ข่าวประชาสัมพันธ์การเงิน/หลักทรัพย์

Japan-Based AXA Life Outlook Revised Upward To Positive After Resolution Of CreditWatch On Entities Of Parent Group

          TOKYO (S&P Global Ratings) July 11, 2018--S&P Global Ratings today said it has revised its outlook on Japan-based AXA Life Insurance Co. Ltd. (AXA Life) to positive from stable, in line with that on the long-term sovereign rating on Japan. At the same time, we affirmed our 'A+' financial strength and long-term issuer credit ratings on AXA Life. The outlook revision follows the resolution of our CreditWatch placement on most entities of France-based insurance group AXA. 
          On March 6, we placed on CreditWatch with negative implications our ratings on the holding company of the AXA insurance group and most of its operating entities, which we view as core or highly strategic, after the group announced its plan to acquire commercial non-life insurer XL Group Ltd. On July 10, we resolved the CreditWatch placement and affirmed the ratings with stable outlooks. 
          We view AXA Life as a core subsidiary of the AXA group. However, the ratings on AXA Life are constrained by the sovereign ratings on Japan, in our view, because the insurer's asset portfolio is weighted relatively heavily in domestic assets and its business is highly dependent on the domestic market. Because of this constraint, our ratings on AXA Life are one notch lower than the 'AA-' ratings on the other core subsidiaries of the AXA group. On April 13, we revised to positive from stable the outlook on the 'A+' long-term sovereign rating on Japan, but we did not change the outlook on AXA Life immediately because of our CreditWatch placement of the other core subsidiaries of the AXA group with the possibility of a one-notch downgrade at that time. 
          The positive outlook on our ratings on AXA Life reflects that on our sovereign ratings on Japan. We may upgrade AXA Life if we raise our sovereign ratings on Japan within the next two years and maintain our current ratings on the other core subsidiaries of the AXA group. We may revise downward to stable the outlook on AXA Life if we revise the outlook on the sovereign ratings on Japan to stable, or if we downgrade the other core subsidiaries of the AXA group by one notch, within the next two years.