We use cookies to improve this site and enable full functionality. You can change your cookie settings at any time using your browser. Our cookie policy.

AXA sees 2018 profit slide 66%

AXA sees 2018 profit slide 66% | Insurance Business

AXA sees 2018 profit slide 66%

From 2017’s €6.2 billion (around £5.38 billion) to last year’s €2.1 billion (around £1.82 billion) – that’s how much major insurer AXA saw its full-year profit fall, with a number of reasons to blame.

Releasing its financial results this morning, the Paris-headquartered group noted that the slight increase in its adjusted earnings was more than offset by several culprits. At constant Forex, adjusted earnings rose only 3% (0% on a reported basis) to €6.5 billion.

AXA attributed the 66% drop in net income to the following:

  • the impairments of both the goodwill from AXA Equitable Holdings in group share and other intangible assets linked to the transformation of its Swiss Group Life business;
  • higher restructuring costs and exceptional charges related to the initial public offering of AXA Equitable Holdings and the acquisition of XL Group; and
  • the negative impact from the change in the fair value of financial assets and derivatives.

The biggest dent, at €3.1 billion, came from goodwill and related intangibles. Integration and restructuring costs amounted to €332 million.

Breaking down its earnings, €1.6 billion came from France; €2.5 billion, Europe; €1.1 billion, Asia; €1.1 billion, US; €400 million, international; and €384 million, transversal. Negative figures were posted from AXA XL and Central Holdings.

Meanwhile Solvency II ratio went down 12 points to 193%.