Half Year 2024 Earnings
August 1, 2024
published at 6:30 PM CEST
- Gross written premiums & other revenues* at Euro 59.9 billion, up +7% vs. 1H23
- Underlying earnings** at Euro 4.2 billion, up +4% vs. 1H23
- Underlying earnings per share** at Euro 1.87, up +4% vs. 1H23
- Solvency II ratio3 at 227%, stable vs. FY23***
- Strategic decision to sell AXA Investment Managers and to enter into a long-term investment management partnership with BNP Paribas****
- AXA also announces the acquisition of Nobis*****, a Retail P&C insurance business in Italy
Thomas Buberl
Chief Executive Officer of AXA
AXA has made a good start to its new strategic plan ‘Unlock the Future’. In the first half of 2024, we have achieved +7% organic revenue growth and a +4% increase in underlying earnings per share. This reflects the strength of our business model, which is balanced between Commercial and Retail lines, and diversified across geographies. This gives us confidence in achieving an underlying earnings per share growth by year-end that will be in line with the 6% to 8% plan target******.
We have delivered strong growth across all lines of business, leveraging the attractive positioning of our franchise and a positive initial contribution from growth initiatives. P&C revenues were up 7%, with continued good demand, notably in Commercial lines, and positive pricing dynamics across all lines. Life & Health premiums were also up 7%, including targeted growth in Employee Benefits. The planned acquisition of Nobis announced today is expected to further strengthen our P&C Retail franchise in Italy, including the expansion of our distribution network, which is one of the key levers of our strategy.
Group underlying earnings were Euro 4.2 billion, driven by 7% earnings growth from our operating businesses, including strong profitability in Commercial lines and good progress on the short-term margin improvement plan in P&C Retail and UK Health. In line with our strategy, we are also investing for the long term, notably in technology and growth initiatives, which will support the successful execution of the plan.
We have also taken a strategic decision to exit asset management with the intention to sell AXA IM to BNP Paribas. We intend to offset the resulting earnings dilution with a share buy-back, and we are affirming the key financial targets of our new strategic plan. We further intend to enter into a long-term investment management agreement with BNP Paribas that would provide a wider range of investment solutions to AXA and its customers.
I would like to thank all our colleagues, agents and partners for their commitment and support, as well as our customers for their continued trust.
*Change in Gross Written Premiums & Other Revenues, New Business Value (“NBV”), Present Value of Expected Premiums (“PVEP”) and New Business Value Margin (“NBV Margin”) is on a comparable basis (constant forex, scope and methodology), unless otherwise indicated.
**“Underlying earnings”, “underlying earnings per share”, “combined ratio, “underlying return on equity” and “debt gearing” are alternative performance measures (“APMs”) as defined in ESMA’s guidelines and the AMF’s related position statement issued in 2015. Relevant reconciliations of such APMs to the most closely related line item, subtotal, or total in the financial statements of the corresponding period (and/or their calculation methodology, as applicable) can be found in AXA’s Half-Year Financial Report as of June 30, 2024, on the pages indicated under the heading “IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP AND ALTERNATIVE PERFORMANCE MEASURES” and in the Glossary set forth in AXA’s 2023 Universal Registration Document.
***The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200-year shock. It includes a theoretical amount for dividends and share buy-backs accrued for the first six months of 2024, based on the full-year dividend of Euro 1.98 per share and annual share buy-back of Euro 1.1 billion paid in 2024 for FY23. Dividends and share buy-backs are proposed by the Board, at its discretion based on a variety of factors described in AXA’s 2023 Universal Registration Document, and then submitted to AXA’s shareholders for approval. This estimate should not be considered in any way to be an indication of the actual dividend and share buy-back amounts, if any, for the 2024 financial year. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXA Group’s SFCR as of December 31, 2023, available on AXA’s website (www.axa.com).
****The completion of the transaction is subject to customary closing conditions, including the information and consultation of employees’ representative bodies, followed by the signing of the Share Purchase Agreement and the receipt of regulatory approvals, and is expected to be finalized by the second quarter of 2025. Please refer to the Press Release “AXA enters into an exclusive negotiation to sell AXA Investment Managers to BNP Paribas” published on August 1, 2024, and available on AXA’s website (www.axa.com).
*****The completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place before the end of first half of 2025. Please refer to the Press Release “AXA expand its Retail P&C operations in Italy with the acquisition of Nobis Group” published on August 1, 2024, and available on AXA’s website (www.axa.com).
******6-8% compounded annual growth rate target range over 2023- 2026E.
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