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1. Company Snapshot

1.a. Company Description

AXA SA, through its subsidiaries, provides insurance, asset management, and banking services worldwide.The company operates through France, Europe, Asia, AXA XL, International, and Transversal & Central Holdings segments.It offers life and savings insurance products, such as savings and retirement, other health, and personal protection products.


The company also provides property and casualty insurance products, including car, home, and personal or professional liability to individual and business clients; international insurance for large corporate clients in Europe; and marine and aviation, as well as property and casualty reinsurance products.In addition, it offers asset management services in the areas of various asset classes, including equities, bonds, hedge funds, private equity, and real estate for the group's insurance companies and their clients, and retail and institutional clients.The company was founded in 1852 and is based in Paris, France.

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1.b. Last Insights on CS

AXA SA's recent performance was negatively impacted by a 2% dip in net profit for the first half of 2025, missing estimates, due to currency headwinds. Additionally, the insurer's earnings were hurt by President Trump's sweeping import tariffs, which fueled concerns about economic growth and led to a global stock selloff. Furthermore, AXA's European peers, such as JPMorgan Chase & Co. and Bank of Montreal, have outperformed the sector so far this year, adding to the negative sentiment surrounding AXA.

1.c. Company Highlights

2. AXA Group Delivers Strong Half-Year Earnings

AXA Group reported an excellent performance for the first half of 2025, with revenue increasing 7% to over EUR 64 billion, driven by growth in all business lines and regions. Underlying earnings rose 6% to EUR 4.5 billion, with underlying earnings per share growing 8%, at the upper range of the plan's goal. The Solvency Ratio II remains high at 220%. Revenue growth was led by P&C, with revenues hitting EUR 34.1 billion, up 6%, driven by Commercial insurance and Personal lines. Life & Health revenue reached EUR 29.2 billion, up 8%, with Life segment growth of 9% to EUR 19.1 billion, driven by Protection through unit-linked accounts.

Publication Date: Aug -03

📋 Highlights
  • Revenue Growth:: Total revenue increased by 7% to over EUR 64 billion, driven by growth across all business lines and regions.
  • Underlying Earnings:: Underlying earnings rose 6% to EUR 4.5 billion, with underlying earnings per share growing 8%.
  • Solvency Ratio:: Solvency Ratio II remains strong at 220%, with 15 points of capital generated per half year.
  • Acquisition of Prima:: AXA acquired Italian insurer Prima for EUR 500 million, nearly doubling its size in Italy's motor insurance market.
  • Life & Health Growth:: Life & Health revenue grew 8% to EUR 29.2 billion, with Life segment growth of 9% to EUR 19.1 billion.

Business Segments Performance

The Life & Health segment saw a 5% increase in underlying earnings, mainly driven by improved technical results in the health business. Net new money or net inflows grew significantly, in line with goals and ambitions. In P&C, the company saw a strong performance, with revenues up 6%, driven by Commercial insurance and Personal lines. The reinsurance business posted an 11% revenue growth, with a focus on disciplined underwriting and reduced exposures.

Strategic Moves and Acquisitions

AXA announced the acquisition of Prima, an Italian insurer, for EUR 500 million, which will strengthen its market share in motor insurance in Italy. The deal will nearly double AXA's size in the market and allow it to continue its growth momentum. The disposal of AXA Investment Managers and the acquisition of Prima reflect AXA's focus on its core insurance business. Priorities going forward include energizing Life & Health business, transforming skill sets through data and AI solutions, expanding distribution networks, and strengthening client loyalty and retention.

Financial Position and Valuation

The company has a robust balance sheet, with a high solvency level and a solid financial position. The gearing ratio stands at 23.4%, and the solvency ratio is very high at 220%, with 15 points of capital generated per half year. With a P/B Ratio of 1.76 and a Dividend Yield of 5.47%, AXA's valuation appears attractive. According to analysts, the stock trades at a P/E Ratio of 11.3, which is relatively in line with its historical average. The actual EPS came out at '2.08', beating estimates at '2.02'.

Outlook and Growth Prospects

Analysts estimate next year's revenue growth at 3.6%. The company's focus on organic growth, combined with strategic acquisitions like Prima, is expected to drive future growth. With a strong performance across all business lines and regions, AXA is well-positioned to continue serving and supporting clients while offering more protection services and solutions.

3. NewsRoom

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Is There Still Value in AXA After Recent Sustainability Initiatives and 4.5% Price Drop?

Nov -03

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AXA (ENXTPA:CS) Valuation: How Does the Recent 7% Pullback Shape Investment Potential?

Nov -02

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AXA BetterMe Weekend Celebrates Its 5th Anniversary with over 13,000 participants

Oct -31

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AXA Garners Seven Awards at The Hong Kong Insurance Awards 2025

Oct -24

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AXA launches "WealthAhead II Savings Insurance" Series

Oct -20

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3 European Dividend Stocks Yielding Up To 6.2%

Oct -15

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AM Best Upgrades Issuer Credit Ratings of AXA S.A. and Its Main Rated Subsidiaries

Oct -09

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AXA BetterMe Weekend Celebrates Fifth Anniversary

Oct -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.10%)

6. Segments

Europe

Expected Growth: 2.5%

AXA SA's European segment growth of 2.5% is driven by increased demand for health and life insurance products, favorable pricing, and cost efficiency measures. Additionally, the company's strategic focus on digital transformation and innovation has enhanced customer engagement, contributing to steady growth in the region.

France

Expected Growth: 2.8%

AXA SA's 2.8% growth in France is driven by increased demand for health and life insurance products, favorable regulatory changes, and a strong distribution network. Additionally, the company's focus on digital transformation and innovation has improved customer engagement and retention, contributing to the growth.

Asia, Africa & EME- LATAM

Expected Growth: 4.2%

AXA SA's growth of 4.2% in Asia, Africa & EME-LATAM is driven by increasing demand for insurance products, expansion into new markets, and strategic partnerships. Rising middle-class populations and growing economies in these regions have fueled the demand for life, health, and property insurance, enabling AXA SA to capitalize on these trends and drive growth.

AXA XL

Expected Growth: 3.6%

AXA XL's 3.6% growth driven by strong performance in commercial P&C, favorable pricing conditions, and disciplined underwriting. Expansion in specialty areas like cyber and aviation also contributed. AXA SA's strategic focus on XL's growth and integration efforts have yielded positive results, enabling the business to capitalize on market opportunities and deliver steady growth.

Transversal & Central Holdings

Expected Growth: 2.1%

Transversal & Central Holdings' 2.1% growth is driven by AXA SA's strategic diversification, strong performance in Life & Savings and Property & Casualty segments, and efficient cost management. The segment's growth is also fueled by innovative product offerings, digital transformation, and a solid balance sheet, enabling AXA to capitalize on emerging market opportunities.

Intersegment Eliminations

Expected Growth: 0.0%

Intersegment eliminations for AXA SA show 0.0% growth, indicating no change in inter-segment transactions or eliminations. This stability suggests that the company's business segments are not experiencing significant shifts in revenue or expense allocations, maintaining a consistent financial structure.

7. Detailed Products

Health Insurance

AXA's health insurance provides coverage for medical expenses, including hospitalization, surgery, and prescription medication.

Life Insurance

AXA's life insurance offers financial protection for loved ones in the event of the policyholder's death, providing a lump sum payment or ongoing income.

Property Insurance

AXA's property insurance protects against damage or loss to homes, businesses, and other properties, including coverage for natural disasters and theft.

Auto Insurance

AXA's auto insurance provides coverage for vehicle owners, including liability, collision, and comprehensive protection against accidents, theft, or damage.

Travel Insurance

AXA's travel insurance offers protection against unexpected events while traveling, including trip cancellations, medical emergencies, and luggage loss or damage.

Asset Management

AXA's asset management services provide investment solutions and portfolio management for individuals and institutions, helping them achieve their financial goals.

Cyber Insurance

AXA's cyber insurance helps businesses protect against cyber threats, including data breaches, ransomware attacks, and business interruption.

Employee Benefits

AXA's employee benefits provide companies with a range of solutions to support their employees' well-being, including health, wealth, and protection benefits.

8. AXA SA's Porter Forces

Forces Ranking

Threat Of Substitutes

AXA SA operates in the insurance industry, which has a moderate threat of substitutes. While there are alternative insurance products and providers, customers may be loyal to AXA's brand and services, reducing the likelihood of switching to substitutes.

Bargaining Power Of Customers

AXA SA has a large customer base and operates in a highly competitive market, which reduces the bargaining power of individual customers. Additionally, insurance products are often necessities, making customers less likely to negotiate prices.

Bargaining Power Of Suppliers

AXA SA has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company has a significant market share and can negotiate prices with suppliers.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory requirements, significant capital requirements, and established brand loyalty. This reduces the threat of new entrants.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. AXA SA faces significant competition from other insurance providers, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.46%
Debt Cost 4.28%
Equity Weight 44.54%
Equity Cost 9.71%
WACC 6.69%
Leverage 124.53%

11. Quality Control: AXA SA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 7.0

Growth: 4.9

Quality: 7.5

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

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Generali

A-Score: 7.1/10

Value: 7.7

Growth: 2.8

Quality: 6.1

Yield: 8.8

Momentum: 8.0

Volatility: 9.3

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A-Score: 6.7/10

Value: 3.4

Growth: 4.6

Quality: 7.6

Yield: 8.1

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Volatility: 10.0

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A-Score: 6.7/10

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Growth: 3.4

Quality: 7.0

Yield: 5.6

Momentum: 9.0

Volatility: 7.7

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AXA

A-Score: 6.6/10

Value: 5.9

Growth: 3.9

Quality: 5.5

Yield: 9.4

Momentum: 6.5

Volatility: 8.7

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A-Score: 5.8/10

Value: 2.2

Growth: 2.2

Quality: 5.9

Yield: 7.5

Momentum: 7.0

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.55$

Current Price

38.55$

Potential

-0.00%

Expected Cash-Flows