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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