Axa Asia Pacific will be in the spotlight over the next few months – not only because it may be the catalyst for a rash of mergers in the health insurance industry.

Shortly after announcing a $395 million after-tax profit for the 15-month period to December 31, Group CEO Les Owen was overwhelmed by media questions about merging Axa Health with MBF. Although the third-largest health insurer is looking more healthy itself than it has for some years, Mr Owen believes the health insurance market needs consolidation.

He said the company’s operating earnings in funds management, as well as risk and health insurance are showing “positive signs that our hard work in strategically reshaping our business is starting to pay off”.

Investment earnings for the 15 months were $119 million, up by 35% on the 12 month result but still down on 2000 – a reflection on lower returns from global equity markets.