AXA to sell asset management business after posting 7% revenue growth for H1

French insurer AXA posted stronger than expected revenue in its H1 results for 2024 while also announcing plans to exit the asset management business.

The group achieved 7% organic revenue growth and a 4% increase in underlying earnings per share between January and June, results that were described as a vindication of the insurer’s new strategic plan in which it will focus on its core business.

Gross written premiums and other revenues totalled €59.9bn, slightly exceeding analyst expectations of €59.4bn according to a consensus compiled by AXA.

Underlying earnings increased by 4% to €4.2bn while AXA’s solvency ratio stood at 227% at the end of June.

The performance was partly driven by “strong profitability in commercial lines” as well as “good demand” in its property and casualty business where revenue was up by 7%.

Chief executive Thomas Buberl hailed the results as a “good start” to its Unlock the Future strategic plan and a reflection of the firm’s business model which is balanced between commercial and retail lines.

In addition to the revenue growth of the P&C business, life and health premiums were also up by 7%, while the planned acquisition of Italian insurer Nobis for €423m is expected to strengthen AXA’s P&C retail franchise in Italy.

But the biggest strategic move is the proposed sale of AXA Investment Management to fellow French firm BNP Paribas for €5.1bn in cash.

The transaction is expected to close by mid-2025. €3.8bn of the proceeds would be used in share buybacks while the remainder will be spent on “organic and inorganic growth”, according to deputy chief executive Frederic de Courtois.