AXA, in accordance with the terms of the applicable shareholders’ annual general meeting authorisation, has executed a share repurchase agreement with an unnamed investment services provider.
In a release, the international insurer said: “AXA will buy back its own shares for a maximum amount of €1.6 billion, reflecting: €1.1 billion share buy-back, in line with its new capital management policy, as announced on February 22, 2024; €0.5 billion anti-dilutive share buy-back related to the reinsurance agreement for an in-force savings portfolio at AXA France, as announced on December 20, 2023.”
Under the announced agreement, shares will be bought back commencing today, February 26, and ending at the latest on August 5.
“On each day during the purchase period, the price per share to be paid by AXA will be determined on the basis of the volume-weighted average share price,” the company went on to say. “AXA intends to cancel all shares repurchased pursuant to this share buy-back program.”
The purchase price, according to AXA, will not exceed the maximum price approved at the applicable shareholders’ annual general meeting.
Last week, fellow global insurer Allianz announced a new share buy-back program as well.
“Allianz SE has resolved on a new share buy-back program,” the German group said on February 22. “The volume of such new program will amount to up to €1 billion. The program shall start in early March 2024 and be finalised by December 31, 2024, at the latest. Allianz SE will cancel all repurchased shares.”
At the time, Allianz also outlined an amendment to its dividend policy.
“Allianz SE strives to offer attractive dividends to its shareholders,” the company said. “The framework for this is determined by our net income and the need for an adequate capitalisation.
“The regular payout is increased from 50 % to 60 % of Allianz Group net income (attributable to shareholders), adjusted for extraordinary and volatile items, e.g. amortisation of intangible assets from business combinations, interest expenses from RT1 (restricted tier 1) bonds, gains and losses from sale of operations, and non-operating market movements.”
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