AXA Nine-Month Revenue Rose Slightly, Solvency Ratio Fell
November 06 2018 - 11:22AM
Dow Jones News
By Pietro Lombardi
AXA SA's (CS.FR) nine-month revenue rose 0.6%, supported by
growth across its business lines, it said Tuesday.
The French insurer reported revenue of 75.8 billion euros ($86.4
billion) in the first nine months of the year, compared with
EUR75.4 billion in the same period last year. On a comparable
basis, revenue rose 3.7%, it said.
Annual premium equivalent, known as APE, rose 9% in the period.
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.
"We grew in all five of our geographies and across all business
lines," Chief Financial Officer Gerald Harlin said.
AXA's $15.3 billion acquisition of insurer XL Group that AXA
completed in September hit the French insurer's solvency II
ratio--a key measure of financial strength for insurance
companies--which fell to 195% at the end of September, down from
233% in June.
The ratio, which includes the contribution of the XL Group, is
"well within our guidance," the CFO said.
The decline in the ratio comes as "the effect of the closing of
the XL Group acquisition was partly offset by the positive impact
from the purchase during the quarter, of additional equity hedges
and a strong operating return net of accrued dividend for the
quarter," the company said.
"AXA delivered a strong performance in the first nine months of
2018, illustrating the strength of our operations and the
pertinence of our simplified operating model," Mr. Harlin
added.
Olivia Bugault contributed to this story
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
November 06, 2018 12:07 ET (17:07 GMT)
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