Linklaters has advised AXA Assurances Vie Mutuelle and AXA Assurances IARD Mutuelle on the creation of a reinsurance company called AXA Réassurance Vie France (‘ARVF’) and on a reinsurance agreement between ARVF and AXA France Vie. The Mutuelles AXA are neither part of the accounting consolidation scope of AXA Group nor its Solvency II prudential scope.
The reinsurance agreement with ARVF covers Euro 12 billion of savings reserves, including Euro 10 billion of traditional General Account savings.
The transaction is expected to result in a cash upstream to AXA S.A. of Euro 0.6 billion over 2023/2024 and to have ca. 2 points favourable impact on AXA Group Solvency II ratio as of December 31, 2023 (excluding the impact of the anti-dilutive share buyback below). Additionally, the transaction is expected to result in a reduction in Underlying Earnings of ca. Euro 50 million per annum from 2024 onwards. AXA intends to offset the resulting earnings dilution with a ca. Euro 0.5 billion share buyback* to be launched following the release of the Group’s full year 2023 results.
The Linklaters Pris team was composed of Alain Garnier, Bertrand Andriani, and Duncan Barber, partners, and of Raphaël Ben Chemhoun, Anne-Sophie Hartog and Stanislas Haurens, associates.
