First Read AXA AXA 1H26: Robust heading into September CMD

Research evidence excerpt

First Read AXA AXA 1H26: Robust heading into September CMD

Forecast returns

Forecast price appreciation -0.5%

Forecast dividend yield 5.1%

Forecast stock return 4.6%

Market return assumption 7.8%

Forecast excess return -3.2%

Company Description

AXA is one of the world's largest insurers. The group operates primarily in five business units:

France, Europe, Asia, AXA XL and International (including the Middle East, Latin America and

Africa). Its main operating activities are property & casualty, life & savings, health, and asset

management. In addition, the group comprises various companies conducting certain non-

operating and banking activities. Its strategy is to reposition itself towards less capital-

intensive products, such as P&C, and higher-growth markets, such as Asia.

Valuation Method and Risk Statement

Investors in AXA are exposed to a wide variety of risks, including: regulatory and taxation

changes, investment returns below expectations, the presence of guarantees in policies,

explicit or otherwise, debtor default risk, fluctuations, acquisition risks and movements in

exchange rates. AXA is also exposed to accounting changes, reserving risk, general economic

conditions and M&A, which could be positive or negative for shareholders. The company is

exposed to equity markets, given to its investment mix and strength in asset management

and unit-linked life insurance. Our price target is based on a RoC Gordon Growth

methodology SOTP. The valuation involves allocating perceived minimum targeted operating

capital across business divisions and measuring the return on the capital vs its cost and LT

growth rate to determine a valuation.

First Read: AXA 31 July 2026 ab 3