By Mauro Orru

 

AXA SA said Monday that net profit and revenue increased in the first half thanks to growth in all business lines, particularly improved property and casualty claims and a strong underwriting result at AXA XL, the company's property and casualty and specialty risk division.

The French insurance company said net profit rose to 4 billion euros ($4.75 billion) from EUR1.43 billion in the first half of 2020.

Underlying earnings for the period climbed to EUR3.64 billion from EUR1.89 billion. Revenue increased to EUR53.87 billion from EUR52.39 billion.

The result marks a turning point for the company, which took a EUR1.5 billion blow on 2020 underlying earnings from coronavirus-related property and casualty claims. AXA said they were less affected by such claims this year.

Annual premium equivalent, known as APE, rose 9% to EUR3.01 billion. 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 212% at June 30, up from 200% at the end of December.

"This strong result was achieved across all our markets, and notably at AXA XL with very good underwriting performance. Taking advantage of the continued favorable pricing momentum, AXA XL is well-positioned to deliver its EUR1.2 billion earnings target in 2021 and sustainable and profitable growth beyond," Chief Executive Thomas Buberl said.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

August 02, 2021 01:26 ET (05:26 GMT)

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