France’s AXA, Europe’s second-largest insurer, announced a new three-year plan called “Unlock the Future” aimed at delivering higher earnings and returns to shareholders by 2026, Reuters reported on Thursday.
The plan, led by CEO Thomas Buberl, focuses on growing the client base, automating processes, and reducing labour costs. AXA aims to achieve an average underlying annual earnings growth target of 6-8 per cent and an underlying return on equity of 14-16 per cent over the 2024-26 period.
The company also plans to return up to 75 per cent of its earnings to shareholders in cash, including a dividend pay-out ratio of 60 per cent. Additionally, AXA will invest in automation and increase the proportion of staff based in countries with lower labour costs.
AXA expects to return up to six billion euros to shareholders in 2024 through dividends and share buybacks. For 2023, the company posted a five per cent rise in underlying earnings to 7.6 billion euros, slightly below analysts’ expectations.
