Both the protection and healthcare arms of AXA contributed to the company's UK and Ireland earnings rising 2% for the first half of the year.
The insurance giant reported earnings of £186m in what it termed "testing trading conditions". Globally, AXA reported underlying earnings versus H1 2008 down 26% to €2,116m, and adjusted earnings down 50% to €1,736m. In the UK and Ireland, underlying earnings increased by 2% from £183m in H1 2008.
Growth in healthcare has continued with revenues increasing 3% from £585m in H1 2008 to £605m in H1 2009. The corporate business is performing well with revenues up 9% mainly in International markets, particularly in the Middle East, with modest growth within the UK.
Despite achieving average premium growth, revenues have declined 4% in personal business due to lower volumes arising from increasing lapse rates - however retention initiatives appear to be slowing the increase in lapse rates experienced in the first quarter.
The protection business has performed strongly despite the collapse of the mortgage market - revenue is up 26% in the AXA Protection Account and further revenue growth is anticipated following the launch in July of new on-line underwriting capability for advisers.
Nicolas Moreau, group chief executive of AXA UK, says: "We are continuing to transform AXA UK to operate with increased efficiency and effectiveness and ensure that we come out of the market downturn fitter and stronger.
"We have made considerable progress in the last six months. The insurance business's focus on driving profitability is starting to show some positive signs; in healthcare the international business is now performing strongly and the life and savings businesses continue to execute successfully their strategy while reviewing their operations to reduce their cost base significantly, which I acknowledge also involves making difficult decisions that impacts on employees."
