AXA 2003 Profit Up 6%, Boosted By P-C Results
NU Online News Service, Feb. 27, 11:50 a.m. EST?
The Paris-based company said earnings from its p-c business more than tripled on a year-over-year basis to 753 million euros ($951.55 million) in 2003, compared with 226 million euros ($285.59 million) reported in 2002.
AXA said the p-c earnings had helped offset a 20 percent drop in its life insurance operations' underlying earnings to 1.301 billion euros ($1.644 billion) in 2003 from $1.636 billion euros ($2.067 billion) in 2002.
The company said it also benefited from a 66 million-euro ($83 million) gain after a review of its U.S. tax status and a 63 million-euro ($80 million) profit from selling its non-core subsidiaries in Austria, Australia and Belgium in 2003.
Commenting on its p-c business, AXA said that the 2003 p-c combined ratio improved by 4 points on a year-over-year basis to 101.4.
The insurer noted that continued cost efficiency efforts and higher premium volumes improved its p-c expense ratio by 0.2 points to 27.2 in 2003. The current accident-year loss ratio also improved, by 3.2 points to 75.8.
The all-accident-years loss ratio improved 3.8 points to 74.3. The improved loss ratio was attributable to several factors, including lower reinsurance costs, lower claims management costs, stricter underwriting and a lower level of weather-related losses in 2003, the company said.
AXA RE's underlying earnings also improved, to 108 million euros ($136 million) in 2003, up 90 million euros ($113 million) from the year before. AXA RE's p-c reinsurance combined ratio improved 11.3 points to 98.2 in 2003.
Looking ahead in 2004, the insurer said that in p-c and international insurance, continued strict underwriting, some moderate rate hikes in most territories, and further efficiency gains should further improve results, barring any major catastrophic losses.
If those factors hold, the company said, its p-c combined ratio target for 2004 has been set to a range of 98 to 102, depending on the cycle.
AXA, Europe's biggest insurer by sales, offers life insurance, personal and commercial p-c insurance, reinsurance, financial services, and real estate investment services.
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