AXA S.A.

AXA reported first-half 2026 organic top-line growth of 5%, underlying earnings per share growth of 8%, and return on equity of 18%. Underlying earnings were up 4%, or 9% excluding AXA IM; net income rose 9%; and the Solvency II ratio was 218%. In P&C, earnings increased 6% and the combined ratio was 90.1%, up 10 bps year over year, or 30 bps excluding Prima. Nat Cat was 3.5% versus a 4.5% normalized load, non-commission expenses improved 40 bps, and AXA XL had EUR 0.1 billion of Middle East losses. In Life & Health, premiums rose 8%, earnings rose 11%, short-term insurance revenue rose 5%, the combined ratio improved 130 bps to 96%, and long-term net flows improved from EUR 2.2 billion to EUR 3 billion. Management reiterated that full-year 2026 underlying EPS growth should be at the upper end of the 6% to 8% range, and said the cash remittance target of above EUR 21 billion remains on track.

Thomas Buberl framed the quarter as another period of strong, broad-based execution, repeatedly stressing the quality and resilience of the franchise. He highlighted profitable growth across geographies, best-in-class margins in P&C, strong reserving discipline, and a very strong balance sheet, calling AXA an “all-weather company.” On strategy, he said the group is entering the next plan from a position of strength, with transformation initiatives largely completed or embedded.

Alban de Mailly Nesle gave the main financial readout: P&C earnings up 6%, combined ratio at 90.1%, Life & Health premiums up 8% and earnings up 11%, and underlying EPS up 8% despite a minus 3% foreign-exchange headwind. He said non-commission expenses were 9.7% versus 9.9% a year ago, and that the Solvency II ratio moved from 215% at January 1 to 218% at half year, helped by plus 17 points of normalized capital generation, partly offset by minus 12 points from dividends and buybacks. He also noted investment income should remain a tailwind, with P&C reinvestment at 4.6% in the half.

Analysts focused on AXA XL pricing, reinsurance benefit, Prima modeling, reserve prudence, retail pricing, mid-market lending, cash remittance, and the Middle East losses. Management said AXA XL pricing was still only slightly negative overall, with different trends by line, and that lower reinsurance costs contributed about 30 bps in the half. On Prima, Alban said a stabilized 2027 run-rate would involve recapturing about 90% of premiums, with EUR 900 million likely recaptured by year-end 2026; on cash, he said AXA will be above its EUR 21 billion remittance target. For the Middle East, he said the EUR 0.1 billion impact was as of June 30 and was roughly one-third case reserve and two-thirds IBNR, with no projection of further losses.