Axa profit falls 19%

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26 July 2010

Axa Asia Pacific Holdings (Axa APH) is set to record a 19% fall in half-year net profit after announcing an unaudited net profit of approximately $220 million last week.

The company’s half-year results show profit after tax and non-recurring items is around $50 million short of the $270.4 million profit Axa APH earned last year, after negative investment results shaved $60 million off its earnings.

Local operations have performed well over the past year, with the Australian and NZ units forecast to deliver operating earnings of around $110 million.

An improved claims experience in the local business has combined with business growth and higher average funds under management to increase earnings by $21.9 million.

The local business has been in the spotlight in recent months as National Australia Bank continues to work on winning the competition regulator’s approval to acquire the business.

Elsewhere, a stronger Australian dollar has contributed to a fall in Hong Kong operating earnings to around $140 million from $175.8 million last year.

Growth in southeast Asia spurred a $33 million return, up from $17.2 million, while ongoing investment in India, China, and other parts of Asia resulted in a $13 million loss, improving on a previous loss of $25.6 million.