1Q20 Activity indicators


Press Release

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May 5, 2020

published at 5:45 PM CEST

  • Total gross revenues* +4% in 1Q20, with growth across all business lines and geographies
  • Resilient Solvency II ratio** at 182%, as at March 31, 2020
  • Debt Gearing below 28%***, following €1.3bn subordinated debt repayment in April
  • Covid-19: AXA taking strong actions to support employees, clients and the communities in which it operates; expecting a slowdown in revenues; too early for precise earnings guidance

Thomas Buberl

Chief Executive Officer of AXA

The Group performed well in the first quarter of 2020. Revenues were up 4%, once again with growth across all lines of business and geographies, notably supported by a strong pricing environment in P&C Commercial lines.

AXA’s balance sheet remains resilient in these volatile market conditions, with a Solvency II ratio at 182%, and after the repayment of Euro 1.3 billion subordinated debt in April, AXA’s debt gearing was reduced to below 28%.

The Covid-19 crisis has created unprecedented health, economic and financial challenges. AXA’s priority has been to protect the safety of our 160,000 employees and partners and allow them, as well as our distributors, to continue providing undisrupted services to our 108 million customers. Exceptional measures have been implemented to help our most impacted clients, particularly SMEs.

AXA has also leveraged its medical networks and teleconsulting services for its clients while supporting medical responses in the regions in which it operates. We have contributed to solidarity funds to support healthcare professionals, research, affected companies, and economic recovery. AXA has initiated discussions with peers and public authorities to better insure future health risks.

Although Covid-19 related claims notified in March were limited and the precise implications of the crisis remain uncertain at this stage, we believe that the effects of the Covid-19 crisis will have a material impact on our earnings in 2020.

We are confident in our strategy and its execution, and the need for enhanced insurance coverage in our preferred segments confirms our growth potential post-crisis. I would particularly like to express my gratitude to all AXA colleagues and partners for their unwavering commitment during this crisis, and their support as we prepare for a safe and progressive end to global lockdowns.

*Change in gross revenues is on a comparable basis (constant forex, scope and methodology). On a reported basis, total gross revenues declined by 9% in 1Q20, mainly driven by the deconsolidation of Equitable Holdings, Inc. and the transformation of the Swiss Group Life business.
**The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock. It also includes a theoretical amount for dividends accrued for the first three months of 2020, based on the full year dividend proposed by the Board to be paid in 2020 for FY19. Dividends are proposed by the Board, at its discretion based on a variety of factors described in AXA’s 2019 Universal Registration Document, and then submitted to AXA’s shareholders for approval. This estimate should not be considered in any way to be an indication of the actual dividend amount, if any, for the 2019 or the 2020 financial years. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXA Group’s SFCR as of December 31, 2018, available on AXA’s website (www.axa.com).
In compliance with the decision from AXA’s lead supervisor (the ACPR) from January 1, 2019, entities that were part of the XL Group (“XL entities”) have been fully consolidated for Solvency II purposes (as per the consolidation-based method set forth in the Solvency II Directive) and their contribution to the Group’s solvency capital requirement has been calculated using the Solvency II standard formula. Subject to the prior approval of the ACPR, the Group intends to extend its Internal Model to XL entities as soon as December 31, 2020.
***Including only the impact of Euro 1.3 billion subordinated debt repayment in April 2020 on AXA’s Debt Gearing as of December 31, 2019. Debt Gearing is a non-GAAP financial measure, or alternative performance measure (“APM”), defined in the Glossary set forth in Appendix V of AXA’s 2019 Universal Registration Document (pp. 471-475). The calculation methodology of the Debt Gearing is set out on page 47 of AXA’s 2019 Universal Registration Document.

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