By Marc Bisbal Arias 
 

AXA SA (CS.FR) said Tuesday that it will transform its Swiss group life business to a semi-autonomous model from a full-value insurance model by the end of the year.

The French insurer said that a semi-autonomous model involves contracts covering death and disability benefits, as well as administration services. Contracts under the full-value insurance model also cover guaranteed savings and annuity benefits, it said.

Under the new model, AXA will cover death and disability provisions and administration services, but the company's main occupational benefits foundations will be responsible for asset allocation and investment returns to policyholders.

"In the prevailing environment, this re-orientation should enable us to offer our Swiss SME clients more attractive occupational benefits solutions creating prospects of higher pensions on retirement, at lower costs," AXA's Chief Executive in Europe Antimo Perretta said.

As part of the transformation, AXA will transfer most of its in-force general account reserves of about 31 billion Swiss francs ($32.3 billion), backing pre-retirement savings benefits in its group-life portfolio to the foundations.

The portfolio transfer will cause a one-time negative impact in net income of about CHF400 million in the first half of 2018, the insurer said.

 

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

 

(END) Dow Jones Newswires

April 10, 2018 01:56 ET (05:56 GMT)

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