AXA reported net income of €3.16 billion (US$3.8 billion) during 2020, an 18% drop from €3.86 billion (US$4.7 billion) in full-year 2019.
The combined ratio for AXA’s P/C business increased 3.2 points to 99.5%, largely reflecting the impact from COVID-19 claims (+3.1 points) and higher natural catastrophe charges (+0.2 point) at AXA XL. Excluding COVID-19 claims of €1.5 billion ($1.8 billion), the full-year combined ratio was broadly stable at 96.4%. (A combined ratio below 100% indicates an underwriting profit. AXA’s COVID claims were post-tax and net of reinsurance).
Favorable prior-year reserve developments in its P/C business amounted to -2.1 points, compared to -2.2 points in full-year 2019.
The group’s underlying (operating) earnings for FY 2020 were €4.3 billion ($5.2 billion), down 34% from €6.5 billion ($7.8 billion) in FY 2019.
Gross revenues for the group during 2020 came to €96.7 billion ($117.5 billion), a 7% drop from €103.5 billion ($125.8 billion) reported during FY 2019.
“AXA’s solvency II ratio at December 31st was 200%, up 20 points from September, and including +13 points from the integration of AXA XL into the group’s internal model,” said Thomas Buberl, chief executive officer of AXA, in a statement.
The board is proposing a dividend of €1.43 ($1.73) per share.
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