AXA car revenue drops by 5pc amid stiff competition in market
Published 22/02/2014 | 02:30
PRICE competition among car insurers in Ireland last year contributed to a 5pc drop in motor revenue for AXA, the insurance group has said.
Non-motor revenues were also down 12.1pc in both the UK and Ireland, mainly in household insurance due to tariff increases and the scrapping of unprofitable schemes.
Personal lines – the different policies set out to protect people and representing 49pc of gross revenues – were down 10pc at €1.8bn.
Within this, motor was down 5pc to €530m due to market tariff softening within the UK and increased price competition in Ireland.
The French insurer said total revenues overall were up 2pc to €91bn.
Overall, however, AXA said 2013 net income rose 14pc at constant exchange rates, helped by stronger growth in its life, and property and casualty businesses, as well as a recovery in asset management.
Gerald Harlin, chief financial officer, said operating profit was being driven by income in the life insurance business, thanks to a strong performance in the United States, Japan and Germany.
"This confirms that the situation is back to normal in the US, which accounts for 20pc of operating profit in the (life insurance) business," he said.