(by M. Riley)

The first half of 2004 was quite successful and profitable in insurance sector. Several insurance companies announced their profit growth in the first half of 2004 in comparison with last year.

The net profit of AXA S.A. reached the point of 1.44 billion euros (1.75 billion USD) from the start of 2004. The growth formed 200 million euros in comparison with the correspondent period in 2003 (1.2 billion euro). The general company’s revenue increased to 37.3 billion euros (2.4%).
As it was noted by Paris-based insurer the partial reason of their profit growth was the better return on investments.

At the same time Berkshire Hathaway Inc explained its increased profit by the absence of major accidents in half 2004. Berkshire Hathaway’s gain from the property/casualty operation amounted at $614 million that is 36.1% higher same period last year.
However, in contrast to AXA S.A., Berkshire Hathaway investments were less successful. Due to investment losses company general net profit decreased on 28.5% down to $2.83 billion.

Munich Reinsurance Co announced that in comparison with a 529 million euros loss in 2003, the first half results are recorded as 1.2 billion euros profit ($1.44 billion).
The company loss in the first half of 2003 occurred because of tax provision for investment writedowns as one of the reasons.