Australian Life Insurer Axa Asia-Pacific Holdings Ltd looks likely to post a net loss when it reports its full year results on February 17.
Its rival, AMP Ltd, which is Australia’s biggest superannuation fund provider, revealed its profit figure on Friday ahead of next week’s official announcement, showing earnings have taken a hit from the slump in financial markets.
Axa, which is 53 per cent owned by its French parent of the same name, will report on February 17, while AMP announces its earnings on February 19.
Analysts expect Axa to report a net loss of $265.33 million for the 12 months to December 31, according to Reuters data.
This compares with $638.7 million for 2007.
They expect operating earnings, which takes out the fluctuations caused by the movements in asset prices, to be little changed, at $544.5 million.
While both Axa and AMP have been hit by the slump in equity markets and people’s reluctance to put more money into their investment products, the two may benefit from their life insurance business, Mr Kim said.
“People are now focusing on the risk side of things because investment market returns have been poor, financial planners have started to focus on life risk and insurance,” Mr Kim said.
“That’s somewhat of an offset for the investment side of the business.”