Standard & Poor's has raised its long-term counterparty credit and insurer financial strength ratings on AXA Insurance UK to 'AA-' from 'A+'. The outlook is stable. At the same time, the 'A+' long-term counterparty credit and insurer financial strength ratings on related entity AXA General Insurance were withdrawn.
"The upgrade of AXA Insurance UK reflects our view that it is now core to the AXA group, where previously it had been considered strategically important," said Standard & Poor's credit analyst Nigel Bond.
The ratings on AXA General Insurance have been withdrawn at the request of the company on account of it no longer writing any new business and therefore not requiring a rating.
The stable outlook reflects S&P's expectation that the AXA group will maintain its strong financial profile despite the execution risk associated with the acquisition of Winterthur Swiss Insurance and its subsidiaries.
The outlook might be revised to positive if, over the coming months, the integration of Winterthur proceeds without any negative impact on AXA's financial profile, or if the acquisition does not go ahead. Conversely, if AXA's operating performance and capitalization materially worsen, the outlook could be revised to negative.
