French Insurer’s Net Profit Drops by Half in 2001

March 5, 2002

According to a report by the Associated Press, French insurer Axa SA’s net profit will decrease to 1.2 billion euros (about $1 billion), more than half in 2001, as quoted by Chairman Henri de Castries in the French daily newspaper Le Monde.

De Castries estimated the impact of declining share values on Axa’s bottom line at 1 billion euros ($866 million).

Last December, Axa reported that its net profit would fall to 1.2 billion euros in 2001, a decline from 2.54 billion euros ($2.2 billion) the previous year.

Axa claimed the loss stemmed from rising claims as a result of the Sept. 11 attacks, as well as plummeting share prices.

They will release their full-year earnings March 14.

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