AXA Asia Pacific to Expand to India

AXA Asia Pacific is expanding to India possibly looking for a joint venture with a bank as the company’s profits have fallen.

Axa reported a net profit of $540 million for last year compared to $926 million for 2003.

“After stripping out non-recurring items of about $7 million, the result was in line with market expectations and well above some analysts’ forecasts of $480 million for the year.

However, shares in Axa weakened 12 to $4.14. Australia’s fourth biggest insurer suffered a drop in investments earnings to $261 million from the previous year’s $322 million, which had been the result of a boom year on global equity markets. But operating earnings for the group jumped 18 per cent to $354 million.”

Chief executive Les Owen says that the company has been in talks with potential Indian partners. He said in India expansion plans would involve approximately $50 million over 2 or 3 years, without a profit until 5 years in.

“It’s too early to say – you need a joint venture partner in India where foreign insurers are restricted to a 26 per cent equity stake,” said Owen

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