Axa’s first-half underlying earnings rose 5% to €4.1 billion ($6.24 billion), putting it on track to meet full-year targets. 

CEO Thomas Buberl says the first-half result reflects strong operational performance despite a volatile environment and Axa expects 2023 underlying earnings above €7.5 billion ($11.42 billion). 

“We continue to take actions to sustain attractive margins, including through disciplined pricing,” Mr Buberl said.  

“We are on track to achieve our group underlying earnings target for the year and we are confident in our capacity to deliver long-term revenue and profit growth.”  

Axa's first-half Property & Casualty (P&C) combined ratio improved five percentage points to 90.9% from a year earlier, partly on lower natural catastrophe costs. P&C underlying earnings were €2.72 billion ($4.55 billion), helped by the unwinding of a discount of claims reserves. 

Axa reported higher volumes in property and specialty lines and favourable pricing across most business lines, offset by a reduction in premiums in North America professional lines.  

"Our model is producing good underlying earnings. 50% of our business is now commercial, we are the global leader and the largest insurer for commercial companies,” Mr Buberl said. “These results show continued strong delivery.” 

Total gross written premium (GWP) rose 2% to €55.7 billion ($93.28 billion), as P&C GWP grew 7% to €30.4 billion ($50.91 billion) – driven by 9% growth to €18.9 billion ($31.65 billion) in commercial lines, and 5% growth in personal lines, partially offset by a decline of 3% at Axa Reinsurance. 

Life and health GWP fell 3%, driven by a 1% decline in life and a 6% dip in health.  

Mr Buberl says Axa Reinsurance “is performing very well,” with a profit in the first half of around $US200 million on a combined ratio of 80.8%, helped by a strategy of continued natural catastrophe exposure reduction. 

Axa elected to lower its natural catastrophe exposure by 40% across renewals in the first quarter, sending reinsurance revenue down 12% on the strong reduction in that exposure. 

"We are successful with our turnaround strategy. We have over two years now reduced the national catastrophe exposure by 35-40% each year and so the model is working.  

"We are continuing this journey, making sure that we are remaining on this lower exposure to natural catastrophes, but also making sure that in some selected areas we are also growing the franchise again,” Mr Buberl said. 

"The market is a hot market and it's an interesting market – so we continue the restructuring, and growing selectively in areas where we would like to see more.” 

In March last year, Axa appointed Nancy Bewlay as CEO Reinsurance as Charles Cooper departed after more than 20 years.