Axa Asia Pacific last week recorded a 75% drop in first-half net profit, though the return of $94.2 million generally beat analysts’ expectations.

While investment losses had a negative effect on the bottom line, Axa group operating earnings climbed 11% to $295 million, though group funds under management, administration and advice declined 13% to $95.3 billion as subprime factors took a toll.

Of the difficult trading conditions, CEO Andy Penn says it is not the first investment cycle Axa has encountered and the company remains focused on the long term.

In Australia, Axa operating earnings climbed 22% to $141 million, and local net inflows remained positive at $1.6 billion. New business value declined 17% to $70 million.

In New Zealand, operating earnings fell 11% to $NZ27.1 million ($21.4 million), as funds under management, administration and advice declined 18% to $NZ8.1 billion ($6.4 billion).

Operating earnings meanwhile climbed 23% in Hong Kong, to $HK963.1 million ($134.5 million), and by 84% in South-east Asia to $15.6 million.

French parent Axa reported a 29% slump in first-half net profit, banking €2.16 billion ($3.65 billion). Operating profit lifted 3%, to €2.77 billion ($4.68 billion).

The group says full-year operating profit is on track to match last year’s record return of €4.96 billion ($8.38 billion).