25 February 2015 Insurance

AXA posts growth in all lines for 2014

European insurer AXA has reported a strong set of results for 2014, as it reported growth in all business lines.

The insurer’s profits grew 12 percent to €5 billion in the year ended December 31, 2014, compared with €4.5 billion in 2013.

Its revenues increased 1 percent, or 3 percent on a comparable basis, to €92 billion in 2014, compared with €91.2 billion in 2013, driven by growth in all business lines.

The insurer’s life and savings revenues increased by 3 percent with growth in both mature and high growth markets. Its property and casualty revenues were up 1 percent, which AXA said was mainly driven by an overall positive price effect of 2 percent on average, partly offset by pruning actions in mature markets’ commercial and personal nonmotor lines.

The insurer’s asset management division posted 4 percent growth in revenues, supported by both AXA IM and AllianceBernstein (AB), mainly driven by increased management fees as a result of higher average assets under management.

Overall, its combined ratio hit 96.9 percent in 2014, compared with 96.6 percent. In property and casualty, current year combined ratio improved by 0.2 point to 97.6 percent mainly driven by better claims experience and improved expenses, partially offset by 1.1 points higher natural catastrophe charges.

Henri de Castries, chairman and chief executive officer of AXA, said: “AXA has delivered another year of earnings growth in all business lines, with underlying earnings crossing the €5 billion mark for the first time in the company’s history.”

“In the context of our continued successful delivery on Ambition AXA and our sustained balance sheet strength, the board of directors is proposing a dividend of €0.95, an increase of 17 percent versus last year, which corresponds to a payout ratio of 45 percent.

“In 2014, we recorded top line growth in all our businesses, maintained our discipline in writing profitable and capital efficient business and continued to pursue active asset liability management - all contributing to AXA’s strong and sustainable performance.

“We are well positioned to successfully conclude our Ambition AXA plan in 2015. As we look ahead, we will continue to diversify our geographical footprint and business mix, as well as further improve our operational efficiency, which should help us perform well even in a low interest rate environment.

“We will also accelerate the transformation of our operations, which will involve adapting to the digital revolution and developing new partnerships to serve our customers better, and create lasting value for our stakeholders.”

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