AXA, the second-largest insurer in Europe, warned Tuesday that there would be a hit to its 2020 results thanks to the COVID-19 pandemic, but said it hoped that a new strategic plan would improve results in the future, according to a Reuters report.
AXA said it hoped to have underlying earnings per share at a compound annual growth rate of 3% to 7% between 2020 and 2023, as well as an underlying return on equity between 13% and 15% over the same period, Reuters reported.
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“AXA’s earnings are expected to be materially adversely impacted in 2020 in the context of COVID-19, as previously communicated,” AXA CEO Thomas Buberl said. “At the same time, 2020 has shown the relevance of AXA’s strategic vision, its solidity, and the tremendous engagement of our people and partners.”
AXA did not give detailed projections for its 2020 performance, Reuters reported.
However, the company projected that its health business growing by at least 5% per year between 2020 and 2023.
In recent years, AXA has exited markets where it lacked scale as part of a restructuring effort to cope with a negative interest-rate environment, Reuters reported. The company said Monday that it has agreed to sell insurance businesses in the Gulf region to Gulf Insurance Group for $269 million.