Axa misses estimates as FX movements hit first-half profits

(Sharecast News) - Shares in Axa tumbled in Paris on Friday after the French insurance giant missed first-half profit forecasts on the back of negative currency movements. Gross written premiums and other revenues totalled €64.3bn for the first six months of the year, up 7% compared with the year before and in line with market forecasts.

Property and casualty premiums were up 5% at €34.1bn with gross registered across both commercial and personal lines.

"This reflects the continued expansion of our customer base in Personal lines in a conducive pricing environment and disciplined growth in Commercial lines with a strong focus on customer retention," said chief executive Thomas Buberl.

Meanwhile, life and health premiums increased 10% to €29.2bn. Elsewhere, net flows in the life and savings division continued to accelerate, the company said..

Underlying earnings were up 5% at €4.47bn, but net profits fell 2% to €3.92bn which Axa said was "mainly reflecting unfavorable foreign exchange impacts". This missed the company-compiled consensus forecast of €4.25bn.

Nevertheless, Buberl said the results reflected an "excellent performance". He said: "These results affirm the strength of our well-diversified business model, which is delivering predictable and sustainable earnings growth."

The stock was down 6.2% at €40.05 by 1130 CEST.