AXA profits rise 18.0 percent on strong life assurance

22nd February 2007, Comments 0 comments

PARIS, Feb 22, 2007 (AFP) - French insurance group AXA reported on Thursday an 18.0-percent rise in net profit to 5.1 billion euros (6.69 billion dollars), drawn by a strong performance by its life assurance activities.

PARIS, Feb 22, 2007 (AFP) - French insurance group AXA reported on Thursday an 18.0-percent rise in net profit to 5.1 billion euros (6.69 billion dollars), drawn by a strong performance by its life assurance activities.

Operating profit rose by 20.0 percent to 4.0 billion euros and figures presented as the recurrent profit likewise by 20.0 percent, also to 5.1 billion euros.

Analysts had expected net profit of 4.75 billion euros and an operating outcome of 3.9 billion euros, and the price of shares in AXA was showing a gain of 1.84 percent to 33.74 euros in early trading.

At brokers Raymond James, analysts commented that a first reading of the results gave a "very favourable impression".

AXA said that all parts of its business had performed well and that the group had outstripped targets in its plan called Ambition 2012.

The life, savings and pensions business had increased operating profit by 22.0 percent to 2.32 billion euros.

The company said that this business had grown by 10.0 percent or more in most of the countries where it was present and had been particularly strong in France, the United States, Britain and Germany.

The value of new business taken in this sector had risen by 34.0 percent on a comparable basis to 1.50 billion euros.

Operating profits by the damage insurance division had risen by 7.0 percent to 1.45 billion euros.

AXA recommended an increase of 20.0 percent in the dividend to 1.06 euros.

Copyright AFP

Subject: French news

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