AXA Raises €400 Million in Employee Share Offering

AXA recently wrapped up its Shareplan 2024 employee share offering, and the turnout was impressive. More than 26,000 employees from 40 different countries participated, which is about 22% of eligible employees. This initiative managed to raise nearly €400 million, resulting in roughly 13 million new shares being issued, equivalent to 0.58% of AXA’s outstanding shares.

Employees were able to purchase the new shares at €28.10 for the Classic option and €32.87 for the Guarantee Plus option. This capital increase has now brought the total number of AXA shares to 2,213,481,878. To offset the dilutive effect of this issuance, AXA has plans to cancel an equal number of shares, pending regulatory approval, as part of its authorized share repurchase program.

Thanks to this offering, AXA employees currently own 4.32% of the company’s share capital and hold 5.83% of the voting rights. Helen Browne, AXA’s group general counsel and employee shareholder representative on the board of directors, highlighted Shareplan’s significance in fostering alignment within the company.

The Shareplan program, which was first launched in 1993, plays a vital role in sharing the value created by the company with its employees. Browne noted that the successful outcome of this latest edition underscores everyone’s commitment to the model. Shareplan serves as a powerful tool to enhance alignment among teams by getting them even more involved in the group’s long-term success.

In terms of financials, AXA reported IFRS revenues of €102.7 billion in 2023, with underlying earnings reaching €7.6 billion. The company’s interim earnings report for the first nine months of 2024 showed growth across all divisions, with total gross written premiums and other revenues increasing to €84 billion from €78.8 billion in 2023. AXA experienced a 7% spike in revenue, driven by robust performance in property & casualty (P&C) and life & health divisions. P&C premiums grew 7%, while life & health premiums saw a 7% increase as well, supported by employee benefits and unit-linked sales. AXA’s Solvency II ratio now stands at 221%.

With a whopping €946 billion in assets under management, AXA is a significant player in the insurance industry. The company is also recognized in sustainability indexes like the Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.

Having reached its 31st year, the Shareplan program continues to be a success with both employees and the company. Would love to hear your thoughts on this news—feel free to drop a comment below!