AXA announces an agreement to terminate the sale of a closed life and pensions portfolio at AXA Germany, and that AXA Life Europe has entered into a reinsurance agreement for an in-force Savings portfolio

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, which is well capitalized and duration matched, 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 today that its subsidiary AXA Life Europe* has entered into a reinsurance agreement** with New Reinsurance Company*** that covers ca. Euro 3 billion of Variable Annuity reserves****. This transaction will result in a reduction in underlying earnings of ca. Euro 20 million per annum from 2024 onwards. AXA intends to offset the resulting earnings dilution related to the reinsurance agreement at AXA Life Europe with a Euro 0.2 billion share buyback to be completed by year-end*****. The transaction, including the impact of the share buyback, is expected to have a ca. -1 point impact on AXA Group’s Solvency II ratio******.

* AXA Life Europe, an Irish entity, manages a portfolio of variable annuity products primarily sold in Germany. It has been closed to new business since 2017.

** 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.

*** New Reinsurance Company Ltd, a Swiss entity, is a subsidiary of Munich Re and a member of the Munich Re Group

**** Amount as of FY23.

***** Subject to market conditions.

****** As of half year 2024.