AXA UK & Ireland secures growth and improving profitability in 2017

Strategy of moving from payer to partner delivers consistent growth and profitability despite volatile market.

22 February 2018

Posted in Financial results

by Daniel O’Byrne (see media contact)

Following the publication of the full year 2017 results for AXA Group (www.axa.com), AXA UK & Ireland announces another year of growth and improving profitability.

In a year that posed many external challenges, AXA UK & Ireland has performed strongly in its preferred segments of Health and Commercial Lines.

Key highlights are as follows:

  • UK & Ireland revenues - £4.53bn (2016: £4.39bn)
  • UK & Ireland CY COR – 96.3% (2016: 97.7%)
  • Underlying earnings - £245m (2016: £263m)
  • Health revenues - £1.55bn (2016: £1.49bn), CY COR – 94.9% (2016: 95.7%)
  • Commercial Lines revenues (General Insurance) - £1.34bn (2016: £1.26bn), CY COR – 97.7% (2016: 96.4%)
  • Personal Lines revenues (General Insurance) - £1.64bn (2016: £1.64bn), CY COR – 96.3% (2016: 100.4%)
  • Growth: UK & Ireland – +3%, Commercial +6%, Health +4%

Commenting on the results, Amanda Blanc, Group CEO, AXA UK & Ireland, said: “These are a really strong set of results which reaffirm the benefits of our commitment to a diversified book of business.

“The industry was subjected to a host of external pressures in 2017, however these results show that AXA UK & Ireland is a business that can deliver stability and profitable growth within a volatile environment. Much of that is down to a consistency of approach with brokers and customers but also due to a model that accommodates a range of lifestyles, businesses and personal requirements.

“We have grown in Commercial Lines by continuing to build our SME book, by making further inroads into the Mid-Market space and by launching a new schemes proposition. In Health, subscriber numbers grew across all segments (including UK individual) through a focus on our core proposition and continuous innovation in the products and services we provide.

“It is clear that our strategy to shift from being a payer of claims to a partner to our customers is the right one and is paying dividends in growth, profitability and market reach. This is supported by our commitment to seek out the best disruptive partners to ensure we satisfy evolving and future customer demand.

“We remain vigilant to the external pressures. The anticipated Ogden discount rate reforms have not yet made it through the Parliamentary process, GDPR has to be implemented and of course, there is little clarity on what Brexit will mean in reality.

“The profitability that we continue to deliver with such consistency gives me the confidence that we have the right strategy, people and execution capability to bring a new kind of insurer to the market. One that plays a genuine role in the lives of all its customers.”