Half Year 2022 Earnings - Strong and consistent performance
August 3, 2022
published at 7:00 AM CEST
- Gross revenues at Euro 55 billion, +1%* vs. 1H21
- Underlying earnings** at Euro 3.9 billion,+4%vs.1H21(+7%organicgrowth*** and -3% from disposals)
- Underlying earnings per share** at Euro 1.65, +11%**** vs. 1H21
- Solvency II ratio***** at 227%, up 10 points vs. FY21
- Launch of a new share buy-back program****** of up to Euro 1.0 billion
Thomas Buberl
Chief Executive Officer of AXA
AXA delivered a strong performance in the first half of 2022, reflecting the strength of our operating model in a more challenging environment. The Group has achieved an +11% increase in underlying earnings per share, with strong organic earnings growth recorded across all our lines of business.
Revenue growth was of high quality, with an excellent mix towards technical and fee-based business, notably across Health, Commercial Lines Insurance and Asset Management. In the meantime, we continued to reposition our portfolio away from Property Catastrophe Reinsurance and traditional General Account business.
We reported strong technical profitability across all businesses, in particularin France and Europe delivering attractive and consistent performance, and AXA XL recording resilient results despite the impact of the war in Ukraine.
Today the Group announced a Euro 1.0 billion share buy-back reflecting our robust operational performance, the strength of our balance sheet, and continued execution of our capital management initiatives. AXA is committed to financial discipline and to delivering long term shareholder value.
The macroeconomic environment has become more uncertain. The Group is entering this period in a strong position, with a Solvency II ratio of 227%, and a resilient and diversified mix of business, which continues to shift away from financial risks. We are vigilant and are taking actions to counterbalance impacts from inflationary pressures and market volatility. We remain very confident in delivering our Driving Progress 2023 key targets, notably underlying earnings per share growth at the high end of our target range.
The Group is well prepared to navigate this evolving environment thanks to the collective efforts and relentless engagement of all our colleagues, agents and partners and the continued trust of our clients.
*Change in gross revenues is on a comparable basis (constant forex, scope and methodology).
**Underlying earnings, underlying earnings per share, combined ratio, underlying return on equity and debt gearing are non -GAAP financial measures, or alternative performance measures (“APMs”). A reconciliation from APMs underlying earnings and combined ratio to the most directly reconcilable line item, subtotal or total in the financial statements of the corresponding period is provided on pages 15 and 16 of AXA’s Half-Year 2022 Activity Report. APMs underlying return on equity and underlying earnings per share are reconciled to the financial statements in the table set forth on page 22 of AXA’s Half-Year 2022 Activity report. The calculation methodology of the debt gearing is set out on page 18 of AXA’s Half-Year 2022 Activity Report. The above mentioned and other non-GAAP financial measures used in this press release are defined in the Glossary set forth on pages 56 to 63 of AXA’s Half-Year 2022 Activity Report.
***Excluding 1H21 underlying earnings contribution from Greece, the Gulf region, Singapore, AXA Bank Belgium and Hong Kong transaction.
****Change in underlying earnings per share is on a reported basis.
*****The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock. It includes a theoretical amount for dividends accrued for the first six months of 2022, based on the full year dividend of Euro 1.54 per share paid in 2022 for FY21. Dividends are proposed by the Board, at its discretion based on a variety of factors described in AXA’s 2021 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 2022 financial year. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXA Group’s SFCR as of December 31, 2021, available on AXA’s website (www.axa.com). The Solvency II ratio as of 30 June 2022 is adjusted to give effect to the full Euro 1.0 billion share buyback announced today.
******Following AXA’s Board of Directors’ approval on August 2, 2022 and expected to commence as soon as reasonably practicable, subject to market conditions.
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