AXA announces today that AXA and Athora have mutually agreed to terminate the sale agreement related to the purchase of a closed life and pensions portfolio from AXA Germany, which was initially communicated on July 14, 2022. AXA will retain this portfolio as well as its associated earnings. The termination is expected to have no impact on the financial targets announced by the Group as part of its new strategic plan, “Unlock the Future”.
Separately, AXA Group also announces that its subsidiary AXA Life Europe has entered into a reinsurance agreement* with New Reinsurance Company that covers c. €3b of Variable Annuity reserves**. This transaction will result in a reduction in underlying earnings of c. €20m per annum from 2024 onwards. AXA intends to offset the resulting earnings dilution related to the reinsurance agreement at AXA Life Europe with a €0.2b share buyback to be completed by year-end***. The transaction, including the impact of the share buyback, is expected to have a c. -1 point impact on AXA Group’s Solvency II ratio****.
* The reinsurance agreement provides cover for all risks of AXA Life Europe’s portfolio during the accumulation phase, excluding only expenses relating to the management of the portfolio of AXA Life Europe. Longevity risk during the decumulation phase is excluded from the scope of this agreement.
** Amount as of FY23.
*** Subject to market conditions.
**** As of half year 2024
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