Axa reports lower revenue in first quarter
(Reuters) — Axa S.A., France’s biggest insurer, said on Thursday that its first-quarter revenue had fallen 2.7%, pressured by a stronger euro that impacted the value of its sales.
Group revenue fell to around €30.8 billion ($36.8 billion). Axa derives at least 15% to 20% of revenues in U.S. dollars, and the dollar’s weakness against the euro means those revenues count for less when converted back into euros.
The euro rose 2.5% in the first quarter this year, with the level of the euro/dollar at the end of the first quarter 16% higher than the end of the first quarter of last year.
On a comparable basis factoring in constant exchange rates, Axa’s revenue was up by 2.2%, helped by a stronger growth in life and savings and health activities in France.
Axa, Europe’s second-biggest insurer by market value behind Allianz S.E., could collect more than $5 billion from this month’s initial public offering of its U.S. life and asset management arm, ahead of its agreed $15 billion acquisition of XL Group Ltd.
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