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AXA reports total revenues of €76bn, strong price increases at AXA XL

5th November 2021 - Author: Luke Gallin

Global insurer and reinsurer AXA has reported a 7% rise in revenue to €76 billion for the first nine months of 2021, supported by growth of 5% within its property and casualty (P&C) operation.

axa-logoWithin P&C, AXA has reported revenue expansion to €38.5 billion for the first nine months of the year, against €38 billion a year earlier.

In commercial lines, revenue increased by 7% to €25.5 billion as a result of positive price effects.

The firm states that this solid growth in revenues was driven mainly by the AXA XL segment, mostly from continued favourable price effects of 11% and the recovery of clients’ turnover. This was somewhat offset by disciplined exposure reduction in both insurance and reinsurance, notably in property cat.

At AXA XL, price increases on renewals remained strong during the nine month period at +15% in insurance and +9% in reinsurance, which the company says is broadly in line with the price increases recorded in H1 2021.

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With the personal lines segment of AXA’s P&C division, revenues were stable at €13 billion for the first nine months of the year. Revenues increased in non-motor across all geographies, offset by lower revenues in motor driven by Europe and China.

The P&C business also felt the impacts of hurricane Ida in the U.S., which is expected to result in claims at AXA XL of roughly €400 million, before tax and net of reinsurance.

Turning to its Health operation, and total revenues increased by 4% during the first nine months of the year to €11.5 billion. Group business increased by 5% to €5.4 billion, while individual business spiked by 3% to €6.1 billion for the period.

In Life & Savings, AXA has announced revenue growth of 12% to €24.5 billion and net flows of €4.5 billion. At the same time, new business value increased by 13%, year-on-year, to €2 billion in the first nine months of 2021.

The company’s Chief Financial Officer (CFO), Alban de Mailly Nesle, commented: “AXA continued to deliver an excellent performance in the first nine months of 2021. Revenues increased overall by 7%, with all business lines and geographies contributing to this strong growth.

“In Life & Savings, revenues grew by 12% with continued focus on a high quality business mix. Growth dynamics remained strong in P&C Commercial lines, up 7%, benefiting from a favorable pricing environment, notably at AXA XL. In Asset Management, AXA IM had another very good quarter in both Core and Alts, and grew revenues by 17% in the first nine months.

“The Group’s Solvency II ratio further strengthened to 214% at the end of September. Taking into consideration the strong level of solvency and the strength of AXA’s balance sheet more broadly, and as announced in our earlier press release, the Board of Directors approved today a share buy-back program, including the immediate launch of up to Euro 1.7 billion, and an intention to launch up to a further Euro 0.5 billion in 2022 to offset earnings dilution from recent disposals.

“The Group also announced strong new commitments to contribute to the fight against climate change and to preserve biodiversity. AXA has extended its investment and insurance exclusions in Oil and Gas, as well as in activities actively contributing to deforestation, investing Euro 1.5 billion to support sustainable forests.

“These excellent achievements are the result of the collaborative work of our employees, agents and partners. I would like to thank them, as well as our clients for their continued trust and loyalty.”

Yesterday, AXA’s Board of Directors approved the launch of a share buy-back programme for up to €1.7 billion, and confirmed that it intends to launch a further share buy-back programme in 2022 for up to €0.5 billion to neutralise earnings dilution from disposals announced after December 1st, 2020.

Thomas Buberl, Chief Executive Officer (CEO) of AXA, said: “The share buy-back program announced today reflects the strength of AXA’s balance sheet, and demonstrates the Group’s financial discipline. It is also a reflection of the confidence we have in our business profile, strategy and prospects.”

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