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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