Axa’s nine-month revenue up 7%, on track to meet annual target

(Reuters) — France’s Axa, Europe’s second-biggest insurer, Wednesday reported a 7% increase in revenue for the first nine months, in line with expectations.

Axa said it is confident of achieving underlying earnings per share growth this year in line with its 6% to 8% annual growth rate target.

Its gross written premiums and other revenue for the first three quarters came in at €84.0 billion ($91.27 billion), slightly below the company-compiled consensus of €84.14 billion.

Commercial lines revenue was up 7%, driven by higher volumes and “disciplined” pricing, Axa said.

Its solvency II ratio, a measure of its capital strength under the European Union’s risk measurement rules for insurers, stood at 221%, down 6 points in comparison with June 30 and below the 224% expected by analysts.

Axa said it currently estimates its combined losses from Hurricane Helene and Hurricane Milton to be below €200 million before tax and net of reinsurance. It also confirmed its natural catastrophe load of about 4.5 points of combined ratio for the year.

Asked about the sale of Axa IM to BNP Paribas, Axa Chief Financial Officer Alban de Mailly Nesle said the company still expects the transaction to be completed at the end of June or early July.