The health crisis is costing Axa dearly. The second European insurer behind Allianz confirmed on Thursday that the bill currently stands at 1.5 billion euros: it will pay 1.2 billion euros to reimburse claims, essentially compensation for operating losses corporate clients (not only in France) and cancellation of insured events. In addition, 300 million euros will be linked to solidarity measures. The rating could be revised upwards in the event of a second wave of the pandemic.
These charges weighed heavily on Axa's net income, which plunged 39% to 1.4 billion euros, from 2.3 billion euros a year earlier. As a result, the group has waived two of its financial targets for this year: target for operating income per share and current return on equity. But it maintains its ambitions in terms of solvency. "The Covid has impacted our results, but not our financial strength," explains Thursday
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