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Member, Beacon International Group, Ltd.
PARIS—AXA Insurance U.K. P.L.C., subsidiary of Paris-based insurer AXA S.A., was placed on review with negative implications Wednesday by Standard & Poor’s Corp.
AXA Insurance U.K. has an AA- long-term insurer financial strength rating, but S&P said in a statement its decision was based on the insurer’s announcement of its partial disposal of the U.K. life portfolio and its potential effects on AXA’s overall presence in the U.K.
S&P noted that AXA Insurance U.K.’s property/casualty operations would not be affected by the planned partial disposal of the company’s life portfolio.
“The relatively low contribution of the U.K. property/casualty business to AXA’s earnings and business profile also exacerbates our uncertainty about the group’s U.K. position,” S&P analysts said in a statement. “Although the U.K. property/casualty business made up approximately 13% of AXA’s property/casualty premiums in 2009, we think its presence in this market is weaker than in other continental Europe property/casualty markets where AXA core entities hold larger market shares and generate higher profitability relative to AXA groupwide levels.”