Protest group slams Axa's proposed dividend as climate 'profiteering'

By Rebecca Delaney

Feb 27 - (The Insurer) - Environmental protest group Reclaim Finance has accused Axa of "profiteering" from the climate crisis after the French group proposed a dividend of 2.15 euros ($2.23) per share.

On Thursday, Axa reported underlying group earnings of 8.08 billion euros for 2024, with underlying earnings per share of 3.59 euros, up 8% from 2023.

Axa’s board proposed a dividend of 2.15 euros per share, up 9% on last year, as well as launching an annual share buyback programme of up to 1.20 billion euros.

Axa said it expects to return an additional 3.80 billion euros to shareholders through a share buyback that will launch when the previously announced sale of Axa Investment Managers to BNP Paribas closes.

Reclaim Finance argued that the shareholder return reflects a group strategy of "across-the-board rate increases" in property lines combined with a reduction in natural catastrophe exposure.

The group cited figures from Axa's nine-month 2024 earnings statement which said that individual policyholders in Europe saw average property price increases of 10.6% during the period.

It also referenced material from Axa's annual investor day last year, which said that Axa XL Re had reduced its exposure to natural catastrophes by 60% in 2023.

"Such a strategy means Axa remains attractive to shareholders despite the growing climate risks," said Reclaim Finance.

Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance, commented: “These results show Axa and other insurers’ winning strategy of reducing their exposure to natural disasters such as floods, droughts and hurricanes, despite the climate crisis.

"Axa is profiting from a crisis that it is perpetuating, to the benefit of its shareholders and to the detriment of its policyholders. While prevention is the watchword of insurers, Axa should start by putting its own house in order and stop supporting the expansion of fossil fuels.”

Reclaim Finance has called on Axa to cease insuring all new oil and gas fields, as well as all new LNG export terminals.