The new agreement will cover €12bn ($13.4bn) of savings reserves, including €10bn of traditional General Account (G/A) savings. Credit: photofort 77/Shutterstock.com.

AXA France Vie, a subsidiary of the AXA Group, has entered into a reinsurance agreement with AXA Réassurance Vie France (ARVF).

ARVF is a reinsurance company co-owned by two French mutual insurance companies of Mutuelles AXA – AXA Assurances Vie Mutuelle and AXA Assurances IARD Mutuelle.

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AXA Assurances Vie Mutuelle is a life and savings undertaking, while AXA Assurances IARD Mutuelle is a property and casualty insurance undertaking.

The reinsurance agreement is for an in-force savings portfolio.

This agreement with ARVF will cover €12bn of savings reserves, including €10bn of traditional G/A savings.

AXA stated that the quota-share agreement covers both in-force and associated new business.

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The agreement is expected to be renewed annually until the expiration of the last policies in scope.

The transaction is expected to result in a cash upstream of up to €200m remitted in 2023 and €200m in 2024 to AXA on AXA Group Solvency II ratio as of 31 December 2023.

Besides, the transaction is expected to result in a reduction in underlying earnings of approximately €50m per annum from 2024 onwards.

AXA plans to offset the resulting earnings dilution with a ca. €500m share buyback.

The buyback is subject to market conditions and will be launched following the release of the group’s full-year 2023 results and new strategic plan.

The transaction is expected to have an immaterial one-off impact on AXA Group’s net income. It is also projected to result in a reduction in AXA Group’s net contractual service margin of approximately €400m from 2024.

In a separate development, AXA XL Insurance has appointed Julijana Sumner as chief claims officer for Asia-Pacific (APAC) & Europe and XL Insurance Company.

The appointment is subject to regulatory approvals.

After assuming the role, Sumner will help deliver claims services across Europe, Asia and Australia.

Sumner will also be leading the regional claims function, working in close coordination with AXA XL’s local claims teams.

Recently, AXA XL and Oversea Insurance Agency partnered to launch specialised marine general liability insurance coverage for marine artisans in the US.