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Axa Nine-Month Sales Rose 2% on Life-and-Savings Premiums

Axa SA (CS), Europe’s second-largest insurer, said nine-month revenue rose about 2 percent, helped by life-and-savings premiums and asset-management fees.

Revenue in the period through September increased to 69.5 billion euros ($96 billion) from 68.4 billion euros a year earlier, the Paris-based insurer said in a statement today. Axa’s solvency ratio reached 214 percent at the end of September when including proceeds from the sale of certain Mony Life Insurance Co.’s assets to Protective Life Corp. (PL)

“Their capacity to deliver is confirmed,” Benoit Valleaux, an analyst at Natixis SA in Paris who recommends buying Axa shares, said before the release. “They are executing on their strategic plan.”

Axa is expanding in Asia and has shifted billions of euros of capital to faster-growing markets since 2010, while divesting assets in the U.S., Canada and the U.K. Adjusted return on equity, a measure of profitability, reached 16.5 percent in the first half, above the company’s target of 13 percent to 15 percent for 2015, Axa said in August.

Nine-month asset-management revenue rose 6 percent to 2.6 billion euros, helped by higher management fees and increased real estate transactions at its Paris-based Axa IM unit, the insurer said.

At the life-and-savings division, Axa’s largest, revenue rose by about 1 percent to 41.4 billion euros, helped by a “strong offer positioning” in protection and health products in Switzerland and its Chinese life-insurance partnership with Industrial & Commercial Bank of China Ltd. (601398), the French insurer said.

“We keep accelerating in high-growth countries,” Deputy Chief Executive Officer Denis Duverne said on a call with journalists. The revenue data “reflect our determination to continue the strategic initiatives of our Ambition 2015 plan.”

To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net

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