Axa 2009 Net Profit Up Sharply; Focus On Lifting Margins

Insurance giant AXA SA (AXA) Thursday said net profit almost quadrupled in 2009 as it shook off the worst effects of the financial crisis and cleaned up its U.S. activities that hurt it at the end of last year.

Net profit for 2009 increased to EUR3.61 billion from EUR923 million a year earlier, above an average EUR2.97 billion forecast from eight analysts polled by Dow Jones Newswires.

Revenue slid 1.2% to EUR90.12 billion from EUR91.22 billion a year ago.

"AXA should benefit from favorable trends in the insurance and asset management markets, its leading brand, innovative products and improving quality of service," AXA's chairman of the board Henri de Castries said in a statement.

"Our 2010 priorities will focus on optimizing margins in all business lines, through improvement of business mix in life, combined ratio in property & casualty, and net inflows in asset management," he said.

AXA said it will pay a dividend of EUR0.55 a share, up 38% from EUR0.40 a year ago.

The group's solvency ratio stood at 171% at the end of December, AXA said, up from 138% at the end of June.

Shares closed Wednesday at EUR15.56.

- By Geraldine Amiel and Jethro Mullen, Dow Jones Newswires; +331 40171740; geraldine.amiel@dowjones.com;

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