Research Update: AXA Group Ratings Affirmed On Capital Recovery Plan Following Acquisition Of XL Insurance Group; Outlook Stable

Over the past three months, AXA has obtained the financing necessary to acquire Bermuda-based XL Insurance group, which XL's shareholders approved on June 6, including through the sale of about 35% of AXA Equitable Holdings (AEH). We assume that the sale of further shares in AEH, and internal capital generation, will help AXA's S&P Global Ratings capital adequacy recover from the negative effect of the XL acquisition within the next two years. We are therefore affirming our ratings on AXA and removing them from CreditWatch negative, where we placed them on March 6, 2018. The stable outlook reflects our view that, over the next two years, AXA's and XL's stand-alone profitability will continue to strengthen, while AXA reduces its stake

...+ Over the past three months, AXA has obtained the financing necessary to acquire Bermuda-based XL Insurance group, which XL's shareholders approved on June 6, including through the sale of about 35% of AXA Equitable Holdings (AEH). + We assume that the sale of further shares in AEH, and internal capital generation, will help AXA's S&P Global Ratings capital adequacy recover from the negative effect of the XL acquisition within the next two years. + We are therefore affirming our ratings on AXA and removing them from CreditWatch negative, where we placed them on March 6, 2018. + The stable outlook reflects our view that, over the next two years, AXA's and XL's stand-alone profitability will continue to strengthen, while AXA reduces its stake in AEH and smoothly integrates XL group....

Research Update