Financial impacts of the Model Transformation

• AXA will transfer most of its in-force General Account Reserves (amounting to ca. 31 billion CHF or ca. Euro 26 billion) (*) backing the pre-retirement savings benefits (*) in its Group Life portfolio to the Foundations. This transfer includes ca. 3.5 billion CHF (or ca. Euro 3 billion) (*) of excess reserves to enable a sustainable risk carrying capacity of the Foundations (Coverage Ratio of 111% as of FY17) (*).

• In line with the move to a semi-autonomous model, the savings portion of the premiums will no longer appear in IFRS Gross Revenues of AXA.

• The Model Transformation is expected to result in a temporary reduction in AXA Group underlying earnings of ca. Euro 20 million from 2019, and will lead to a one-time negative impact in Net Income of ca. 400 million CHF (or ca. Euro 339 million) (*) in the first half of 2018 linked to the transfer of the portfolio (*) to the Foundations.

• The reduction of guarantees on AXA's balance sheet is expected to lead to a release of local risk capital requirement of ca. 2.5 billion CHF (or ca. Euro 2.1 billion) (*) in 2019 and to an enhanced cash remittance to AXA Group over the next three years, subject to regulatory approvals.

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AXA SA published this content on 10 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 April 2018 05:15:01 UTC