AXA Reports 2025 Earnings Growth Driven by P&C and L&H Sectors
AXA, a leading French insurance provider, reported significant growth in its 2025 earnings, driven by robust performance in key sectors. The company's underlying earnings surged to €8.4 billion, reflecting a 6% increase compared to the previous year. Excluding the sale of its investment management division to BNP Paribas Cardif for approximately €5.1 billion, the growth rate was 9% year-over-year, with underlying earnings per share climbing by 8% to €3.86.
The insurer's operational efficiency enhanced, evidenced by a 0.3-point drop in the combined ratio to 90.6%, primarily due to an improved current-year loss ratio, excluding natural catastrophe impacts. Overall, gross written premiums (GWP) and other revenues rose by 6% to €116 billion, bolstered by gains in both the property and casualty (P&C) and life and health (L&H) insurance sectors.
P&C GWP and revenue saw a 5% increase, reaching €58 billion, with both commercial and personal lines showing strong growth. Commercial premiums expanded by 4%, fueled by higher volumes and competitive pricing through AXA XL Insurance. Personal lines experienced a 7% rise, amounting to €19.7 billion, supported by strategic pricing and expansion across regions including France, Europe, Asia, and the EME-LATAM areas. Additionally, AXA XL Reinsurance recorded an 8% increase to €2.6 billion, benefiting from alternative capital sources.
The L&H sector also exhibited significant growth, with GWP and revenue climbing by 8% to €56.5 billion. The Life segment increased its revenue by 9% to €37.5 billion, driven largely by a 13% boost in unit-linked products and targeted growth in protection offerings. Meanwhile, the Health sector grew by 5% to €19 billion through strategic price adjustments, despite a slight dip in volume.
Moody's Ratings VP-senior credit officer Christian Badorff highlighted AXA's strong 2025 outcomes, noting robust revenue and earnings growth in both P&C and L&H divisions. He acknowledged some pricing pressures in commercial lines but affirmed that they remain manageable. Badorff also pointed to AXA's strong balance sheet, underscored by a Solvency II ratio surpassing 200%.
The AXA board has sanctioned a share buyback program up to €1.25 billion, subject to shareholder approval, with plans for share cancellation. AXA's leadership expresses confidence in meeting its 'Unlock the Future' plan goals, which aim for upper-range 2023–26 underlying earnings per share growth and maintaining an underlying return on equity between 14% and 16% from 2024–26. AXA CEO Thomas Buberl remarked, "In 2025, AXA delivered another year of strong performance, with 9% earnings growth in our core businesses excluding AXA IM," showcasing the company's earnings versatility.
Last year, AXA expanded its presence by acquiring a 51% stake in Prima, an Italian direct insurance provider, for €500 million. This strategic move underscores AXA's ongoing commitment to growth and diversification in the European insurance market.