Surprising: AXA posts strong profits

PARIS: AXA insurance turned in a surprisingly strong first-half profit of 22.0 percent from the same time last year to €3.0 billion ($4.0 billion. But the group warned that recent air disasters would probably push up insurance costs for airlines. AXA also said that it was now aiming to cut costs between 2011 and 2015 by €1.9 billion, an increase in its ambitions of 200 million euros. Analysts had broadly expected a net figure of €2.7 billion. The outcome was achieved despite a 1.0-percent fall in sales to €49.7 billion owing to unfavourable exchange rates, notably in Japan. On a basis of steady exchange rates, sales rose by 2.0 percent. The group ramped up its operating profit by 8.0 percent to a record €2.8 billion. The group said that the overall performance was in line with the targets set by its strategic plan which aims up to 2015 to turn in annual growth of operating profit of 5.0-10.0 percent, and a return on equity or shareholders’ funds of 13.0-15.0%.

Published in The Express Tribune, August 2^nd, 2014.

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