AXA reports 4% increase in 2006 first-half earnings

AXA reported its property and casualty revenues increased by 4% during the first half of 2006 to EUR10.8 million (CD$15.6 million). AXA also reported its overall combined ratio improved 0.6 points to 96.9%.”AXA’s performance in the first half of 2006 marks another successful milestone on our path to Ambition 2012,” AXA management board chair Henri de Castries said in a press release. “AXA is delivering on its organic growth and profitability objectives in all business segments.”The strength of the group and the performance of our local teams put us in a perfect position to successfully integrate Winterthur and further leverage the benefits of being global.” The company attributed its increase in its P&C revenues to a “good sales momentum” in 2006 2Q and “a satisfactory pricing resilience in a more competitive environment.” Personal lines, representing 61% of the P&C premiums, showed overall growth of 4%. Commercial lines, accounting for 37% of P&C premiums, recorded a 3% growth.On June 6, 2006, AXA announced the signing of a definitive agreement to cede AXA Re’s business to Paris Re Holdings Limited. As a consequence, AXA Re’s contribution to underlying earnings in the first half of 2006 (EUR4 million, or CD$5.8 million) corresponds mainly to the run-off of 2005 and previous year reserves. AXA Re’s contribution to underlying earnings during the first half of 2006 was EUR55 million (CD$79.2 million).