AXA has disclosed its full-year earnings for 2023, marking a period of strategic adjustments and varied performance across its business lines.
The insurer reported a 3% increase in total gross written premiums and other revenues, reaching €102.7 billion. This growth was notably propelled by a 7% rise in its property & casualty (P&C) segment, with commercial lines experiencing a 9% uptick due to favorable pricing and increased volumes across several geographies. Personal lines also showed resilience with a 6% growth, largely attributed to positive pricing effects.
However, the firm faced challenges in its AXA XL Reinsurance segment, where premiums fell by 5%, aligning with the company's strategy to reduce exposure to natural catastrophes. The life & health sector also saw a 2% decline, with a notable 7% drop in health following the termination of two significant legacy contracts.
Excluding these developments, the health business would have seen a 7% increase. Additionally, the asset management division reported a 2% decrease, reflecting a dip in management fees due to a reduced asset base.
Transitioning to the IFRS17 standard from January 1, 2023, AXA observed a 6% rise in underlying earnings compared to the previous financial year, with a notable 14% increase in the P&C sector. The earnings per share also surged by 8% to €3.31, buoyed by the share buy-back program executed in the first half of 2023.
The company's net income soared by 45% to €7.2 billion, primarily due to heightened underlying earnings and increased net realized capital gains. Shareholders’ equity rose to €49.6 billion as of December 31, 2023, a €3.5 billion increase from the previous year, despite dividends and share buy-backs impacting the total.
In terms of solvency, AXA's Solvency II ratio improved to 227%, up 12 points from the end of 2022, reflecting a robust operating return and strategic actions to optimize its capital structure under the new “Unlock the Future” capital management policy.
Commercial and personal lines exhibited growth, with commercial premiums hitting €33.0 billion, driven by positive developments across AXA XL Insurance and other geographic areas. Personal lines also fared well, registering a 6% increase to €17.8 billion, with motor and non-motor segments performing strongly.
The life & health segment, however, navigated through a challenging landscape, with life premiums inching up by 1% amidst varying market conditions. Health premiums dipped by 7% due to the non-renewal of significant contracts, although, excluding these, the segment would have expanded by 7%.
AXA CEO Thomas Buberl commented on the results, saying that it is a continued execution of the firm’s strategy, marking the completion of AXA’s “Driving Progress 2023” plan. It is worth noting that Buberl also recently shared his intentions of scaling up the business as part of the firm’s next phase of growth.
“Today we announce our new three-year strategic plan, ‘Unlock the Future,’ building on our successful strategy that has delivered excellent performance,” he said. “We will focus on growing and strengthening our core businesses by systematically scaling our distinct capabilities across the Group to deliver even more value to all of our stakeholders.”
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