AXA Releases Strong H1 2023 Financial Results, Remains Focused on Sustainable Growth

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In a recent announcement, AXA, the insurance giant, revealed its first-half financial results for 2023, showcasing another successful performance and highlighting the strength of its business model. According to CEO Thomas Buberl, the company delivered a “robust growth” in technical lines and achieved a return on equity of 16.6%.

Among the key figures, AXA reported total gross written premiums and other revenues of €55.7 billion in H1 2023, representing a 2% increase compared to the same period in 2022. The property and casualty business saw remarkable growth of 7%, reaching €30.4 billion, with commercial lines driving a substantial part of this growth, up 9%. The increase was attributed to favorable price effects and higher volumes across AXA’s main geographies. Personal lines also saw a healthy 5% growth, primarily driven by favorable pricing effects.

However, the life and health segment experienced a dip of 3%, with health down 6% due to non-renewals of two large legacy contracts, and life down 1% due to lower premiums in savings. Additionally, the asset management division faced a decline of 5% due to lower management fees.

Looking ahead, AXA expressed confidence in maintaining strong underwriting margins in both commercial and personal lines, supported by pricing actions and cost discipline. The company remains focused on delivering sustainable and attractive property and casualty results over the cycle. Despite the challenges posed by natural catastrophe charges and the prevailing high-interest rate environment, AXA is committed to maintaining a prudent stance on reserving.

In terms of outlook for the health arm, AXA expects claims frequency in the UK to remain elevated in the second half, gradually mitigated by price increases.

 

Despite the dip in some segments, AXA’s underlying earnings for the period reached €4.1 billion, showcasing the company’s robust operational performance and capacity to deliver consistent results even in a volatile environment. The CEO emphasized that AXA’s business model remains strong, generating attractive margins through disciplined pricing.

Furthermore, AXA’s focus on sustainability and environmental responsibility was highlighted, with the recent announcement of ambitious climate targets and decarbonization goals set for its P&C insurance portfolio. The company plans to collaborate with clients and stakeholders to support the transition to a low-carbon economy.

In conclusion, CEO Thomas Buberl thanked all colleagues, agents, partners, and customers for their dedication and continued support, reaffirming the company’s commitment to executing its strategy and achieving long-term revenue and profit growth. AXA remains confident in its capacity to thrive in the face of challenges while working towards a sustainable and successful future.


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