In conjunction with the publication of its quarterly activity figures, AXA yesterday evening announced an agreement terminating the sale of a life and pensions portfolio in Germany.

The insurer says it has mutually agreed with the Belgian savings and pensions group Athora to go back on the transaction, which was originally announced for 2022.

AXA will therefore retain this portfolio, which it considers to be "well capitalized" with a "good asset/liability matching", as well as the related earnings.

The group says this termination should have no impact on the financial targets unveiled as part of its new strategic plan.

At the same time, it said that its AXA Life Europe division had entered into a reinsurance agreement with New Reinsurance Company, a subsidiary of Munich Re, covering a life insurance portfolio.

The agreement - which covers variable annuity product reserves of around three billion euros - will lead to a reduction in annual underlying earnings of around 20 million euros from 2024.

AXA says it intends to offset the reduction in underlying earnings resulting from this operation with a share buyback of around 200 million euros.

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