(Reuters) — Axa S.A. on Thursday said it was well-placed to cope with the unstable economic environment ahead after years of portfolio restructuring that has helped create a strong balance sheet.

Axa has made €3 billion ($3.34 billion) of net disposals since 2010 and invested in high-growth markets such as China to keep revenue growing in the face of low interest rates in the United States and eurozone.

Axa reported a 12% rise in net profit for 2015 as stronger earnings in life insurance and asset management offset weakness in its property business, and said it had delivered on the main targets it set out five years earlier.

Net income for 2015 came in at €5.62 billion ($6.3 billion), up 12% from €5.02 billion ($5.59 billion) a year earlier. The increase was 3% at constant exchange rates and above the average forecast in a Reuters poll of €5.57 billion ($6.20 billion).

"The economic environment will remain pretty uncertain, maybe pretty unstable, but I think Axa is very well-positioned to face this environment," Chief Executive Henri de Castries said in an interview published on the company's website.

Insurers and regulators have identified rock bottom yields as the biggest problem because they choke off insurers' investment income while simultaneously raising the cost of future guarantees to policy holders.

Insurers are trying to contain duration mismatches in the context of falling long-term interest rates. Low yields on relatively safe government bonds hurt insurers' investment income, making it increasingly difficult to meet future obligations to policy holders.

Axa said the duration of its assets was long enough to lead to a slow yield dilution. Axa said that yield on new investments in 2015 at Axa fell to 2.1% from 2.7% in 2014.

It increased new fixed income investment in assets with ratings below investment grade in 2015 to 12% of its total portfolio from 9% in 2014, in a bid to support returns.

Strategic plan

Mr. De Castries said there was a risk insurers would increase their exposure to risky assets in a "search for yield," but said he was not worried about Axa's risk profile.

Axa shares traded 2.4% higher at 1052 GMT.

"Axa shares have a significant discount and the company has implemented a strategy to face a low interest rate environment," said Arnaud Scarpaci, associate portfolio manager at Montaigne Capital.

Axa had a Solvency II capital ratio of 205% of the minimum requirement under European rules that came in this year compared with 212% at the end of the third quarter.

A ratio of 100% means an insurer has set aside enough capital to meet underwriting, investment and operational risks.

Axa plans to present new strategic plan in June. He said that to a certain extent the plan will be a continuation of Axa's efforts to become more efficient, more selective and to accelerate its business in some activities or territories.

Mr. De Castries, whose mandate ends in 2018, declined to name a possible successor or whether he is going to give any details on the matter during Axa's investor day on Jun. 21, just saying "it would be someone much better than me."

With 40% of its business outside the eurozone, Axa's earnings benefited from a weaker euro.