AXA, operating in Brazil since 2014, reported R$1.9 billion in revenue for 2024, nearing its goal of R$2 billion. CEO Thomas Buberl outlined plans for expansion in corporate insurance, green products, and social inclusion. While AXA is not entering the health insurance market yet, it is focused on climate change impacts and preventive measures, reflecting its global revenue growth of 8% to €110 billion in 2024.
AXA, the French insurer, began its operations in Brazil in 2014 with a target to achieve R$2 billion in revenue within a decade. As of 2024, the company reported revenues of R$1.9 billion from written premiums, marking an approximately 12% increase from the previous year.
AXA’s CEO, Thomas Buberl, expressed the company’s ambition to enhance its market presence in Brazil, which offers a substantial population and promising fundamentals. He identified three main pillars for expansion: increasing corporate market share, developing environmentally-oriented products, and promoting social inclusion by providing accessible insurance options to under-insured populations.
AXA currently does not intend to enter Brazil’s health insurance market, a venture that poses significant challenges due to the market’s consolidation. Buberl remarked on the complexity of differentiating their services from established entities, despite AXA’s strong international standing in health insurance.
AXA is also attentive to climate change effects in Brazil, as recent events, such as the April 2024 Rio Grande do Sul floods, highlight escalating associated risks. The disaster resulted in R$6.08 billion in claims, comparable to the R$7 billion claims from the COVID-19 pandemic.
Buberl emphasized the importance of preventive measures to mitigate climate-related risks, reflecting on past hurricanes in the United States where improved prevention significantly reduced economic losses. He underscored the necessity for insurers to guarantee that urban areas remain insurable by investing in damage prevention strategies.
In 2024, AXA’s overall global revenue rose by 8% to €110 billion, with net profits increasing by 11% to €7.9 billion, indicating robust organizational growth internationally.
In summary, AXA is poised for significant growth in Brazil, aiming to achieve a more substantial market position through strategic expansion in corporate insurance, environmental initiatives, and social inclusion. While the entry into health insurance remains uncertain, the focus on climate risk mitigation and damage prevention underscores AXA’s commitment to addressing contemporary challenges in the insurance sector. With a positive trajectory in global revenue, AXA is well-positioned to adapt and thrive in the evolving landscape of the insurance market.
Original Source: valorinternational.globo.com
