AXA Profit Rises in Full Year

AXA SA, Europe's second-largest insurer behind Germany's Allianz SE, said Friday full-year net profit rose 10%, boosted by its property-and-casualty insurance business and despite slower growth in Asia.

The French insurer said net profit for 2013 was up to 4.48 billion euros ($6.15 billion), from EUR4.06 billion a year ago, below analyst forecasts of EUR4.8 billion, according to a Dow Jones survey.

AXA, like its peers in Europe, has grappled with the uncertain euro-zone investment market as well as low interest rates, which have hurt its asset management and savings products.

In 2011, the company detailed a new strategic plan targeting EUR1.7 billion in cost cutting by 2015. AXA pledged to invest in fast-growing businesses and emerging markets, and pull out of parts of Europe and the U.S. plagued by sluggish growth.

Revenue increased to EUR91.25 billion from EUR90.13 billion a year ago.

Revenue at the life-and-savings division inched up by 0.5% to EUR55.3 billion, while property-and-casualty revenue was up 1.8% to EUR28.8 billion. Asset management revenue rose 3.5% to EUR3.46 billion.

Life and savings annual premium equivalent, known as APE, was up 1.6% at EUR6.3 billion, from EUR6.2 billion last year. APE measures new business growth for life insurance 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 is targeting an annual growth rate of 10% in earnings per share by 2015 and also aims to cut costs by EUR1.7 billion in 2015 from 2011's level.

AXA said its solvency ratio--a key measure of an insurance company's financial strength--was 221% at the end of December, down from 233% a year ago.

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