A reduced earnings goal for 2020 and a determination to not create extra payouts to investors during the fourth quarter — people were the headline takeaways since Europe’s second-biggest insurer AXA introduced its interim financial results now.
The business saw underlying earnings fall by 48 percent and gross earnings slide by 10% leaving it with net earnings of 1.429 billion euros (roughly $1.69 billion) — a 39% drop in precisely the exact same period last year as it listed 2.333 billion euros (roughly $2.77 billion) in earnings.
The earnings slide can mostly be attributed to the effect of COVID-19, together with earnings actually increasing by 4 percent in the first quarter, before falling back 10 percent in the next quarter. Underlying earnings came in at 1.9 billion euros (roughly $2.25 billion), together with property and casualty affected a 72 percent drop, again mostly on the rear of coronavirus-related claims. Life and savings, meanwhile, slipped 9 percent but wellbeing enjoyed a 7 percent raise.
“AXA‘s strategic vision and company profile change tend to be more applicable than ever, especially with its own growing and rewarding wellness company, and an unparalleled chance to profit from the hardening pricing cycle in P&C commercial lines,” stated CEO Thomas Buberl. “Having a transparent focus on technical risks, the team is well set for a lengthy period of reduced interest prices.”