Axa braces itself for cutbacks as new boss wields the axe

Axa’s new boss has lowered his sights for growth at the insurer as he steeled investors for a tougher period for the insurance industry.

Thomas Buberl, the French giant’s German-born boss, cut growth forecasts for underlying earnings per share to between 3% and 7% from now until 2020.

Growth targets from 2010 to last year were between 5% and 10%, so this is a tacit admission the company is finding it harder to push itself forward.

Buberl takes over the top job in September, replacing long-standing boss Henri de Castries who announced his retirement in March.

Lower returns on bonds yields are to blame for the cautious outlook, Axa said. Buberl added that Axa needed to “adapt and grow in a challenging economic environment”.