Axa Says Can Absorb Serious Market Shocks Without New Capital
April 30 2009 - 8:55AM
Dow Jones News
French insurance company Axa SA (AXA) said that the financial
crisis still hangs over its 2009 outlook, but that its capital
position is strong enough to absorb serious market shocks without
raising fresh funds.
In slides made available on the company's Web site Thursday
ahead of its annual general meeting, Axa said the outlook for its
life and pensions business was mixed, with falling asset values
partly compensated by action it has taken to improve its U.S.
variable annuities business.
Axa said its non-life business is holding up well in terms of
volume and profitability.
Later Thursday Axa shareholders will be asked to authorize the
possible launch of up to EUR2 billion in preference shares. The
company announced the plan in February when it posted an 84% net
profit decline in 2008.
At the time, Chief Executive Henri de Castries insisted the move
was "an insurance policy" that would only be used as a last resort
to defend the company if the financial crisis deepened.
At 1212 GMT, Axa shares were up EUR0.86 or 7,4% at EUR12.43,
outperforming the Stoxx Europe 600 insurance index which was up
4.4%.
Company Web site: www.axa.com
-By Digby Larner, Dow Jones Newswires; +33 1 4017 1748;
digby.larner@dowjones.com