Insurance giant AXA took a €1.5bn hit due to claims as a result of the global pandemic that took hold over 2020.
In its full-year results, announced 25 February, the firm posted a drop in earnings to €4.3bn, from €6.4bn the previous year. Its net profit also edged lower at €3.16bn from €3.8bn.
“Throughout the Covid-19 crisis, AXA has been actively fulfilling its role in society, serving its customers and supporting its employees, while contributing to the economic recovery through €700m investments in SMEs as well as other solidarity measures in France and other countries where the group operates”, said chief executive Thomas Buberl.
The firm said the pandemic’s impact on its earnings, a result of property insurance and casualty insurance claims (P&C), are in line with its estimates noted on 3 June 2020.
The firm’s solvency II ratio, which is an indicator of insurers’ financial strength, was 200%, up from 198% for the previous year.
The annual premium equivalent (APE) – which measures the growth of new business by combining payment values on regular premium policies with 10% of payment values made on one-time, single-premium products – was up 1% to €5.34bn.
“After carefully considering the group’s balance sheet position, cash flows and overall operational performance as well as the continuing uncertainties related to the ongoing Covid-19 crisis, the board of directors decided to propose a dividend of Euro 1.43 per share,” Buberl added.
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