Axa UK and Ireland reports 3% rise in gross revenue for 2021

Axa Group has reported a 3% rise in its UK and Ireland gross revenue in 2021, increasing from €5,170m (£4,321m) in 2020 to €5,317m (£4,444m) last year, according to its full-year financial results, published on 24 February 2022.

This 3% rise is an improvement on the business’ gross revenue recorded between 2019 and 2020, which had dropped by three percentage points.

Axa UK and Ireland’s personal motor book saw its revenue drop by 3% last year, to reach €1,341m (£1,120m). Personal non-motor lines’ revenue decreased too by 4% - equating to €566m (£473m).

The business’ total personal lines revenue therefore dropped by 3% - down to €1,907m (£1,593m) in 2021.

Axa UK and Ireland’s commercial motor business also suffered in 2021, with revenue falling by 5% to €588m (£491m).

Commercial non-motor lines, however, saw revenue rise over the course of last year by 9% to €1,039 (£868m) – this contributed to a 3% upswing in its total commercial lines’ revenue, increasing to €1,626 (£1,358m) in 2021.

Axa’s property and casualty (P&C) business in the UK and Ireland was static between 2020 and 2021, sitting at €3,533 (£2,952m) for the full year ending 2021.

The financial peaks and troughs of Axa’s business in UK and Ireland are not reflected across the wider group, however, as the insurer bounces back from the Covid-19 pandemic.

Axa Group reported a 131% increase in its net income over 2021, improving from €3,164m (£2,644m) in 2020 to €7,294m (£6,095m) last year.

However, the insurer’s combined operating ratio (COR) was omitted from its year-end report.

Despite the revenue drops in the UK and Ireland, Axa Group chief executive Thomas Buberl said the business overall “delivered an excellent performance in 2021 on all fronts”.

Driving progress

Contributing to 2021’s upward trajectory was a 3% increase in the group’s gross revenues, rising from €96,723m (£80,809m) in 2020 to €99,931m (£83,501m) the year after.

This was aided by a 6% rise in total revenues across all business lines – P&C revenue, for example, increased by 3%.

Axa Group’s P&C commercial lines business saw 5% growth in 2021, mostly due to favourable price effects. Personal lines, on the other hand, remained stable.

The insurer’s P&C lines also drove up its overall underlying earnings by 59% because of a lessened impact from Covid-19-related claims and a strong underwriting result. Underlying earnings reached €6,762 (£5,650m) last year – up from €4,264 (£3,563m) in 2020.

As part of its financial results update, Axa Group also announced the immediate launch of a share buyback programme for up to €500m (£418m). All repurchased shares are intended to be cancelled.

The group further noted a 5.1 percentage point improvement in its return on equity in 2021 (14.7%) – up from 9.5% the previous year.

Buberl said: “Axa is delivering on all five strategic actions of its Driving Progress 2023 plan.

“We expect to deliver at the high end of our earnings growth target range and exceed our cumulative cash upstream target under our plan.

“Axa has continued to develop its environmental, social and governance (ESG) initiatives throughout the Covid-19 crisis and in 2021 further strengthened its climate commitments by extending oil and gas exclusions and by taking new engagements to support climate transition and preserve biodiversity, dedicating €1.5bn to support sustainable forest management.

“I am proud of the group’s performance in 2021 and through the Covid-19 crisis, reflecting the relevance of our strategy, the strong engagement of our people, agents and partners and the continued trust of our clients.”