AXA Insurance Reports 24% Fall in Profits

On Thursday, February 17th, AXA - the second largest insuring company in the European Union - announced it profits fell by 24% in 2010.

The dramatic decrease is mostly due to the sell-off of most of its UK-based life insurance business.

According to the company's statement, its net income fell to 2.75 billion euro, which is significantly down from 3.61 billion euro in 2009.

Even though the company had troubles with its life insurance business in Great Britain, its operations in other countries improved. As such, its new business in China and south-east Asia increased by 58%, whereas the growth in central Europe amounted to 16%.

Commenting on AXA's expectations for 2011, its chief executive, Mr. Henri de Castries, said that the year of 2010 was interesting as the company had a chance to reflect on the lessons of the economic downturn. However, he is determined that "in 2011 Axa should benefit from an improving macroeconomic outlook. In this context our main business objectives will be to accelerate profitable growth."