Total revenues were down overall for the year by 1%, reflecting strong growth in the first quarter (+4%), a decline in the second quarter (-10%), and a recovery in the third (-1%) and fourth (+1%) quarters. AXA’s preferred segments continued to perform well and accelerated in 4Q20 with a growth of 5% (+3% in FY20).
Net income decreased by 18% to Euro 3.2 billion, as the decrease in underlying earnings and the negative mark-tomarket impact of invested assets were partly offset by a favorable impact from the change in the fair value of derivatives, and the non-repeat of the negative impacts from the announcement of the disposal of AXA Bank Belgium and the deconsolidation of EQH.
Underlying earnings decreased by 34% to Euro 4.3 billion, driven by (i) Property & Casualty (-51%) mostly due to the impact of Covid-19 related claims, (ii) Life & Savings (-7%) primarily linked to a lower technical margin, while investment margin remained resilient, partly offset by (iii) Holdings (+15%) mostly due to higher dividends from non-consolidated entities, as well as lower general and financing expenses, (iv) Asset management (+6%) mainly from higher management fees, notably from Alternatives, as well as (v) the impact of the deconsolidation of Equitable Holdings, Inc. (“EQH”) in 2019.
Solvency II ratio
Solvency II ratio was 200% at December 31, 2020, up 20 points versus September 30, 2020, mainly driven by (i) the integration of AXA XL in the Group’s internal model (+13 points), (ii) a positive operating return of +3 points, net of accrued dividend for FY20 to be paid in 2021, (iii) the completion of the disposal of our Central and Eastern European operations (+2 points), and (iv) positive financial market effects (+1 point), primarily from higher equity markets, partly offset by (v) the repayment of a subordinated debt (-1 point).