AXA unveils full-year financial results | Insurance Business Asia
AXA has released its full-year 2021 (FY21) results, boasting strong revenue growth and excellent performance, thanks to certain key strategies.
For the full FY21, AXA’s total gross revenue hit €99,931 million, up 6% from €96,723 million in 2020 (FY20), with revenue growth across all business lines:
- Property and casualty (P&C): 3% revenue growth from FY20, with commercial lines up 5% mainly due to favourable price effects, notably at AXA XL, and stable revenue in personal lines;
- Health: Up 5% from FY20, with continued revenue growth across most geographies, primarily in group business in France;
- Life and savings: Up 9% from FY20, reflecting solid performance in individual savings in France, mostly unit-linked. It also saw strong revenue growth in Asia, primarily in Japan and Hong Kong; and
- Asset management: Up 20% from FY20 due to higher management and performance fees.
During the same period, AXA’s underlying earnings reached €6,762 million, a dramatic increase of 61% from €4,264 million in FY20, driven by growth in all business lines:
- P&C: Up 151% from FY20, mostly due to the non-repeat of the impact of COVID-19-related claims in 2020 and solid underwriting result, notably at AXA XL;
- Health: Up 2% from FY20, mainly due to higher volumes across most geographies and lower taxes, partly offset by higher claims in Mexico;
- Life and savings: Up 3% from FY20, primarily linked to higher fees and revenues and a higher net technical margin; and
- Asset management: Up 25% from FY20, reflecting a solid revenue growth combined with a lower cost-income ratio.
AXA CEO Thomas Buberl commented that AXA delivered excellent performance in FY21, thanks to its strategy that has transformed and simplified the group.
“AXA is focused on growing highly cash generative businesses while limiting volatility and on executing ambitious capital management and in-force initiatives in order to support a sustained and attractive return,” Buberl said.
Considering AXA’s strong operational performance and balance sheet, its board of directors proposed a dividend of €1.54 per share, up 8% from last year, corresponding to a payout ratio of 56%.
“I am proud of the group’s performance in 2021 and through the COVID-19 crisis, reflecting the relevance of our strategy, the strong engagement of our people, agents and partners, and the continued trust of our clients,” Buberl said.
“AXA is delivering on all five strategic actions of its ‘Driving progress 2023’ plan. We expect to deliver at the high end of our earnings growth target range and exceed our cumulative cash upstream target under our plan.”