AXA's SII ratio rises four points to 201%

Written by Adam Cadle

03/08/2017

AXA's Solvency II ratio rose by four points to 201 per cent in the first half of 2017 versus 192 per cent in FY16, mainly driven by a strong operating return contribution net of estimated dividend accrual.

The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect 1 January 2016.

According to the insurer's latest financial results invested assets amounted to €575bn as at 30 June 2017 down from €583bn as of December 2016. The changes are mainly linked to the impact of the appreciation of the euro against major currencies and the in interest rates on fixed income assets.

The asset allocation remained broadly stable, mostly geared towards government bonds and high quality corporate bonds (average rating in the A range). Annualised asset yields on the investment portfolio were 3.1 per cent in life and savings and 3.4 per cent in property and casualty benefiting from average asset durations of 8.2 years and 5.5 years respectively.

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