Paris  - French insurance giant Axa said Thursday its profits plunged by 83 per cent, to 923 million euros (1.163 billion dollars), in 2008.

The earnings slump was primarily due to the effects of the financial crisis, such as "negative market-to-market impacts related to corporate bonds and balance sheet hedging items," Axa said in a press statement.

Turnover for the year retreated by a more modest 2 per cent, to 91.22 billion euros, compared to 2007.

"The 2008 financial market turmoil was unprecedented and had a significant impact upon our industry. In this adverse environment, Axa was not immune," company board chairman Henri de Castries said, and cautioned that "2009 will be another challenging year, in light of the current global economic environment."

Axa's share price was down 0.31 per cent, at 11.13 euros, in early trading on the Paris Bourse. Axa's share price has lost nearly 50 per cent of its value over the past year. (dpa)