25 February 2016 Insurance

AXA meets five-year objectives in 2015 results thanks to increased profits

AXA Insurance reported an increase in profits for 2015. The company posted a net income of €5.57 billion last year compared with €5.06 billion in 2014.

AXA also posted a slightly improved combined ratio in 2015 of 96.2 percent, compared with 96.9 percent in 2014.

Its underlying earnings per share were also up by 10 percent and adjusted earnings per share up 9 percent last year, compared with 2014 figures.

Revenues were stable for the firm’s life and savings sector and increased in its property/casualty division, international insurance sector and asset management sector by 1 percent, 7 percent, and 1 percent, respectively.

Henri de Castries, chairman and chief executive officer of AXA, said the results prove that the company has reached its financial and operational targets set out in its five-year strategic plan Ambition AXA.

The main financial objectives for 2015 set out by the company were: underlying earnings per share CAGR1 (compound annual growth rate) of 10 percent; cumulative CAGR1 €24 billion of Group operating free cash flows from 2011 to 2015, of which 11 billion in life and savings; 15 percent adjusted return on equity in 2015; 25 percent debt gearing by 2015; and €1.5 billion pre-tax cost savings in mature markets by 2015.

“We are pleased to have successfully delivered on Ambition AXA, which has made the Group more resilient, efficient and agile, from the balance sheet to the brand,” said De Castries.

“It has been a collective achievement and I would like to warmly thank our clients for their trust and our teams and distributors for their unwavering commitment.”

He added: “2015 was yet another year of strong earnings for AXA, with underlying earnings reaching their highest level ever at €5.6 billion. In this context, the Board of Directors is proposing a dividend of €1.10 per share, an increase of 16 percent versus last year, which corresponds to a payout ratio of 47 percent, in line with the new guidance of the Group.”

De Castries also said that following the successful completion of Ambition AXA, the Group comes out of the 2011-2015 period “stronger than ever” despite the headwinds encountered.

“We remained focused on protecting our clients and in successfully increasing their satisfaction,” he said.

“In order to achieve sustained growth and continue to deliver value for all of our stakeholders, we are actively engaged in multiple initiatives to transform and adapt the Group to the rapid pace of technological change and to the evolving expectations of our clients. This combined with our financial strength, means we are well positioned to take up this challenge.”

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