AXA(AXAHY) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues have remained stable, increasing by 3%, while underlying earnings have grown by 34% and organic cash has increased by 75% [5][9] - The company plans to increase underlying earnings per share growth from 3%-7% to 6%-8% and cash remittance from €14 billion to €21 billion, a 50% increase [16][17] Business Line Data and Key Metrics Changes - The commercial insurance segment accounts for 50% of the business, with AXA being the largest global underwriter of corporate risks [5][6] - The health and employee benefits segment is the number one in Europe, with around €20 billion in premiums [22] - The retail insurance segment is expected to grow at a rate in line with GDP, focusing on proprietary distribution channels and productivity improvements [52][80] Market Data and Key Metrics Changes - The company has a strong presence in Europe, Japan, and 15 emerging markets, ranking among the top three in many regions [6] - The company aims for a growth rate of about 5% per year in the top line over the next three years, driven by organic growth initiatives [32] Company Strategy and Development Direction - The new strategic plan, "Unlock the Future," focuses on rigorous execution, organic growth, technical capabilities, and operational excellence [12][13] - The company aims to enhance its engagement in climate transition and inclusive insurance, targeting underserved markets in Europe [15] Management's Comments on Operating Environment and Future Outlook - Management believes the macro environment will remain challenging but sees opportunities in areas like retirement, healthcare, and generative AI [10][11] - The company has demonstrated resilience in a difficult environment and aims to continue delivering predictable earnings [11][99] Other Important Information - AXA has returned approximately €13 billion in dividends and share buybacks, representing about 30% of the market cap at the beginning of the previous plan [8] - Employee satisfaction has significantly improved, with the employee net promoter score rising from -5 in 2017 to +40 [14] Q&A Session Summary Question: What are the key initiatives for growth? - Management highlighted three main initiatives: driving organic growth, enhancing technical capabilities, and improving operational excellence [20][23] Question: How does AXA plan to manage its combined ratio? - The company aims to improve its combined ratio by 2 points over the plan period, with a focus on turning around underperforming segments [39][80] Question: What is the outlook for the commercial lines business? - The commercial lines business is expected to grow above GDP, particularly in the mid-market segment, with significant opportunities identified in Europe and selective expansion in the U.S. [41][42]