AXA, the renowned French insurer, has announced striking financial results for the first half of 2024. It reported a substantial revenue of £50.8 billion. The group is also making a strategic exit from the asset management sector through a significant deal with BNP Paribas.
AXA’s underlying earnings rose from €4.1 billion (£3.5 billion) in H1 2023 to €4.2 billion (£3.6 billion) in H1 2024. This improvement underscores the company’s robust performance, supported by a 7% increase in gross written premiums and other revenues.
The insurer has entered exclusive talks to sell AXA Investment Managers to BNP Paribas for €5.1 billion (£4.3 billion). This move aligns with AXA’s focus on simplifying its business model and enhancing its insurance divisions.” The sale deal is substantial, with AXA owning 98% of AXA IM’s full share capital.
Thomas Buberl, AXA’s CEO, emphasised the strategic rationale behind their decisions. He envisions a strengthened business model with a balance between commercial and retail insurance lines. The aim is to continue diversified geographical expansion while maintaining key financial targets.
Gruppo Nobis, a primary retail P&C insurance company in Italy, is being acquired by AXA for €423 million (£359 million). This acquisition complements AXA’s strategic commitment to fortifying its core insurance offerings.
The market perceives this acquisition as a smart move for BNP Paribas, enhancing its service offerings. However, it may affect BNP’s future share buybacks due to the utilisation of excess capital.
Despite the asset management exit, AXA remains optimistic, projecting underlying earnings per share growth between 6% to 8% by year-end.
AXA intends to develop a long-term investment management agreement with BNP Paribas. This collaboration aims to provide a broader range of investment solutions, benefiting both AXA and its clientele.
AXA’s strategic shift marks a pivotal moment in its operational focus. By divesting its asset management arm, the insurer is poised to strengthen its core insurance businesses. AXA’s forward-looking strategy promises continued growth and enhanced service delivery for its stakeholders.
