Axa unveiled very solid 2021 results – 02/24/2022 at 08:51

(Photo credits: - L. Grassin)

(Photo credits: – L. Grassin)

(AOF) – Axa achieved a turnover of 100 billion euros in 2021, up 6% compared to 2020. Operating profit per share stood at 2.75 euros, up 61% compared to 2020. compared to 2020 and up 7% compared to 2020 on a normalized basis. The Solvency II ratio reached 217%, up 17 points compared to the end of 2020. The group will pay a dividend of 1.54 euros per share, up 8% compared to 2020. It confirms the launch of a share buyback program for a maximum amount of 0.5 billion euros.

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Key points

– World number one in insurance born in 1982;

– Revenue of €97 billion, split between France for 26%, the rest of Europe (34%), Asia (16%), international (7%) and AXA XL (damage for businesses, 20%);

– Three main activities: business damages (33% of turnover), personal protection (16%), health (15%), ahead of asset management and banking;

– Business model: develop health and personal protection, simplify the customer experience, strengthen underwriting performance, maintain the number 1 position on climate issues, increase cash flow;

– Split capital, with an employee shareholding of 4.3% (6.4% of voting rights), behind the AXA mutuals (14.95% and 24.75%), Denis Duverne chairing the Board of administration of 16 members, Thomas Buberl being managing director;

– Very solid financial position with AA-rated debt equal to 27% of shareholders’ equity and a solvency II ratio of 214% at the end of September.

Challenges

– “Driving progress 2023” plan: reduction in costs of €300 million, reduction in portfolio volatility, increase of €3 billion in free cash flow, increase in the payout rate to 55-65% and growth of 3 to 7% earnings per share;

– Innovation strategy: Axa Next ecosystem of 8 units aimed at tackling emerging and global risks, offering innovative solutions and simplifying the customer experience by focusing on BtoB initiatives

– 2 strategic priorities for 2023: health & protection (telemedicine, care coordination, specific platforms, etc.) and damage (cybersecurity, risk management platforms, particularly climate-related) / use of artificial intelligence (member of Impact IA, think French tank on responsible AI), open innovation (Give data back, etc.);

– Environmental strategy to combat climate change and protect diversity: 20% reduction in the carbon footprint linked to investments between 2021 and 2025 / green investment of €24 billion between 2020 and 2023 / launch of the 1 er green borrowing / exit in 2022 from the shale gas, oil sands and arctic exploitation sectors and new oil exploration projects excluding groups engaged in the energy transition / fight for biodiversity through underwriting and investment policies / chairman of the Net Zero Insurance Underwriting alliance;

– Continued simplification of the group, by refocusing on the main markets and disposals.

In France, the amount of contributions for the month of May 2021 has doubled compared to May 2020, rising from 5.7 billion euros to 11.4 billion euros.

The market is gradually changing due to greater investor interest in unit-linked funds, while euro funds are experiencing net outflows. In May, net inflows from unit-linked (UA) products amounted to 2.8 billion euros. Over the first five months of the year, it reached 13.7 billion euros, a level not seen for fifteen years. The share of unit-linked premiums in total premiums reached 40% in May, compared to 34% in 2020. This enthusiasm would come both from the good performance of the financial markets but also from pressure from insurers to encourage their customers to invest in this type of medium.

Another element of transformation of the sector: the market for retirement savings plans (PER) is also experiencing significant growth. 117,000 additional policyholders subscribed to a retirement savings plan in May 2021, a jump of 335% compared to the previous month.

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