AXA’s revenue breaches the €100 billion mark

AXA’s revenue breaches the €100 billion mark | Insurance Business

AXA’s revenue breaches the €100 billion mark
France-based insurance giant AXA has seen its revenues exceed €100 billion for the first time, with underlying earnings rising by 3% to €5.7 billion.
 
The insurer reported a total of €100.2 billion in revenue for the entire year of 2016, up from €98.1 billion for 2015.
 
According to AXA, the growth in revenue was mostly due to its life & savings and property & casualty operations. However, the growth in these areas was slightly offset by poor performance by the company’s asset management unit.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
 
“With the commitment and the engagement of our teams, we have delivered a strong performance in the first year of our new Ambition 2020 plan”, said Thomas Buberl, chief executive of AXA.
 
“We recorded €5.7 billion in underlying earnings, a growth of 4% on a per share basis, despite continued low interest rates and market volatility. We generated over €6.2 billion of operating free cash flows and our Solvency II ratio of 197% remained well within our target range.”
 
AXA showed robust growth in emerging markets, as revenue from Life & Savings was up 1% in mature markets at €56 billion, while in emerging markets, it grew by 11% to €4.3 billion.
 
Meanwhile, for Property & Casualty, mature markets grew by 2% to €27.6 billion, while emerging markets were at €5.1 billion and direct markets at €2.9 billion, each growing by 7%.
 
With regard to Asia, annual premium equivalent grew by 16%, and underlying earnings rose by 8% to €588 million.
 
Krungthai-AXA, the company’s joint venture in Thailand, received special mention, having set up a team employing 5,700 people, 80% of which are female. This allows the company to offer products aligned with women-specific financing and protection needs. In the next few years, AXA estimates that the market could grow by 5-8%, reaching €8 billion by 2030.

 
Related stories:
AXA Singapore launches third installment of mobile safety project