The French insurance behemoth Axa has concluded its 2025 fiscal year with substantial gains, initiating a significant capital return initiative for its investors. The company’s latest earnings report revealed not only a sharp rise in profit but also commitments to a higher dividend and a substantial share repurchase scheme. This performance aligns Axa with a favorable sector-wide momentum also witnessed by peers such as Germany’s Allianz.
Shareholders Set for Dual Benefit
In a move directly rewarding its investor base, Axa’s management has outlined a dual-pronged capital return strategy. The annual dividend is slated for an 8% increase to €2.32 per share. Concurrently, the group’s board has authorized a new share buyback program with a volume of up to €1.25 billion. Such repurchases are generally viewed as a signal of corporate confidence and can provide support for the value of outstanding shares.
Financial Performance Highlights
Axa posted a 4% rise in its underlying profit for the full year, reaching approximately €8.4 billion. Group revenue saw growth of around 5%, climbing to about €116 billion. A particularly notable surge was recorded in net income, which jumped by 24% to €9.8 billion. This significant increase was primarily driven by the divestment of AXA Investment Managers.
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Growth was broad-based across the company’s core divisions, with both property & casualty and life & health insurance contributing positively. A key metric for investors, underlying earnings per share, advanced by 8% to €3.86.
Confident Guidance and Strategic Horizon
Looking ahead to 2026, the company expressed optimism, forecasting that its underlying earnings per share growth will reach the upper end of its 6% to 8% target range. Furthermore, Axa announced plans to unveil a new strategic plan for the 2027-2029 period this coming September.
The strong set of figures prompted reaffirmations of positive ratings from several financial institutions. Analysts at RBC Capital Markets maintained their “Outperform” recommendation, while their counterparts at UBS reiterated a “Buy” stance on the insurer’s shares following the results publication.
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