French insurance major AXA has reported a profit of €2.14bn for the full year 2018 (FY 2018), which marks a 66% decline compared to €6.2bn it reported for the Full Year 2017 (FY 2017).
The French insurance major said that the increase in adjusted earnings was more than neutralized by multiple factors like the impairments of the goodwill from AXA Equitable in group share, at €3.0bn, and other intangible assets associated with the transformation of its Swiss Group Life business.
The insurance giant also cited higher restructuring costs at €332m and exceptional charges, associated with the IPO of AXA Equitable and the $15.3bn acquisition of XL Group among others for the drop in its FY 2018 profit.
The company also said that natural disasters in 2018 cost it €2bn in 2018, with the main damage being done by Hurricane Michael and the California wildfires in the US during the fourth quarter.
AXA’s gross revenues for the reported period surged 4% to €102.87bn compared to the figure of €98.55bn reported in FY 2017. The company said that the increase in its revenues was driven by strong growth in all markets.
In Europe, the company’s revenues grew 3% to €36.7bn. In France, it increased by 3% to €25.1bn and in the US, the figure reported is €16.48bn, which represents a growth of 2%.
The new AXA XL business brought the insurance major revenue of €6.28bn in FY2018, marking an increase by 10% compared to FY 2017.
AXA’s FY 2018 revenues in protection, P&C commercial lines and health grew by 3%, 5% and 7% respectively.
The company reported that its underlying earnings per share (EPS) for FY 2018 increased by 3% to €2.48 from €2.40 as reported in FY 2017.
Its board of directors has proposed a dividend of €1.34 per share, which is up 6% from the dividend announced in FY 2017.
AXA CEO Thomas Buberl said: “2018 was a pivotal year in AXA’s transformation journey, creating the #1 P&C Commercial lines insurer with the acquisition of XL Group and completing the biggest IPO of the sector with the listing of AXA Equitable Holdings, Inc.
“Our strategic shift towards our preferred segments is instrumental to our vision and ‘raison d’être’: empowering people to live a better life. Our new global brand positioning ‘Know You Can’ is the tangible expression of this purpose.”