The French insurer Axa lowered its anticipated results for 2008. It expects an underlying profit in the range of 3.6 to 4 billion euros due to the current crisis. When presenting its interim results in August, the group announced an expected annual operating profit stable compared to 4.9 billion euros achieved in 2007. (Recall the release of Axa on these forecasts).
According to Axa, the downward revision reflects the decline in commissions on assets (between -400 and -300 million euros a year), the non-recurring costs associated with the product coverage "variable annuities (between -600 And -500 million) and adjustment of deferred acquisition costs (between -300 and -200 million).
The group says however maintain a strong balance sheet, with a regulatory solvency margin of almost 135%, giving it "the ability to absorb shocks from other markets."
The decline in equity markets has made "obsolete" its financial targets by 2012. The original plan "Ambition 2012 'envisaged a doubling of sales between 2004 and 2012 and a tripling of operating income per share.
At the Paris Bourse, the title suffered the greatest decline in the ACC in the early exchanges, 14% to 11.55 euros.
According to Axa, the downward revision reflects the decline in commissions on assets (between -400 and -300 million euros a year), the non-recurring costs associated with the product coverage "variable annuities (between -600 And -500 million) and adjustment of deferred acquisition costs (between -300 and -200 million).
The group says however maintain a strong balance sheet, with a regulatory solvency margin of almost 135%, giving it "the ability to absorb shocks from other markets."
The decline in equity markets has made "obsolete" its financial targets by 2012. The original plan "Ambition 2012 'envisaged a doubling of sales between 2004 and 2012 and a tripling of operating income per share.
At the Paris Bourse, the title suffered the greatest decline in the ACC in the early exchanges, 14% to 11.55 euros.
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