French insurance giant AXA is raising its ambitions for the next three years, unveiling a new strategy that puts stronger earnings growth, higher profitability and artificial intelligence at the center of its expansion plans.
The company said Tuesday that it expects underlying earnings per share to grow by 7% to 9% annually between 2027 and 2029, above the 6% to 8% range it is targeting for 2026. AXA is also aiming for a return on equity of between 15% and 17% over the new plan period.
The strategy, called “Growing Forward,” is designed to increase AXA's market share while maintaining what the company describes as disciplined growth.
AXA Targets €25 Billion in Cash
One of the clearest financial targets in the new plan is cash generation.
AXA expects to generate around €25 billion ($29 billion) in cumulative cash remittances between 2027 and 2029, compared with approximately €21 billion expected during the previous 2024–2026 period.
The insurer also plans to maintain a 75% payout ratio of underlying earnings, signalling that returning capital to shareholders will remain a major part of its financial strategy.
Rather than relying heavily on acquisitions, AXA says the new plan will focus on organic growth and improving the performance of its existing businesses.
Artificial Intelligence Moves Deeper Into AXA's Business
AI is another major part of the strategy.
AXA expects artificial intelligence to help improve areas including underwriting, pricing, customer service and operational efficiency. The company estimates that AI-related improvements could deliver between €500 million and €700 million in annual pretax benefits by 2029.
The technology is also expected to play a role in areas such as cybersecurity insurance, where demand is growing as companies face increasingly complex digital risks.
AXA's approach reflects a broader shift across the insurance industry, where AI is increasingly being used to assess risk, process claims and improve interactions with customers.
More Focus on Retail and Business Insurance
The French insurer plans to expand in several areas, including retail property and casualty insurance, small and medium-sized businesses, mid-market clients, and life and health insurance.
These businesses accounted for 83% of AXA's 2025 revenue, according to Reuters. The company expects growth in these segments to help offset softer conditions anticipated at AXA XL, its large commercial insurance division.
AXA XL represented about 17% of the group's 2025 revenue and is expected to face a more challenging market environment during the new strategy period.
AXA Expects a Strong Finish to 2026
Before moving into the new plan, AXA expects to finish 2026 toward the upper end of its existing targets.
The company forecasts underlying earnings of about €8.6 billion for 2026, compared with €8.4 billion in 2025. It also expects earnings-per-share growth to reach the upper end of its 6% to 8% target range.
That provides AXA with a relatively strong starting point as it enters the 2027–2029 strategy period.
Why AXA's New Strategy Matters
AXA's announcement comes at a time when insurers are facing a mix of higher risks, changing customer expectations and pressure to improve efficiency.
For investors, the combination of higher earnings targets, stronger cash generation and a continued commitment to shareholder returns is likely to be closely watched.
The bigger test will be execution. AXA will need to grow its customer base and market share while maintaining underwriting discipline and turning its AI investments into measurable financial gains.
For now, the company's new targets point to a clear message: AXA wants its next phase of growth to be larger, more profitable and increasingly driven by technology.
