Nerves drive Axa insurance earnings higher in Asia Pacific
Higher insurance earnings provided some bright spots for Axa Asia Pacific in 2008, in a year overshadowed by a $278.7 million net loss.
The loss compares with a profit of $638.7 million in the year to December 31 2007.
Financial protection earnings in Australia climbed 52% to $104.6 million last year, from $68.6 million in 2007. Australian earnings rose 1% to $235.3 million.
The picture was less rosy in New Zealand where financial protection slipped 19% to $NZ31.7 million ($25.3 million) but in Hong Kong there was a 7% rise, to $HK916.4 million ($183.9 million).
Domestic and global equity freefall set the course for a $537.7 million loss in Axa investment earnings in fiscal 2008.
CEO Andy Penn says it’s not surprising that customers are focused on security and protection.
“There is a significant reduction in demand for wealth management products and a bias towards more defensive asset classes, more traditional products and more insurance protection,” he said.
“In this regard we are well positioned with our capital protected products in Australia and in Hong Kong, as well as our financial protection business across the region.”
The strong capital position at Axa – it had a surplus of $779 million above regulatory requirements at the end of 2008 – has prompted media speculation that the group is on an acquisitive path, possibly in Asia.
French parent Axa meanwhile delivered annual net profit of just €923 million ($1.8 billion) as net income tumbled 83% due to unprecedented market volatility. However, the combined ratio reflected continued profitability at 95.5%.
The loss compares with a profit of $638.7 million in the year to December 31 2007.
Financial protection earnings in Australia climbed 52% to $104.6 million last year, from $68.6 million in 2007. Australian earnings rose 1% to $235.3 million.
The picture was less rosy in New Zealand where financial protection slipped 19% to $NZ31.7 million ($25.3 million) but in Hong Kong there was a 7% rise, to $HK916.4 million ($183.9 million).
Domestic and global equity freefall set the course for a $537.7 million loss in Axa investment earnings in fiscal 2008.
CEO Andy Penn says it’s not surprising that customers are focused on security and protection.
“There is a significant reduction in demand for wealth management products and a bias towards more defensive asset classes, more traditional products and more insurance protection,” he said.
“In this regard we are well positioned with our capital protected products in Australia and in Hong Kong, as well as our financial protection business across the region.”
The strong capital position at Axa – it had a surplus of $779 million above regulatory requirements at the end of 2008 – has prompted media speculation that the group is on an acquisitive path, possibly in Asia.
French parent Axa meanwhile delivered annual net profit of just €923 million ($1.8 billion) as net income tumbled 83% due to unprecedented market volatility. However, the combined ratio reflected continued profitability at 95.5%.