AXA reports 4% increase in 2006 first-half earnings

AXA reported its property and casualty revenues increased by 4% during the first half of 2006 to EUR10.8 million (CD$15.6 million).
AXA also reported its overall combined ratio improved 0.6 points to 96.9%.
“AXA’s performance in the first half of 2006 marks another successful milestone on our path to Ambition 2012,” AXA management board chair Henri de Castries said in a press release. “AXA is delivering on its organic growth and profitability objectives in all business segments.
“The strength of the group and the performance of our local teams put us in a perfect position to successfully integrate Winterthur and further leverage the benefits of being global.”
The company attributed its increase in its P&C revenues to a “good sales momentum” in 2006 2Q and “a satisfactory pricing resilience in a more competitive environment.”
Personal lines, representing 61% of the P&C premiums, showed overall growth of 4%. Commercial lines, accounting for 37% of P&C premiums, recorded a 3% growth.
On June 6, 2006, AXA announced the signing of a definitive agreement to cede AXA Re’s business to Paris Re Holdings Limited. As a consequence, AXA Re’s contribution to underlying earnings in the first half of 2006 (EUR4 million, or CD$5.8 million) corresponds mainly to the run-off of 2005 and previous year reserves. AXA Re’s contribution to underlying earnings during the first half of 2006 was EUR55 million (CD$79.2 million).