AXAHY AXA SA (QX)

By Adria Calatayud

AXA said it is on track to hit this year's underlying earnings target after net profit for the first half declined slightly despite higher gross written premiums.

The French insurer said Thursday that first-half net profit was 3.83 billion euros ($4.19 billion) compared with EUR3.85 billion in the same period last year. The company attributed the result to a write-down in the value of derivative contracts that offset higher underlying earnings.

On an underlying basis, AXA's earnings were EUR4.11 billion, up 19% when measured under new accounting standards introduced this year, driven by strong growth in its property-and-casualty segment. This leaves the company on track to meet its target of 2023 underlying earnings above EUR7.5 billion, it said.

Gross written premiums and other revenue rose to EUR55.7 billion from EUR54.9 billion.

AXA said the pricing environment remains favorable in property and casualty. In its health operations, the company expects claim frequency in the U.K. to remain elevated in the second half, but that price increases will gradually compensate for the impact.

The insurer's Solvency II ratio--a measure of financial strength--was 235% as of June 30, up from 215% as of Dec. 31.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

August 03, 2023 01:21 ET (05:21 GMT)

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