Europe's second-largest insurer Axa said it expects profitability to speed up in the next two years thanks to business brought in by XL which it acquired in September.
French-headquartered Axa said today it expected adjusted return on equity (ROE) to increase between 14 per cent and 16 per cent annually over the coming two years, up from a previous target of between 12 per cent and 14 per cent.
It also confirmed its target for underlying earnings per share to increase by between three per cent and seven per cent a year over the same period.
The insurer said it expects profitability will be boosted by the diversification achieved from its $15bn (£11.76bn) acquisition of Bermuda-based XL earlier this year. The company also raised its expected synergies on XL to €500m (£442m) from €400m.
As a result, Axa will increase its dividend payout range to between 50 per cent and 60 per cent from between 45 per cent and 55 per cent previously.
Axa chief executive Thomas Buberl said: “The Axa XL leadership team has identified key levers to deliver strong value creation through profitable growth, in alignment with the Axa group risk appetite."
Axa’s share price rose 1.46 per cent this morning.