AXA SA reports P&C earnings growth in 2005

AXA SA is reporting a growth in underlying earnings of up to 22% in its global property and casualty division, as well as a 24% increase in its overall underlying earnings, for the 2005 fiscal year.”Property and casualty revenues were up 3%, to EUR18.9 billion (CDN$25.6 billion), and the combined ratio improved by 0.8 points to 97.7%, the company reported in a press release. “Underlying earnings were up 24%, to EUR3.3 billion (CDN$4.5 billion), reaching an all-time high, with life and savings, property and casualty, and asset management reporting above 20% growth for the year.”Property and casualty underlying earnings were EUR1.3 million (CDN$1.8 million), up 22%, the company reported. It noted that a 0.8-point improvement in the combined ratio, to 97.7%, accounted for half of this improvement; the rest resulted from a volume effect and a higher investment income supported by strong cash flows. “The main contributors to the P&C improvement were the UK & Ireland, Germany, France, Canada and the Netherlands,” the company reported. AXA says its overall current year loss ratio benefited from: a strong improvement of claims ratios across the board; reduced claims handling costs due to a change in cost allocation (transfer to expense) in Germany and Canada; and process improvements in certain countries.