According to an annual report, AXA, a French global investment, and insurance group deal with operation segments like international insurances, assets or financial management, property, and casualty. The company being a multinational, it focuses on a central aspect of personal and business insurances. Private insurance covers properties like cars or homes while business cover public or employer's liability. Through a PEST-analysis method, AXA company experiences some impacts due to increased awareness of amongst individuals and different countries' campaigns. Political campaigns induce significant traveling interest, and travelers opt to seek insurance covers to avoid the high cost of medical treatments when out of a home. In other cases when the government enacted a mandatory third-party car, the effect forcing people to get insurances done.
Increased taxes lower people's spending, and negatively it affects AXA- corporate as people become less willing to pay high premiums ([Global Non-Life Insurance Industry Profile], 2017). Internet technology has enabled the company to progressively lowers operational costs through information spreading. Many consumers use the internet in replace of yellow pages and can share views through blogs, cutting the middle for the organization, an excellent save. As a social factor, proportion of young drivers in the societies and events like cars races have opened up opportunities for the insurance companies. The company is earning more thus its economic trend makes it possible to create a substantial disposable income, and this gives citizens tendencies to spend. The significant challenges encountered by AXA insurance company include limited portfolio, competition from other companies like Allianz hence less profit and financial crisis like recessions.
Allianz Insurance company is worldwide asset management. By looking at a microenvironment analysis of the corporation, political, economic, social and technology influences have shaped its performance at a considerable scale. The government has made insurance services a concern to the public via travelers' campaign initiatives. By highlighting the dangers of uninsured traveling, some industries have benefited from an increase sale prospect. With the trending economic inflations, individuals have become work oriented and therefore earns more to translate substantial disposable incomes. At economic boom cycles, people want to live better, and comfortable lives which translate that general insurances are critical gears to managing resources. Regarding the social activities carried out today, average people can earn better compared to past decades. The income leads to many people becoming able to afford properties which call for the need of insurance. Technology is a vital tool enabling the popularity and service efficiency to customers of Allianz through improved modern communications. Allianz corporation depends heavily on automobile market, and like any other business, one of its significant risks is stiff competition.
Generali corporation is another largest insurance company in the globe which array of standard insurance covers on houses, cars and even health. From an annual report, the company revealed an excellent intrinsic value with quality metrics. From current payout, Generali corporation pays an annual dividend that yields a return of 6%. Over the past three years, the organization has managed to scope a positive profit and is forecasted to gain more income in the present. Many of investments made by the company have fixed incomes, carrying an array of a good rating, and are much concentrated in Italy. The risk of this corporation is few leading rating agencies who would present a negative outlook to the business, affecting its source of income. Generali mains competitors are AXA, BayWa AG, and Allianz.
Generally, the growth rate of Europe is said to have defeated expectations from past years due to a transition of economic recovery. The European GDP has grown by 2.4%, which is a fast pace in a decade. The change is as a result of the adjusted unemployment rate, from 9.5 to 8.5%. Low unemployment rates are recorded to be low in the Czech Republic and highest In Greece. Improvement on the labor market, strong demand and better utilization of resource are elements to favor investment from a forecast horizon. Also, the market reacts to surprise events, in that uncertainties and speculation can lead to volatility in the world market. With continuing threats to Europe economy and political coherence, such instability might result in market turmoil. According to Frieden & Eichengreen, (2018), significant changes are expected to occur in European corporate market bond due to forces like decreased issuance by the government. Compared to other nations, credit rating is low showing an increased depth of European market.
Frieden, J. A., & Eichengreen, B. (2018). The political economy of European monetary unification: An analytical introduction. In The political economy of European monetary unification (pp. 1-21). Routledge.
Global Non-Life Insurance Industry Profile. (2017). Non-Life Insurance Industry Profile: Global, 1-39.
Cite this page
Non-Life Analysis for AXA, Allianz, and Generali - Paper Example. (2022, May 12). Retrieved from https://proessays.net/essays/non-life-analysis-for-axa-allianz-and-generali-paper-example
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Law of Financial Institutions and Securities
- Tourism Essay Example: Tourism as One of the Economic Courses
- Article Review Example: Eroding the US Crude Export Ban
- Essay Sample on Importance of Human Capital for Economic Development
- Contrasting Development in Asia and Latin America Essay
- Free Trade and Globalization Are Controversial Current Topics
- Research Paper Example: Cultural Differences in a Global Business Environment