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)

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