AXA 9-mth sales fall, upbeat despite crisis

* 9-month group sales fall 0.9 percent

* Can withstand financial crisis

(Adds detail, background)

PARIS (Reuters) - AXA (AXAF.PA), Europe's biggest insurer by market capitalisation, reported lower 9-month sales on Thursday and said it could withstand the current financial crisis.

Group sales fell 0.9 percent to 69.458 billion euros ($89.2 billion), with revenues hit by outflows at AXA's asset management division due to the market turmoil.

Banks and insurers across the globe have been hit by the worst financial crisis in around 80 years, which began when U.S. homeowners started to default on their loans.

However, AXA remained upbeat over its prospects and said it could handle the crisis due to its "strong underlying profitability and cash flows."

"We expect to come out of the current turmoil stronger and better positioned," AXA Chief Executive Henri de Castries said in a statement.

AXA shares closed down 1.9 percent at 16.68 euros on Wednesday, giving the company a market capitalisation of around 34 billion euros, slightly higher than that of German rival Allianz (ALVG.DE).

AXA stock has fallen roughly 40 percent since the start of 2008, compared to a 43 percent fall in the DJ Stoxx European insurance sector .SXIP.

(Reporting by Sudip Kar-Gupta; Editing by James Regan)