Axa to focus on health as it sets out latest strategy

The company said on Tuesday that it expected its health and protection insurance revenues to increase 5 per cent a year between 2020 and 2023, thanks to plans to launch “innovative services” such as online health platforms.

Axa and its peers have been hit hard by the coronavirus crisis, paying out on a wide range of policies and dealing with the impact of lower interest rates on its investment book. The company expects to pay out a total of €1.5bn in Covid-19 related claims.

Axa however is aiming for an underlying return on equity of between 13 and 15 per cent between 2021 and 2023. Axa will also cut €500m of costs by 2023, some of which will come from voluntary redundancies while other measures stem from changes to working habits after Covid-19, including less time spent at the office.

“Our strategy is designed to deliver sustained earnings growth, driven by all our geographies, and a clear path to dividend growth,” said chief executive Thomas Buberl in a statement.

Under the previous plan, laid out in 2016, Axa moved away from financial market risks and towards insurance underwriting risks. The centrepiece of that plan was the $15bn acquisition of Bermuda-based XL in 2018, and the demerger of its US life insurance business, Axa Equitable.

Source: Financial Times