AXAHY AXA SA (QX)

   By Cristina Roca 
 

AXA SA said Tuesday that the coronavirus only had a limited effect on its first-quarter results, but warned that it expects the pandemic to hit its 2020 earnings.

Revenue for the quarter fell 9% to 31.67 billion euros ($34.6 billion) from EUR34.95 billion a year prior due to the sale of AXA's Equitable Holdings business in the U.S., AXA Chief Financial Officer Etienne Bouas-Laurent said. On a comparable basis, however, revenue grew 4%, AXA said.

"Covid-19 related claims notified in March were limited and the precise implications of the crisis remain uncertain at this stage," AXA Chief Executive Thomas Buberl said.

The company said it expects coronavirus lockdowns to hit its revenue progressively. Revenue for March fell by about 5% year-on-year, and initial trends for April pointed to a reduction of about 12% in revenue across most geographies compared with a year prior, AXA said.

The insurer said that while it's too early to give precise guidance, it expects the coronavirus to have a "material impact" on its 2020 earnings.

Annual premium equivalent, known as APE, was EUR1.71 billion, broadly flat compared with the same period a year prior. APE measures new business growth by combining the value of payments on new regular premium policies, and 10% of the value of payments made on one-time, single-premium products.

The French insurer's solvency II ratio--a key measure of financial strength for insurance companies--was 182% at the end of the quarter, down from 198% at the end of 2019. AXA said this was mostly down to higher corporate and sovereign spreads and lower interest rates.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

May 05, 2020 12:08 ET (16:08 GMT)

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