Axa reviews profit forecast
Axa has been reassuring shareholders that its business model and balance sheet are sound but is nevertheless cutting its profit forecast for 2008 to between €3.6 billion and €4 billion.
The group said the revision reflects lower asset fees and deferred acquisition costs.
The French insurer will continue to pursue its Ambition 2012 growth plans but has admitted that some of the targets contained therein could become obsolete.
However, the company is optimistic that the credit crisis will enhance the fundamental growth drivers of the insurance industry, as customers become more risk averse.
Referring to its own risk management model, the insurer is confident that its careful development has mitigated the violent market movements that have been affecting some other financial institutions.
Axa chief executive, Henri de Castries, describes the current market turmoil as an unprecedented challenge and has restated the group’s commitment to protecting the interests of shareholders and avoiding any unwarranted dilution.
Category: Axa Insurance News, Financials, Insurance News
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