Underlying earnings up 28% to £145m
COR improves to 97.2% from 98.4%
Commercial and Healthcare, both key segments, grow 6% and 3% respectively
AXA Group, including the UK & Ireland, this morning published its half year 2018 results.
AXA UK & Ireland has recorded underlying earnings of £145m for the first half of 2018 – up 28% on the figure for 2017, while revenues are up 2% to £2.5bn (H1 2017: £2.4bn).
The results come on the back of a strong performance from AXA UK & Ireland’s Commercial and Healthcare lines – key strategic growth areas across the AXA Group.
- UK & Ireland revenues up to £2.5bn (H1 2017: £2.4bn)
- Underlying earnings up 28% to £145m (H1 2017: £113m)
- UK & Ireland COR – 97.2% (H1 2017: 98.4%)
- Personal lines revenues - £797m (H1 2017: £814m)
- Commercial lines revenues - £730m (H1 2017: £690m)
- Healthcare revenues - £908m (H1 2017: £885m)
- Growth: UK and Ireland 2%, Commercial 6%, Healthcare 3%
Bertrand Poupart-Lafarge, CFO and Interim CEO, AXA UK and Ireland Group commented:
“Despite turbulent conditions, we have performed strongly during the first six months of 2018, with underlying earnings up by almost 30%. In addition, our revenue increased 2% year-on-year underpinned by strong growth in our Healthcare and Commercial lines - key areas of business for AXA across the world.
“Our Commercial business experienced growth in Motor and Property aided by a robust performance by our revamped schemes proposition - where we partner with brokers to help them find and grow new areas of business. Our Commercial Direct SME business has also had a positive six months with the relaunch of our Business Guardian Angel service and our continued work on making insurance easier for micro SME customers.
“While Healthcare increased its number of small corporate and personal customers, it has also continued to be one of the most innovative parts of our business, partnering with start-ups to develop new propositions. It has developed Realise in partnership with LiveSmart – which combines remote GP, home blood testing and coaching in one place - and has worked alongside Equipsme to launch an innovative affordable healthcare offer for small businesses.
“Meanwhile, in Ireland, we passed one million customers and also introduced online farm insurance quotations– a first for the country.
“The Personal lines market has been challenging in the first half of the year due to unfavourable weather coupled with the uncertainty surrounding the personal injury discount rate and consequent market contraction. However, AXA has one eye firmly on the future and our recent partnerships with Brolly, a digital personal insurance assistant, and By Miles, a new pay-as-you-drive telematics proposition are excellent examples of this.
“Above all, we continue to improve profitability while seeking new and innovative ways to serve our policyholders to continue our journey from being a payer of claims to becoming true partners of our customers”