Net Profit Forecast

Axa is set to report its fourth-quarter results and provide an update on its strategic plan. According to a consensus of 17 analysts provided by Factset, the French insurer is expected to announce a net profit of 7.46 billion euros ($8.06 billion) for 2023. This marks an increase from the net profit of EUR6.675 billion reported in the same period of 2022.

Growth Potential

At 1147 GMT on Wednesday, Axa shares showed a 10% increase since the last reported earnings in early November, outperforming the Stoxx Europe 600 Insurances index.

What to Watch For

Strategy Update: Axa is anticipated to unveil ambitious three-year targets along with its results. Analysts from Berenberg suggest that the insurer might target an average annual growth of between 3% and 7% for earnings per share in its 2024-26 plan.

Shareholder Returns: Investors are expecting Axa to increase its cumulative gross cash flow target for 2024-26, potentially allowing for up to 30% of its market capitalization to be returned to shareholders over that period. The insurer is also expected to raise its dividend from EUR1.70 in 2022 to EUR1.85 for 2023. Furthermore, analysts foresee a share-buyback program, with estimates ranging from at least EUR1 billion to EUR2 billion.

Stay tuned for Axa's announcement and strategic update on Thursday.

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