Axa in France rebounds after pandemic with 180% increase in net profit

PARIS, Aug. 2 (Reuters) – French insurer Axa (AXAF.PA) posted a 180% increase in first-half net profit on Monday as the company rebounded from a surge in pandemic-related claims that had it brought in to record 1.5 billion euros ($ 1.8 billion) last year.

Axa, Europe’s second-largest insurer after Allianz (ALVG.DE), said its first-half net profit was € 3.99 billion, more than double the € 1.43 billion a year more early.

He said his company-focused XL Group unit, hit last year by business interruption and event cancellation claims, recorded € 619m in underlying revenue against a loss of 843 million euros a year ago.

“Taking advantage of the continued favorable pricing momentum, Axa XL is well positioned to meet its target of € 1.2 billion in profit in 2021,” Axa CEO Thomas Buberl said in a statement.

Operating profit rose 93% in the first half to € 3.64 billion. Excluding last year’s COVID-19 claims, underlying profit rose 12%, Axa added.

“Axa’s results clearly exceed consensus expectations, with Axa XL’s underlying earnings up + 40% (ex-COVID) being a particularly pleasant source of strength,” Jefferies analysts said in a statement. note.

However, Axa warned that the devastating July floods in Germany and Belgium would cost it around € 0.4 billion pre-tax and net of reinsurance in a preliminary estimate.

The company reached a settlement of 300 million euros in June with restaurateurs in France for insurance claims related to the pandemic.

CFO Alban de Mailly Nesle said nearly half of the restaurateurs involved have expressed interest in the settlement.

“The campaign is going very well on the ground,” de Mailly told reporters.

In a separate statement, Axa said its board has offered to renew Buberl’s tenure as a director for a further 4 years.

The proposal will be submitted to shareholders in April 2022 at the annual general meeting.

Axa shares are up 12.14% year-to-date.

($ 1 = € 0.8427)

Report by Matthieu Protard; Editing by Kim Coghill, Kirsten Donovan

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