AXA Earnings: Robust Underlying Profit Is Due to Release of Reserves; Fair Value Estimate Maintained

For the first half of 2023, AXA has reported robust results, with underlying earnings before tax, or pre-tax income, of EUR 5.1 billion. This is compared with the first half of last year when calculated under the same IFRS 17 accounting standards, the business reported pre-tax income of EUR 4.2 billion, an increase this year of around 20%. One-time full-year guidance is to deliver underlying earnings of EUR 7.5 billion or better. On a normalized basis, these earnings mean AXA is now generating returns for shareholders above its cost of capital, touching mid-teen rates. The improved results have been driven by better performance in AXA's property and casualty division. In addition, the company has continued to tilt away from natural catastrophe-exposed reinsurance, which has lessened its natural catastrophe impact.