Axa Asia Pacific (Axa AP) expects its profit over the twelve months to 31 December 2009 to be more than $100 million higher than what analysts had forecasted.
Axa AP said its profit after tax and non-recurring items would be approximately $675 million. According to data compiled by Axa AP, analysts were expecting $562.4 million.
"We have responded well to the impacts of the global financial crisis and the earnings of all of our businesses have accelerated since the first half of 2009," Axa AP chief executive Andrew Penn said yesterday.
In 2008, the company reported a loss of $278.7 million.
The strong results seem to put a stop to criticism that National Australia Bank's (NAB) $13.3 billion offer for Axa AP - made in December last year and trumping a previous bid made by AMP - was too high.
"Higher Axa profit would imply both AMP and NAB should be able to pay a little bit more given they both assumed consensus earnings to work out the EPS (earnings per share) accretion," Credit Suisse insurance and diversified financials analyst Arjan van Veen said.
But he said the information provided yesterday gave little detail as to the quality of the earnings. Axa AP will provide its full-year results on 17 February.
Analysts were sceptical that the strong results would entice another party to launch a higher bid in partnership with French parent Axa SA when the exclusivity agreement between Axa SA and AMP expires on 6 February.
"NAB's bid has been accepted by the Axa AP board," RBS director and diversified financials analyst John Heagerty said.
