AXA/2025/FY/Earnings release: Difference between revisions

| summary_md stored_file = File:AXA-2025-FY-Earnings_releaseEarnings release.mdpdf

'''2025 performance and businesssegment highlightsresults'''

* In 2025, [[Definition:AXA|AXA]] delivered +9% earnings growth in its core businesses, excluding [[Definition:AXA Investment Managers|AXA IM]].

* ExcellentThe resultscompany inused 2025these allowed for furtherresults enhancementto ofenhance reserve prudence.

* The [[Definition:Property & casualty|P&C]] franchise posted stellarstrong results, combining a healthy balance between price and volume with best-in-class margins, a lower expense ratio, and higher investment income.

** Life earningsbusiness already reflectreflected early benefits of the strategy to rejuvenate the business.

** Health grew by 17%, even after absorbing the adverse change on VAT treatment in Mexico.

* Thomas Buberl, CEOChief Executive Officer of [[Definition:AXA|AXA]], thanked colleagues, agents, partners, and customers for their commitment and trust.

* This growth was driven by [[Definition:Property & casualty|Property & Casualty]]: (+5%), with growth in:.

** Commercial lines{{fn ref|11|2='Commercial lines' refers to P&C Commercial lines excluding AXA XL Reinsurance.}}: (+4%), driven fromby higher volumes, (notably at [[Definition:AXA XL|AXA XL]] Insurance,) and favorable price effects{{fn ref|12|2=Price effects are calculated as a percentage of total gross written premiums of the prior year.}} across all geographies.

** Personal lines: (+7%), driven by favorable price effects and strong growth in net new contracts, notably in France, Europe, Asia & EME-LATAM, and at [[Definition:AXA XL|AXA XL]] Reinsurance.

** [[Definition:AXA XL|AXA XL]] Reinsurance: (+8%), with growth supported by alternative capital.

* Growth was also driven by [[Definition:Life & health|Life & Health]]: (+8%), with:.

*** Unit-LinkedProtection: (+1311%) from higherstrong volumessales acrossin allHong geographiesKong, Switzerland, and Japan.

*** G/A{{fn ref|13|2=General account.}}: (+4%), from continued momentum in Italy and France.

** Health premiums: up +5%, driven by price effects in all geographies.

'''[[Definition:Underlying earnings|Underlying earnings]] and EPS'''

* [[Definition:Underlying earnings|Underlying earnings]]{{fn ref|2|2='Underlying earnings', 'underlying earnings per share', 'underlying return on equity', 'combined ratio' and 'debt gearing' are APMs as defined in ESMA's guidelines and the AMF's related position statement issued in 2015. AXA provides a reconciliation of such APMs to the most closely related line item, subtotal, or total in the financial statements of the corresponding period (and/or their calculation methodology, as applicable) in its Activity Report as of December 31, 2025 ('AXA's 2025 Activity Report'), on the pages indicated under the heading 'USE OF NON -GAAP AND ALTERNATIVE PERFORMANCE MEASURES'. For further information on the above-mentioned and other non-GAAP financial measures used in this press relea se, see the Glossary in AXA's 2025 Activity Report. AXA's 2025 Activity Report is available on AXA's website (www.axa.com).}} increased by 6% to EUR 8.4 billion4bn, or +9% excluding [[Definition:AXA Investment Managers|AXA IM]]{{fn ref|3|2=AXA completed the disposal of AXA IM to BNP Paribas on July 1, 2025. All figures excluding AXA IM are given at constant foreign exchange rates.}}.

** [[Definition:PropertyLife & casualtyhealth|PropertyLife & CasualtyHealth]]: (+97%), from higherimproved volumes,short-term underwritingtechnical marginresults expansion,in Health & Protection and anhigher increaseearnings in financiallong-term resultbusiness, including early benefits from duestrategy to higherrejuvenate investmentthe incomebusiness.

** Holdings{{fnAsset ref|14|2=Including banking activities.}}Management [[Definition:Underlying earnings|underlying earnings]] remaineddecreased broadlyby stableEUR at0.2bn EURdue to the disposal of [[Definition:AXA Investment Managers|AXA IM]] on July -1.2, billion2025.

* Net income increased by 26% to EUR 9.8 billion8bn.

* This mainly reflectedreflects the increase in [[Definition:Underlying earnings|underlying earnings]] and significantly positive exceptional items, notably the gain from the sale of [[Definition:AXA Investment Managers|AXA IM]].

* The decrease in shareholders' equity was due to: net income (EUR +9.8bn) and net OCI (EUR +1.3bn) being offset by [[Definition:Full year 2024|FY24]] [[Definition:Dividend|dividend]] paid (EUR -4.6bn), [[Definition:Share buyback|share buybacks]] (EUR -4.7bn) including a EUR 3.5bn anti-dilutive [[Definition:Share buyback|buyback]] for [[Definition:AXA Investment Managers|AXA IM]] sale, and unfavorable [[Definition:Foreign exchange|foreign exchange]] impact (EUR -3.5bn) mainly from USD depreciation.

* Market conditions had a favorable impact of EUR +0.6bn, mainlydriven fromby tightening government spreads and positive equity market performance.

* This was offset by unfavorable [[Definition:Foreign exchange|foreign exchange]] impacts (EUR -1.5bn), mainly from JPY and HKD depreciation, and a negative operating variance (EUR -0.3bn) due to better margins and net flows being offset by reduced duration of Group Life business in Switzerland.

* Drivers of the Solvency II ratio increase includechange: strong operating return (+28 points) net of [[Definition:Dividend|dividend]] provision and annual [[Definition:Share buyback|share buyback]] (-24 points), positive impact from net subordinated debt issuance (+6 points), and favorable financial markets (+4 points).

* These positive impacts were partly offset by the net impact of acquisitions (Nobis and Prima) and disposal of [[Definition:AXA Investment Managers|AXA IM]], including the associated EUR 3.8bn [[Definition:Share buyback|share buyback]] (-5 points).

* Debt gearing increase was driven by lower shareholders' equity and CSM, and the issuance of Restricted Tier 1 and Tier 2 subordinated debt (EUR 3.5bn), partly offset by redemption of outstanding grandfathered Tier 1 debt (EUR -1.9bn).

* This reflectsincrease reflected organic cash remittance from subsidiaries of EUR 7.5bn, up EUR 0.4bn vs. December 31, 2024.

* A [[Definition:Dividend|dividend]] of EUR 2.32 per share (+8% vs. [[Definition:Full year 2024|FY24]]) will be proposed at the Shareholders' Annual General Meeting on April 30, [[Definition:Year 2026|2026]]{{fn ref|7|2=Subject to approval by the Shareholders' Annual General Meeting to be held on April 30, 2026.}}.

* [[Definition:AXA|AXA]]'s Board of Directors approved, on February 25, [[Definition:Year 2026|2026]], the launch of an annual [[Definition:Share buyback|share buyback]] program for up to EUR 1.25bn.

* The [[Definition:Share buyback|share buyback]] program is expected to commence as soon as reasonably practicable, subject to market conditions, and to be completed by year-end.

''''Unlock the Future' plan targets and strategy'''

* [[Definition:AXA|AXA]] is confident in achieving its main financial targets for the 2024-2026 'Unlock the Future' plan, supported by: (i) profitable organic growth, (ii) scaling technical capabilities, and (iii) driving operational efficiency through reinforced cost management.

'''[[Definition:Business mix|Business segmentline]] outlook'''

* [[Definition:Property & casualty|P&C]] Retail and SME & Mid-market: pricing remains favorable, pricing;and the Group expects to benefit from the earnthrough of higher pricing and underwriting actions.

* [[Definition:AXA XL|AXA XL]]: pricing conditions vary by line; the Group will ensurecontinue effective cycle management and disciplined capital allocation, growing where returns exceed the cost of capital.

* NormalizedThe natural catastrophe load:Group guidance remains at ca. 4.5 points of combined ratio for [[Definition:Yearnormalized 2026|2026]]natural catastrophe{{fn ref|18|2=Natural catastrophe charges include natural catastrophe losses regardless of event size.}} load remains at ca. 4.5 points of combined ratio for [[Definition:Year 2026|2026]].

* [[Definition:Life & health|Life & Health]]: earnings growth is expected from the short-term business due to disciplined pricing and claims management.

* Long-term business:The strategy to rejuvenate sales in the long-term business and improved persistency should generate positive net flows, driving CSM growth over time.

* Cumulative organic cash upstream: in excess of EUREuro 21bn21 billion for 2024-2026E.

* [[Definition:CapitalThe management|CapitalGroup management]] policy: Groupis committed to targeting a totalits [[Definition:PayoutCapital ratiomanagement|payoutcapital ratiomanagement]] of 75% policy{{fn ref|19|2=Subject to annual Board and Shareholders' Annual General Meeting approvals and absent (1) for share buybacks, any significant earnings event (i.e., significant deviation in the Group's underlying earnings) and (2) for dividends, the occurrence of a signifi cant capital event (i.e., event that significantly deteriorates Group solvency). Board discretion includes taking into account AXA's earnings, financial condition, applicable c apital and solvency requirements, prevailing operating and financial market conditions and the general economic environment.}}, targeting a total [[Definition:Payout ratio|payout ratio]] of 75%{{fn ref|20|2=Payout ratio is calculated based on underlying earnings per share.}}.

** This total [[Definition:DividendPayout ratio|payout ratio]] comprises a 60% [[Definition:Dividend|dividend]] [[Definition:Payout ratio|payout ratio]]: 60and an additional 15% from annual [[Definition:Share buyback|share buybacks]].

|+ 4 <nowiki>|</nowiki> [[Definition:Property & casualty|Property &amp; Casualty]]: [[Definition:Gross written premiums|gross written premiums]] and [[Definition:Other revenue|other revenues]] by [[Definition:Business mix|business line]], [[Definition:Full year 2024|FY24]] vs [[Definition:Full year 2025|FY25]].

|+ 5 <nowiki>|</nowiki> [[Definition:Property & casualty|Property &amp; Casualty]]: Combinedcombined ratio and [[Definition:Underlying earnings|underlying earnings]], [[Definition:Full year 2024|FY24]] vs [[Definition:Full year 2025|FY25]].

** [[Definition:AXA XL|AXA XL]] Insurance (+3%) from growth in lines with attractive margins, including [[Definition:Property, and& incasualty|Property and Casualty]] (from favorable price effects and higher volumes;), partly offset by lower pricing and volumes in Financial lines.

** France (+9%) with strong volume growth in all [[Definition:Business mix|lines of business]], from both direct business and proprietary agent networks, combined with favorable price effects in Motor.

* [[Definition:AXA XL|AXA XL]] Reinsurance grew by 8% to EUR 2.6bn, driven by growth supported by alternative capital and favorable price effects in Casualty;, partly offset by a softening in other lines.

* The all-year combined ratio improved by 0.3pts3 points to 90.6%, mainly driven by:

** Lower undiscounted current year loss ratio excluding natural catastrophe (-0.3pts3 points) from further margin expansion in (i) Commercial lines (-0.5pts5 points), driven by the SME & mid-market business (-0.9pts9 points) in a favorable pricing environment, while margins at [[Definition:AXA XL|AXA XL]] Insurance were stable at attractive levels (+0.1pts),1 as well as in (iipoints) Personal lines (-0.4pts) in a conducive pricing environment.

** Lower naturalexpense catastrophe chargesratio (-0.4pts3 to 3.4%points) moreprimarily than offset byfrom lower priornon-commission years'expense reserveratio developmentreflecting (+0.7ptsefficiency at -1.1%)gains.

'''GlossaryIFRS of17 financial termsmetrics'''

* Capital-light G/A products: encompass all products with no guarantees, with guarantees at maturity only, or with guarantees equal to or lower than 0%.

* Contractual service margin ("CSM"): a component of the carrying amount of the asset or liability for a group of insurance contracts, representing the unearned profit to be recognized as services are provided to policyholders.

* CSM release: the portion of CSM stock net of reinsurance at theperiod end of the defined period flowing through profit and loss, representing the estimated profit earned by the insurer for providing insurance services during the reporting period.

* Economic variance: the variance of the year-end CSM arising from changes in market conditions, net of the underlying return on in-force.

* Financial result: investment income on assets backing Building Block Approach (BBA) and Premium Allocation Approach (PAA) contracts, as well asand assets backing shareholder's equity, net of the insurance finance expenses (IFE) defined as the unwind of the present value of future cash flow.

** [[Definition:Other revenue|Other Revenues]] represent premiums and fees collected on activities other than insurance (i.e., banking, services, and asset management activities).

* New business contractual service margin ("NB CSM"): a component of the carrying amount of the asset or liability for newly issued insurance contracts during the period, representing the unearned profit to be recognized as insurance contract services are provided.

* New business value ("NBV"): the value of newly issued contracts during the current year., consisting of the sum of:

** Newthe businesspresent value marginof ("NBVfuture Margin"): the ratioprofits of (i)Short-Term NBV representing the value ofBusiness newly issued contracts during the currentperiod, carried by Life yearentities, toconsidering (ii)expected PVEP.renewals

* Operating variance: the variation of the year-end CSM vs theversus expected at opening due to (i) the differences between realized and expected operational assumptions, (ii) changes in assumptions such as mortality, longevity, lapses and expenses, and (iii) impact of model changes.:

'''Basis of reportingpreparation and financial statementsstatement approval'''

'''Company overviewinformation and legalcautionary informationstatements'''

* The [[Definition:AXA|AXA Group]] is a worldwide leader in insurance withhas 156,000 employees serving over 92 million clients in 52 countries.

* In 2025, IFRS17 revenues amountedwere to EUREuro 115.5bn5 and IFRS17 [[Definition:Underlying earnings|underlying earnings]] to EUR 8.4bnbillion.

* The [[Definition:AXA|AXA Group]] is included in main international SRI indexes, includinglike Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.

* The press release refers to non-GAAP financial measures, or alternative performance measures (“APMs”APMs), used by Management, forwhich analyzingmay operatingnot trends,be comparable financialto performance,measures used by andother positioncompanies.

* These nonNon-GAAP financial measures generallyshould havenot nobe standardizedconsidered meaningin andisolation mayfrom, notor beas comparablea tosubstitute similarlyfor, labeledthe measuresGroup’s consolidated financial statements prepared usedin byaccordance otherwith companiesIFRS.