European Indexes Advance, AXA Plans Listing of U.S. Units

Sarla Buch
10 May, 2017
New York City

AXA said it plans to list its U.S. insurance and asset management units. Compass Group proposed

[R]4:00 PM Frankfurt – AXA said it plans to list its U.S. insurance and asset management units. Compass Group proposed £1 billion special dividend. Hannover Rueck net fell because of costs linked to flooding in Australia. ITV revenues slid. Suez revenues jumped. Talktalk tumbled on higher than expected customer loss.[/R]

In London trading, FTSE 100 index jumped 48.31 or 0.7% to 7,391.19 and in Frankfurt the DAX index rose 22.11 or 0.2% to 12,769.68.

In Paris, CAC 40 index edged up 1.75 to 5,399.76.

AXA SA edged down to €24.50 after France-based insurance services provider reported total revenues in the first-quarter ending in March slid 0.1% from a year ago to €31.6 billion.

The insurer said revenues in life and savings business fell 1.4% to €17.1 billion while revenues in property and casualty business rose 1.2% to €13.4 billion and revenues in the asset management segment jumped 8.6% to €1 billion.

Separately, AXA said its plan to list its minority stake of its U.S. businesses, including U.S. Life & Savings unit and 64% stake in AllianceBernstein.

Compass Group Plc increased 1.1% to 1,613 pence after the U.K.-based restaurants and bars operator said revenues in the first-half ending in March advanced 20.3% from a year ago to £11.5 billion.

Net profit in the quarter surged 23.4% from a year ago to £622 million from £504 million and diluted earnings per share increased to 37.4 pence from 30.4 pence.

Hannover Rueck SE slipped 1.4% to €114 after Germany-based property and casualty insurance provider reported gross written premium in the first-quarter ending in March jumped 6.6% from a year ago to €4.5 billion.

Net profit in the quarter dropped 2.4% from a year ago to €264.8 million from €271.2 million and diluted earnings per share slumped to €2.20 from €2.25.

The insurer suffered net cost of €127 million the largest single loss in 2016 from the Fort McMurray wildfire and the recent decision taken by the U.K. government to reduce the discount rate for personal injury compensation also affected results.

“With a pleasing quarterly result, we put in place a good basis for achieving target net income for 2017 of about €1 billion,” said chief executive officer Ulrich Wallin.

He added “the single largest loss was Cyclone Debbie, which caused significant storm damage and flooding in Australia at the end of March.”

ITV Plc dropped 1.8% to 197.25 pence after the U.K.-based broadcasting services provider said total revenues in the first-quarter ending in March fell 1% to £850 million.

The broadcaster said revenues in the ITV broadcast and online business declined 6% to £507 million while revenues in ITV studios segment soared 7% to £343 million.

Suez SA gained 1.6% to €16.57 after France-based environmental services provider said revenues in the first-quarter ending in March jumped 4.7% from a year ago to €3.7 billion and operating profit soared 7.1% to €614 million.

Talktalk Telecom Group Plc tumbled 9.3% to 165.50 pence after the U.K.-based fixed line broadband, telephony, mobile and television services provider said total revenues in the year ending in March declined 3% to £1.8 billion.

Profit in the year surged from a year ago to £58 million from £2 million and diluted earnings per share jumped to 6 pence from 0.2 pence.

The communication services provider said revenue decline was driven by the loss of 49,000 net broadband, mobile and video customer accounts in the year.

The churn rate in the year, dropped to 1.45% from 1.60%.