(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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