Axa Shareholders Meeting Recap: Strategic Acceleration and Profit Growth Plans Unveiled

The Axa shareholders meeting was held this afternoon at Salle Pleyel in Paris. During registration, we collected 592 proxies from Invest readers (not counting 18 if unexpected resolutions come from people who voted in advance online), for 257,029 shares of the insurer.

Passing by the center dedicated to the sponsorship activities of mutual associations Axa, we learned that 107 projects were financed in 2023, for 19.4 million euros. Among the beneficiaries is the society Agir pour l’école, which offers digital solutions to strengthen basic learning around reading and mathematics.

The meeting is opened by the president, Antoine Gosset-Grainville with a temporary quorum of 71.3% of the capital. The reporters are representatives of insurance companies Axa Iard and Vie. The president says the company ” solid, which is good news in an increasingly dangerous environment, which creates obligations but also opportunities ».

It is now the general director, Thomas Buberl, who is at the microphone. He notes that with the new roadmap announced recently, Axa ” into a new phase of strategic acceleration “. He gives some key figures. In 2023, Axa paid 50 billion euros in compensation, 8.6 billion in salaries and bonuses, 11.7 billion in taxes and social security contributions, and 3.8 billion in dividends .The salaries paid represent on average “ 4.4 times the local living wage », assures the manager. Employees held 4.34% of the capital at the end of 2023.

14 to 16% profit

He now explains the new Unlock the Future plan. It’s about accelerating growth and increasing technical and operational excellence, productivity, through technology and AI. The goal is to achieve growth in current net operating income of 6 to 8% annually between 2023 and 2026. Operating return on equity must be 14 to 16% between 2024 to 2026. Thomas Buberl also intend to accelerate the efforts regarding the climate transition as an insurer and investor. Green investments will gradually reach 30 billion euros from 2019 to 2023. With, for example, the largest offshore wind farm in the world, off the coast of the United Kingdom. It is planned to invest 5 billion per year in the transition. As a damage insurer, the goal is to reach 6 billion in premiums related to the movement in 2026. This applies to renewable energy, electric vehicles and ecological buildings.

Helping micro-entrepreneurs

Thomas Buberl now talks about the inclusive insurance program of Axa Essentiel, for ” enable the middle and lower classes to better cope with unexpected events and reduce their vulnerability “. The aim is to cover 20 million customers in this sector in 2026, especially micro-entrepreneurs and professionals. This includes operational and health risk insurance. Micro-entrepreneurs at the heart of the approach to making insurance more inclusive “. This is for those who “ threaten to leave the insured area », concludes the president, Antoine Gosset Grainville.

It is now Frederic de Courtois, deputy general manager, who has the floor to detail the accounts of 2023 It shows in particular the product of Axa XL (large business insurance), ” almost 2 billion euros, showing that its revolution is completely complete and justifying its acquisition ».

Among the growth opportunities, the manager often mentions the lack of damage coverage in medium-sized companies, the health coverage of SME employees, and the new risks, cyber and related to the energy transition.

Frédéric de Courtois also explains that 25% of profits will be kept to finance growth. The rest goes to shareholders in the form of dividends (60%) and share buybacks (15%). There are also investments for technology and personnel, but they are recognized as costs, so they reduce the results.

Guillaume Faury, chairman of the Management and Compensation Committee, then details the activities of the board and the remuneration of the officers. The payment of part (30%) of Thomas Buberl’s annual variable compensation is suspended. His 2023 salary is 3 million euros, including a fixed amount of 1.65 million. The bonus deferred over three years can be increased by a maximum of 30%, depending on stock market performance. Free performance shares benefit over 6,000 people. A number of 149,593 titles are allocated to the DG.

The president intends to strengthen ties with individual shareholders. They are offered monthly cultural seminars and private tours. The Shareholder Circle is accessible with a single action.

Six other leaders are now on stage, taking part in the debate.

Question about climate disasters in France. The general director of France, Guillaume Borie, says that out of 1.3 million claims every year, a third are linked to climate events, for 450 million euros in compensation. He wants a ban.

To your question about how difficult it is to achieve the goals and to retain insurance, the answer was that the solution is to adhere to very strong financial control and diversify the risks geographically and by type of customers, individuals and businesses.

A good question from the Anaf association on the question of investments, which were not addressed at the presentations. Finance director Alban du Mailly Nesle says that investments amount to 450 billion and that 30 billion are reinvested every year. Real estate assets are 40 billion. Their depreciation was limited to 6%.

Question on the conflict in the Middle East

Shareholders refuse to let it go to a vote. We have screams, questions, questions! The debate is considered far too short. The president finally gives in and hands the microphone to a shareholder.

This accuses Axa of supporting an Israeli bank. Thomas Buberl strongly criticizes the physical attacks suffered by some workers in certain countries from activists. Acts of vandalism are unstoppable, he said. The organization does not take place in this real geopolitical crisis. It is present with 2,000 people in four countries in the East or Middle East, Morocco, Algeria, Egypt and Lebanon. It is not present as an insurer in Israel, but as an investor only in companies that are not targeted by boycott calls, and in any banks.

All the resolutions are accepted, except those relating to the dissenting candidates for the position of director representing shareholders, Helene Browne, whose mandate is renewed.