AXA FY2019 (12 months) figures, y-o-y changes
- Gross Revenues: EUR 103,532 million (+1%), of which:
- Life & Savings: EUR 38,318 million (+5%)
- Property & Casualty: EUR 48,817 million (+5%)
- Health: EUR 14,000 million (+6%)
- Underlying earnings: EUR 6,451 million (+4%), of which:
- Life & Savings: EUR 2,870 million (-20%)
- Property & Casualty: EUR 3,341 million (+49%)
- Health: EUR 699 million (+7%)
- France: EUR 1,715 million (+9%)
- Europe*: EUR 2,544 million (+1%)
- Asia: EUR 1,204 million (+3%)
- AXA XL: EUR 507 million (FY2018: EUR (233) million)
- US: EUR 444 million (-63%)
- International**: EUR 466 million (+17%)
- Transversal: EUR 367 million (0%)
- Central Holdings: EUR (796) million (-14%)
- Total APE: EUR 6,029 million (-9%)
- Solvency II ratio: 198% (+5 pp.)
- Net income: EUR 3,857 million (+80%)
Underlying earnings increased by 2% to EUR 6.5 billion, reflecting continued positive operational performances from France (+9%), International (+17%), Asia (+3%) and EURpe (+1%), mainly driven by improved technical profitability in P&C and volume growth in Health. The increased contribution from AXA XL was offset by the lower contribution from Equitable Holdings, Inc. Holding costs were higher mainly due to temporary higher financial charges.
Property & Casualty underlying earnings increased by 12% to EUR 3.3 billion, driven by both current year and prior year loss ratio improvements. Health underlying earnings increased by 5% to EUR 0.7 billion from volume growth. Life & Savings underlying earnings were down 1% to EUR 2.9 billion, as higher volumes and investment margin were more than offset by higher expenses.
Total revenues were up 5% with growth in all geographies, (i) AXA XL (+10%) with strong growth momentum in both P&C Insurance and Specialty, (ii) EURpe (+4%) with growth across all countries, (iii) France (+4%), driven by higher sales of Individual Savings and Health, (iv) International (+6%) driven by a strong contribution from Mexico and Turkey and (iv) Asia (+4%), notably with higher sales of Protection with Savings products in Hong Kong and Japan.
Total revenues increased in all business lines, with (i) Property & Casualty (+5%), driven by Commercial lines (+7%) and Personal lines (+2%), from both positive volumes and price effects, (ii) Life & Savings (+5%), notably from higher sales of Individual Savings as well as Protection products and (iii) Health (+6%), with growth across all geographies.
New Business Value (NBV) was up 1% to EUR 2.5 billion, with APE (new business volume) stable at EUR 6.0 billion and NBV margin up 0.7 point to 42.2%.
Property & Casualty all-year combined ratio was 96.4%, improving by 0.6 point, mainly due to an improved claims experience (-0.6 point) and more favorable prior-year reserve developments (-0.2 point). Protection combined ratio improved by 0.7 point to 93.2%, reflecting the positive impact of the Group Life transformation in Switzerland, partly offset by lower prior-year reserve developments. Health combined ratio was up by 0.1 point to 94.1%, as a less favorable claims experience was partly offset by an improvement in expense ratio.
Solvency II ratio was up 5 points versus December 31, 2018 to 198%, mainly driven by the positive impacts of a strong operating return net of accrued dividend (+11 points) and the secondary offerings of Equitable Holdings, Inc. (+10 points), partly offset by unfavorable market conditions (-14 points) mostly from lower interest rates, as well as the negative impact of the repayments of subordinated debts (-4 points).
Adjusted ROE was up 1.6 points to 16.0% versus FY18, mostly driven by a strong increase in adjusted earnings.
Thomas Buberl, Chief Executive Officer of AXA, commented on 2019 results:
"The Group achieved a significant milestone in 2019 in its strategy to shift its profile away from financial markets and towards technical risk, by fully exiting the US Life & Savings market and integrating the XL Group, and at the same time reducing its debt gearing ratio. At AXA XL, impacted again by adverse claims experience in 2019, we are recording strong price increases and taking further steps to reduce volatility. I am also very happy to welcome Scott Gunter to the AXA Group to drive the next phase of development of AXA XL."
Benoit Claveranne, CEO of AXA International and New Markets, commented on the branch 2019 results:
"2019 was another year of growth, innovation and simplification. We captured profitable growth, transformed the access to healthcare with vertical integration initiatives in Mexico and Egypt, and simplified AXA's profile with the announced disposals of AXA Bank Belgium and of our operations in Central and Eastern Europe."
* Europe: Switzerland, Germany, Belgium, UK & Ireland, Spain and Italy.
** International: AXA Mediterranean Holdings, Mexico, Singapore, Colombia, Turkey, Poland, the Gulf Region, Morocco, AXA Bank Belgium, Malaysia P&C, Luxembourg, Brazil, Czech Republic, Slovakia, Greece, Russia (Reso), India, Nigeria and Lebanon.