AXA’s GWP & other revenues up to €110bn in 2024 with 10% growth at AXA XL Re

Global insurer AXA’s property and casualty (P&C) and specialty risk division, AXA XL, achieved a combined ratio of 91% for full year 2024, a 2.1 percentage point improvement on the prior year, as gross written premiums (GWP) and other revenues increased 7% to €56.5 billion, supported by 10% growth at AXA XL Reinsurance.

2024 was a strong year for AXA XL and the wider AXA Group, with the latter generating GWP and other revenues of €110 billion, an increase of 7% from the prior year, with growth across the business.

Group-wide, underlying earnings rose 6% to €8.1 billion with strong growth in P&C, life and health (L&H), and asset management, partially offset by a decrease in holdings.

All in all, AXA’s net income increased by 10% on a reported basis to €7.9 billion, which the firm says mainly reflects the increase in underlying earnings and favorable change in fair value of asset.

AXA XL’s GWP and other revenues growth of 7% was supported by expansion in all segments, including the aforementioned 10% growth at AXA XL Reinsurance to €2.5 billion, driven by favorable price effects, notably in property and in casualty, as well as higher volumes in both property and in specialty.

The commercial lines segment saw its premiums rise 6% to €34.9 billion, driven by 5% growth at AXA XL Insurance, growth of 24% across Asia, Africa & EME-LATAM, 4% growth in France, and 4% growth in Europe.

Personal lines premiums rose 7% to €19.1 billion, with the firm noting favourable price effects in both motor and
non-motor, partly offset by lower volumes in the UK & Ireland and Germany.

The improvement in the P&C combined ratio to 91% reflects a 1.6 percentage point improvement in the current year combined ratio, a more favourable undiscounted current year loss ratio excluding nat cat, lower nat cat charges of 3.8%, and further improvement in commercial lines, somewhat offset by a higher expense ratio.

P&C prior-year reserve development was 1.6%, so -0.6% more favourable than in 2023.

The segment’s underlying earnings increased 10% year-on-year to €5.5 billion for 2024, driven by a higher underwriting result of €1.4 billion, partially offset by an increases in taxes of €700 million, notably due to the introduction of the OECD tax and non-repeat of favorable tax one-offs.

Turning to AXA’s L&H business, and GWP and other revenues rose 8% to €52 billion in 2024, with growth of 9% in life to €34.5 billion, and 8% growth in health to €17.5 billion.

The present value of expected premiums increased 14% year-on-year to €50.9 billion, as NBV grew 2% to €2.3 billion, while the NBV margin fell 0.5 percentage points to 4.4%.

L&H net flows were at +€1.5 billion compared to -€4.1 billion in 2023, as the L&H unit’s underlying earnings rose 4% to €3.3 billion in 2024.

AXA’s asset management business also performed strongly in 2024, lifting its AUM 4% to €879 billion, with an 8% increase in gross revenues to €1.7 billion, as underlying earnings increased by 11% to €402 million.

Lastly, Holdings underlying earnings were down €156 million to -€1.2 billion, mainly driven by higher expenses from
investments in technology and growth initiatives, in line with the Group’s strategic plan.

Looking ahead, AXA’s natural catastrophe load of ca. 4.5 points of combined ratio for 2025 is maintained, and this includes its current estimate of €100 million, before tax and net of reinsurance, in losses from the January 2025 California wildfires.

Commenting on the 2024 results, AXA’s Chief Executive Officer, Thomas Buberl, said: “AXA has delivered a very strong performance in 2024, successfully executing in the first year of its strategic plan ‘Unlock the Future’. We have a clear strategy fully focused on insurance and built around leading businesses, supported by a robust balance sheet. This is producing attractive and consistent results, with record topline and underlying earnings per share, both growing by +8% this year, and cash generation of more than Euro 7 billion.

“Our Group is now growing at a stronger pace, with robust revenue growth across all lines of business and geographies. We have remained disciplined on pricing while accelerating on volume growth. This reflects continued demand notably in both P&C Commercial lines and Life & Health, high customer satisfaction driving improved retention, and contribution from growth initiatives.

“Group underlying earnings reached Euro 8.1 billion, a function of both higher topline growth and excellent margins. We have delivered on our short-term profitability improvement in P&C Retail and UK Health and maintained strong margins in P&C Commercial lines, with limited impact from Nat Cats. Trends in Life are improving, and we continue to invest in technology to support long-term growth.

“In the context of these results, and in line with our capital management policy to deliver an attractive 75% total payout ratio, the Board of Directors is proposing a dividend of Euro 2.15 per share, up 9% versus last year, corresponding to a 60% payout ratio, and has approved an annual share buy-back of Euro 1.2 billion. We anticipate returning an additional Euro 3.8 billion to shareholders through a share buy-back to be launched following the expected closing of the sale of AXA Investment Managers to BNP Paribas.

“Capitalizing on our model, we continue to reinvest in our high-return business, compounding value for our shareholders.

“The Group is in strong shape, and we are confident in executing our plan. I would like to thank all our colleagues,
agents, and partners for their tremendous efforts to deliver this excellent performance, as well as our customers
for their loyalty and trust.”

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