AXA (CSP) Q2 2024 earnings summary

Executive summary

• Organic revenue grew 7% year-over-year in 1H24, marking the strongest performance in years, with underlying earnings per share up 4% and return on equity at 16.6%.

• Solvency II ratio remained robust and stable at 227%, reflecting strong capital management.

• The group executed the strategic sale of AXA Investment Managers to BNP Paribas for €5.4 billion, with a €3.8 billion share buyback planned to offset earnings dilution.

• Acquisition of Nobis Group in Italy for €0.5 billion expands P&C operations and market share.

• All business lines and geographies contributed to earnings growth, with strong technical profitability and margin recovery, especially in P&C Retail and UK Health.

Financial highlights

• Group revenues rose 7% to €60 billion, with P&C and Life & Health both up 7%, and asset management up 5%.

• Underlying earnings increased 4% to €4.2 billion; net income rose 6% to €4.0 billion, including realized capital gains and impairments.

• P&C underlying earnings up 7% to €2.9 billion; Life & Health up 7% to €1.7 billion; Asset Management up 8% to €204 million.

• Shareholders’ equity at €47.3 billion after dividends and buybacks; debt gearing at 22.1%.

• Asset Management AUM increased to €859 billion, with net inflows of €7 billion.

Outlook and guidance

• Confident in achieving full-year underlying EPS growth within the 6%-8% target range for 2023–2026.

• Further margin improvement expected in P&C Retail and Health in the second half.

• Cumulative cash remittance target of €21 billion for 2025-2026 reaffirmed, even without AXA IM dividend.

• Capital management policy targets a 75% payout ratio (60% dividend, 15% buybacks) and a dividend floor.