AXA, a leading insurer, nears its goal of R$2 billion revenue in Brazil, achieving R$1.9 billion in 2024. CEO Thomas Buberl outlined strategies for growth involving corporate market expansion and support for sustainability. The company is cautious about entering the competitive health insurance sector and is focused on addressing climate change risks. Despite challenges, AXA achieved a revenue growth of 8% globally.
AXA, the French insurer, began its operations in Brazil in 2014 with a goal of achieving R$2 billion in revenue in ten years. By 2024, the company recorded R$1.9 billion in premium revenue, marking an increase of nearly 12% over the previous year. This near-target achievement highlights AXA’s potential for further growth in Brazil’s insurance market.
CEO Thomas Buberl specified three core strategies for expanding in Brazil: enhancing corporate market share, creating products supporting the green transition, and promoting social inclusion through accessible insurance solutions. These focus areas aim to strengthen AXA’s position in the Brazilian market, which is characterized by a significant population and robust economic fundamentals.
Despite its successes, AXA currently does not plan to enter the health insurance market in Brazil, which is central to its global operations. Buberl pointed out the challenges of differentiating from established competitors in the competitive Brazilian health insurance landscape, emphasizing the need for a strategic approach before expansion.
Buberl also addressed the heightened risks of climate change impacts in Brazil, referring to disastrous events such as the April 2024 floods in Rio Grande do Sul, resulting in R$6.08 billion in claims. This incident is notably significant for Brazil’s insurance industry, being comparable in impact to the COVID-19 pandemic, which led to R$7 billion in claims.
He stressed that with increasing frequency of climate-related events, investment in damage prevention solutions is essential. Using historical examples, Buberl highlighted that improved prevention measures can significantly reduce disaster costs, a lesson drawn from hurricane incidents in the U.S.
AXA’s global operations reported an 8% revenue growth in 2024, reaching €110 billion, with a net profit increase of 11% to €7.9 billion. This growth reflects the company’s successful strategies and underscores its commitment to sustainable insurance practices.
AXA’s journey in Brazil showcases its strong growth potential in the insurance market, driven by strategic focus areas such as corporate market share, green initiatives, and social inclusion. While it refrains from entering the health insurance space, the company prioritizes addressing climate change risks and investing in prevention measures. With substantial global revenue growth, AXA remains committed to strengthening its position in Brazil while navigating the challenges in the insurance landscape.
Original Source: valorinternational.globo.com
