AXA 1st Half Net Profit Fell

   By Pietro Lombardi 
 

AXA SA (CS.FR) said Thursday that first-half net profit fell 17%, missing expectations, as the impact of the deconsolidation of U.S. life-insurance business AXA Equitable Holdings Inc. (EQH) and the change in fair value of derivatives more than offset growing revenue.

Net profit for the period declined to 2.33 billion euros ($2.59 billion), the French insurance giant said.

Revenue rose 8% to EUR57.95 billion.

Analysts had expected net profit of EUR2.83 billion on revenue of EUR56.15 billion, according to a consensus forecast provided by FactSet.

Underlying earnings grew 10% on year, AXA said.

Annual premium equivalent, known as APE, rose 2%. APE measures new business growth by combining the value of payments on new regular premium policies, and 10% of the value of payments made on one-time, single-premium products.

The French insurer's solvency II ratio--a key measure of financial strength for insurance companies--was 190%.

"AXA continued to deliver strong operating performance," Chief Executive Thomas Buberl said.

"AXA's earnings benefited from a virtuous double dynamic, both growing volumes and improving profitability across all our geographies and preferred segments."

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

August 01, 2019 01:23 ET (05:23 GMT)

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