AXA 1st Half Net Profit, Revenue Dropped Due to Coronavirus Pandemic
August 06 2020 - 1:37AM
Dow Jones News
By Mauro Orru
AXA SA said Thursday that net profit and revenue for the first
half of the year fell amid a more pronounced decline in activity in
the second quarter due to the coronavirus pandemic.
The French insurance giant said first-half net profit fell to
1.43 billion euros ($1.70 billion) from EUR2.33 billion in the
first half of 2019.
Annual premium equivalent, known as APE, rose 2%. APE measures
new business growth by combining the value of payments on new
regular premium policies, and 10% of the value of payments made on
one-time, single-premium products.
AXA's solvency II ratio--a key measure of financial strength for
insurance companies--was 180% at June 30 from 198% at Dec. 31,
2019.
Underlying earnings for the period shrank to EUR1.89 billion
from EUR3.62 billion. AXA reiterated that it estimates an impact on
2020 underlying earnings of EUR1.5 billion from coronavirus-related
property and casualty claims and solidarity measures.
Revenue fell to EUR52.39 billion from EUR57.95 billion.
AXA said its board of directors decided not to propose an
exceptional distribution of reserves to shareholders in the fourth
quarter, citing the coronavirus pandemic.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
August 06, 2020 01:22 ET (05:22 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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