Report AXA to Increase Corporate Solutions Unit’s Capital

April 15, 2002

A report from Dow Jones indicates that France’s AXA Group plans to increase the capitalization of its Corporate Solutions Division with a cash injection of between € 500 million and € 1 billion ($441 million and $882 million).

The Division, formed in 2000, groups reinsurance, ART’s and other forms of specialized products. It suffered losses last year of around $310 million, mainly from the Sept. 11 attacks. AXA Group’s earnings were cut in half by last year’s tumultuous events.

No official announcement of the capital increase has been made, and the article indicates that details are still being discussed. It speculates, however that, while AXA maintains that the funds for the recapitalization will come from within the group, there’s a possibility that it may sell a minority stake in AXA Corporate Solutions as part of the the plan to increase capital.

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