IM) to BNP Paribas will not materially affect the base-case assumptions on the group's capitalization and earnings over 2024-2026. As such, our ratings on AXA (A+/Stable/A-1+) and the group's core operating subsidiaries (AA-/Stable/--) remain unchanged. AXA recently entered exclusive negotiations with BNP Paribas (A+/Stable/A-1) on this deal, for a total consideration of €5.4 billion, starting a transaction that is expected to be finalized by the second quarter of 2025. AXA intends to use the potential cash proceeds of €5.1 billion for AXA IM, alongside a €0.3 billion consideration for AXA Select, leading to a one-off net

...MILAN (S&P Global Ratings) Aug. 6, 2024--S&P Global Ratings said today that AXA's plans to sell its asset management business AXA Investment Managers (AXA IM) to BNP Paribas will not materially affect the base-case assumptions on the group's capitalization and earnings over 2024-2026. As such, our ratings on AXA (A+/Stable/A-1+) and the group's core operating subsidiaries (##-/Stable/--) remain unchanged. AXA recently entered exclusive negotiations with BNP Paribas (A+/Stable/A-1) on this deal, for a total consideration of 5.4 billion, starting a transaction that is expected to be finalized by the second quarter of 2025. AXA intends to use the potential cash proceeds of 5.1 billion for AXA IM, alongside a 0.3 billion consideration for AXA Select, leading to a one-off net profit of 2.2 billion, predominantly for a share buy-back estimated at 3.8 billion. The asset management sale and share buy-back, alongside an annual earnings capacity cut by approximately 0.4 billion, do not materially...

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