Half Year 2024 AXA SA Earnings Call (Analyst & Investors) Transcript
Key Points
- AXA SA (AXAHF) reported a strong organic growth of 7% in the first half of 2024, a rate not seen in many years.
- Underlying earnings per share increased by 4%, with a return on equity at 16.6%.
- The company maintains a robust balance sheet with a high Solvency II ratio of 227%.
- AXA SA (AXAHF) announced the strategic sale of AXA Investment Managers to BNP for EUR5.4 billion, which will simplify the business model and focus more on insurance.
- The acquisition of Nobis Group for EUR0.5 billion will expand AXA SA (AXAHF)'s P&C operations in Italy, demonstrating disciplined capital deployment.
- The sale of AXA Investment Managers may lead to a loss of diversification and potential earnings from asset management.
- The UK market required significant price increases (55% in retail and 13% in health) and volume reductions (30% in retail) to restore profitability.
- The tax rate has increased due to the OECD tax, affecting earnings, particularly in Bermuda.
- The combined ratio improvement is partly due to favorable market conditions, which may not last, requiring continued discipline.
- The sale of AXA Investment Managers will result in a EUR1 billion reduction in the positive contribution to the Solvency Capital Requirement (SCR).
Good morning. And welcome to AXA's first half results conference call. Presenting today are Thomas Buberl, Group CEO; Frederic de Courtois, Group Deputy CEO; and Alban de Mailly Nesle, Group CFO. After the presentation, we'll open up the call to Q&A. Joining us for the Q&A session will be Scott Gunter, CEO of AXA XL; and Guillaume Borie, CEO of AXA France.
With that, I turn over to Thomas.
Thank you, Anu, and good morning to all of you. Thank you very much for joining our call today. And I would like to start with the key highlights of our results for the first half of 2024.
The first half of 2024 was a very good start of our new strategic plan, Unlock the Future. As you can see, the business is doing very well. We show an organic growth of 7% and we have to go far back in the history of AXA to see when we last had such a high growth. The underlying earnings per share are up by 4% and the return on equity is at 16.6%.
All of these results have been achieved
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