AXA 2018 Net Profit Fell Sharply
21 Février 2019 - 07:48AM
Dow Jones News
By Pietro Lombardi
AXA SA's (CS.FR) net profit fell significantly in 2018 after the
company was hit by impairments related to AXA Equitable Holdings
Inc (EQH), as well as costs related to the IPO the U.S. subsidiary
and relating to the $15.3 billion acquisition of insurer XL
Group.
Net profit for the 12 months declined 66% on year to 2.14
billion euros ($2.43 billion), the French insurer said Thursday,
with the company reporting a EUR3 billion hit related to the AXA
Equitable Holdings impairment.
The net profit compares with analysts' expectations of EUR2.29
billion, according to a consensus forecast provided by FactSet.
Underlying earnings rose 6% at constant currency, reaching "its
highest ever reported level, even with a reduced ownership of AXA
Equitable Holdings and an unusually severe fourth quarter in terms
of natural catastrophes," Chief Executive Thomas Buberl said.
Annual premium equivalent, known as APE, rose 9%. APE measures
new business growth 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.
Revenue grew 4% to EUR102.87 billion, a performance achieved on
the back of growth in all markets, the company said. AXA XL, a new
business segment that includes the XL Group, reported a 10%
increase in revenue.
"We are progressing fast on integration and the delivery of
associated synergies, and are already experiencing revenue lift",
Greg Hendrick, CEO of AXA XL, said.
AXA said it would propose a dividend of EUR1.34 a share, a 6%
increase over the previous year.
The French insurer's solvency II ratio--a key measure of
financial strength for insurance companies--was 193%.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 21, 2019 01:33 ET (06:33 GMT)
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