French insurer AXA reported a rise in first-half profits today and said it was on track for strong 2005 earnings growth despite Hurricane Katrina, which has cast a pall over the industry.
AXA's underlying profit rose 26 per cent in the first six months of the year to €1.761 billion, helped by strong sales of savings products in the United States and France.
Ten analysts polled by Reuters had forecast an underlying profit of between €1.482 billion and €1.742 billion, giving an average forecast of €1.593 billion. Underlying profit excludes net capital gains attributable to shareholders.
One of Europe's three biggest insurers, AXA's results come amid concern among insurers over the effects of Hurricane Katrina in the United States, which may have killed thousands and could cost insurers billions of dollars in claims.
However, Katrina is also expected to cause insurers to lift their premiums to help cover any losses from the hurricane.
AXA said it remained on track for higher earnings despite Katrina, which could prove the costliest disaster ever for insurers.
"We believe we are well on track to deliver strong double digit earnings growth for the full year 2005 despite the recent weather related events in the US," Chief Executive Henri de Castries said in a statement.