Half Year 2023 Earnings


Press Release

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August 3, 2023

published at 7:00 AM CEST

  • Gross written premiums & other revenues* up 2% to Euro 55.7 billion
  • Underlying earnings** at Euro 4.1 billion, up +5% vs. 1H22 under IFRS4, on track to deliver 2023 Target*** of above Euro 7.5 billion
  • Underlying earnings per share** at Euro 1.79, up +8%**** vs. 1H22 under IFRS4
  • Solvency II ratio***** at 235%, up 20 points vs. FY22

Thomas Buberl

Chief Executive Officer of AXA

AXA delivered another good set of results in the first half of 2023, reflecting the strength of our business model. We delivered robust growth in technical lines and achieved an 8%**** increase in underlying earnings per share and a return on equity of 16.6%.

We remain focused on executing our strategy, built on two pillars balanced between Commercial and Retail businesses. In P&C Commercial lines, premiums were up 9% and in P&C Retail lines, premiums were up 5%, both benefiting from a favorable pricing environment. We also continued to see good business dynamics in Employee Benefits, and a high-quality mix in our Life & Health Retail business. Today’s announcement****** of the acquisition of Laya, a leading health insurer in Ireland, will further strengthen our business.

Our distinctive franchise generated Euro 4.1 billion in underlying earnings, reflecting strong operational performance across our businesses and our ability to deliver consistent results despite a volatile environment. We continue to take actions to sustain attractive margins, including through disciplined pricing. We are on track to achieve our Group underlying earnings target for the year and we are confident in our capacity to deliver long-term revenue and profit growth.

The Group has further strengthened its balance sheet with a Solvency II ratio of 235% driven by operating capital generation and disciplined ALM that will further reduce our sensitivity to financial risks. Our asset allocation remains prudent and diversified.

We recently announced ambitious new climate targets. For the first time, the Group set decarbonization targets on its P&C Insurance portfolio. We will continue working together with our clients and stakeholders, deploying our resources to support the transition to a low-carbon economy.

I would like to thank all our colleagues, agents and partners for their commitment and support, as well as our customers for their continued trust.

Unless otherwise specified, all comparative figures for prior periods in this press release are 1H22 or FY22 figures (as applicable) restated under the IFRS17/9 accounting standards that became effective on January 1, 2023.

*Change in Gross Written Premiums & Other Revenues, New Business Value (“NBV”), Present Value of Expected Premiums (“PVEP”) and New Business Value Margin (“NBV Margin”) is on a comparable basis (constant forex, scope and methodology), unless otherwise indicated.
**Underlying earnings, underlying earnings per share, combined ratio and underlying return on equity 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 16 and 17 of AXA’s Half-Year 2023 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 29 of AXA’s Half-Year 2023 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 31 to 36 of AXA’s Half-Year 2023 Activity Report.
***AXA initially published its 2023 Group Underlying Earnings Target on May 15, 2023, in the press release “AXA publishes 1H22 and FY22 financial information under IFRS17 and IFRS9 accounting standards and provides 2023 Group Underlying Earnings Target,” available on AXA’s website (www.axa.com). This 2023 Group Underlying Earnings Target’s assumptions are updated by the section titled “Outlook” in this press release (as updated, the “2023 Target”) and the 2023 Target is subject to the disclaimer on forward-looking statements below. Because the 2023 Target is provided exceptionally to enable analysts and investors to better assess the Group’s underlying earnings trajectory in 2023 in connection with the implementation of IFRS17/9, it is not expected or intended that similar guidance will be issued in future periods beyond 2023, nor that such guidance will be updated, except as required by law. Neither the 2023 Target nor any information related thereto (including but not limited to its assumptions) has been audited.
****Underlying earnings per share increased by 23% vs 1H22 restated under IFRS17/9. 2022 P&C underlying earnings restated under IFRS17/9 reflect notably the non-recognition of the release of excess reserves, which contributed to 2022 underlying earnings under IFRS4. The IFRS17/9 balance sheet is on a best estimate basis and does not recognize excess reserves. The change to IFRS17/9 standards did not impact the count of outstanding shares used in the calculation of UEPS.
*****The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200-year shock. It includes a theoretical amount for dividends accrued for the first six months of 2023, based on the full-year dividend of Euro 1.70 per share paid in 2023 for FY22. Dividends are proposed by the Board, at its discretion based on a variety of factors described in AXA’s 2022 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 2023 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, 2022, available on AXA’s website (www.axa.com).
******Refer to the Press Release “AXA accelerates the development of its Health strategy in Europe with the acquisition of Laya” published on August 3, 2023, and available on AXA’s website (www.axa.com).


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