AXA reveals 2023 strategy to improve underwriting & accelerate efficiency

French insurer AXA has unveiled its 2023 strategy with plans to cut costs, improve underwriting discipline, simplify customer experience and grow cash-flows in order to capture post-COVID-19 growth.

The strategic three-year plan, launched by the company's chief executive by Thomas Buberl, outlines a number of financial objectives to be achieved - including its target of €1.2 billion underlying earnings and a combined ratio of 96 percent for 2021.

The insurer also revealed it was targeting an average increase in underlying earnings per share of between 3 percent and 7 percent, and underlying return on equity between 13 percent to 15 percent, over the plan period.

Furthermore, AXA aims for €0.5 billion absolute cost reduction by 2023 across the group, particularly in Europe and France.

The group is looking to strengthen its underwriting performance, notably at AXA XL, with a target of 93 percent property and casualty (P&C) combined ratio by 2023.

Additionally, AXA is committed to growing its health and protection business revenue across all geographies, and reducing its carbon footprint by 20 percent by 2025.

"We are moving towards 2023 with five strategic actions: expand Heath and Protection; simplify customer experience and accelerate efficiency; strengthen underwriting performance; sustain our climate leadership position; and grow cash-flows across the Group," said Buberl.

"Our strategy is designed to deliver sustained earnings growth, driven by all our geographies, and a clear path to dividend growth, supported by enhanced cash generation, a strong balance sheet and disciplined capital management."

AXA added that it will implement a "strict financial discipline" on use of cash with acquisitions.

Buberl also highlighted the company's "bold and strategic" decisions made over the previous 2020 plan, including shifting AXA’s profile towards insurance technical risks, simplifying the organisation and scaling innovation in services.

"Our group is now reshaped to a simpler and more focused organisation, closer to its customers and with the right scale across our geographies and preferred segments, Health, Protection and P&C Commercial lines.

"AXA is very well positioned to capture post COVID-19 growth, and to cater to the new insurance needs of customers and society," said Buberl.