Insurer AXA expects profitability to speed up in the coming two years thanks to business brought in by XL, which it bought earlier this year, and added it hoped to boost dividends. 

AXA, Europe's second-biggest insurer after Allianz, said it expected adjusted return on equity (ROE) to increase between 14-16% annually over the coming two years.

This was up from a previous target of between 12-14%. 

The French insurer also confirmed its target for underlying earnings per share to increase 3-7% a year over the same period. 

AXA expects profitability will be boosted by the diversification achieved from its $15 billion acquisition of XL earlier this year. 

The company also raised its expected synergies on XL to €500m from €400m before. 

As a result, AXA will increase its dividend payout range to between 50-60% from 45-55% previously.