Insurer Axa reported an 18 per cent rise in 2006 net profit today that beat the average market forecast and drove its shares to their highest level in nearly six years.
Axa shares rose as much as 2.4 per cent to an intra-day high of €33.93, their best level since mid-2001. The stock was up 1.9 per cent at €33.77 earlier and was among the top gainers on France's blue-chip CAC 40 index.
Net profit rose to €5.09 billion from €4.32 billion a year earlier. French-based Axa bought Swiss insurer Winterthur last year for about 13 billion Swiss francs.
Axa has benefited from rising stock markets that have helped insurers sell savings products that often invest in equities. Rival heavyweight German insurer Allianz also posted record 2006 profits today.
Axa said higher fees at its life insurance and savings business had lifted profits, as well as the sale of its reinsurance division Axa Re last year.
Axa also increased its dividend by 20 per cent to €1.06 and raised its net capital gains target range to between €800 million and €1 billion from 2007 onwards, compared with a previous target of €600 to €800 million.