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

| pages = 20

| source_url = https://www-axa-com.cdn.prismic.io/www-axa-com/aZ_Ib8FoBIGEg123_AXA_PR_20260226.pdf

| intro_sentence = This article summarizes AXA's Earnings release published on 2026-02-26 (20 pages).

| wide = yes

 

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* Paris, February 26th, [[Definition:Year 2026|2026]] (6:45am CET)

 

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'''[[Definition:Gross written premiums|Gross written premiums]] and [[Definition:Underlying earnings|underlying earnings]]'''

 

 

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'''Solvency II ratio'''

 

 

 

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* [[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.}}

* Completion of EUR 3.8bn 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]]

 

 

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'''[[Definition:Year 2026|2026]] outlook and strategic plan'''

 

 

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== FY25 key highlights ==

 

 

<div style="overflow-x:auto">

! class="col-s" style="text-align:right" | Change at comparable basis

|-

| style="text-align:right" | 110,316

| style="text-align:right" | 115,524

! class="col-s" style="text-align:right" | Change at constant Forex

|-

| style="text-align:right" | 8,078

| style="text-align:right" | 8,368

! class="col-s" style="text-align:right" |

|-

| style="text-align:right" | 216%

| style="text-align:right" | 224%

|}

</div>

=== Activity indicators ===

 

 

 

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

 

* [[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.

** Increase in [[Definition:Underlying earnings|underlying earnings]] (+6%) and a decrease in interest expense on undated and deeply-subordinated debt.

** 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]] (-1%) due to the timing of the associated [[Definition:Share buyback|share buyback]].

 

'''Net income'''

 

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

 

=== Balance sheet ===

 

 

* Shareholders' equity was EUR 47.2bn as of December 31, 2025, down EUR 2.8bn versus December 31, 2024.

* CSM{{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.}}{{fn ref|15|2=Including P&C. Please see Appendices of the FY25 earnings presentation available at www.axa.com for indicative sensitivities impacting CSM. These sensitivities, together with any other sensitivities contained in the Appendices, are based on management's current assessment in connection with the full -year 2025 annual results. These sensitivities are expressly qualified by the cautionary statements in the presentation concerning forward looking statements and have not been audited or subject to a limited review by AXA's statutory auditors.}} was EUR 33.3bn at December 31, 2025, down EUR 0.6bn versus December 31, 2024.

 

'''Solvency II ratio'''

 

* Solvency II ratio{{fn ref|5|2=The Solvency II ratio is estimated primarily using AXA's internal model calibrated based on an adverse 1/200 years shock. For further information on AXA's internal model and Solvency II disclosures, please refer to AXA Group's Solvency and Financial Condition Report (SFCR) as of December 31, 2024, available on AXA's website (www.axa.com). The Solvency II ratio as of December 31, 2025 is adjusted to give effect to the full up to Euro 1.25 billion annual share buyback program and proposed Euro 2.32 per share dividend announced today.}} was 224% as of December 31, 2025, up +9 points versus December 31, 2024.

 

 

* Debt gearing{{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).}} was 22.3% as of December 31, 2025, up 1.7 points versus December 31, 2024.

* The [[Definition:AXA|Group]]'s debt gearing was in line with its 19-23% plan guidance for 2024-2026.

* Cash at Holding{{fn ref|16|2=Including cash and liquid invested assets at AXA SA Holding and other central holdings.}} amounted to EUR 5.6bn as of December 31, 2025, up EUR 1.6bn versus December 31, 2024.

 

== Capital management and outlook ==

=== Capital management ===

 

'''Shareholder returns'''

 

* 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]].

 

=== Outlook ===

 

 

* [[Definition:AXA|AXA]] is confident in achieving its main financial targets for the 2024-2026 'Unlock the Future' plan.

 

 

* The [[Definition:AXA|Group]] is committed to its [[Definition:Capital management|capital management]] 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.}}.

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

== Property & Casualty ==

 

 

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{| id="t5" class="wikitable fintable"

|-

! class="col-s" style="text-align:right" | [[Definition:Full year 2024|FY24]]

! class="col-s" style="text-align:right" | [[Definition:Full year 2025|FY25]]

|}

</div>

 

'''[[Definition:Property & casualty|P&C]] [[Definition:Underlying earnings|underlying earnings]]'''

 

 

== Life & Health ==

 

 

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=== Gross written premiums & other revenues were up 8% to Euro 56.5 billion. ===

 

 

 

'''Present value of expected premiums (PVEP)'''

 

 

'''NB CSM and NBV'''

 

 

'''Net flows'''

 

 

'''[[Definition:Life & health|Life & Health]] [[Definition:Underlying earnings|underlying earnings]]'''

 

 

== Holdings ==

 

'''Holdings [[Definition:Underlying earnings|underlying earnings]]'''

 

* Holdings [[Definition:Underlying earnings|underlying earnings]]{{fn ref|14|2=Including banking activities.}} remained broadly stable at EUR -1.2bn.

 

 

 

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{{fn note|1=22|2=AXA maintains up-to-date ratings information on its website at: https://www.axa.com/en/investor/financial-strength-ratings.}}

 

 

* 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 [[Definition:AXA|group]] of insurance contracts representing the unearned profit to be recognized as services are provided to policyholders.

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

* [[Definition:Gross written premiums|Gross written premiums]] and [[Definition:Other revenue|other revenues]]: insurance premiums collected during the period (including risk premiums, premiums from pure investment contracts with no discretionary participating features, fees and revenues, net of commissions paid on assumed reinsurance business).

* 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.

* New business value margin ("NBV Margin"): the ratio of (i) NBV representing the value of newly issued contracts during the current year to (ii) PVEP.

* Operating variance: the variation of the year-end CSM vs the 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.

* Present value of expected premiums ('PVEP'): the new business volume, equal to the present value at the time of issue of the total premiums expected to be received over the policy term.

* Underlying return on in-force: the release of the time value of options & guarantees plus the unwind of CSM at the reference rate plus the underlying financial over-performance.

 

=== Scope ===

 

 

** Asia: Japan (insurance activities and holding), Hong Kong (insurance activities), Thailand [[Definition:Property & casualty|P&C]], Indonesia L&S (excluding the bancassurance entity), China [[Definition:Property & casualty|P&C]], South Korea, and Asia Holdings are fully consolidated.

** Africa: Egypt (insurance activities and holding), Morocco (insurance activities and holding), and Nigeria (insurance activities and holding) are fully consolidated.

** EME-LATAM: Mexico (insurance activities), Colombia (insurance activities), Brazil (insurance activities and holding), and Türkiye (insurance activities and holding) are fully consolidated.

** EME-LATAM: Russia (Reso) (insurance activities) is consolidated under the equity method and contributes only to net income.

 

=== Exchange rates ===

 

 

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== Notes ==

 

'''Notes'''

 

{{fn note|1=24|2=Disposal to BNP Paribas completed on July 1, 2025.}}

 

 

* All comments and changes for activity indicators are on a comparable basis (constant forex, scope, and methodology).

* Actuarial and financial assumptions for NBV and PVEP calculations are updated semi-annually at half-year and full-year.

* [[Definition:AXA|AXA]]'s consolidated financial statements for the year ended December 31, 2025, were examined by the Board of Directors on February 25, [[Definition:Year 2026|2026]].

* The financial statements are subject to completion of an audit procedure by [[Definition:AXA|AXA]]'s statutory auditors.

 

 

* The [[Definition:AXA|AXA]] ordinary share is listed on compartment A of Euronext Paris under ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA).

* [[Definition:AXA|AXA]]’s American Depository Share is quoted on the OTC QX platform under ticker symbol AXAHY.

* Individual Shareholder Relations contact: +33.1.40.75.48.43.

* Media Relations contacts: +33.1.40.75.46.74, ziad.gebran@axa.com, ahlem.girard@axa.com, sylwia.tulak@axa.com.

 

== Appendix 1: Gross written premiums et other revenues by geography and business line ==

 

 

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== Appendix 2: Underlying earnings by geography and by business line ==

 

 

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== Appendix 3: Property & Casualty – gross written premiums & other revenues by business line and discount rates ==

 

 

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=== P&C: Price effects i by country and business line ===

 

 

<div style="overflow-x:auto">

|+ [[Definition:Property & casualty|P&amp;C]]: Price effects by country and [[Definition:Business mix|business line]]

|-

! style="text-align:left" | [[Definition:Full year 2025|FY25]] (in %)

! style="text-align:left" | [[Definition:Year 2026|2026]] Market pricing trends

|-

| style="text-align:right" | —

| style="text-align:left" | Moderation of price increase

|-

| style="text-align:right" | —

| style="text-align:left" | —

|-

| style="text-align:right" | +3.0%

| style="text-align:right" | +5.0%

| style="text-align:left" | Continued price increases both in Personal and Commercial lines

|-

| style="text-align:right" | +3.1%

| style="text-align:right" | +10.3%

| style="text-align:left" | Moderation of price increase, notably in Personal lines following two years of high price increases to counter claims inflation

|-

| style="text-align:right" | +2.5%

| style="text-align:right" | +4.4%

| style="text-align:left" | Price increase broadly in line with 2025

|-

| style="text-align:right" | +1.4%

| style="text-align:right" | -2.6%

| style="text-align:left" | In UK Personal lines, continuation of current trend, continued moderation in Commercial lines

|-

| style="text-align:right" | +8.8%

| style="text-align:right" | +8.6%

| style="text-align:left" | Moderation of price increase

|-

| style="text-align:right" | +5.2%

| style="text-align:right" | +5.3%

| style="text-align:left" | Moderation of price increase

|-

| style="text-align:right" | —

| style="text-align:left" | Softening prices with conditions varying by lines

|-

| style="text-align:right" | —

| style="text-align:left" | Moderation of price increase

|-

| style="text-align:left" | —

|}

== Appendix 5: Life & Health – gross written premiums & other revenues and growth by business line ==

 

 

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== Appendix 6: New business volume (PVEP), new business value (NBV), and NBV margin ==

 

 

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== Appendix 7: Life & Health – net flows ==

 

 

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== Appendix 8: Main transactions and next main investor events ==

 

'''Main transactions in 2025'''

 

* Announced the completion of the acquisition of Nobis [[Definition:AXA|Group]] in Italy (April 1, 2025)

* Announced the placement of EUR 1bn Restricted Tier 1 Notes and EUR 1bn Tier 2 Notes (May 28, 2025)

* Announced the completion of the sale of [[Definition:AXA Investment Managers|AXA Investment Managers]] to BNP Paribas (July 1, 2025)

* Announced the execution of a [[Definition:Share buyback|share repurchase]] agreement of up to EUR 3.8bn following the sale of [[Definition:AXA Investment Managers|AXA IM]] (July 1, 2025)

=== Next main investor events ===

 

 

* [[Definition:Year 2026|2026]] Shareholder's Annual General Meeting: April 30, [[Definition:Year 2026|2026]]