AXA is close to its revenue goal of R$2 billion in Brazil, reporting R$1.9 billion in 2024, reflecting a 12% increase. CEO Thomas Buberl outlined three expansion strategies: increasing market share, developing green products, and promoting social inclusion through insurance. The company remains cautious about entering Brazil’s health insurance market due to its consolidation and is focused on mitigating climate change risks.
AXA, a prominent French insurer, began operations in Brazil in 2014 with a goal to achieve R$2 billion in revenue by 2024. The company is nearing this target, reporting a revenue of R$1.9 billion from written premiums in 2024, which is approximately 12% more than the previous year. This growth reinforces AXA’s commitment to strengthen its position in Brazil’s insurance market.
Thomas Buberl, AXA’s CEO, articulated three essential strategies for local expansion during his February visit to Brazil. These strategies include enhancing market share in the corporate sector, developing environmentally sustainable products, and promoting social inclusion by providing insurance solutions for underserved consumers.
Currently, AXA does not intend to enter the health insurance market in Brazil. While Mr. Buberl acknowledged AXA’s strong international health insurance expertise, he highlighted the challenges of differentiating the company in a highly consolidated Brazilian health insurance market, without providing a definitive decision on future plans.
AXA is also vigilant regarding climate change impacts in Brazil, particularly after the significant floods in April 2024, which resulted in R$6.08 billion in insurance claims. Mr. Buberl compared this disaster’s impact to that of the COVID-19 pandemic, which accounted for R$7 billion in claims. He emphasized that climate-related risks are escalating and underscored an urgent need for investment in preventive measures to mitigate future damages.
In 2024, AXA reported a global revenue increase of 8%, totaling €110 billion, with net profits rising to €7.9 billion. Their focus on preventing disasters through proactive measures highlights a critical role for insurers in maintaining the insurability of urban areas, aiming to create positive community impacts.
In summary, AXA’s approach to expanding in Brazil reflects a strong commitment to growth and sustainability. By targeting increased market share, environmental product development, and social inclusion, the company is positioning itself strategically. Furthermore, AXA’s responsiveness to climate change challenges emphasizes the evolving responsibilities of insurers in safeguarding communities. Overall, AXA’s promising performance in the Brazilian market showcases its resilience and strategic foresight amidst adversity.
Original Source: valorinternational.globo.com
