Life and investments drag AXA’s results down as GI surges

AXA’s total revenue fell 2% in 2008 to €91,221m and net income nosedived 83% to €923m but its general insurance business grew 3% to €26,039m with growth in personal and business lines.

The company said: “As we look forward to 2009, a lower starting asset base will affect the life & savings and our asset management businesses, whereas the property & casualty and international insurance businesses should continue to deliver solid underlying earnings.”

Highlights

  • Underlying earnings €4,044m -17%
  • Adjusted earnings €3,699m -39%
  • Net income €923m -83%
  • Dividend €0.4 per share, reflecting a 25% pay-out ratio
  • Solvency I surplus €6bn 127% coverage post dividend
  • Total Revenues down 2% to €91,221m.
  • Property & Casualty revenues up 3% to €26,039 million
  • Property & casualty underlying earnings were up 31% to €2,394m
  • Combined ratio down 1.9 pts to 95.5%.
  • Loss ratio improved by 2.7 points to 67.1%, benefiting from the non-recurrence of 2007 natural catastrophe events (floods in the UK and Kyrill storm in continental Europe) partly offset by some large claims in property business, as well as favourable prior year reserve developments.

General insurance figures by region

  • NORCEE 7,793 +0.6%
  • of which Germany 3,530 +0.7%
  • of which Belgium 2,139 +1.3%
  • of which Switzerland 2,017 -1.3%
  • France 5,595 +3.5%
  • United Kingdom & Ireland 4,420 0.0%
  • MedLA 6,414 +6.4%
  • Rest of the World 1,818 +8.0%
  • Total P&C revenues 26,039 +2.9%

GI by class

  • Personal motor revenues (35% of total P&C revenues) were up 2.3% driven by direct business and emerging markets while prices remained under pressure in mature markets.
  • Personal non-motor revenues (26% of total P&C revenues) increased by 2.9% with positive price effect across the board.
  • Commercial lines were up 3.3% with motor (7% of total P&C revenues) up 2.6% and non-motor (32% of total P&C revenues) up 3.4%, driven by France (notably construction business) and MedLA (notably health business in Mexico and Gulf region).

Henri de Castries, AXA chairman, said: “2009 will be another challenging year, in light of the current global economic environment. Our confidence in the performance of AXA going forward is supported by the increasing engagement of our employees, the trust of our clients, the financial flexibility and diversification of the Group and our operating profit resilience through turbulent times.”

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