AXA has $7.78 billion for acquisitions

CEO sheds light on acquisition plans – with Asia among the targets

AXA has $7.78 billion for acquisitions

Insurance News

By Paolo Taruc

AXA CEO Thomas Buberl is just 10 months into his job – but he’s already set sights on ambitious growth for the insurer. AXA will reportedly invest up to €1 billion a year in acquisitions, €5 billion (approximately S$7.78 billion) up to 2020.

“The future is growth,” said the business leader in an interview with Il Sole 24 Ore- ItalyEurope24. But Buberl clarified that spending will be “targeted,” as he ruled out big acquisitions and capital increase. The publication reported that AXA is seeking to bolster its casualty and health insurance arms, only in countries with strategic relevance.

“We will make targeted acquisitions, in casualty and health insurance, and in specific areas like Asia, or Europe, where in some countries we want to increase our market share, including Italy. Then we want to become bigger in casualty insurance in the US and in South America, for example Brazil,” said Buberl in the interview.

Buberl said there was no need for a capital increase, as the insurer generates “a lot” of cash. It also gives back from 45-55% to its shareholders while maintaining a decisively solid solvency of around 200%.

He also wants to improve the AXA’s relationship with its subscribers. 

“We are in contact every year (on average) with 20% of our clients who are, in practice, involved in a claim,” he explained. “With the remaining 80%, there is no interaction: it is toward them that we need to turn, and ask ourselves how to give them the greatest convenience possible, quality at the right price, services.”

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