French insurer AXA reported a surge in nine-month revenue today that met market forecasts, although its shares fell on signs of a slowdown in growth in the latest quarter.
Life and savings new business sales on an annual premium equivalent (APE) basis - a standard industry measure used to iron out market volatility - rose 13.7 per cent to €4.47 billion in the first three quarters.
Yet AXA's APE sales slowed in the third quarter to €1.41 billion from to €1.49 billion in the previous three months.
AXA shares fell as much as 1.9 per cent before recovering some ground to trade down 1.2 per cent at €30.38 by 10.55am .
Dealers said the results were uninspiring compared with European rivals, such as German rival Allianz, who had raised their earnings outlook.
Axa was at one stage the biggest loser in France's benchmark CAC-40 index. Its shares reached a peak of €31.26 last month, their highest since September 2001 and had risen 1.6 per cent on Tuesday ahead of the nine month figures.
"It should be down a little because compared to what its other competitors reported in Europe, it's not that exciting, it's just confirming the business for the full-year when others have already revised up," said one trader.
Brokerage Natexis Bleichroeder kept a "buy" rating on AXA, although West LB said AXA's life insurance margins had weakened. Brokerage Fox-Pitt, Kelton said in a research note: "All in all, this was a mixed report that is unlikely to have a material impact on the share price."
AXA is the third biggest stock in Europe's insurance sector, ranking behind Allianz and Dutch bancassurer ING in terms of market capitalisation. Along with other insurers it has benefited from rising stock markets, which have encouraged the sale of savings products that often invest in equities.