AXA REPORTS RECORD EARNINGS IN 2018

French insurance group Axa has reported a 6% increase in underlying earnings to €6.2bn in 2018, its highest ever reported level. Net income, however, fell 66% to €2.1bn, affected by impairments related to the sale of Axa Equitable Holdings and higher restructuring costs at XL Group, which was acquired by Axa at the start of the year. The group’s current year combined ratio deteriorated by 1.6 points to 99.1%, mainly due to higher natural catastrophes at Axa XL, including the California wildfires and Hurricane Michael. Group revenues increased 4% to €103m while p/c commercial revenues increased 5%, mainly due to growth at Axa XL as well as in Europe. The company says that Axa XL has achieved “measurable rate increases” in 2018 and the outlook for 2019 looks to be as favorable.