Net profit at French insurer Axa plunged by two thirds last year which it blamed on charges related to its US arm’s initial public offering and a rash of natural disasters.
Net profit plunged 66 per cent from €6.2bn to €2.1bn for the year ended 31 December.
This was influenced by a €3bn write-down on the value of its US business Axa Equitable which listed in May at a price lower than its value in Axa’s books.
It also had to write down costs related to its $15bn (£11.5bn) acquisition of Bermuda-headquartered insurer XL and the restructuring of its Swiss business.
Revenue rose to €102bn from €95.5bn, while combined ratio for its property and casualty units increased by 0.8 points to 97 per cent.
The company was hit by €2bn in natural disaster costs, with €600m in the fourth quarter connected to the California wildfires and hurricane Michael.
Axa XL, which it acquired last year, delivered a loss of €233m, compared to a consensus figure of €10m profit.
Analysts at UBS said Axa’s result represented “a solid set of numbers despite a weaker Axa XL result.”
Chief executive Thomas Buberl said: “Axa delivered another year of strong operating performance with a six per cent increase in underlying earnings, to its highest ever reported level, even with a reduced ownership of Axa Equitable Holdings and an unusually severe fourth quarter in terms of natural catastrophes.”
Earlier this month German insurance giant Allianz unveiled operating profit of €11.5bn on the back of an improved expense ratio, lower claims from natural disasters and premium growth.