AXA, 1H2020: Gross revenues decreased 2% to EUR 52 billion

10 August 2020 — press.release
At the end of the first half of 2020, AXA Group registered total gross revenues in amount of EUR 52.4 billion, down 2% (at constant Forex) compared to 1H2019, reflecting a 4% growth during the first quarter of 2020 and a 10% decline in the second quarter in the context of Covid-19 pandemic.

Lower revenues in the first half were driven by (i) Life & Savings (-8%) mostly from lower sales in G/A Savings in France and in Europe, largely impacted by Covid-19 in the second quarter, and (ii) Property & Casualty (-1%), reflecting a decrease in Personal lines (-2%) primarily due to lower new business activity during the lockdown periods across most geographies and stable Commercial lines, with strong price increases, notably at AXA XL, offset by lower volumes in the context of Covid-19, partly offset by (iii) Health (+9%) with growth across all geographies, and (iv) Asset management (+3%) linked to higher average assets under management.

AXA re-affirms its current best estimate for the impact on 2020 underlying earnings for the Group from Covid-19 related P&C claims and solidarity measures at EUR 1.5 billion (post-tax and net of reinsurance), consistent with the Group's June 3rd, 2020 announcement. This impact has been reflected in the underlying earnings of 1H2020.

AXA 1H2020 preliminary figures, y-o-y changes

  • Gross revenues: EUR 52,391 million (-10%), of which:
    • France: EUR 12,552 million (-6%)
    • Switzerland: EUR 4,263 million (-13%)
    • Germany: EUR 6,094 million (+2%)
    • Belgium: EUR 1,765 million (-2%)
    • UK & Ireland: EUR 2,794 million (-2%)
    • Spain: EUR 1,366 million (+0%)
    • Italy: EUR 2,507 million (-16%)
    • AXA XL: EUR 10,522 million (+1%)
    • Asia: EUR 5,522 million (+14%)
    • International: EUR 3,563 million (-3%)
    • Transversal: EUR 1,444 million (-3%)
  • P&C combined ratio: 101.7% (+6.5 pp.)
  • Solvency 2 ratio: 180% (-18 pp. vs. FY2019)
  • Average assets under management: EUR 717 million (+10%)
  • Underlying earning: EUR 1,885 million (-48%)
  • Net income: EUR 1,429 million (-39%)

Underlying earnings decreased by 48% to EUR 1.9 billion, driven by (i) Property & Casualty (-72%) mostly due to the impact of Covid-19 related claims,(ii) Life & Savings (-9%) primarily linked to the extension of disability coverage in the context of Covid-19 and the decrease in annuities discount rate,(iii) Health (+7%), reflecting strong revenue growth, as well as (iv) the impact of the deconsolidation of Equitable Holdings, Inc. ("EQH") in 2019. Excluding Covid-19 claims for an amount of EUR 1.5 billion, and the EQH deconsolidation impact, underlying earnings grew by 1%.

Adjusted earnings were down 51% to EUR 2.0 billion, reflecting lower underlying earnings, as well as higher impairments in the context of financial market volatility linked to Covid-19.

Shareholders' equity was at EUR 70.1 billion, up EUR 0.2 billion versus December 31, 2019, mainly driven by the positive impacts of the net income contribution and the change in net unrealized capital gains, partly offset by the EUR 0.73 dividend per share approved by shareholders at AXA's Annual General Meeting on June 30, 2020 and paid to shareholders on July 9, 2020.

Debt gearing was at 27.6%, down 1.2 points versus December 31, 2019, mainly reflecting the positive impact of EUR 1.3 billion subordinated debt repayment. Cash remittance to AXA S.A. from its operating entities in the first six months of 2020 was EUR 4.9 billion. Adjusted return on equity was down 9.6 points to 8.8% versus 1H2019, driven by the decrease in adjusted earnings

Solvency II ratio was 180% at June 30, 2020, down 18 points versus December 31, 2019, mainly driven by (i) unfavorable financial market conditions (-20 points), primarily from lower interest rates and higher corporate spreads, (ii) a positive operating return (net of Covid-19 impacts) of +6 points, offset by the accrued dividend for 1H2020 (-6 points), (iii) the repayment of subordinated debt (-4 points), and (iv) the release of the provision for the 4Q2020 exceptional distribution of reserves (+6 points).

Net income decreased by 39% to EUR 1.4 billion, as the decrease in adjusted earnings and the negative marked to market impact of invested assets were partly offset by a favorable impact from the change in the fair value of derivatives, and the non-repeat of the negative impact from the deconsolidation of EQH.

Thomas Buberl, Chief Executive Officer of AXA, commented:

"The Covid-19 pandemic has shown the critical role of insurance in protecting societies and supporting economic recovery. This conviction is encapsulated in our new purpose 'Acting for human progress by protecting what matters'. As a global insurance leader and investor, the Group continues to take ambitious measures to meet the major challenges of our time, aligning post-Covid recovery strategies with our long-standing commitment to facilitate the green economy transition. Our people are key to the Group's performance, and I wish to thank all our employees, agents and partners, for their unwavering commitment to provide support and undisrupted service to our clients during these challenging times."

More financial information about AXA Group can be found at


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