AXA has achieved R$1.9 billion in revenue in Brazil, nearing its R$2 billion target set for 2024. CEO Thomas Buberl emphasized plans for growth focusing on corporate market share, green product development, and social inclusion. AXA remains cautious about entering health insurance, prioritizing climate change impact and mitigation strategies amid significant recent disasters.
AXA, the French insurance giant, commenced operations in Brazil in 2014 and has set an ambitious revenue target of R$2 billion by 2024. As of this year, the company announced a revenue of R$1.9 billion, reflecting nearly a 12% increase from the prior year. AXA’s CEO, Thomas Buberl, expressed intentions to strengthen the firm’s position in Brazil, capitalizing on the country’s robust population and economic fundamentals.
During his February visit, Mr. Buberl highlighted three strategic pillars for AXA’s expansion: enhancing market share within the corporate segment, developing green transition products significant to Brazil, and promoting social inclusion by providing insurance solutions to underserved consumers. However, he stated that AXA does not aim to expand into the health insurance market at this time due to its consolidation in the nation.
When questioned about possible health insurance ventures, Mr. Buberl remarked on the complexity of entering a well-established market, emphasizing AXA’s global strength in this sector. He acknowledged, “If we were to enter this segment, we would need to find a way to differentiate ourselves from already established companies, which likely would not be easy.”
In addition to market dynamics, AXA is vigilant regarding climate change’s impact on Brazil. Mr. Buberl noted the increased risk posed by climate events, especially following catastrophic floods in Rio Grande do Sul that caused R$6.08 billion in insurance claims, an event comparable to the pandemic’s impact on claims totaling R$7 billion.
Mr. Buberl discussed the importance of preventive measures in mitigating climate risks, citing that improvements in damage prevention have reduced costs associated with natural disasters over time. He expressed concern over tragic losses that might have been avoided, stating, “It’s heartbreaking to see people suffer, especially knowing that some of these losses could have been prevented.”
He underscored the role of insurers in ensuring that urban areas remain “insurable” through these preventive strategies. In a broader context, AXA’s global revenue rose by 8% to €110 billion in 2024, with a net profit increase of 11% to €7.9 billion, reflecting its overall resilience amid challenges.
In summary, AXA is approaching its revenue target in Brazil with ambitious plans to expand its market presence through innovative insurance products and social initiatives. While the company remains cautious about entering the health insurance sector, it is proactively addressing climate challenges to enhance resilience and develop preventive solutions. With continued revenue growth globally, AXA is positioned to navigate both opportunities and risks in the evolving Brazilian insurance landscape.
Original Source: valorinternational.globo.com
