French insurer AXA has posted higher-than-expected 2017 net profits and stronger earnings in the US.
This comes ahead of the planned flotation of its American life insurance and asset management businesses in the second quarter this year.
AXA, which ranks as Europe's second-biggest insurer in terms of market capitalisation behind Germany's Allianz, reported earnings per share growth at the top of its targeted range of 3-7% a year over the 2016-2020 period.
It said it had not been hit as hard as some of its rivals by a series of costly natural catastrophes in 2017, thanks to reinsurance contracts and its diversified business model.
AXA posted a 2017 net profit of €6.21 billion, while analysts had on average forecast net profit of €5.97 billion in a Reuters poll.
The company proposed a 2017 dividend of 1.26 euros a share, up 9% and corresponding to a payout ratio of 49%. The dividend also topped analysts' estimates of €1.20.
AXA's results came out better than those earlier this month from Allianz, with the German group reporting a worse than expected fourth-quarter net profit.
Faced with tighter regulations and declining investment returns, AXA is seeking growth in areas such as property and casualty insurance for businesses, savings products that do not tie up too much capital, health insurance and Asian operations.
"Health was our fastest growing business in 2017," AXA said in a statement, adding it had for the first time crossed a €6 billion mark in terms of overall underlying earnings.
It plans to float its American life insurance and asset management businesses in order to free up capital and pursue takeover targets elsewhere.
