AXA's shares surge

PARIS, Aug 3 (Reuters): French insurer AXA announced a new share buyback programme as it posted a 3 per cent rise in first-half net profit, driving up its stock price.

AXA, Europe's second-biggest insurer behind Germany's Allianz , said it would buy back up to 1 billion euros ($1 billion) worth of its shares, echoing a similar buyback plan unveiled by rival Generali this week.

The buyback pleased analysts and caused AXA's shares to jump up by around 5 per cent in early session trading.

"We find ourselves pleasantly surprised today, not only by the launch of a new buyback, but by its size, as 1 billion euros is substantially larger than the 0.7 billion euros cash benefit AXA received by restructuring the holding company," wrote brokerage Jefferies, as it kept a 'buy' rating on AXA.

AXA's first half profits rose thanks to higher revenues from areas such as health insurance which outweighed the financial impact of the war in Ukraine.