(AOF) – “Since the start of Russia’s invasion of Ukraine, AXA has fully applied all international sanctions,” the insurer said in a statement. It also stopped writing new insurance business (and stopped all renewals) on Russian-owned assets located in Russia. AXA has stopped writing new reinsurance (and stopped all reinsurance renewals) from Russian insurers.
The insurer has also ceased all new investment in Russian assets.
Regarding AXA’s minority financial investment in Reso Garantia, a Russian insurance company, AXA has no operational or management control over this company and has decided to remove its directors from the Board.
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Key points
– World number one in insurance born in 1982;
– Revenue of €97 billion, split between France for 26%, the rest of Europe (34%), Asia (16%), international (7%) and AXA XL (damage for businesses, 20%);
– Three main activities: business damages (33% of turnover), personal protection (16%), health (15%), ahead of asset management and banking;
– Business model: develop health and personal protection, simplify the customer experience, strengthen underwriting performance, maintain the number 1 position on climate issues, increase cash flow;
– Split capital, with an employee shareholding of 4.3% (6.4% of voting rights), behind the AXA mutuals (14.95% and 24.75%), Denis Duverne chairing the Board of administration of 16 members, Thomas Buberl being managing director;
– Very solid financial position with AA-rated debt equal to 27% of shareholders’ equity and a solvency II ratio of 214% at the end of September.
Challenges
– “Driving progress 2023” plan: reduction in costs of €300 million, reduction in portfolio volatility, increase of €3 billion in free cash flow, increase in the payout rate to 55-65% and growth of 3 to 7% earnings per share;
– Innovation strategy: Axa Next ecosystem of 8 units aimed at tackling emerging and global risks, offering innovative solutions and simplifying the customer experience by focusing on BtoB initiatives
– 2 strategic priorities for 2023: health & protection (telemedicine, care coordination, specific platforms, etc.) and damage (cybersecurity, risk management platforms, particularly climate-related) / use of artificial intelligence (member of Impact IA, think French tank on responsible AI), open innovation (Give data back, etc.);
– Environmental strategy to combat climate change and protect diversity: 20% reduction in the carbon footprint linked to investments between 2021 and 2025 / green investment of €24 billion between 2020 and 2023 / launch of the 1
er
green borrowing / exit in 2022 from the shale gas, oil sands and arctic exploitation sectors and new oil exploration projects excluding groups engaged in the energy transition / fight for biodiversity through underwriting and investment policies / chairman of the Net Zero Insurance Underwriting alliance;
– Continued simplification of the group, by refocusing on the main markets and disposals.
Insurers are concerned about the consequences of climate change –
2021 was the fifth consecutive year
with severe natural disasters. The frequency of these events
increases with climate change
. The French Insurance Federation considers that the cumulative amount of claims due to natural events could almost double between 2020 and 2050 if compared to the period 1989-2019. More than a third of the projected increase would be due to climate change. The overall bill for disasters over the next thirty years would thus amount to 143 billion euros, an increase of 93% compared to the previous three decades. This development will boost the premiums paid by professional policyholders.