AXA SA reported first half profit higher than the same period a year ago, as the Paris-based insurer assesses the impact of wildfires currently affecting France and Spain.
The French insurance group’s underlying earnings came in up 2% to €4.5 billion, the firm said in a statement Friday, meeting estimates. Net income stood at €4.2 billion, up 6% on the year but lower than forecast.
Revenue for the Life & Health business in the six months through June was 7% higher, slightly below estimates. Revenue for Property and Casualty beat estimates.
Axa management committee member Guillaume Borie said the firm doesn’t currently consider the wildfires as a threat to the outlook.
“We consider these events to be among the incidents we can manage while maintaining our performance,” Borie told reporters.
More than 200,000 people have been evacuated from the south-west France as wildfires spread through region around Bordeaux.
Earlier this week, French finance minister said insurers had agreed to extend deadlines for their clients to make claims related to the fires. He also said insurers would cover relocation costs for households ordered to evacuate, even if there is no damage to their homes.
AXA Chief Financial Officer Alban de Mailly Nesle said that claims for risks incurred in the Middle East, given the war in Iran, totaled approximately €100 million [US$114.9 million].
Earlier this month, AXA said it was selling its 10% stake in Ardian, one of the world’s largest alternative asset managers, to existing shareholders Assurances du Credit Mutuel and Wafra.
AXA Chief Executive Officer Thomas Buberl is seeking to strengthen the core business after the €5.1 billion [US$5.9 billion] sale of its asset management arm this year. Last year, the French insurer bought a majority stake in Milan-based insurer Prima Assicurazioni for €500 million [US$574.3 million].
The Paris-based firm said it was confident in reaching its targets for the period ending this year. It aims to be at the upper end of the 6-8% plan target range in underlying earnings per share growth for 2026, and to reach an underlying return on equity of 14% to 16%.
The insurer is set to unveil new targets for the 2027-2029 in September.
Photograph: The office building containing the headquarters of AXA Investment Managers in Paris; photo credit: Nathan Laine/Bloomberg
Topics Trends Carriers Profit Loss France AXA XL
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