Markets hurt AXA profits

TheAXA Asia Pacific Holdingsgroup’s net profit in the 12 months to the end of September this year has fallen to $320 million, 14 per cent below the level of the year before.

While AXA’s Asia Pacific operations made an operating earnings increase of 47 per cent in the year to September to $362 million, this was not enough to negate the impact of the flagging global investment markets. AXA took a hit of 57 per cent lower investment earnings for this year to September, raking in $88 million as compared to $203 million in the year to September 2000.

In Australia and New Zealand only, the books were looking a bit better for the year. Only in capitalised losses and investment earnings did AXA fair worse than its 2000 result. Investment earnings shrank by 53 per cent to $42 million.

But earnings from funds management, risk and health were all up by 46, 144 and 110 per cent respectively. In all, AXA increased its profits in Australia and New Zealand on its 2000 result by 13 per cent, to $212 million.

“The fact that we were able to achieve significant improvements in operating performance in each of the funds management, risk and health businesses in Australia and New Zealand signals that all the hard work we have done in strategically reshaping the operations is starting to pay off,” AXA group chief executive Les Owens says.

Meanwhile, AXA’s China operations recorded a 23 per cent drop in after-tax profits to $191 million. It appeared to be hardest hit by its investment earnings which fell off by 68 per cent to $36 million.