The logo of French Insurer Axa is seen outside a building in Montaigu, France, February 23, 2022. REUTERS/Stephane MaheAnnounces 1.1 billion-euro share bay-back programposted lower-than-expected full-year earnings on Thursday as the rise in interest rates weighed on the valuation of its bond assets but raised its 2023 targets.said net income fell by 8% year-on-year to 6.7 billion euros in 2022.
This missed the 7.22 billion-euro consensus of 15 analyst estimates compiled by Refinitiv. Gross revenues over the year were up 2% to 102.3 billion euros, in line with the Refinitiv analyst consensus estimate. "The year 2022 was marked by major political and economic events -- the war in Ukraine, the energy crisis, inflation -- all of which have made the environment difficult and uncertain," said Frederic de Courtois, the deputy chief executive, in a call with journalists.
The Paris-based company said the fall in value of its bond assets cut 482 million euros from its net income last year, as a general rise in interest rates hit the valuation of the company's bond assets, whose prices decline when interest rates rise.