CS Axa

By Alexa Liautaud

PARIS--Europe's second-largest insurance company, AXA SA (CS.FR) said Wednesday that first-half net income rose as the sale of two real-estate properties in the U.S. helped offset costs related to storms in Germany and floods in France.

Net income for the first six months of the year rose 4% to 3.21 billion euros ($3.6 billion) from EUR3.08 billion in the same period last year. The figure fell below expectations, missing the EUR3.64 billion estimate of analysts surveyed by a Dow Jones Newswire poll.

AXA, like other insurers in Europe, has struggled with the eurozone's record-low interest rate as it mostly relies on bond yields to generate its profit.

In June, AXA laid out a four-year strategic plan that aims to increase profitability by cutting costs worth EUR2.1 billion by 2020. The company seeks to achieve higher growth in select areas such as Asia.

Revenue in the first half of the year fell 0.5% to EUR54.04 billion from EUR54.32 billion in the same period a year earlier.

Life and savings annual premium equivalent, known as APE, was down 2% at the end of June. APE measures new business growth for life insurance by combining the value of payments on new regular premium policies, and 10% of the value of payments made on one-time, single-premium products.

The Paris-based insurance giant reported that its solvency II ratio--a key measure of an insurance company's financial strength--fell to 197% in the first half of 2016 down from 205% in the same period last year.

AXA's shares have dropped 31% since the beginning of the year.

-Write to Alexa Liautaud at alexa.liautaud@wsj.com

(END) Dow Jones Newswires

August 03, 2016 01:25 ET (05:25 GMT)

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