AXA unveils 2020 strategy; targets €2.1bn cost cuts

French insurer AXA has unveiled its 2020 strategy with plans to cut costs, boost operations and adapt to customers’ needs.

The strategic plan, unveiled by Thomas Buberl, incoming chief executive officer, outlines a number of financial objectives to be achieved. AXA plans to improve its profitability by 2020 by pursuing €2.1 billion in cost cutting.

The insurer also revealed it was targeting an average annual increase in underlying earnings per share of between 3 percent and 7 percent over the plan period.

“After the success of Ambition AXA, we have an excellent starting point to pursue our transformation, and to adapt and grow in a challenging economic environment,” said Buberl.

AXA added that it may spend around €1 billion annually on acquisitions which will be “balanced across mature and emerging markets".

Gaëlle Oliver, chief executive officer of AXA Global P&C, added: “In property and casualty, our focus will be on actively growing our commercial lines footprint and accelerating our development in high growth countries while continuing to transform our retail operations to better address changing customer needs.

“We intend to efficiently manage throughout the cycle to continue to improve our profitability, leveraging our technical capabilities, our unique data potential and new technologies.”