This €660m ($709.09m) deal, announced in July 2022, involved the purchase of the DBV-Winterthur Life portfolio from AXA Germany by Athora Deutschland. 

The DWL portfolio, with around €19bn in assets under administration, comprises traditional savings policies and has not been open to new business since 2013.  

AXA has decided to retain this well-capitalised and duration-matched portfolio, along with its associated earnings.  

This move is not expected to affect AXA's financial targets as outlined in its strategic plan entitled Unlock the Future. 

Athora has stated that the termination aligns with the sale agreement's terms and is a response to significant changes in financial market conditions since the deal's signing.  

Despite this, Athora remains focused on expanding its presence in the German savings and retirement services market, with €2.2bn in undrawn equity capital available for European growth. 

Concurrently, AXA announced a reinsurance agreement between its subsidiary AXA Life Europe and New Reinsurance Company.  

This agreement, covering approximately €3bn of variable annuity reserves, transfers all risks except for portfolio management expenses and longevity risk during the decumulation phase.  

AXA Life Europe, an Irish entity, manages these variable annuity products, which have been closed to new business since 2017.  

New Reinsurance Company is part of the Munich Re Group. 

The reinsurance transaction is anticipated to reduce AXA's underlying earnings by around €20m annually from 2024.  

To counteract this earnings dilution, AXA plans a €0.2bn share buyback, to be completed by the end of the year.  

The overall impact of the transaction and share buyback is expected to result in a roughly -1 point effect on AXA's Solvency II ratio.