AXA's first half revenues up by 3% y-o-y, to EUR 53.6 billion
"AXA delivered a very strong operating performance in the first half of 2018, with a 6% increase in underlying earnings per share, towards the top end of our Ambition 2020 target range. This result was supported by a strong increase in technical profitability across all our businesses", said Thomas BUBERL, Chief Executive Officer of AXA.
The insurer mentioned its revenues increased by 3%, mainly due "to strong growth in (i) France (+8%) driven by Life & Savings and Health, (ii) Europe (+3%) with higher sales across all business lines, (iii) Asia (+3%) with growth in Protection and Health, (iv) International (+3%) driven by P&C and Health , and (v) Transversal (+2%). This was partly offset by the US ( - 3%), due to lower Unit - Linked sales, partly off set by higher revenues at AB.
Annual Premium Equivalent, APE (new business volume) was up 8%, mainly "driven by (i) strong growth in France (+19%) in Group Health and Individual Savings, as well as (ii) higher sales in Europe (+6 %) mainly from Protection , (iii) the US (+4%) with higher advisory sales in Mutual Funds & Other , and (iv ) Asia ( + 4%) mainly driven by Protection".
NBV margin decreased by 1.7% to 41.0%, mainly due to higher sales in Group Health in France and a shift in business mix in Hong Kong, partly offset by a favorable business mix in China and Thailand. New Business Value was up 4% to Euro 1.4 billion.
In terms of profitability, Property & Casualty all-year combined ratio improved by 0. 8% to 95.0%. Current year combined ratio increased by 0.5% to 97.1%, mainly due to higher Nat Cat and other natural events in Europe, partly offset by a better claims experience in France and Belgium. Favorable prior year reserve developments were higher at - 2.1 points.
Net income decreased by 11% to Euro 2.8 billion, as the increase in adjusted earnings was more than offset by the impairment of intangible assets linked to the transformation of our Swiss Group Life business (Euro - 0.3 billion), as well as the negative impact from the change in the fair value of financial assets and derivatives, and exceptional charges linked to the IPO of AXA Equitable Holdings, Inc.