Axa Asia Pacific Holdings (APH) has posted a near billion-dollar profit turnaround, buoyed by strong investment returns and improved performance from its southeast Asian and Hong Kong subsidiaries.

Led by a 15% rise in Hong Kong earnings, Axa APH announced full-year profit after tax of $679.2 million. In 2008, the company recorded a $278.7 million loss stemming from the credit crunch.

Twelve months down the track, Axa APH’s finances are in a much-improved state, albeit with some discrepancies. Operating earnings fell by 25% in Australia against the “backdrop of a difficult market” while in New Zealand earnings fell 18%.

Its full-year financials were also inflated by the sale of its stake in an Indian venture.

Axa APH is currently the target of a takeover attempt by the National Australia Bank, but CEO Andrew Penn says the company is “regaining momentum” and will seek new distribution channels in 2010.

Hong Kong led Axa APH’s results with improved operating earnings of $HK2.03 billion ($290 million), while earnings rose 44% in southeast Asia to $50.2 million.

“Notwithstanding the significant market turmoil over the past 24 months, the fundamental characteristics that continue to make our industry and the markets in which we operate attractive have not changed,” he said.

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