Axa expects healthy profit despite volatile market
Axa Asia Pacific is confident of a strong performance this year despite falls in equity markets making “life more challenging”.
Chairman Rick Allert told the company’s AGM last week that since its November high the Australian market is down more than 20%.
He says this has to do with an increase in volatility. So far this year six of the nine biggest one-day gains and six of the 20 biggest one-day losses since 1992 have been recorded on the S&P 200 index.
CEO Andrew Penn says market volatility in the past few months has made “life more challenging in the short term”, increasing the need for a strong and resilient business that focuses on the long term.
Operating earnings grew by 20% to $543.7 million and were up 15% to $232.5 million in Australia. Financial protection was up 5% in Australia to $68.6 million.
Mr Penn says the pricing and product design decisions of some competitors “have not been entirely rational”.
But he says the current more difficult market environment will restore more rational pricing to the industry.
Mr Allert also commented on securities lending, saying the company is committed to ensuring there is the same disclosure and transparency on short selling as there is to the holding or disposal of physical shares.
Chairman Rick Allert told the company’s AGM last week that since its November high the Australian market is down more than 20%.
He says this has to do with an increase in volatility. So far this year six of the nine biggest one-day gains and six of the 20 biggest one-day losses since 1992 have been recorded on the S&P 200 index.
CEO Andrew Penn says market volatility in the past few months has made “life more challenging in the short term”, increasing the need for a strong and resilient business that focuses on the long term.
Operating earnings grew by 20% to $543.7 million and were up 15% to $232.5 million in Australia. Financial protection was up 5% in Australia to $68.6 million.
Mr Penn says the pricing and product design decisions of some competitors “have not been entirely rational”.
But he says the current more difficult market environment will restore more rational pricing to the industry.
Mr Allert also commented on securities lending, saying the company is committed to ensuring there is the same disclosure and transparency on short selling as there is to the holding or disposal of physical shares.