AXA Ireland makes €200m in profit

INSURANCE giant AXA made profits of almost €200 million in Ireland in 2004. The figure was almost 40% higher than profits generated in 2003, according to newly-filed accounts for AXA Insurance Ireland.

In a note to accounts, AXA said that gross written premiums in 2004 were up 2.1% on 2003.

The company was helped by the inclusion of renewable motor insurance premiums from its activities in the North, which it took on from its sister company in Britain during the year.

Gross premiums written in 2004 were €567m, including some €65.5m from the business in the North. Excluding the latter number, gross premium earned declined from €555m to €502m because of falling motor insurance costs.

"Marginal growth is attributable to the increase in business written in the North of Ireland as motor written premium in the Republic of Ireland fell by 13.4% reflecting the impact of falling average motor premium. AXA Ireland implemented motor premium reductions during 2003 and 2004 following reductions in claims costs," the company said.

"Property premium income grew by 4.8% reflecting growth in business volumes during 2004.

"The marginal improvement in the underlying current year result was predominantly due to the improved performance of the property account, reflecting the absence of any major weather related catastrophes together with the increase profitability of reinsurance rewards."

AXA did not strip out the profitability of its motor insurance business, but data from the Financial Regulator shows it contributed more than €73m to profits in 2004.

AXA is the most profitable motor insurer in the country, according to the Financial Regulator's statistics. The industry as whole saw profits rise by two-third in 2004 despite the cuts to premiums.

No dividend was paid to the company's French parent and the 2004 profits were carried forward. Retained profits at AXA Ireland were €479m at the end of last December.

AXA is due to release its 2005 group results next February, but it does not strip out the performance of its Irish business.

In 2004, AXA wrote gross premiums totalling €67 billion and made pre-tax profits of €5.1bn.