Fitch Ratings said AXA's proposed acquisition of the minority interest in its Australia-based subsidiary AXA Asia Pacific Holdings (AXA APH) would have a limited negative impact on the group's financial profile.
AXA's bid is for a consideration of AUS$3.1bn, made up of 50% cash and 50% AXA equity issue. Fitch said it expected this to have a manageable impact in the group's capital adequacy and debt leverage.
In addition, Fitch said executive risks were low as AXA had been AXA APH's majority shareholder since 1995.
Over the past three years AXA APH recorded a major recovery in new business and retail fund inflows, said Fitch, while success had also been achieved in reducing expense levels.
The ratings agency said it expected further progress to be made in the near and medium term.
