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)

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