AXA Posts Net Profit Below Estimates on Currency Hit

By Elena Vardon

AXA's net profit for the first half of 2025 fell short of expectations due to foreign exchange fluctuations, while the rest of its key metrics roughly aligned with views.

The French insurer, which has operations around the world, on Friday reported a net profit of 3.92 billion euros ($4.47 billion) for the six months ended June 30, compared with 4.02 billion euros in the same period last year. The 2% on-year dip mainly reflects unfavorable currency effects, it said.

On an underlying basis, AXA's earnings came in at 4.465 billion euros, up 5% on year on a comparable basis.

The group reported gross written premiums--a metric that reflects the commercial activity of its insurance operations--and other revenue of 64.25 billion euros, up 7% compared with the prior-year period. This was driven by growth across its business lines, which include property and casualty, life and health and asset management.

Estimates from a company-compiled consensus had net profit at 4.25 billion euros, saw underlying earnings of 4.45 billion euros and expected gross written premiums and other revenue to come in at 64.16 billion euros.

"We are confident in our long-term strategy and remain focused on implementing our current plan," Chief Executive Thomas Buberl said, confirming the group's mid-term targets. AXA expects to see operating income per share growth in the 6% to 8% average range this year.

AXA early last month kicked off a 3.8 billion euro share buyback program to offset the earnings dilution from the sale of its asset management operations to French bank BNP Paribas, which closed on July 1.

The insurer's solvency II ratio--a measure of financial strength--was 220% as of June 30, in line with estimates.

Write to Elena Vardon at elena.vardon@wsj.com