One-off costs knock AXA NZ

By DANIEL RIORDAN

One-off adjustment costs of $16.8 million have sent AXA New Zealand into the red for the six months to March 31. The insurer and funds manager reported a loss of $2.1 million after expenses associated with exiting non-core businesses and streamlining property assets.

Those costs ate into an operating profit of $14.7 million, down 18 per cent on the $17.9 million of a year ago.

Chief executive Ross McEwan said the dip in operating profit was caused by lower earnings from the funds management business, higher claims on the company's life insurance business and greater claims on the company's general insurance business.

Many of the non-recurring costs came as AXA refocused on funds management, closing some older-style investment products and launching new products.

Customer recognition of the company's name since the rebranding from National Mutual in August last year had reached 75 per cent total prompted recall, said Mr McEwan.

AXA NZ's restructuring efforts coincide with those of its Australian-based parent, AXA Asia Pacific Holdings (AAPH). The parent announced an operating profit for the six months to March of $145 million after tax and before abnormals, down 14 per cent from $169 million for the same period last year.

The company announced an unchanged interim dividend of 4.5cps, franked to 60 per cent.

AXA shares rose 2c to 322c yesterday.