Results from French insurance giant Axa indicate that motor insurance costs in the Republic have slipped over the past year.

The group, which has operations here, in Europe, the US and Japan, did not reveal any specific figures for its business in the Republic.

However, it did say that the motor insurance business here had become increasingly competitive. It said it had seen a fall in Irish and British revenues of 4 per cent, and 7 per cent in commercial motor underwriting.

Axa reported a 24 per cent rise in 2005 underlying profit, beating market forecasts and sending its shares to their highest level in more than four years. Underlying profit rose to €3.258 billion, with earnings boosted by higher sales of savings products and growth in Axa's asset management division.

Axa also said it had made a good start towards meeting long-term earnings goals. "2006 looks to be a promising year," chief executive Henri de Castries said.

Axa, which along with ING and Allianz is among continental Europe's top three insurers based on market capitalisation, has benefited from rising stock markets which have spurred the sales of savings products that often invest in equities.

Axa's full-year net profit rose 12 per cent to €4.173 billion , also above market forecasts, while the company proposed raising its dividend by 44 per cent to €0.88. Shares rose as much as 3.1 per cent to €30.63, the stock's highest level since September 2001.

Recent press and analyst reports said Axa might look to sell its reinsurance arm to French reinsurer Scor, while a source familiar with the situation said this month that Axa was in talks to buy a stake in South Korean company Kyobo Life Insurance.