AXA announces full-year 2023 financial results

AXA announced its full-year 2023 earnings, revealing a period of strategic adjustments and mixed performance across its business lines.

The insurer reported a 3% increase in gross written premiums and other income to €102.7 billion. This growth was particularly driven by a 7% increase in the property and casualty insurance (P&C) division, while commercial lines experienced a 9% increase due to favorable pricing and increased volumes in several regions. The personal line also showed resilience with 6% growth, but this was mainly due to a positive price effect.

However, the company faced challenges in its AXA XL reinsurance division, where premiums fell by 5% in line with the company's strategy to reduce exposure to natural catastrophes. The life and health sector also saw a significant decline of 7% in the health sector due to the termination of two important legacy contracts, with a decline of 2%.

Excluding these developments, the healthcare business would have increased 7%. Additionally, the Asset Management segment reported a decrease of 2%, reflecting lower management fees due to a smaller asset base.

AXA, which transitioned to the IFRS17 standard from January 1, 2023, saw underlying profit increase by 6% compared to the previous financial year, with a 14% increase particularly in the non-life insurance division. Earnings per share also rose by 8% to €3.31, supported by the share buyback program implemented in the first half of 2023.

AXA’s business areas – how have they performed?

The company's net income increased by 45% to €7.2 billion, mainly due to higher underlying revenues and higher net realized capital gains. Shareholders' equity increased to €49.6 billion as of December 31, 2023, an increase of €3.5 billion year-on-year, despite the impact of dividends and share buybacks on the total.

In terms of solvency, AXA's Solvency II ratio improved to 227%, an increase of 12 points from end-2022. This reflects strong operating profits and strategic actions to optimize our capital structure under our new 'Unlock the Future' capital management policy.

Commercial and personal insurance showed growth, with commercial premiums reaching €33 billion, driven by positive developments at AXA XL Insurance and elsewhere across the region. Personal lines also performed well, with strong performance in the automotive and non-automotive sectors, with sales up 6% to €17.8 billion.

However, the life and health sector overcame difficult conditions, with life insurance premiums increasing by 1% amid fluctuating market conditions. Health insurance premiums fell by 7% for him as key contracts were not renewed, but excluding these the sector would have expanded by 7% for him.

“Today, we are announcing a new three-year strategic plan, Unlock the Future, which builds on our strategy that has delivered strong business results,” he said. “We remain focused on growing and strengthening our core business by systematically extending our unique capabilities across the group and delivering even more value to all our stakeholders.”

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