The group made a profit of 209m euros ($237m; £148m) in the six months to June, down 75% on the previous year.

The main culprit was a 1.1bn euro charge to compensate for the way weak stock markets around the world had hit its investments, more than five times the level it had to show in 2002.

But it promised that it was on course to meet profitability targets by the end of this year.

It also said its profits before one-off charges in property and casualty insurance were up 76% - although life insurance, which is proving troublesome for many companies, and savings insurance saw a 23% slide in profits.

9/11 suit

Deutsche wants the old Bankers Trust building demolished

Axa may yet face another roadblock in its efforts to rebuild its profitability, according to the Financial Times newspaper.

The paper reported on Tuesday that Germany's Deutsche Bank is planning to sue both Axa and its German peer Allianz over its former headquarters in New York, damaged in the World Trade Center attack of 11 September 2001.

Deutsche says the claims by the two insurers that the building can be repaired are unrealistic.