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 AM Best has withdrawn its ratings of AXA Global Re following the merger.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.
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