PARIS (Reuters) - Europe's No. 2 insurer AXA reported a milder than expected 36 percent drop in first-half profit from a year-ago period that had been boosted by a one-off gain from the sale of its Australia and New Zealand operations.
AXA said its net income for the period fell to 2.59 billion euros ($3.15 billion) from 4.01 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S had forecast net income of 2.11 billion euros.
Underlying profit rose 3 percent to 2.305 billion euros, bolstered by improved property and casualty results.
"The solidity of our first half results can be explained by the fact that our strategy for several years now has focused on market lines that are less market-sensitive: P&C, health and protection," Chief Financial Officer Gerald Harlin said on a conference call with reporters.
AXA reported first-half revenue rose 1 percent on a like-for-like basis to 48.41 billion euros, with its life and savings business edging up 1 percent, while P&C grew 4 percent and asset management, including U.S.-based unit Alliance Bernstein slumped 10 percent.
Net inflows into protection and health and unit-linked products helped offset outflows in savings for the period.
The insurer's economic solvency ratio - a key measure of financial strength - fell to 174 percent from 183 percent a year ago, mainly as a result of lower interest rates, Harlin said.
"The drop is mainly market effects," he said, adding that the group remained "absolutely comfortable" with the reduced level.
So far this year, AXA shares are down 3.4 percent, lagging an 8 percent gain in the broader European insurance sector <.sxip>. ($1 = 0.8224 euros)
(Reporting By Christian Plumb; Editing by Dominique Vidalon)
Source: http://news.yahoo.com/axa-h1-earnings-fall-beat-forecasts-050335712--finance.html
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