Health helps Axa profit

By Phil Boeyen, ShareChat Business News Editor

Thursday 14th December 2000

Growth in health insurance has helped push AXA Asia Pacific Holdings (NZSE: AXA) net profit up 23.8% to A$374 million for the year to the end of September.

The insurance and financial services company says operating earnings rose 16% in Australia and New Zealand during the year driven by substantial growth in the health insurance business. The company recently sold AXA New Zealand Health to fellow insurance company Tower.

AXA also increased operating earnings in the China region by 25% although this came from the purchase of the minority interests last December and on a 100% basis operating earnings in AXA China Region were down by 4%.

CEO Les Owen says the past twelve months has seen major change for the company as it has sought to turn around the performance of the Australian and New Zealand businesses.

"Seen in this context, these are a solid set of results. The highlights are the contribution to operating earnings from AXA China Region which has benefited from strong investment returns, and from our health business."

"I am also pleased that following two years of losses in our income protection business the changes we have implemented over the last six months are starting to produce results. There is still some way to go but we are moving the in the right direction."

Mr Owen says the company has set out a number of goals to be reached by 2003 including doubling the value of new business, reaching the top five in terms of net retail funds inflows, and reducing management/expense ratio by 50%.

"There is now a clear sense of direction in the Australian and NZ business," says Mr Owen.

The company has declared a final dividend of A5 cents per share, 30% franked.

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