KEY POINTS:
AXA New Zealand has reported annual operating earnings up 22 per cent to $59.1 million, as financial protection sales increased and claims were lower than expected.
The value of new business was down 7 per cent to $16.7 million, due to some price decreases in the financial protection business and a mix of lower margin wealth management sales.
Australian-based parent AXA Asia Pacific Holdings, a unit of French insurer AXA SA, put group operating earnings - which it said was the key profit indicator of the underlying performance of the business - up 20 per cent at A$543.7 million ($626 million).
AXA Asia Pacific Holdings' full-year 2007 profit was down 4 per cent to A$639 million.
For the six months ended December the company, which manages A$109 billion, reported net profit of A$265 million, down 29 per cent from A$374 million a year earlier.
For AXA New Zealand about 66 per cent of operating earnings were from financial protection with 34 per cent from wealth management.
Management expenses rose 6 per cent to $63.7 million due primarily to investment in product development to meet the requirements of tax reforms and the development of AXA's KiwiSaver offering.
The result reflected a 41 per cent rise in financial protection operating earnings to $39.2 million, with financial protection new business sales increasing 17 per cent to $27.4 million reflecting marketing campaigns.
Developing market share had been a challenge with aggressive competitor activity on pricing and commissions, the company said.
- NZPA
