AXA outlook upgraded to positive

Rating agency Standard & Poor’s (S&P) has upgraded insurer AXA’s outlook to positive to reflect what it said was an improved financial risk profile.

S&P said that the revision reflects its belief that a combination of strong retained earnings, effective risk management, and a lower risk profile could enable AXA to strengthen its risk-adjusted capital adequacy position further, to a level supportive of a higher rating.

The rating agency affirmed its A+ financial strength and counterparty credit ratings on the AXA group's core subsidiaries and its A-/A-2 counterparty credit ratings on the holding company, AXA.

“Our base case factors in management actions to reduce risk in the group's product offering, which we consider will likely further mitigate pressures from the difficult operating environment. It also reflects our expectation that resilient earnings will support the group's strong capital adequacy. We have consequently revised upward our view of AXA Group's financial risk profile to strong from moderately strong,” said the rating agency,” the rating agency said.

“Our improved view of AXA's financial risk profile is mostly based on our opinion that its risk position has improved to intermediate.”