AXA, Europe's second-biggest insurer, called for investors to stay calm over current problems in the US subprime mortgage sector as it posted a 16 percent rise in first-half net profit. "Even if there is market turbulence in the short term, one must not panic," Chief Executive Henri de Castries told reporters on Thursday.
De Castries added: "It is not a systemic crisis at the moment." "Company profits are very high and consumer demand remains strong. US growth is slowing down but it is not a recession and economic growth in emerging markets is high," he said.
The French group said net profit rose to 3.18 billion euros ($4.38 billion), with earnings boosted by AXA's take-over last year of Swiss insurer Winterthur. The average net profit forecast from a Reuters poll of 11 analysts stood at 3.058 billion euros.
AXA's results come a week after Allianz, Europe's biggest insurer, reported a smaller-than-expected 6 percent fall in second-quarter net profit. "They were great numbers for AXA with a good integration of Winterthur," said Ion-Marc Valahu, head of trading at Switzerland's Amas Bank.
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