AXA reported a profit of EUR4 billion [approximately Cdn$6.1 billion] throughout 2006, an increase of 20% over 2005.
Property and casualty earnings increased 7% to EUR1.5 billion [approximately Cdn$2.3 million], driven by a 4% increase in revenues together with a 0.8 point improvement of the combined ratio, states an AXA news release.
“Through organic growth and acquisitions, the Group begins 2007 30% larger than a year ago, with increased diversification and stronger local franchises in a number of our key markets,” Henri de Castries, chairman of AXA’s management board, said in a statement.
In a press release, the company lists its key operational challenge in 2007 to be the successful integration of Winterthur while maintaining its growth momentum. “Despite increasing competitive pressure in some European markets, AXA’s property and casualty operations should benefit from the strength of marketing and distribution, claims management initiatives and increasing diversification into higher growth markets,” says the company statement.
The company has set a goal to increase its net capital gains target range from EUR600-800 million [approximately Cdn$915 million-1.2 billion] to EUR800 million-1 billion [approximately Cdn$1/1.5 billion].