Axa Asia Pacific H1 operating earnings up 11 pct

SYDNEY (Reuters) - AXA Asia Pacific Holdings Ltd AXA.AX, Australia's seventh-biggest retail fund manager, said on Tuesday its first-half operating earnings rose 11 percent, but the company reported a much lower profit after tax and continued to struggle in New Zealand.

AXA, which also provides life insurance, said operating earnings rose to A$295 million ($273 million) for the six months ended June, from A$266.2 million in the year earlier period, while profit after tax fell 75 percent to A$94.2 million.

AXA, which is 51 percent owned by French insurer AXA SA (AXAF.PA), said that while operating earnings rose by 22 percent in Australia to A$141 million, the New Zealand market continued to pose a challenge for the company. Operating earnings in New Zealand fell 11 percent in local currency terms.

"In New Zealand the short-term market continues to look challenging and this has obviously not been helped by the investment market volatility," chief executive Andrew Penn said in the statement.

In Southeast Asia, operating earnings rose 84 percent to A$15.6 million, from A$8.5 million in the first half of 2007.

"Notwithstanding the significant falls we have seen in investment markets we complete the half year with total assets above regulatory capital of A$857 million," Penn said.

($1=A$1.08)

(Reporting by Mette Fraende)