AXA published today a presentation for investors and analysts on its implementation of IFRS 17 and IFRS 9 accounting standards, which will become effective on January 1, 2023.
The key highlights of the presentation are the following*:
- Underlying earnings poweris expected to be unaffected in aggregate post-transition,
- Shareholders’ Equity** is expected to be broadly stable on transition,
- A Contractual Service Margin of Euro ca. 34 billion*** is expected to be created on transition,
- The implementation is expected to result in limited reporting changes, reflecting the Group’s focus on technical lines,
- The new standards will have no impact on the Group’s cash and capital management, its Solvency II ratio, orits strategy, and
- The Group’s ‘Driving Progress 2023’ key financial targets**** are re-affirmed.
GROUP CHIEF FINANCIAL OFFICER
This announcement marks a key milestone in the IFRS 17 journey that has mobilized our Finance teams across the Group for the last few years. We expect limited impacts overall, including on our Shareholders’ Equity and on the Group’s underlying earnings power, which reflect our business model, primarily oriented towards technical and fee-based lines. We would like to thank all our colleagues who took part in this project for their unwavering commitment through the past years.
Alban de Mailly Nesle, AXA’s Chief Financial Officer, and Grégoire de Montchalin, AXA’s Chief Accounting & Reporting Officer, will be hosting an investor presentation on Thursday November 3, 2022 in AXA XL’s London offices. The presentation will start at 3:15pm GMT. Live webcast link and supporting documents will be available from 5:45pm GMT onwards on Wednesday November 2, 2022, on AXA’s website.
*These key highlights and all information in this press release and the related presentation are expressly qualified by the cautionary statements included below
**Shareholders Equity excluding Other Comprehensive Income
***Contractual Service Margin refers to a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognize as it provides insurance contract services under the insurance contracts in the Group , the quantum of which is pre-tax in this press release
****(i) Underlying earnings per share growth at the high end of the 3-7% CAGR target range between 2020E (rebased for COVID-19 and excess Natural Catastrophe losses) and 2023E, (ii) Underlying return on equity between 13% and 15% between 2021E and 2023E, (iii) Solvency II ratio at approximately 190%, (iv) cumulative cash upstream in excess of Euro 14 billion for 2021E-2023E.
Source link: https://www.axa.com/