AXA rises thanks to brisk demand: premium income increased by 6%

AXA rises thanks to brisk demand: premium income increased by 6%

Insurance giant AXA posted growth in the first quarter of the year, driven primarily by strong demand across all business lines. Premium income rose by a total of six percent to 34 billion euros, as the company announced after the stock market closed in Paris. Despite the positive growth, AXA canceled the planned sale of a German life and pension portfolio to Athora, which had a negative impact on stock market performance.

AXA originally agreed in 2022 to transfer around 900,000 classic life and pension insurance contracts from the former DBV Winterthur to Athora. The planned portfolio would have included assets under management of 19 billion euros. The decision to cancel this sale resulted in a decline in AXA's share price. To compensate for the financial consequences, the company plans to buy back its own shares worth around 200 million euros.

In addition to this development, AXA has sold a smaller contract package with variable annuities to a subsidiary of Munich Reinsurance Company. This deal is said to include contracts with a total value of 3 billion euros. Chief Financial Officer Alban de Mailly Nesle was positive about the company's performance, highlighting that premium income has increased in various business areas, including property and casualty, life and health insurance and asset management.

After the news was announced on Friday in EURONEXT trading, AXA shares temporarily lost 1.32 percent to 31.45 euros. Analysts rated the figures for the first quarter as mixed, with sales being in line with expectations and net inflows in the fund business being particularly strong. The solvency ratio, however, was estimated to be somewhat weaker than expected. Despite some challenges in the market environment, AXA appears to be on track for further growth.