NU Online News Service, July 24, 1:20 p.m. –The AXA Group, Paris, says it has been doing well despite the recent turmoil in world stock markets.
“The strong fall in the equity markets over the last few months, particularly impacting certain industries among the insurance sector, is disconnected with the fundamentals of the economy,” AXA says in a statement.
AXA has about 16% of its assets invested in stocks, and low prices may cut profit margins for some types of stock-linked products, AXA concedes.
But the property-casualty operations are doing well, and sales of life insurance and savings products have been strong, the company says.
Moreover, even though stock prices have fallen, “solvency margins of group insurance entities are adequate,” AXA says. “Technical reserves are more than adequately covering our commitments towards policyholders.”