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AXA’s revenue crosses €100bn for first time

IBR Staff Writer Published 24 February 2017

French insurance giant AXA saw its revenues cross €100bn for the first time with underlying earnings increasing by 3% to stand at €5.7bn.

The multinational insurer reported total revenue of €100.2bn for the full year 2016 which marked an increase by 2% in comparison to the €98.1bn earned in 2015.

AXA has attributed the increase in revenues to the growth recorded by its life & savings and property & casualty which could have been much higher but for the slight offset caused by the asset management unit.

AXA CEO Thomas Buberl said: “With the commitment and the engagement of our teams, we have delivered a strong performance in the first year of our new Ambition 2020 plan.

“We recorded €5.7bn in underlying earnings, a growth of 4% on a per share basis, despite continued low interest rates and market volatility. We generated over €6.2bn of operating free cash flows and our Solvency II ratio of 197% remained well within our target range.

Buberl concluded that the company’s board has proposed an increased dividend by 5% to €1.16 per share which reflects to a payout ratio of 48%.

AXA’s revenues from Life & Savings were up by 2% to €60.3bn in comparison to €58.9bn earned in FY2015. In mature markets, the Life & Savings brought AXA revenue of €56bn with a 1% increase while in emerging markets it grew by 11% to €4.3bn compared to the figures in FY2015.

The Property & Casualty unit of AXA saw 3% increase in its FY2016 revenue to €35.6bn from the FY2015 revenue of €34.8bn. In mature markets, the growth was 2% to 27.6bn while the growth in direct and emerging markets was 7% each at €2.9bn and €5.1bn respectively.

It was the Asset Management unit that had a decline, at 3% with the FY2016 revenue dropping to €3.7bn from the FY2015 revenue of €3.8bn. AXA stated that the offset was caused by the lower average assets under management which included the effect of Friends Life portfolio’s withdrawal.

Image: AXA’s Italian headquarters in Milan. Photo: courtesy of Kokky92/Wikipedia.org.