AXA Approaches Revenue Target and Plans Expansion in Brazil’s Insurance Market
AXA nears its R$2 billion revenue goal by earning R$1.9 billion in Brazil. The company’s CEO, Thomas Buberl, outlined plans to expand its corporate market share, develop environmentally friendly products, and enhance social inclusion. AXA monitors climate risks, especially following recent catastrophic floods, and emphasizes the importance of preventative measures in the insurance industry. Global revenue grew to €110 billion with rising profits in 2024.
AXA, the French insurer, initiated its Brazilian operations in 2014 with a target of achieving R$2 billion in revenue by 2024. As of now, it has garnered R$1.9 billion, reflecting a growth of nearly 12% from the previous year. AXA plays a considerable role in property and liability insurance and seeks to strengthen its position in a market characterized by robust fundamentals.
CEO Thomas Buberl articulated a three-pronged strategy for expanding AXA’s presence in Brazil: enhancing market share in the corporate segment, creating products that facilitate the green transition, and fostering social inclusion through insurance solutions. This approach underscores Brazil’s critical role in global sustainability efforts.
Currently, AXA does not plan to venture into the health insurance sector within Brazil, despite its significant global footprint in this area. Buberl expressed caution, emphasizing that the local health insurance market is highly consolidated, making differentiation a challenging endeavor.
AXA is also vigilant about climate change implications in Brazil, particularly following the devastating floods in Rio Grande do Sul in April 2024, which produced R$6.08 billion in insurance claims. This disaster parallels the COVID-19 pandemic in its consequences for the insurance landscape.
Buberl highlighted the increasing frequency of climate-related catastrophes and the necessity for preventive investments. He referred to cities like New Orleans, which improved disaster recovery costs through preventative measures over time.
In 2024, AXA recorded an 8% growth in global revenue, increasing it to €110 billion, alongside an 11% rise in net profit to €7.9 billion. This data reflects AXA’s strong performance amidst global challenges, reinforcing its strategic direction in Brazil as well as its overall commitment to promoting sustainability and mitigating climate risks.
AXA’s progress in Brazil illustrates its commitment to growth within a pivotal market. With a revenue increase approaching its ten-year goal, the company emphasizes corporate market enhancement, green product development, and social inclusion. Furthermore, its focus on climate risks and investment in preventative strategies align with broader objectives to support sustainability while securing profitable operations. The company’s cautious stance on health insurance reflects the competitive landscape, underscoring its strategic priorities moving forward.
Original Source: valorinternational.globo.com
