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The company’s 9M23 update was generally in line with expectations, featuring top-line growth in the P&C sector, encompassing both the commercial and personal lines. However, challenges remain on the horizon, particularly concerning lapses in Italy and the high frequency of health claims. Although in our first take we had indicated a lack of insight into Nat Cat losses, the management has since discussed the issue during the conference call, leading us to anticipate a more substantial impact fro
Companies: Axa (CS:EPA)AXA SA (CS:PAR)
AlphaValue
AXA’s reported results were in line with the market’s expectations, featuring strong growth in the P&C segment. This growth was primarily fuelled by the sustained strength in pricing, particularly in commercial lines (on a comparable basis), where pricing adjustments occur more swiftly compared to personal lines. Nevertheless, the L&H continued to face challenges. Specifically, the Health segment experienced adverse impacts due to the termination of two major contracts, alongside a rise in the
Axa’s 2Q 23 delivered mixed results, with the consensus still in the process of fully understanding the impacts of the new IFRS 17. A solid performance for P&C, maintaining the positive momentum observed in previous quarters driven by strong pricing and high discounting benefit. Difficult results for the Life & Health businesses. Finally, Axa boasts a robust balance sheet, enabling the potential for increased investor returns and the future pursuit of bolt-on acquisitions.
Axa’s 1Q 23 trading update was in line with expectations although the moving parts were slightly different. The firm also provided clarification on its underlying earnings’ targets for FY 23 under IFRS 17. The figures were reassuring although we buy less and less the neutral speech with regard to rates pressure on Life commercial momentum. Nevertheless, while we see little momentum for insurers over the next few quarters, Axa remains an exception, mainly underpinned by the very resilient P&C
Although this was only an “indicators” release, AXA’s results presentation and management call underpinned significant optimism about the outlook, we believe. Pricing was attractive while the reduction in NatCat exposure appeared to be effective. Solvency saw only a modest decrease and, in line with our comment back in May 2022, additional capital distributions to shareholders could well be on the cards.
Axa released strong H1 22 results, with most of the lines beating expectations. The strong solvency position coupled with the outlook enabled the company to announce a €1bn share buy-back program. Signs of confidence.
Axa’s Q1 22 release yielded mixed feelings. While revenues beat consensus’ estimates, Axa is too big to dance between the raindrops of the global macro-economic context. The group’s refocusing could impact growth in premiums and, in times when inflation is striking, the group’s profitability could be hurt even more.
Axa’s full year release yields mixed feelings. On the one hand, the announced distributions via an unexpected share buy-back (although quite small), coupled with a higher dividend than expected, is satisfying. Furthermore, the group has shown a strong, stable, and sustainable growth. On the other hand, XL, which was according to us the source of all attentions, disappointed us.
Activity continuing as planned, still supported by positive price pressure. Strong capital position resulting, in part, from the partial dividend distribution last year expanded by a €750m share buy-back programme.
Axa has delivered a very strong set of H1 21 results. It looks to us as if the French insurer has fully recovered from the COVID-19 crisis, with small risk of a relapse, with Axa XL delivering what the market was expecting and (finally) propelling the P&C business as it should. The overall dynamics in the insurance industry looks favourable to believe in a bright outlook for the biggest French insurer.
Axa’s Q1 2021 results and earnings’ call confirm our previous comments: 2021 is about restructuring towards its core markets while recovering from the COVID-19 crisis. Hence, as sharply and thoroughly led as the French insurer is, its results do not come as a surprise and are fully in line with what we all expect.
AXA posted FY 2020 total revenues of €96,723m, down 1% on a comparable basis (down 7% on a reported basis). Underlying earnings dropped by 34% to €4,264m. Net income stood at €3,164m, down 18% yoy. The Solvency II ratio was 200%. A dividend of €1.43 per share will be proposed at the shareholders’ AGM. The bill for COVID-19 remained stable at €1.5bn with no significant impact from new Coronavirus outbreaks. Our model will be adjusted up.
Since his arrival, Thomas Buberl has been injecting new blood into Axa’s management. The possible arrival of Ramon Fernandez, as a member of the Board of Directors, would be good news. The quest for a new Chairman is a more complicated task.
AXA reported an 8% decline in its 9M revenues to €73,385m. The business mix continued to follow the projected trend, with lower G/A Savings (-23% to €6,782m) and higher Health (+4% to €757m) and Protection (+2% to €11,405m) sales. AXA XL’s revenues were up 1% to €13,960m while the management is taking action to enhance profitability and will inject €1bn into its capital. The Solvency II ratio was 180% and COVD-19 related claims were reaffirmed at €1.5bn.
Companies: AXA SA
AXA’s underlying earnings stood at €1,885m, -48% yoy. The impact of COVID-19 on profits was in line with the previously published guidance, at €1.5bn. Commercial lines, notably AXA XL, released a loss of €843m. The group’s net income stood at €1,429m, -39% yoy. The Solvency II ratio was 180%. No dividend to distribute in Q4 20 and the two strategic targets, relative to underlying earnings per share and adjusted ROE, were withdrawn. Our model will be refined.
Research Tree provides access to ongoing research coverage, media content and regulatory news on AXA SA. We currently have 40 research reports from 6 professional analysts.
In the most difficult market conditions in more than a decade, Foxtons after adopting new strategic priorities, delivered an impressive turnaround in performance, and regained its position as London’s leading Estate Agent. Our analysis recognises the logic which underlies current consensus, see scope for upgrades and justifies valuations materially above current values.
Companies: Foxtons Group Plc
Zeus Capital
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
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Cavendish
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Shore Capital
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Canaccord Genuity
Today's announcement from JIM reflects a year which saw challenges both in underlying terms and in relation to the ongoing Section 166 process. Trading volumes have remained under pressure against a choppy economic backdrop. Voluntary requirement (VREQ) restrictions placed on “Model B” clients have led to a reduction in client numbers in this category, although numbers have remained stable since the Q3 completion of assessments. The company did benefit from rising interest rates, a significant p
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WHIreland
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Gresham House Energy Storage Fund (GRID) is the largest UK fund investing in utility-scale battery energy storage systems (BESS). A recent sharp decline in gas prices, a ‘disappointing’ start to the Energy System Operator’s (ESO’s) new energy trading platform and systemic delays connecting completed projects to the national grid have raised concerns about the revenue generating capacity of the BESS sector. This has placed significant downward pressure on the share prices of GRID and others in th
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Edison
The new strategic vision set out by the CEO is gaining significant momentum, driven by investment in staff and in best-in-class bespoke IT and data platforms, and implies that medium-term targets are now coming into focus. Market share is being gained in all divisions, which is likely to be boosted if the sales market stabilises in 2024. We have modestly raised forecasts and our valuation to 132p/share and believe that if interest rates stabilise or ease further, there are upside risks to our fo
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Liberum
AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$1.00 per share: Logging results at Welchau further derisk the discovery – The logging program has confirmed open fracture networks and vuggy porosity (matrix porosity) essential for well productivity coincident with hydrocarbon shows between 1346 m and 1702 m measured depth. This represents 356 m of gross interval across three interpreted lithological sequences. This compares with only 115 m of l
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Auctus Advisors
ATT offers significantly discounted exposure to the technology sector…
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Kepler | Trust Intelligence
Murray International Trust’s (MYI’s) managers are transitioning smoothly from a team of three to two, ahead of Bruce Stout’s retirement at the end of June 2024. The two remaining managers, Martin Connaghan and Samantha Fitzpatrick, have worked closely with Stout since 2001, so MYI’s shareholders can have confidence that it will be ‘business as usual’ in H224 and beyond. Regardless of the market environment, the managers strive to fulfil their objectives of generating income and capital growth hi
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HgCapital Trust (HgT) posted an 11.1% NAV total return in FY23 (based on final audited numbers), which allowed it to sustain strong five- and 10-year returns of 20.4% and 18.4% pa, respectively. This has been mostly driven by robust earnings momentum across its portfolio. HgT defied the tough private equity exit environment, generating £345.9m of total realisation proceeds excluding carried interest in FY23. Moreover, it has a healthy commitment coverage ratio of 73% (based on current pro forma
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