AXA is starting to see more clearly about the impact of the Covid-19 pandemic on its accounts. And the note promises to be high. In fact, the number two European insurance company expects for this year an increase in the cost of claims of 1.2 billion euros, after tax and net of reinsurance. To which will be added 300 million euros linked to the solidarity measures put in place (extended health and disability cover for the most vulnerable customers).
Read also: Covid-19: impact of 1.5 billion euros after tax on Axa's operating profit
In total, its operating profit could melt by 20% in 2020 (or 1.5 billion euros) compared to 2019, the company announced on Wednesday. "This is the best possible estimate of the risks ," explains Étienne Bouas-Laurent, Chief Financial Officer of AXA. But these figures could change if the pandemic were to undergo a second wave. We remain very cautious as we have suffered a global systemic shock. ”
French heavyweight will be mainly impacted by business interruption insurance lines
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