Axa reported better-than-expected first-half 2026 earnings on Thursday, beating analyst consensus despite premium declines at its specialty insurance division as a softening market pressures pricing across the industry.
Underlying earnings rose to €4.537 billion, 1% ahead of the consensus forecast of €4.498 billion, according to The Insurer. Earnings per share reached €2.19, up 8% year-on-year and ahead of the analyst-compiled consensus of €2.17, according to multiple sources.
Gross written premiums totaled €66.3 billion for the six months to June 30, up 5% on a comparable basis versus the same period last year. The result largely aligned with analyst expectations, according to The Insurer.
Specialty divisions retreat amid market softening
The earnings beat came despite significant headwinds at AXA XL, the group’s property and casualty specialty insurance division. AXA XL Insurance premiums declined 1% with pricing also down 1%, reflecting continued pressure in a weakening market, Insurance Business reported. AXA XL Reinsurance saw gross written premiums fall 9% to €1.8 billion as the group deliberately pulled back volume in the softening market, with pricing down 5%.
The retreat at AXA XL reflects disciplined underwriting in a competitive environment. Global commercial insurance rates fell an average of 6% in the second quarter of 2026, marking the eighth consecutive quarter of declines, according to Captive.com. Guy Carpenter, a reinsurance broker, reported that the global property catastrophe rate-on-line index fell 16% by midyear 2026, driven by record capital of around $785 billion and increasingly competitive renewal conditions, Insurance Business noted.
AXA’s decision to cut volumes where pricing had softened most sharply prioritized margin over market share in a segment brokers and cedants are watching closely ahead of year-end renewals, according to Insurance Business.
Strength across life and health businesses
The property and casualty combined ratio held at 90.1%, with a 0.1 percentage point deterioration offset by improvements in retail and commercial lines, Insurance Business reported. Life and health underlying earnings advanced 11% to €2 billion, with health earnings surging 34% to €489 million, driven by protection demand and management actions across health and protection businesses, according to Insurance Business.
Life and health net flows reached €4.7 billion in the first half of 2026, up from €3.6 billion in the same period of 2025, with protection driving €3.4 billion of that total primarily in Hong Kong, Japan, and France, Insurance Business noted.
The group’s solvency ratio stood at 218% as of June 30, up three percentage points compared to January 1. A strong operating return contributed 17 points, while accrued dividends and share buybacks reduced it by 12 points, Insurance Business reported.
On the full-year outlook, Axa said it is “confident in our ability to deliver underlying earnings per share growth in 2026 at the upper end of our target range,” according to Insurance Business. The group targets the upper end of the 6% to 8% underlying EPS growth range for full-year 2026. Axa will present its new strategic plan for 2027–2029 at an investor day on September 15.
Sources
- The Insurer — Axa’s H1 2026 earnings beat consensus, premium figures, and AXA XL Insurance and Reinsurance performance
- Insurance Business — Combined ratio, life and health earnings growth, net flows, solvency ratio, and full-year guidance details
- Captive.com — Global commercial insurance rate decline in Q2 2026
