AXA reinsures savings book at own unit to push cash to shareholders

Insurance group AXA took a major slice of its in-force savings portfolio and reinsured the book in a group unit that should upstream neighbourhood EUR600 million in cash to the parent, of which some €500 million gets sent quickly to shareholders. 

AXA Group subsidiary AXA France Vie entered into the reinsurance deal with AXA Réassurance Vie France (ARVF), a reinsurance company co-owned by AXA Assurances Vie Mutuelle1 and AXA Assurances IARD Mutuelle1. 

The deal will cover a total of €12 billion of savings reserves, including €10 billion of traditional G/A3 Savings.

The parent company gets a 2-point boost to is Solvency II ratio and can offset an expected €50 million in annual earnings dilution with the planned €500 million buyback, a purchase that should begin following the release of the Group’s full year 2023 results and new strategic plan. 

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