AXA is nearing its revenue target in Brazil, reporting R$1.9 billion in 2024, nearly 12% growth year-over-year. CEO Thomas Buberl outlined three pillars for expansion: increasing market share, developing green products, and enhancing insurance accessibility. AXA remains cautious about entering Brazil’s consolidated health insurance market. The company is also focusing on climate risk management following severe recent disasters, with global revenue up 8% in 2024 to €110 billion.
AXA, the prominent French insurer, has made significant progress in Brazil, nearly reaching its goal of R$2 billion in revenue set in 2014. As of 2024, the company reported R$1.9 billion from written premiums, marking a growth of nearly 12% from the previous year. AXA CEO Thomas Buberl expressed ambitions to strengthen the company’s market presence based on Brazil’s robust demographic and economic foundation.
During his February visit to Brazil, Mr. Buberl outlined three main strategies for local expansion. First, he aims to increase market share within the corporate insurance sector. Second, he plans to develop products tailored to support Brazil’s green transition. Lastly, he seeks to enhance social inclusion by offering insurance solutions to underserved consumers.
AXA does not currently intend to venture into the health insurance market—a sector where it has established itself globally. Mr. Buberl acknowledges Brazil’s highly consolidated health insurance landscape, making entry challenging. He stated, “If we were to enter this segment, we would need to find a way to differentiate ourselves from already established companies.”
Beyond market strategies, AXA is keenly aware of the implications of climate change for Brazil. Mr. Buberl highlighted the rising risks associated with climate-related disasters, referencing the severe floods in Rio Grande do Sul in April 2024, which led to R$6.08 billion in insurance claims, nearly as significant as the R$7 billion claims from the COVID-19 pandemic.
The company emphasizes the value of investing in preventive measures against climate risks. Mr. Buberl drew parallels with past hurricanes in the U.S., noting improved prevention significantly reduced costs over time. He remarked that building materials play a critical role in disaster resilience, particularly in the context of wildfires.
In a broader context, AXA’s global performance is solid; its revenue surged by 8% to €110 billion in 2024, while net profit climbed 11% to €7.9 billion. This robust growth underscores AXA’s commitment to adaptability in an ever-evolving market.
In conclusion, AXA’s strategic endeavors in Brazil reflect a commitment to expanding its market presence while simultaneously addressing social and environmental concerns. By focusing on corporate market expansion, innovative products for the green transition, and enhancing insurance accessibility, AXA aims to establish a stronger foothold in Brazil’s dynamic insurance landscape. Furthermore, the company recognizes the critical importance of climate risk management, underlining its role in fostering a resilient future.
Original Source: valorinternational.globo.com
