From 2017’s €6.2 billion (around NZ$10.2 billion) to last year’s €2.1 billion (around NZ$3.48 billion) – that’s how much major insurer AXA saw its full-year profit fall, with a number of reasons to blame. Releasing its financial results this morning, the Paris-headquartered group noted that the slight increase in its adjusted earnings was more than offset by several culprits. At constant Forex, adjusted earnings rose only 3% (0% on a reported basis) to €6.5 billion. AXA attributed the 66% drop in net income to the following: The biggest dent, at €3.1 billion, came from goodwill and related intangibles. Integration and restructuring costs amounted to €332 million. Breaking down its earnings, €1.6 billion came from France; €2.5 billion, Europe; €1.1 billion, Asia; €1.1 billion, US; €400 million, international; and €384 million, transversal. Negative figures were posted from AXA XL and Central Holdings. Meanwhile Solvency II ratio went down 12 points to 193%.
Global insurer AXA has seen profits fall from €6.2bn ($7bn) to €2.1bn from full-year. AXA pinned the slump down to factors of impaired intangible assets business, including goodwill from AXA Equitable Holdings and the transformation of its Swiss Group Life business, restructuring costs in the IPO for Equitable Holdings and its acquisition of XL Group, and negative impacts from changes in financial asset and derivatives value. Intangibles cost the company €3.1bn while restructuring cost €332m.