AXA posts $679m profit
AXA Asia Pacific Holdings Limited (AXA) swung to a $679 million profit for the year to 31 December, from a $279 million loss the previous year. The profit result from AXA, its best since 2003, comes as the National Australia Bank’s takeover awaits the ACCC decision, due on 17 March.
AXA CEO Andrew Penn didn’t immediately comment on takeover speculation by either NAB or previous suitor AMP, instead focusing on the result for 2009.
“I am very pleased with our operating performance and we have performed particularly well in the second half of 2009 with Operating Earnings up 17 percent on the first half,” Mr Penn said.
”This was attributable to the very strong sales growth in the second half in conjunction with the early steps we took in response to the global financial crisis to reduce costs.”
The results were improved across Asia, reflecting the region’s more resilient economy in the face of the global financial crisis.
Hong Kong operating earnings rose over 6%, while across south-east Asia operating earnings rose 44%.
Unfortunately Australia bucked the trend with full year operating earnings down 25%, despite second half earnings of $101 million, being 35% higher than the first half.
The insurer said iinvestment earnings of $185.1 million were in contrast to the investment losses of $537.7 million in 2008.
Meanwhile, non-recurring items of $56.9 million up from a loss of $152.8 million in 2008, included the profit on the sale of half of AXA APH’s economic interest in India and a favourable outcome on UK tax litigation, partially offset by restructuring and other costs.
“We have entered 2010 with a strong balance sheet with assets in excess of regulatory requirements of $1.61 billion and a gearing ratio of 27%, well below our target range.”
Looking ahead Mr Penn painted an upbeat picture for the company.
”We have navigated our way through the global financial crisis successfully and 2010 is about accelerating our growth,” Mr Penn said.
At 1034 AEDT, AXA shares had risen 4c to $6.33.
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