AXA Raises Dividend Payout Range, Profitability Target -- Update
28 Novembre 2018 - 12:57PM
Dow Jones News
(Adds CEO's comments, analysts' comment, share-price details on
AXA Tianping deal and Asia.)
By Pietro Lombardi and Sarah Sloat
AXA SA (CS.FR) said Wednesday that it has made progress in
simplifying the company's structure and raised its payout and
profitability targets.
The French insurer updated its Ambition 2020 strategic plan and
now expects an adjusted return on equity of between 14% and 16%
compared with 12% to 14% previously. As of 2018, AXA's
dividend-payout-ratio range is 50% to 60%, up from 45% to 55%, the
company said ahead of its investor day.
The updated targets, although in line with expectations, are
positive, UBS analysts said.
"The shares do not look expensive [...] and we view the updated
targets as positive, but we think it will take time for
shareholders to be rewarded and strong execution [is] needed from
here," they said.
At 1106 GMT, AXA shares traded up 0.9%.
The French insurance giant, like other peers, said it plans to
grow its business in China and the whole Asian region.
"We have a clear strategy to grow and create value in Asia, by
transforming our distribution with an increased focus on agency,
pivoting towards health and well-being, strengthening AXA's brand
recognition in the region and accelerating in China, with full
control of AXA Tianping," Chief Executive Thomas Buberl said.
Earlier this week, AXA said it would take full control of AXA
Tianping Property & Casualty Insurance Company Ltd. by buying
the 50% of the company it didn't already own. The deal, valued 584
million euros ($660.7 million), "further reaffirms our conviction
that our operations in China will be a key growth engine of the
group and in its preferred segments," the CEO said.
"The progress made in transforming the group's profile, along
with our confidence in continued strong operational delivery across
all geographies, has led us to review our capital-management
policy," the CEO said regarding its adjusted payout target.
AXA confirmed its targets for operating free cash-flow and
underlying earnings-per-share growth.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com and
Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
November 28, 2018 06:42 ET (11:42 GMT)
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