December 20, 2023
published at 5:35 PM CET
AXA Group announced today that its subsidiary AXA France Vie has entered into a reinsurance agreement with AXA Réassurance Vie France (‘ARVF’), a reinsurance company co-owned by AXA Assurances Vie Mutuelle* and AXA Assurances IARD Mutuelle* . The reinsurance agreement** with ARVF will cover a total of Euro 12 billion of Savings reserves, including Euro 10 billion of traditional G/A*** Savings.
The transaction is expected to result in a cash upstream**** to AXA S.A. of Euro 0.6 billion and to have ca. 2 points favourable impact***** on AXA Group Solvency II ratio as of December 31, 2023. Additionally, the transaction is expected to result in a reduction in Underlying Earnings of ca. Euro 50 million per annum from 2024 onwards. AXA intends to offset the resulting earnings dilution with a ca. Euro 0.5 billion share buyback****** to be launched following the release of the Group’s full year 2023 results and new strategic plan.
The transaction is expected to have an immaterial one-off impact on AXA Group’s Net Income and to result in a reduction in AXA Group’s net Contractual Service Margin of ca. Euro 0.4 billion from 2024.
* The Mutuelles AXA comprise two French mutual insurance companies, AXA Assurances Vie Mutuelle and AXA Assurances IARD Mutuelle, that are respectively Life & Savings and Property & Casualty insurance undertakings. The Mutuelles AXA are neither part of the accounting consolidation scope of AXA Group nor its Solvency II prudential scope.
** The quota-share treaty covers both in-force and associated new business and is expected to be renewed annually until expiration of the last policies in scope. Reserves amount as of the end of 3Q23. *** General Account.
**** Euro 0.2 billion remitted in 2023 and Euro 0.4 billion expected to be remitted in 2024.
***** Excluding the impact of the anti-dilutive share buyback to be launched following the publication of the full year 2023 results.
****** Subject to market conditions
Investor Relations team
Axa Media Relations