Axa Asia Pacific Holdings claims it is well placed to handle volatile market conditions despite a 4% fall in net profit to $638.7 million and a 71% drop in investment returns.

Axa's full-year results for 2007 were brighter in other areas, with a 20% increase in group operating earnings to $543.7 million.

Total group funds under management increased 12% to $109 billion.

In Australia and NZ, Axa enjoyed a 16% rise in operating earnings to $284.4 million, while new business in the region was up 35% to $192.9 million.

The company recorded a 15% increase in financial protection earnings to $103.1 million.

In Australia, Axa increased earnings for both individual life and income protection, but saw group life income decline.

Individual life new business grew 9% as total Australian premium value increased 3% to $590 million.

The company reported significant growth in Asia, particularly in the emerging south-east Asia region, where operating earnings grew 126% to $22.4 million.