AXA/2025/FY/Earnings release: Difference between revisions
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{{Indexing|Solvency II ratio||kind=prose|order=4}}
* Solvency II ratio at 224% at December 31, 2025, +9pts vs. [[Definition:Full year 2024|FY24]], and 215% on January 1, [[Definition:Year 2026|2026]], reflecting the end of the grandfathering period
== Capital Management ==
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* [[Definition:Underlying earnings per share|Underlying earnings per share]] +8% to EUR 3.86
* Driven by [[Definition:Underlying earnings|underlying earnings]] increase (+6%) and decrease in interest expense on undated and deeply-subordinated debt
* Driven by share buybacks (+3%) including annual share buyback program and anti-dilutive share buyback associated with sale of [[Definition:AXA Investment Managers|AXA IM]]
* Partially offset by [[Definition:Foreign exchange|foreign exchange]] rate movements (-2%), notably depreciation of U.S. dollar against Euro
* Sale of AXA IM resulted in temporary dilution of underlying earnings per share due to timing of associated share buyback (-1%)
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* Net income +26% to EUR 9.8bn
* Reflects increase in [[Definition:Underlying earnings|underlying earnings]] and significantly positive exceptional items, notably gain from sale of [[Definition:AXA Investment Managers|AXA IM]]
== Balance sheet ==
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* +2% normalized growth in CSM
* Favorable market conditions impact EUR +0.6bn, driven by tightening of government spreads and positive equity market performance
* Unfavorable [[Definition:Foreign exchange|foreign exchange]] impacts EUR -1.5bn, mainly from depreciation of Japanese yen and Hong Kong dollar
* Negative operating variance EUR -0.3bn as better margins and net flows offset by reduction in duration of Group Life business in Switzerland
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* Positive impact from net subordinated debt issuance +6pts
* Favorable impacts from financial markets +4pts
* Net impact of acquisitions of Nobis and Prima and disposal of [[Definition:AXA Investment Managers|AXA IM]] including associated EUR 3.8bn share buyback -5pts
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* Debt gearing 22.3% as of December 31, 2025, up 1.7pts vs December 31, 2024
* Driven by lower shareholders' equity and CSM, 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
* Debt gearing in line with 19-23% plan guidance for 2024-[[Definition:Year 2026|2026]]
* Cash at Holding EUR 5.6bn as of December 31, 2025, up EUR 1.6bn vs December 31, 2024
* Organic cash remittance from subsidiaries EUR 7.5bn, up EUR 0.4bn vs December 31, 2024
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* P&C Retail and SME & Mid-market: favorable pricing; expect continued benefit from earnthrough of higher pricing and underwriting actions
* AXA XL: pricing conditions vary by line; focus on effective cycle management and disciplined capital allocation to grow where returns exceed cost of capital
* Normalized natural catastrophe load guidance remains at ca. 4.5 points of combined ratio for [[Definition:Year 2026|2026]]
* Life & Health: earnings growth driven by short-term business via disciplined pricing and claims management initiatives
* Life & Health: long-term business strategy to rejuvenate sales coupled with improved persistency expected to generate positive net flows driving CSM growth over time
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{{Indexing|Holdings results outlook||kind=prose|order=24}}
* Holdings results in [[Definition:Year 2026|2026]] expected to remain at similar level as in 2025
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* Management on track to deliver 'Unlock the Future' plan targets assuming current operating conditions persist
* [[Definition:Underlying earnings per share|Underlying earnings per share]] growth target: upper end of 6-8% CAGR for plan period 2023-2026E and for [[Definition:Year 2026|2026]]
* Underlying return on equity target: between 14% and 16% between 2024 and 2026E
* Cumulative organic cash upstream target: in excess of EUR 21bn for 2024-2026E
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