AXA, entered Brazil’s insurance market in 2014 with a revenue goal of R$2 billion by 2024, nearly reaching it with R$1.9 billion this year. CEO Thomas Buberl outlines plans focused on corporate market share, green products, and social inclusion, while remaining cautious on health insurance. AXA emphasizes climate change preparedness following significant flood events, aiming to implement preventative measures for sustainable growth.
AXA, the French insurer, commenced operations in Brazil in 2014 with a target of generating R$2 billion in revenue by 2024. Achieving nearly this goal, AXA’s revenue from written premiums reached R$1.9 billion in 2024, reflecting a rise of approximately 12% from the preceding year. AXA’s CEO, Thomas Buberl, expressed ambitions to strengthen the company’s position in Brazil’s thriving market.
During a visit to Brazil in February, Mr. Buberl highlighted three essential strategies for enhancing the firm’s presence: increasing market share within the corporate segment, creating products supporting the green transition, and fostering social inclusion through insurance solutions targeting unprotected consumers. However, AXA does not currently intend to enter Brazil’s health insurance market, citing its consolidation and the challenges it poses.
Mr. Buberl acknowledged AXA’s global reputation as a leading health insurer while noting the difficulties in differentiating from established competitors in Brazil. Furthermore, the company is vigilant regarding the increasing threat of climate change, particularly following the devastating floods in Rio Grande do Sul in April 2024, amounting to R$6.08 billion in insurance claims, comparable to pandemic-related claims of R$7 billion.
The CEO emphasized the necessity of investing in disaster prevention amid rising climate-related risks. He referenced past hurricanes in the United States, illustrating how preventative initiatives can substantially reduce costs for insurers. Additionally, Mr. Buberl pointed out the disparity in survival rates of buildings during wildfires, advocating for reinforcement of architectural standards.
He reiterated the crucial role of insurers in ensuring that cities remain “insurable” through effective preventative measures, fostering the resilience necessary to mitigate future disasters. On a global scale, AXA reported an 8% growth in revenue, accumulating €110 billion, with a net profit increase of 11% to €7.9 billion.
In summary, AXA is making significant strides towards its revenue target in Brazil while focusing on strategic market expansion, climate change awareness, and social inclusion. Although health insurance remains outside its current plans, the company is committed to ensuring effective risk management and preventative measures are in place to enhance resilience against climate-related disasters. With robust overall financial performance and a clear vision for growth, AXA aims to further solidify its market position in Brazil.
Original Source: valorinternational.globo.com
