Sun Life and Provincial Holdings, the parent company for Axa insurance and PPP healthcare, has announced increased pre-tax operating profits of £319m for 1999, up 29% (£247m 1998).
The surplus includes eight months' trading results from Guardian Royal Exchange which Axa acquired last May.
Cost savings from the merger at £85m are running 70% ahead of Axa's initial estimates.
Axa chief executive Andy Homer said the £62m saving in its general insurance operations had been achieved by streamlining products, office accommodation and IT systems.
However, profits on ordinary activities before tax fell £142m from £326m to £179m in 1999, partly as a result of the £99m Axa spent on its merger with Guardian.
And disposal of Guardian's non-core insurance operations, including its US property and casualty business, had reduced the original £3.4bn cost of the acquisition to just £841m.
In 1999, Axa achieved an operating profit on its general insurance business of £21m but this was £5m down on last year (£26m in 1998). Private motor rate increases averaged 18% on intermediary business and 14% on direct.
PPP healthcare, also acquired with Guardian, increased its operating profit by £27m to £31m in 1999, reflecting a reduction in expenses of £18m. Net written premiums grew by one per cent.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
