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Axa announces drop in profits
Date: Tue, 12 Aug 03 Analysis
LONDON, UK - Insurance group Axa has seen its profits tumble as a result of the weak US dollar and heavy damage to its investments.
T h e g r o u p h a s a n n o u n c e d a p r o f i t o f ¬ 2 0 9 m i n t h e s i x m o n t h s t o J u n e , d o w n 7 5 p e r c e n t o n t h e p r e v i o u s y e a r .
T h e p r o f i t s d r o p i s b e l i e v e d t o b e l a r g e l y t h e r e s u l t o f a ¬ 1 . 1 b i l l i o n c h a r g e t o c o m p e n s a t e f o r t h e e f f e c t o f w e a k s t o c k m a r k e t s a r o u n d t h e w o r l d o n i t s i n v e s t m e n t s , m o r e t h a n f i v e t i m e s t h e l e v e l i t h a d t o s h o w i n 2 0 0 2 .
T h e i n s u r e r h a s n o w o f f e r e d a p r o m i s e t h a t i t i s o n c o u r s e t o m e e t p r o f i t a b i l i t y t a r g e t s b y t h e e n d o f t h i s y e a r .
A x a a l s o c o n f i r m e d t h a t i t s p r o f i t s b e f o r e o n e - o f f c h a r g e s i n p r o perty and casualty insurance were up 76 per cent.
However, life insurance, currently proving troublesome for many companies, and savings insurance saw a 23 per cent slide in profits.
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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.