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Axa investment earnings back in black

Axa Asia Pacific has recorded a 187% increase in first-half net income of $270.4 million as it reversed last year’s heavy investment losses.

The company earned investment income of $55.4 million during the first half, a big improvement on the same period last year when the company bled $140.4 million.

It reported net profit of $94.2 million in the first half of last year.

Total insurance premiums in force in Australia increased 2% to $652.1 million and rose by 1% in NZ to $NZ177.1 million ($141.4 million). Financial protection new business rose 23% to $58.8 million in Australia but fell 2% in NZ to $NZ12.7 million ($10.1 million).

CEO Andy Penn warned that underinsurance remained prevalent across the region despite strong growth in recent years.

Axa group funds under management, administration and advice fell 10% across the region to $75.7 billion, while group operating income fell 13% to $255.5 million.

Mr Penn said while some results had deteriorated, “when one considers the severity of the market downturn these are strong results”.

“As we foreshadowed, 2009 has been very difficult so far and it looks like it will continue to be so.”

Parent Axa SA reported a 39% fall in net profit of €1.32 billion ($2.56 billion) on total property and casualty revenues of €14.9 billion ($25.5 billion). The combined ratio deteriorated to 98% from 96.4%.