AXA expected to sustain strong financial performance in next 12 months

AXA's capital strength remains solid, with a Solvency II ratio of 227%.

AXA has shown a robust business profile, strong capitalisation, and improved financial performance, supported by its growing underlying profitability, according to Fitch Ratings.

AXA has maintained a solid presence in key insurance markets, particularly in property and casualty (P&C), health, and protection lines. 

Over the past five years, the group has strategically shifted its business mix towards these areas, reducing its exposure to market risks. 

The planned sale of AXA Investment Managers (AXA IM) to BNP Paribas is seen as neutral in terms of AXA’s overall rating, given its substantial operations and diversified portfolio.

AXA's capital strength remains solid, with a Solvency II ratio of 227% at the end of the first half of 2024, unchanged from 2023 and well above the target of 190%. 

Fitch expects AXA to sustain this level of capitalisation, assuming no unusual large losses. 

The group’s financial leverage ratio (FLR) was at 18% at the end of 2023, following the issuance of $1.7b (EUR1.5b) in Restricted Tier 1 notes and $827.9m (EUR750m) in senior unsecured notes earlier this year. 

Although the FLR is anticipated to increase slightly by mid-2024, it is expected to remain within a range consistent with AXA's current rating.

Additionally, Fitch expects AXA to maintain its strong financial performance and capital position over the next 12 to 18 months, underpinned by its leading market positions and prudent financial management.

($1.00 = EUR0.91)