Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer - S&P Global Ratings’ Credit Research

Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer

Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer - S&P Global Ratings’ Credit Research
Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer
Published May 07, 2024
2 pages (1109 words) — Published May 07, 2024
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Abstract:

MILAN (S&P Global Ratings) May 7, 2024--S&P Global Ratings said today that its ratings on AXA's core operating subsidiaries (AA-/Stable/A-1+) are unaffected after AXA and Athora terminated an agreement to sell about €16 billion of life insurance reserves in Germany to Athora. AXA had already announced in July 2022 that it would have used the sale proceeds estimated at €660 million for a share buyback and so the operation would not have reinforced the group's capitalization. The portfolio has been closed to new business since 2013. AXA stated that the closed German life portfolio is duration matched and well capitalized and will have no effect on its recently announced strategic objectives. AXA's subsidiary AXA Life Europe has also entered into

  
Brief Excerpt:

...May 7, 2024 MILAN (S&P Global Ratings) May 7, 2024--S&P Global Ratings said today that its ratings on AXA's core operating subsidiaries (##-/Stable/A-1+) are unaffected after AXA and Athora terminated an agreement to sell about 16 billion of life insurance reserves in Germany to Athora. AXA had already announced in July 2022 that it would have used the sale proceeds estimated at 660 million for a share buyback and so the operation would not have reinforced the group's capitalization. The portfolio has been closed to new business since 2013. AXA stated that the closed German life portfolio is duration matched and well capitalized and will have no effect on its recently announced strategic objectives. AXA's subsidiary AXA Life Europe has also entered into a reinsurance agreement with a subsidiary of Munich Re (##-/Positive/--) called New Reinsurance Company. The agreement covers about 3 billion of mainly German variable annuity life insurance reserves. We don't view the 200 million share...

  
Report Type:

Bulletin

Ticker
CS@FP
Issuer
AXA
GICS
Multi-line Insurance (40301030)
Sector
Global Issuers, Structured Finance
Country
France
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer" May 07, 2024. Alacra Store. May 25, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-AXA-s-Strategy-Is-Unchanged-After-Termination-Of-A-German-Life-Reserves-Transfer-3166000>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: AXA's Strategy Is Unchanged After Termination Of A German Life Reserves Transfer May 07, 2024. New York, NY: Alacra Store. Retrieved May 25, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-AXA-s-Strategy-Is-Unchanged-After-Termination-Of-A-German-Life-Reserves-Transfer-3166000>
  
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