Axa Asia positive over profit as India calls

SYDNEY - Axa Asia Pacific Holdings says annual profit before one-off items was flat on weaker investment returns, but it expects operating earnings to climb this year and says it is hunting joint ventures in India.

Shares in Australia's second-biggest life insurer rose as much as 2.6 per cent in early trade yesterday, but later fell after it said it was unlikely that China and Southeast Asia would make a positive contribution to earnings for at least five years.

Net profit before one-offs for the year ended December 31 was A$547 million, flat on the previous year.

Shares in Axa Asia, in which AXA owns 51 per cent, closed 2.8 per cent lower at A$4.14.

Axa Asia repeated its December outlook that it was well-positioned to boost operating earnings this year on the back of strong fund inflows and new life premium sales.

Chief executive Les Owens said the success of Axa Asia in the Chinese and Southeast Asian markets would not be overnight.

"China and Southeast Asia represent our long-term growth engines," he said. "Success in these markets will, though, require a patient and long-term strategic approach."

Axa APH said it was talking to several potential joint venture partners in India, where the Government plans to allow foreign ownership to rise to 49 per cent.

There will be a final dividend of 6.5cps, taking the total-year dividend to 11.75cps.

- REUTERS