Axa, Europe's second-biggest insurer, posted a 3.5 per cent rise in nine-month sales, driven by emerging markets, but warned a decline in interest rates would hurt year-end profitability.
European insurers such as Axa and bigger rival Allianz are under threat from falling government bond yields, which have the potential to squeeze earnings below guaranteed returns, some analysts say.
Separately, sources said today Industrial and Commercial Bank of China would buy a major stake in Axa's China life insurance venture, Axa-Minmetals Assurance.
Axa said nine-month sales rose 3.5 per cent, to €70.5 billion, up from €68.1 billion a year ago.
Life and savings new business sales on an annual premium equivalent (APE) basis -- an industry measure used to iron out market volatility -- rose 2.8 per cent, to €4.6 billion, thanks to strong performances in Latin America and Asia.
Property and casualty revenue, meanwhile, rose 4.2 per cent, to €21.4 billion, Axa said in a statement.
Axa shares have fallen by around 19 per cent year to date, underperforming a 2 percent gain for the STOXX Europe 600 insurance index. It has a market value of €30.6 billion.
The stock has suffered from regulatory obstacles over a plan to sell Australasian assets -- still in limbo -- as well as a tough environment for clients in mature markets.
Reuters