AXA looks to India, Southeast Asia for future
AXA looks to India, Southeast Asia for future
Agence France-Presse, Sydney
Insurance group AXA Asia Pacific said on Monday that it would
soon enter the Indian market and expected accelerating growth
elsewhere in Asia as it reported strong profit growth for the six
months to June.
AXA Asia Pacific, which is 51 percent owned by French
insurance giant AXA, said it had achieved a 36 percent rise in
net profit before one-off items to A$246.4 million (US$184.8
million) from a year earlier.
The result was ahead of market forecasts centered on A$210
million.
Operating earnings, the key indicator of the underlying
performance of the business, grew 18 percent to A$185.8 million,
it said.
The company said it expected to spend between A$35 million and
A$65 million over the next three years in India, the fifth
largest life insurance market in Asia.
This follows on the announcement last week that AXA Asia
planned to enter the Malaysia market by acquiring the life
business of Tahan Insurance Malaysia in a joint venture with
Affin Holdings.
"We have recently announced our entry into Malaysia and we are
well advanced with our plans to enter India," chief executive Les
Owen said.
AXA chief financial officer Geoff Roberts said negotiations on
moving into India were nearing conclusion.
"We're well advanced in discussions with a very small number
of joint venture partners," he said. "Watch this space over the
next couple of months."
Owen said that the momentum in the core markets of Australia
and New Zealand was encouraging.
"The encouraging trend that started in the fourth quarter of
last year has continued this year," he said.
The group's expansion in Asia follows a failed takeover
attempt of AXA Asia Pacific by the company's French parent, which
felt Asian investments were being hindered by constraints linked
to its Australian listing.
Operating earnings in Australia and New Zealand meanwhile grew
32 percent to A$99.8 million from the previous first half, the
company said.
Group assets under management rose nine percent to A$66.7
billion at the end of the first half from A$61.2 billion on Dec.
31.
AXA Asia Pacific's position in Asia also offers exceptional
growth prospects over the next few years, Owens said.
"Our strong capital and financial position means we are able
to pursue growth opportunities where we see value," he said.
The Hong Kong life market remains particularly attractive with
the retirement savings market expected to more than double over
the next five years, while the company also hopes to expand in
the broker market, he said.
Operating earnings in Hong Kong grew 10 percent in local
currency, driven by continued profitable sales growth, while in
China and southeast Asia, the value of new business grew 18
percent to A$31.8 million.
The company reported its results Monday under Australian
International Financial Reporting Standards (AIFRS) for the first
time, restating comparative results for the previous year under
the new standards.
The adoption of AIFRS means the previous first half profit was
reduced to A$64.4 million after one-off items with a booked loss
of A$117.1 million.