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

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| pages = 20
| source_url = https://www-axa-com.cdn.prismic.io/www-axa-com/aZ_Ib8FoBIGEg123_AXA_PR_20260226.pdf
| summary_md = <!-- ARCHIVE_MD_LINK_HERE -->
| stored_file = File:AXA-2025-FY-Earnings release.pdf
| intro_sentence = This article summarizes AXA's Earnings release published on 2026-02-26 (20 pages).
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{{chunk|doc=chq99br5nr|c=5|p=1}}
'''Shareholder returnsReturns'''
 
* [[Definition:Dividend|Dividend]] of EUR 2.32 per share, up +8% vs. [[Definition:Full year 2024|FY24]]{{fn ref|7|2=Subject to approval by the Shareholders' Annual General Meeting to be held on April 30, 2026.}}
* Launch of an annual [[Definition:Share buyback|share buyback]] program{{fn ref|8|2=As approved by AXA's Board of Directors on February 25, 2026, and expected to commence as soon as reasonably practicable, subject to market conditions.}} of up to EUR 1.25bn25 billion
* Completion of EUR 3.8bn8 billion additional [[Definition:Share buyback|share buyback]] related to [[Definition:AXA Investment Managers|AXA IM]] disposal{{fn ref|4|2=On July 1, 2025, AXA executed a share repurchase agreement with an investment services provider, whereby AXA carried out a program to buyback its own shares for a maximum amount of Euro 3.8 billion to offset the earnings dilution from the sale of AXA Investment Managers to BNP Paribas, as announced on August 1, 2024. The share buyback commenced on July 2, 2025, and ended on January 20, 2026, resulting in a temporary earnings dilution as of December 31, 2025.}}, executed between July 2, 2025, and January 20, [[Definition:Year 2026|2026]]
 
== Outlook ==
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<div style="overflow-x:auto">
{| id="t3" class="wikitable fintable"
|+ 3 <nowiki>|</nowiki> Solvency II ratio, (%). [[Definition:Full year 2024|FY24]] vs [[Definition:Full year 2025|FY25]].
|-
! style="text-align:left" |
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* Total [[Definition:Gross written premiums|gross written premiums]] and [[Definition:Other revenue|other revenues]]{{fn ref|1|2=Change in gross written premiums & other revenues, new business value ('NBV') and present value of expected premiums ('PVEP') is on a comparable basis (constant forex, scope and methodology), unless otherwise indicated. These and other terms, including but not limited to contractual service margin ('CSM') and new business contractual service margin ('NB CSM'), are defined in the glossary section of this press release.}} were up 6%.
* [[Definition:Property & casualty|Property & Casualty]] ([[Definition:Property & casualty|P&C]]) premiums increased by +5%.
** Commercial lines{{fn ref|11|2='Commercial lines' refers to P&C Commercial lines excluding AXA XL Reinsurance.}} [[Definition:Property & casualty|P&C]] premiums increased by +4%, driven by 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 [[Definition:Property & casualty|P&C]] premiums increased by +7%, driven by favorable price effects and strong growth in net new contracts in France, Europe, Asia & EME-LATAM.
** [[Definition:AXA XL|AXA XL]] Reinsurance premiums increased by: +8%, supported by alternative capital.
* [[Definition:Life & health|Life & Health]] premiums increased by: +8%.
** Life premiums: were up +9%.
*** Protection premiums increased by: +11% due tofrom strong sales in Hong Kong, Switzerland, and Japan.
*** Unit-Linked premiums increased by: +13% due tofrom higher volumes across all geographies.
*** G/A{{fn ref|13|2=General account.}} premiums increased by: +4% due tofrom continued momentum in Italy and France.
** Health premiums: were up +5%, driven by price effects in all geographies.
 
{{chunk|doc=chq99br5nr|c=10|p=2}}
'''[[Definition:Underlying earnings|Underlying earnings]]'''
 
* [[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 8.44bn, billionor +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:Property & casualty|Property & Casualty]]: +9%, fromdriven by higher volumes, underwriting margin expansion, and increased financial result due tofrom higher investment income.▼
* [[Definition:Underlying earnings|Underlying earnings]] increased by +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:Life & health|Life & Health]]: +7%, from improved short-term technical results in Health & Protection and higher earnings in long-term business, including early benefits from the strategy to rejuvenate the business.▼
** TheHoldings{{fn increaseref|14|2=Including banking inactivities.}} [[Definition:Underlying earnings|underlying earnings]] wasremained drivenstable by:at EUR -1.2bn.
▲** [[Definition:Property & casualty|Property & Casualty]]: +9%, from higher volumes, underwriting margin expansion, and increased financial result due to higher investment income.
** Asset Management [[Definition:Underlying earnings|underlying earnings]] decreased by EUR 0.2 billion2bn due to the disposal of [[Definition:AXA Investment Managers|AXA IM]] on July 1, 2025.▼
▲** [[Definition:Life & health|Life & Health]]: +7%, from improved short-term technical results in Health & Protection and higher earnings in long-term business, including early benefits from the strategy to rejuvenate the business.
* Holdings{{fn ref|14|2=Including banking activities.}} [[Definition:Underlying earnings|underlying earnings]] remained broadly stable at EUR -1.2 billion.
▲* Asset Management [[Definition:Underlying earnings|underlying earnings]] decreased by EUR 0.2 billion due to the disposal of [[Definition:AXA Investment Managers|AXA IM]] on July 1, 2025.
* [[Definition:Underlying earnings per share|Underlying earnings per share]]{{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 8% to EUR 3.86.
** TheThis was mainly driven by the increase in [[Definition:Underlying earnings|underlying earnings]] (+6%) and a decrease in interest expense on undated and deeply-subordinated debt.▼
* This increase was mainly driven by:
** TheAlso driven by the impact of [[Definition:Share buyback|share buybacks]] (+3%), including the annual [[Definition:Share buyback|share buyback]] program and the anti-dilutive [[Definition:Share buyback|share buyback]] associated with the sale of [[Definition:AXA Investment Managers|AXA IM]].▼
▲** The increase in [[Definition:Underlying earnings|underlying earnings]] (+6%) and a decrease in interest expense on undated and deeply-subordinated debt.
** This was partiallyPartially offset by the unfavorable impact of [[Definition:Foreign exchange|foreign exchange]] rate movements, notably the depreciation of the U.S. dollar against the Euro (-2%).▼
▲** The impact of [[Definition:Share buyback|share buybacks]] (+3%), including the annual [[Definition:Share buyback|share buyback]] program and the anti-dilutive [[Definition:Share buyback|share buyback]] associated with the sale of [[Definition:AXA Investment Managers|AXA IM]].
* The sale of [[Definition:AXA Investment Managers|AXA IM]] resulted in a temporary dilution of [[Definition:Underlying earnings per share|underlying earnings per share]] by -1% due to the timing of the associated [[Definition:Share buyback|share buyback]] (-1%).▼
▲* This was partially offset by the unfavorable impact of [[Definition:Foreign exchange|foreign exchange]] rate movements, notably the depreciation of the U.S. dollar against the Euro (-2%).
▲* The sale of [[Definition:AXA Investment Managers|AXA IM]] resulted in a temporary dilution of [[Definition:Underlying earnings per share|underlying earnings per share]] by -1% due to the timing of the associated [[Definition:Share buyback|share buyback]].
 
{{chunk|doc=chq99br5nr|c=11|p=2}}
'''Net income'''
 
* Net income increased by 26% to EUR 9.8 billion8bn.
* This increase mainly reflects 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]].
 
=== Balance sheet ===
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'''Shareholder distributions'''
 
* 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.}}.
* The [[Definition:Dividend|dividend]] is expected to be paid on May 13, [[Definition:Year 2026|2026]], with an ex-dividend date on May 11, [[Definition:Year 2026|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.
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<div style="overflow-x:auto">
{| id="t4" class="wikitable fintable"
|+ 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]].
|-
! style="text-align:left" | In EUR billion
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** [[Definition:AXA Asia, Africa & EME-LATAM|Asia, Africa & EME-LATAM]] (+14%) driven by Türkiye from higher average premiums and volumes.
** France (+9%) with strong volume growth in all [[Definition:Business mix|lines of business]], from 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.
 
{{chunk|doc=chq99br5nr|c=21|p=5}}
'''Combined ratio'''
 
* The all-year combined ratio improved by 0.3 pointpoints to 90.6%, mainly driven by:
** Lower undiscounted current year loss ratio excluding natural catastrophe (-0.3 pointpoints) from further margin expansion in Commercial lines (-0.5 pointpoints), driven by the SME & mid-market business (-0.9 pointpoints) in a favorable pricing environment, while margins at [[Definition:AXA XL|AXA XL]] Insurance were stable at attractive levels (+0.1 pointpoints).
** Lower undiscounted current year loss ratio excluding natural catastrophe (-0.3 pointpoints) from further margin expansion in Personal lines (-0.4 pointpoints) in a conducive pricing environment.
** Lower expense ratio (-0.3 pointpoints) primarily from lower non-commission expense ratio reflecting efficiency gains.
** Lower natural catastrophe charges (-0.4 pointpoints to 3.4%) more than offset by lower prior years' reserve development (+0.7 pointpoints at -1.1%).
 
{{chunk|doc=chq99br5nr|c=22|p=6}}
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'''Holdings [[Definition:Underlying earnings|underlying earnings]]'''
 
* Holdings [[Definition:Underlying earnings|underlying earnings]]{{fn ref|14|2=Including banking activities.}} remained broadly stable at EUR -1.2 bn2bn.
 
== Ratings and glossary ==
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<div style="overflow-x:auto">
{| id="t17" class="wikitable fintable"
|+ 17 <nowiki>|</nowiki> NB CSM to NBV by [[Definition:Business mix|business line]], FY[[Definition:Full year 2025|FY25]].
|-
! colspan="4" style="text-align:left" | NB CSM to NBV
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'''Investor events [[Definition:Year 2026|2026]]'''
 
* The [[Definition:Year 2026|2026]] Shareholder's Annual General Meeting is scheduled for: April 30, [[Definition:Year 2026|2026]].
* First quarter [[Definition:Year 2026|2026]] Activity Indicators will be released on: May 5, [[Definition:Year 2026|2026]].
* The HY26 [[Definition:Earnings release|Earnings Release]] is scheduled for: July 31, [[Definition:Year 2026|2026]].
* [[Definition:AXA|AXA]] Investor Day will take place on: September 21, [[Definition:Year 2026|2026]].
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