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Axa expects to exceed pre-crisis levels in 2021

2021-08-02T16:45:28.159Z

The insurer also announced on Monday that the board of directors had offered to renew Thomas Buberl as its head.



The sky for Axa has cleared.

In the first half of the year, the second European insurer behind Allianz completely erased the traces of the health crisis which cost it 1.5 billion euros in 2020. It thus generated a net profit of 4 billion euros, an increase of 180% compared to last year and especially 71% compared to 2019, before the pandemic.

Turnover increased by 7% (54 billion euros).

Read also: Axa innovates in healthcare with a service platform

"

 It's an excellent performance, made possible by an extremely dynamic commercial activity 

," said Alban de Mailly Nesle, Chief Financial Officer of Axa. In fact, the property and casualty activities which suffered from the crisis last year have moved forward. Just like the subsidiary Axa XL, specializing in non-life insurance for businesses and seriously abused last year. In the first half, it came out of the red with an operating profit of 619 million euros, against an operating loss of 843 million euros a year earlier. "

 The determined actions put in place by the new management are bearing fruit, 

" explains Thomas Buberl, CEO of Axa, to Figaro.

The board will propose to renew Thomas Buberl

Axa XL reviewed the portfolios, increased rates (+ 15% in insurance) and demonstrated better risk selectivity. “

 Axa XL is on track to achieve its profit target of 1.2 billion euros in 2021 and generate sustained and profitable growth in the years to come, 

” adds Thomas Buberl. "

 The 40% increase in Axa XL's operating profit (excluding the impact of Covid-19) is a particularly pleasing real force 

", stress analysts at Jefferies. What about Axa XL's reinsurance business, rumored to be for sale? “

 Reinsurance is an important activity, which allows us to be present in certain markets where we are not 

», Replies Thomas Buberl.

Axa's good performance is also linked to that of its asset management subsidiary, Axa IM, whose operating profit increased by 32%.

On the strength of these solid results, the insurance giant remains very confident for the rest of the year.

"

 If we take the first half as an indicator, we should achieve an annual result higher than pre-crisis levels 

", argues Thomas Buberl.

The floods that hit Germany and Belgium in July will certainly cost the group around 400 million (before tax) in the second half of the year.

Read also: Covid-19: the insurer Axa condemned for the first time in appeal to compensate a restaurateur

In addition, after a year of arm wrestling with its restaurant customers, who are demanding compensation for operating losses linked to the closure of their businesses during the pandemic, the insurer is in the process of settling the conflict. About half of the customers concerned approached the group for an amicable transaction. “

 The Covid cost Axa in its entirety 1.5 billion euros,” recalls Thomas Buberl. Axa has 100 million customers and we are going to devote 300 million to 15,000 of them in order to put this subject behind us. It is still a very high level. 

"

Almost a year ahead of schedule, the board of directors has decided to propose the renewal of the mandate of Thomas Buberl, for a period of four years, at the next general meeting of shareholders in April 2022. The manager Franco-German took the helm of Axa in 2016. “

 The profound transformation of Axa led by Thomas Buberl and all the teams has enabled the group to face an unparalleled health and economic crisis, to be very well positioned to meet the new challenges of insurance and accelerate its development, 

”said Denis Duverne, Chairman of the Board in a press release. Axa shares ended Monday at the top of the CAC 40, gaining more than 5%.

Source: lefigaro

All business articles on 2021-08-02

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