Axa Raises Earnings Targets in New Three-year Strategy
Axa (CS.PA) increased its underlying EPS growth and return on equity targets for 2027 through 2029 as the French insurance group unveiled a new strategy for the next three years.Unveiled on Tuesday, the 'Going Forward' strategy estimates underlying earnings of 8.6 billion euros for the French insurance group for full-year 2026, reflecting underlying EPS growth at the top of the guidance range of 6% to 8%.The group is aiming for a compound annual growth rate in underlying EPS of between 7% and 9% for 2026 through 2029. Throughout the implementation period, the dividend target is for per-share distribution to be at least at the same level as the previous year, within a 75% total payout ratio target.Axa is also targeting underlying return on equity of between 15% and 17% from 2027 to 2029, as well as 25 billion euros in cumulative organic cash remittance over the period. The company also set a target of a mid-teens compound annual growth rate in book value per share, inclusive of cumulative dividends."To support this ambition, we will continue to enhance our competitiveness through disciplined underwriting and portfolio management, as well as strong cost control. This ambition leads us to raise all our financial targets while maintaining an attractive total payout ratio of 75%," said Chief Executive Officer Thomas Buberl.Initiatives to be implemented under the new strategy will focus on improving the company's relationship to its customers and growing its addressable market, as well as increasing its technical capabilities and efficiency. The plan also includes efforts to advance artificial intelligence across the group, with annual recurring benefits from AI expected to reach 500 million euros to 700 million euros before taxes by 2029.Shares of the company declined over 1% at midmorning trading.
