Axa UK has revealed its property and casualty businesses improved its combined ratio to 102.4% in the first half of the 2003, up from 104.7% in 2002.
Axa UK has revealed its property and casualty (P&C) businesses improved its combined ratio to 102.4% in the first half of the 2003, up from 104.7% in 2002.
The French insurer said the improvement in its underwriting performance reflected strong current year performance in UK commercial lines combined with reduced expenses.
However Axa UK's interim underlying earnings for 2003 were £43m, down from £74m in 2002.
The UK P&C business reported an increase in revenues of 5% to £1.54bn. The company said that planned reductions in personal motor insurance were offset by a 19% increase in revenues from its commercial portfolio.
The businesses reported underlying earnings of £41m, an improvement of £24m 2002.
The Axa Group overall reported underlying earnings increased by 6% to €1.1bn (£706m) due to "solid operating performances across business lines".
Axa UK group chief executive Dennis Holt said: "Overall these are a sound set of results when set against the backdrop of a difficult operating environment in the UK. Investor confidence remains low as three years of stock market decline continued into the first half of 2003.
"Hopefully the steadying of the market in recent weeks will eventually boost confidence. I suspect it will take some time, which is why our life business will continue to focus on cautious investment products and improving efficiency.
"Our P&C business continues to show improvement, particularly the growth in revenues on the commercial portfolio. Our improved combined ratio has been achieved by controlling expenses, stricter underwriting criteria and better pricing."
