AXA triples first-half profit

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AXA triples first-half profit

AXA Asia Pacific Holdings almost tripled its first-half profit and the wealth manager and life insurer says its long-term growth prospects remain strong, mainly because of its investment earnings in Asia.

Net profit rose 187 per cent to $270.4 million for the six months to June 30 compared with a profit of $94.2 million in the prior corresponding period, the Melbourne-based company said in a statement.

The net profit figure surged mainly because the insurer was hit hard in the first half of 2008 by the slump in equity markets.

Operating earnings for the first half of 2009 fell 13 per cent to $255.5 million.

AXA Asia Pacific chief executive Andrew Penn said the company's diversification and focus on Asia had helped it through the financial crisis so far.

''Whilst all markets have been affected by the global financial crisis, the economies in Asia, from where we derive approximately two thirds of our earnings, are faring better than in many OECD countries,'' Mr Penn said.

''Whilst understandably some of the performance is lower than the same period in 2008, when one considers the severity of the market downturn, these are strong results.''

AXA declared a first-half dividend of 9.25 cents per share, the same as the 2008 interim distribution.

The company made investment earnings of $55.4 million, compared with investment losses of $140.4 million during the first half of 2008.

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Funds under management, which have been buffeted by the plunge in equity markets, declined 10 per cent to 75.72 billion as of June 30, from $83.86 billion a year before.

AAP

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