Belgian insurance company affected by terrorism and floods
Wednesday, 03 August 2016
The operating income of Axa was reduced by 14.2 % in the first half of 2016 compared to the same period in 2015. Axa faced payments for damages caused by the terrorist attacks on 22 March and by floods in May and June.
In the non-life segment, operating profit declined by 44.5% while in the life segment income increased by 25.3%.
Gross premium revenue, which represents premiums paid by clients, decreased by 18.9%, mainly because of less interest in individual savings insurance products due to low interest rates. On the other hand, investment products gained in popularity.
The banking arm of Axa Belgium saw its net profit rise by 49% in the first half of 2016, to 55 million euro. Axa Bank Belgium in particular benefited from record figures for mortgages, a significant increase in business loans and a growing interest in investment products.