Axa’s first-half profit fallsPosted On: Aug. 1, 2019 7:14 AM CST
(Reuters) — French insurer Axa SA’s net income fell 17% in the first half of the year after booking charges related to the valuation of its remaining stake in Axa Equitable Holdings and the mark-to-market valuation of derivatives.
Axa, the second-largest European insurer after Germany’s Allianz SE, said its profit fell to €2.33 billion ($2.6 billion) from €2.8 billion a year ago.
The French insurer booked charges worth €1.4 billion, including €789 million related to the mark-to-market valuation of derivatives and a €600 million write-down of its remaining 38.9% stake in Axa Equitable Holdings.
Nevertheless, Axa’s overall revenues rose 8% to €57.95 billion, and Axa’s shares edged up 0.2% in early session trading.
Analysts polled by Refinitiv expected a net profit of €3.81 billion and a mean revenue of €55.21 billion.
Axa’s adjusted earnings were up 10% to €4 billion, lifted by a €502 million contribution by Axa XL, which it acquired last year for $15 billion as part of a reshuffling of its activities launched by CEO Thomas Buberl three years ago when he was appointed at the helm.
Mr. Buberl has said he wants the insurer to be more exposed to the risk of property damage and health and less to market risks.