Underlying earnings rose 6% to 8 billion euros last year, just ahead of analysts’ estimates, while net income rose by 10%
Axa plans to repurchase as much as 1.2 billion euros (S$1.68 billion) of stock this year and raise its dividend by 9 per cent, rewarding shareholders after the French insurer reported better-than-expected earnings fuelled by growth in its property and life insurance businesses.
The buyback is in addition to the already-announced 3.8 billion euro repurchase planned after Axa completes the sale of its investment management business to BNP Paribas by the end of June, the company said in a statement on Thursday (Feb 27).
Underlying earnings rose 6 per cent to 8 billion euros last year, just ahead of analysts’ estimates, while net income rose by 10 per cent. Estimated pretax losses from the January wildfires in California are100 million euros.
Axa said it’s on track to meet the targets in strategic plan. It aims for 6 per cent to 8 per cent average growth in underlying earnings per share from 2023 until 2026, and to reach an underlying return on equity of 14 per cent to 16 per cent for the period between 2024 and 2026.
Swiss rival Zurich Insurance announced last week net income last year rose 34 per cent to US$5.81 billion. German rival Allianz is scheduled to report earnings on Friday.
Axa will pay a dividend of 2.15 euros a share, up from the 1.98 euros paid last year.
Since taking over in 2016, Thomas Buberl has shifted the insurer’s focus from life insurance to property, casualty and health insurance in a bid to make Axa less sensitive to financial markets. The life insurance business model is highly dependent on fluctuations in interest rates.
On Tuesday, S&P changed its outlook for Axa to positive from stable while affirming its long-term A+ rating. “AXA Group’s capital-light growth strategy, continuous expected profit growth, and retained earnings in 2024-2026 will strengthen the group’s capitalisation,” the rating agency said in a statement. The expected AXA Investment Managers sale will “also provide modest but positive contribution to AXA Group’s capital adequacy.”
Shares of Axa have risen 11 per cent this year, in line with the performance of the Stoxx Europe 600 Insurance Index. BLOOMBERG
Share with us your feedback on BT’s products and services
