AM Best Assigns Credit Ratings to AXA S.A. and AXA France Vie

Rhea-AI Summary

AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior) to AXA S.A. (AXAHY) and its subsidiary, AXA France Vie. The outlook for these ratings is stable. AXA's strength stems from a very strong balance sheet, strong operating performance, and effective enterprise risk management. The group reported a net income of EUR 7.3 billion in 2021, a significant increase from EUR 3.2 billion in 2020, reflecting improved technical results after the disruptions caused by COVID-19.

Positive

• Assigned A+ Financial Strength Rating by AM Best.
• Net income increased to EUR 7.3 billion in 2021 from EUR 3.2 billion in 2020.
• Very strong balance sheet and excellent financial flexibility.
• Strong operating performance with a five-year average return-on-equity of 6.2%.

Negative

• Reliance on softer capital components like hybrid debt may impact capital position.

AMSTERDAM--(BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings of “aa-” (Superior) to AXA S.A. (AXA) (France) and its subsidiary, AXA France Vie (France). The outlook assigned to these Credit Ratings (ratings) is stable. AXA S.A. is the main operating holding company of the AXA group and operates as the group’s internal reinsurer following the receipt of its reinsurance license from its regulator (ACPR, Autorité de Contrôle Prudentiel et de Résolution) on May 10, 2022, and its merger with AXA Global Re on June 30, 2022. AM Best has withdrawn its ratings of AXA Global Re following the merger.

The ratings reflect AXA’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, very favorable business profile and very strong enterprise risk management.

The ratings of AXA France Vie reflects the entity’s strategic importance to the AXA group as its main carrier for life and health business in France.

AXA’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment considers the group’s strong earnings generation and prudent capital management. Financial flexibility is considered to be excellent,demonstrated by the group’s good access to capital markets. A partially offsetting factor in the assessment is AXA’s reliance on softer capital components to support its capital position, including hybrid debt and value of in-force life business.

AXA has a track record of strong operating performance, supported by its diversified earnings profile. The group has produced a five-year weighted average return-on-equity ratio of 6.2% (2017-2021), as calculated by AM Best. Return metrics include the exceptional charges associated with the group’s restructuring in 2018. In 2021, AXA reported a solid net income of EUR 7.3 billion, from EUR 3.2 billion in 2020. The improvement was driven by improving technical results, with 2020 results depressed by the effects of the COVID-19 pandemic on non-life lines.

AXA is one of the world’s largest insurance groups, with significant diversification by line of business and geography, and leading positions in many developed and emerging markets. The group offers a complete range of life, health and non-life insurance products, as well as asset management services. Its competitive position is supported by its scale and strong brand.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220708005436/en/

Pierre Tournier, FSA, CFA, CERA

Associate Director, Analytics

+31 20 308 5423

pierre.tournier@ambest.com



Morgane Hillebrandt

Financial Analyst

+31 20 308 5422

morgane.hillebrandt@ambest.com



Dr. Mathilde Jakobsen

Director, Analytics

+31 20 308 5427

mathilde.jakobsen@ambest.com



Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com



Jeff Mango

Managing Director,

Strategy & Communications

+1 908 439 2200, ext. 5204

jeffrey.mango@ambest.com

Source: AM Best

FAQ

What is the financial strength rating of AXA S.A. (AXAHY) as of October 2023?

AM Best has assigned AXA S.A. a Financial Strength Rating of A+ (Superior).

How much net income did AXA S.A. report for the year 2021?

AXA S.A. reported a net income of EUR 7.3 billion in 2021.

What outlook did AM Best assign to AXA S.A.'s credit ratings?

AM Best assigned a stable outlook to AXA S.A.'s credit ratings.

How does AXA S.A.'s balance sheet strength compare?

AXA S.A.'s balance sheet strength is assessed as very strong, underpinned by strong earnings and capital management.

What was the return-on-equity for AXA S.A. over the last five years?

AXA S.A. achieved a five-year weighted average return-on-equity of 6.2%.