AXA, a French insurance and asset management company, reported a decline in net profit for the first half of the year, reaching €3.922 billion. This was less than the €4.020 billion reported in the same period last year and significantly missed the €4.68 billion estimate from a Bloomberg analyst poll. The decrease was primarily attributed to unfavorable foreign exchange impacts, with KBW analyst William Hawkins highlighting an "8% headline earnings miss and 9% equity miss." Despite this, underlying earnings increased to €4.465 billion from €4.244 billion a year ago, and underlying earnings per share grew by 8% to €2.03.
Gross written premiums and other revenues saw an increase, reaching €64.251 billion compared to €59.872 billion in the previous year. The Property and Casualty segment contributed €34.097 billion to these revenues, up from €32.522 billion in 2024. Despite the net profit miss, AXA's management expressed confidence in achieving an underlying earnings per share growth in 2025 that aligns with their 6-8% CAGR plan target range for the 2023-2026 period.
The company's stock experienced a significant decline, falling as much as 7% intraday, marking its largest drop since April 7. This dip followed the profit miss and the announcement of AXA's agreement to acquire a 51% stake in the Italian car insurer Prima Assicurazioni for approximately €500 million. CEO Thomas Buberl indicated that this acquisition aims to bolster AXA's motor business in Italy and enhance its direct distribution capabilities, and he plans to continue pursuing acquisitions as the insurance industry consolidates. Jefferies analyst Philip Kett characterized the deal as "fair (but not compelling) in terms of value."
In related news, AXA previously reported a record full-year profit, with net profit climbing 10% to €7.9 billion on revenue growth of 7% to €110 billion. The company announced a 9% increase in its 2024 dividend payout to €2.15 per share and plans for share buybacks totaling €1.2 billion for the current year. An additional €3.8 billion ($4 billion) in buybacks is planned following the sale of AXA Investment Managers to BNP Paribas. Erste Group Bank recently reduced its FY2026 earnings per share estimate for AXA to $4.71 from $4.74, maintaining a "Strong-Buy" rating.
