Insurance firm Axa has raised its share of the Irish motor insurance market despite recording a slight decline in premium income for 2003.

Results posted by Axa's French parent yesterday show that the Irish company's personal motor revenues fell by 1 per cent last year. A spokesman said the drop reflected the progressive reduction in motor insurance premiums paid by Axa customers which were, on average, cut by 15 per cent last year.

The company compensated for the decline in premiums by growing its customer base by 8 per cent to some 560,000. This has seen Axa raise its share of the Irish motor insurance market by about 1 per cent to 26 per cent.

Personal motor policies accounted for almost two-thirds of Axa's gross Irish revenues last year, with the remainder drawn from commercial motor and household policies.

The company did not put a monetary value on revenues.

Income from household policies grew by 8 per cent last year, while commercial motor business expanded by 6 per cent.

The Paris-based Axa group said that it had generated €71.628 billion in sales last year compared with €74.727 billion in the previous year. The weak dollar was blamed for the 4 per cent decline.

Analysts had expected sales of €72.055 billion at the company, which is Europe's largest insurer by premium income. Investors looked past the drop in sales, with Axa's shares climbing by 1 per cent in Paris yesterday.