Financial Markets . There was a WSJ article \"AXA to Cut Costs to Boost Earnings

Question

Financial Markets .

There was a WSJ article "AXA to Cut Costs to Boost Earnings, Record-low interest rates have weighed on the earnings of AXA and other insurers" posted on our discussion board. AXA is a Paris-based insurance company. It released its four-year strategic plan on June 21, 2016. The plan aims to boost the firm earnings by cutting costs, expanding in higher-growth regions, and using digital technologies to offer more services The investors were not impressed by the plan. But analysts at Jefferies Group said the plan "will be seen as realistic in the current yield climate". Answer: How would bond yields affect an insurance company's earnings? and why was AXA's strategic plan realistic? T T T Arial (12pt) Words: 0 Path p

Explanation / Answer

Bond yields affect an insurance company's earnings in the following way

AXA’s plan was strategic as yields are dependent on the current market situation and other external factor and the company should not solely rely on this . The companyshould concentrate in improving internal factors that will boost company earnings

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