Axa Halves 2019 Dividend
03 June 2020 - 4:07PM
Dow Jones News
By Pietro Lombardi
AXA SA has decided to cut its dividend for 2019 and said it
expects the coronavirus pandemic to have a negative impact on
earnings for this year of around 1.5 billion euros ($1.67
billion)
The French insurance giant said Wednesday that it will propose
shareholders to approve a dividend of EUR0.73 a share for last year
at the June 30 meeting. This compares with a previous proposal of
EUR1.43. The company may propose an exceptional payment to
shareholders of up to EUR0.70 a share in the fourth quarter,
depending on market and regulatory conditions. Should it be
proposed, shareholders will have to approve it.
In April, the European Union's insurance regulator urged
insurers to have a prudent approach to shareholders' remuneration
and variable pay during the coronavirus pandemic, as it wanted
insurers and reinsurers to preserve their capital position and
ability to absorb potential losses, as well as ensure the
continuity of their services.
The French insurer expects the pandemic to deal a roughly EUR1.5
billion blow to its earnings for this year. Of this, around EUR1.2
billion comes from claims costs in its property and casualty
business, mainly stemming from business interruption and event
cancellation.
Solidarity measures should account for another EUR300
million.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
June 03, 2020 01:52 ET (05:52 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.