French insurer AXA confirms commitments to 2020 financials midst management reshuffle

While confirming AXA sticking to it’s financial targets for 2016-2020, CEO, Thomas Buberl, has unveiled an intrinsic operating model that simplifies and refocuses the firms resources so as to boost shareholder’s value.

On Tuesday, French insurer AXA confirmed that it was on on the path to meet its key 2020s financial targets thus extending the shake-up that saw the departure of several senior executives.

Thomas Buberl, AXA’s CEO, has been at the helm of the French insurance firm since 2016. He plans on growing in areas such as casualty insurance, health, protection and property insurance, in order to offset falling yields from other divisions of the company’s investment business.

While ruling out any major acquisition for now, AXA said it would allocate $234 million (200 million euros) for innovation, out of its 1 billion euros M&A budget.

“AXA is well on track to achieve its Ambition 2020 targets, and is taking important steps towards making the group simpler for all our stakeholders, and to foster growth,” said AXA in a statement.

The firm aims at boosting its earnings per share (EPS) by 3% to 7% a year for the period 2016 to 2020. It is also targeting a cumulative cashflow of 24 to 27 billion euros over the same period before the onslaught of proceeds from its IPO slated for the second quarter of 2018.

On Monday it had presented a new plan to simplify its operating model based on geographies, rather than business units.

The shuffle in human resources will see the departure of assets, including Gaëlle Olivier, the head of AXA’s global property and casualty business and Paul Evans, the head of its life savings and health division, who have been working at the firm for more than fifteen years.

($1 = 0.8556 euros)

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