Due to the Coronavirus, our office will be operating remotely in order to keep our staff free from infection. For latest update on the virus as it pertains to Florida please access our link. Office: 813.995.6013 Ext: 101 / Direct: 727.755.3060 Email: info@centurioninsuranceafs.com

AXA’s 2023 Earnings Miss Forecasts on Higher Costs, Lifts Dividend 16% *Centurion Insurance AFS*

Feb 22, 2024 (0) comment , , , , , , , , ,


France’s AXA, Europe’s second-biggest insurer, reported slightly lower-than-expected yearly earnings on Thursday, as higher debt servicing costs and investments in tech ate into a rise in revenues.

The group, which also pledged bigger shareholder payouts as part of a new three-year strategic plan that it is set to unveil on Thursday, said full-year 2023 underlying earnings rose by 5% from a year earlier to 7.6 billion euros ($8.22 billion). That was in line with AXA’s own guidance, but below the 7.69 billion-euro analyst consensus compiled by the company.

Gross premiums and other revenues over the period rose 1% to 102.7 billion euros, also missing the 103 billion-euro analyst average estimate, hit by the removal of two global clients in France and lower sales at its asset management arm.

AXA’s solvency II ratio – a measure of insurers’ capital strength under European Union rules – stood at 227%, up 12 percentage points from a year earlier, the Paris-based firm said in a statement, driven by strong operating returns.

“(The lower-than-expected earnings) mainly stem from two reasons: our debt which is a little more expensive because of the rise in rates and secondly the fact that we have increased investments in technology,” Chief Financial Officer Alban de Mailly Nesle told reporters in a call.

The group, led by Thomas Buberl since 2016, also announced what it called a “capital management policy” as part of its new strategic plan. It promises to pay shareholders up to 75% of earnings in cash, including a dividend payout ratio of 60%.

The new policy translates into a yearly dividend for 2023 of 1.98 euro per share, up 16% from 2022.

In total, AXA will return up to 6 billion euros to shareholders in 2024, divided between 4.4 billion euros in dividends and up to 1.6 billion euros in share buybacks.

The dividend payout policy under AXA’s previous three-year plan was in the range between 55 and 65%.

($1 = 0.9249 euros)

(Reporting by Mathieu Rosemain; editing by Tommy Reggiori Wilkes)

Profit Loss

Interested in Profit Loss?

Get automatic alerts for this topic.


Source link

Comment (0)

Leave a Comments