AXA Half Year 2005 Earnings: a very strong performance
News
Group, September 22, 2005
Expected strong double-digit 2005 Earnings Growth
Continued focus on profitable growth driving strong performance
- AXA Group underlying earnings up 28% (1) to Euro 1,761 million
- Life & Savings new business value up 20% (2) to Euro 443 million
- P&C revenues up 3% (2) together with the combined ratio improving 1 point to 97.5%
- Asset management net inflows of Euro 16 billion (3) contributing to underlying earnings growth of 30% (1)
Tight management and increased earnings resulting in a stronger Balance Sheet
- Gearing at a historically low level of 38% vs. 42% at year end 2004
- P&C reserve ratios continued to improve
- Shareholders' equity up 15% to Euro 32.7 billion
- Unrealized gains attributable to shareholders (4) standing at Euro 10.1 billion, up 28%
Selective acquisition strategy delivering results
- MONY integration well on track
- Advest sale reduces MONY goodwill by 31% and should strongly enhance returns
- Recent acquisitions of Framlington and Seguro Directo should further complement the growth potential of AXA Investment Managers and AXA Portugal
Perpectives
In the first half of 2005, the Group demonstrated its capacity to deliver very strong earnings growth in Life & Savings, Property & Casualty and Asset Management. Management currently expects the financial market environment to remain good for Life & Savings and Asset Management, and more particularly for higher margin unit-linked products in a context of low interest rates.
In Property & Casualty, management expects a continuation of the positive trends witnessed in the first half of the year, despite some pricing pressure, due to continued moderate claims frequencies.
Despite the recent weather related events in the US and barring any new major catastrophic events, Management believes that the Group is well on track to deliver strong double digit earnings growth for the full year 2005.
(1) At constant exchange rates
(2) At constant scope and exchange rates
(3) Excluding AC Cash Management Services
(4) Including, fair value of invested assets recorded through shareholders' equity, unrealized gains on Alliance Capital and unrealized gains on loans and real estate which are not recorded in shareholders' equity