AXA Belgium/2024/Solvency and Financial Condition Report

Original PDF: AXA_Belgium_-_2024_-_Solvency_and_Financial_Condition_Report_2024.pdf. 10 pages.

Source. Solvency and Financial Condition Report (SFCR) of AXA Belgium for the 2024 financial year, in accordance with Article 51 of Directive 2009/138/EC and Articles 290 to 298 of Delegated Regulation (EU) 2015/35, as transposed by the law of 13 March 2016. Period covered: 12 months ended 31 December 2024. Comparison period: 12 months ended 31 December 2023. All figures EUR millions unless noted. "AXA Belgium" and the "Company" refer to AXA Belgium S.A./N.V. "AXA Group", "AXA", and the "Group" refer to AXA S.A., the listed parent company of the AXA Group, together with its consolidated subsidiaries. ^{p. 1}

Key Figures

Key figures for AXA Belgium, 2024 vs 2023 ^{p. 1}
EUR m (except solvency ratio)	2024	2023
Income statement data — Total turnover	4,068	3,805
Operating result (incl. financial result, before tax)	352	369
Net result	269	301
Balance sheet data — Total assets	37,361	37,412
Available capital	3,568	3,526
Required capital data — Solvency Capital Requirement (SCR)	1,814	1,788
Solvency II Ratio	197%	197%

Summary

Annual turnover 2024: EUR 4,068m, +6.9% vs 2023 ^{p. 2}
AXA Belgium re-entered the investment insurance market in 2024 with a new flexible product offering investment in both Branch 21 and Branch 23, allowing clients to accumulate savings and disinvest according to their needs ^{p. 2}
Solvency ratio: 197% ^{p. 2}
Non-Life segment turnover (incl. Health): +EUR 161m to EUR 2,654m, mainly on non-life line following legal tariff indexation and collective health insurance ^{p. 2}
Life & Protection segment turnover: +EUR 102m to EUR 1,414m, mainly on return to the individual investment products market ^{p. 2}
Operating result¹: -EUR 16m to EUR 352m ^{p. 2}
- Life & Protection operating result: EUR 270m, +EUR 88m ^{p. 2}
- Non-Life operating result: EUR 83m, -EUR 104m ^{p. 2}
¹ Operating result (here before tax) is an alternative performance indicator used by the AXA Group. It corresponds to the difference between company revenues (incl. dividends and interest received on investments) and operating charges (claims, commissions, general expenses, etc.); excludes items such as realized capital gains/losses on investments, provisions for impairment of investments, gains/losses on financial assets at fair value through P&L. ^{p. 2}

Governance

Management structure at end-2024: Board of Directors and a Management Committee ^{p. 3}
Board of Directors has three specialized committees: Audit Committee, Risk Committee, Nomination and Remuneration Committee ^{p. 3}
AXA Belgium operates with 4 key independent control functions per Solvency II: Risk Management, Internal Audit, Compliance, Actuarial Function ^{p. 3}
Key function holders have direct access to the Board of Directors ^{p. 3}
Risk Management is represented on the Management Committee by the Chief Risk Officer (CRO) ^{p. 3}
Enterprise risk management framework rests on five interconnected pillars supported by a strong risk culture ^{p. 3}:
- Independence and adequacy of risk management: CRO independent of operations (first line of defense) and internal audit (third line of defense); Risk Management, Compliance & Internal Control, and Actuarial Function constitute the second line of defense ^{p. 3}
- Common risk appetite framework ^{p. 3}
- Systematic second opinion on key processes ^{p. 3}
- Use of the Internal Model based on a robust measure of economic capital ^{p. 3}
- Proactive risk management ^{p. 3}
Global internal control system ensures executive leaders are informed of material risks, have tools to analyze and manage them, and that Company and Group financial statements are accurate ^{p. 3}
No significant changes to management structure in 2024 ^{p. 3}

Risk Profile

The AXA Group internal model provides a tool to control and measure risk exposure per Solvency II ^{p. 4}
Three categories of risks to which AXA Belgium is exposed ^{p. 4}:

Risks related to financial markets and financial position

Main financial risks: interest rate, inflation, spread, and equity risks; credit risk; liquidity risk ^{p. 4}

Risks related to the nature of activities, products, and operations

Insurance risks for Life and Non-Life covered through 4 processes ^{p. 4}:
- Risk controls on new products complementing underwriting rules and profitability analyses ^{p. 4}
- Optimization of reinsurance strategies to limit maximum exposures, protect solvency, reduce volatility, and decrease risks ^{p. 4}
- Review of technical reserves, including roll-forward analysis ^{p. 4}
- Monitoring of emerging risks to share expertise within underwriting and risk management communities ^{p. 4}

Risks related to the evolving regulatory and competitive environment

Also considers reputational risk, strategic risk, regulatory risk, emerging threats, and impact of adverse transversal scenarios ^{p. 4}

Solvency II Balance Sheet — Valuation Basis

Caption: Valuation basis for the Solvency II balance sheet ^{p. 5}

Solvency II balance sheet prepared as of 31 December, under Solvency II regulations ^{p. 5}
Assets and liabilities valued on a going concern assumption ^{p. 5}
Technical provisions account for all insurance and reinsurance obligations; value corresponds to the amount payable if transferring commitments immediately to another insurer ^{p. 5}
Other assets and liabilities accounted for under IFRS standards and IFRIC interpretations approved by the EU before the closing date with mandatory application 1 January 2022, provided valuation methods comply with Article 75 of Solvency II Directive 2009/138/EC ^{p. 5}:
- Assets valued at the amount exchangeable between well-informed, willing parties in arm's length transactions ^{p. 5}
- Liabilities valued at the amount transferable or settled between well-informed, willing parties (without adjustment for own credit risk) ^{p. 5}
No material changes in valuation method during the period ^{p. 5}

Capital Management

Solvency position remains solid in 2024; Solvency II ratio 197% at 31 December 2024, unchanged from 2023 ^{p. 6}
Stability explained by a decrease in investment performance, offset by an increase in technical performance ^{p. 6}
Eligible Own Funds (EOF): total capital valued on an economic basis after tiering rules, increased from EUR 3,526m at 31 December 2023 to EUR 3,568m at 31 December 2024 ^{p. 6}
Economic capital composed of Tier 1 items for EUR 3,568m; no Tier 3 items at end-2024, no deferred tax assets, no ancillary own funds, no items subject to transitional measures, no subordinated debt ^{p. 6}
Solvency Capital Requirement (SCR) at 31 December 2024: EUR 1,814m (after tax) ^{p. 6}
Minimum Capital Requirement (MCR) at 31 December 2024: EUR 816m (+EUR 11m vs 2023) ^{p. 6}
Significant events during 2024 impacting capital management are in section "A1 Activity — significant events" ^{p. 6}

Activity

General Information

AXA Belgium S.A./N.V. is a Belgian public limited insurance company ^{p. 8}
94.93% owned by AXA Holdings Belgium (Belgian public limited company, registered office in Belgium), itself 100% owned by AXA S.A. (French public limited company) ^{p. 8}
Business: supporting clients (individuals, SMEs, large companies) with insurance, provident, and savings products and services ^{p. 8}

Supervisory Authority

Activity supervised under European directives, Belgian legislation and regulation ^{p. 8}
Main public regulatory and supervisory authorities for the financial sector: Banque Nationale de Belgique (BNB), Autorité des Services et Marchés Financiers (FSMA), and Fonds des Accidents du Travail (FAT), now FEDRIS (Agence Fédérale Des Risques professionnels) since 2017 ^{p. 8}
BNB: Rue de Berlaimont 14, 1000 Brussels, Belgium; Tel: +32 (0)2 221 21 11 ^{p. 8}
FSMA: Rue du Congrès 12-14, 1000 Brussels, Belgium; Tel: +32 (0)2 220 52 11 ^{p. 8}
FEDRIS: Rue du Trône 100, 1050 Brussels, Belgium; Tel: +32 (0)2 506 84 48 ^{p. 8}
AXA Group's main supervisory authority: Autorité de Contrôle Prudentiel et de Résolution (ACPR), 61 rue Taitbout, 75436 Paris Cedex 9, France; Tel: +33 (0)1 49 95 40 00 ^{p. 9}

Statutory Auditors

Statutory auditors: EY, Réviseurs d'Entreprises, SRL (B00160), Kouterveldstraat 7B, 1831 Diegem, represented by Messrs. Joeri Klaykens and Jean-François Hubin; affiliated with the Institut des Réviseurs d'Entreprises in Brussels ^{p. 9}

Principal Shareholders and Related Parties

AXA Belgium 94.93% owned by AXA Holdings Belgium, itself 100% subsidiary of AXA S.A.; AXA S.A. also holds 5.07% of AXA Belgium's capital directly ^{p. 9}
Subscribed and called-up capital at 31 December 2024: EUR 163m; shares have no par value; number of shares: 312,789 ^{p. 9}

Principal Related Companies

Principal related companies — ownership structure ^{p. 9}
Parent company and subsidiaries (insurance companies)	Legal Form	Country	31 Dec 2024 % voting rights	31 Dec 2024 % Group interest	31 Dec 2023 % voting rights	31 Dec 2023 % Group interest
AXA Belgium	Société anonyme	Belgium	Parent Company	Parent Company	Parent Company	Parent Company
Yuzzu	Société anonyme	Belgium	99.87	99.87	99.87	99.87
Crelan Insurance	Société anonyme	Belgium	0	0	100	100

Simplified Organizational Chart at 31 December 2024

AXA SA (F) owns 100% of AXA Holdings Belgium ^{p. 10}
AXA SA (F) owns 5.07% of AXA Belgium ^{p. 10}
AXA Holdings Belgium owns 94.93% of AXA Belgium ^{p. 10}
AXA Holdings Belgium owns 0.13% of Yuzzu ^{p. 10}
AXA Belgium owns 99.87% of Yuzzu ^{p. 10}
AXA Holdings Belgium owns 99.99% of AXA Luxembourg (Holding) (L) ^{p. 10}
AXA Belgium owns 0.01% of AXA Luxembourg (Holding) (L) ^{p. 10}
AXA Luxembourg (Holding) (L) owns 99.99% of AXA Assurances Luxembourg (L) ^{p. 10}
AXA Luxembourg (Holding) (L) owns 0.01% of AXA Assurances Vie Luxembourg (L) ^{p. 10}
AXA Assurances Luxembourg (L) owns 0.01% of AXA Assurances Vie Luxembourg (L) ^{p. 10}

Activity Overview

Life, Savings & Retirement: operates only in Belgium; products include whole life, guaranteed capital, deferred annuities, immediate annuities, and protection products sold to individuals and companies ^{p. 10}
Non-Life: operates mainly in Belgium; products include motor, home, property, civil liability, and health for individuals and companies; also offers technical services to support prevention policies in companies ^{p. 10}

Notes

ACPR: Autorité de Contrôle Prudentiel et de Résolution
BNB: Banque Nationale de Belgique
CRO: Chief Risk Officer
EOF: Eligible Own Funds
FAT: Fonds des Accidents du Travail
FEDRIS: Agence Fédérale Des Risques professionnels
FSMA: Autorité des Services et Marchés Financiers
IFRIC: International Financial Reporting Interpretations Committee
MCR: Minimum Capital Requirement
SCR: Solvency Capital Requirement
SFCR: Solvency and Financial Condition Report
SMEs: Small and Medium-sized Enterprises
Operating result (before tax): An alternative performance indicator used by the AXA Group. It corresponds to the difference between company revenues (incl. dividends and interest received on investments) and operating charges (claims, commissions, general expenses, etc.); excludes items such as realized capital gains/losses on investments, provisions for impairment of investments, gains/losses on financial assets at fair value through P&L. ^{p. 2}