Strong activity levels in the first nine months of 2005
News
Group, November 8, 2005
Portrait of Henri de Castries
"Once again, the global reach of our organization, associated with strong diversification, is enabling the Group to seize growth where it exists" said Henri de Castries, Chief Executive Officer of AXA.
"Life & Savings and Asset Management growth is comfortably within our targeted range, fully benefiting from regional diversification, be it in Asia, the US or some countries in Europe, as well as from a wide product offering with the unique combination of two leading asset managers, Alliance Capital and AXA Investment Managers."
Life & Savings new business (APE*) increased by 8% to Euro 3,770 million driven by most of our major operations. New business growth accelerated in the third quarter of 2005 (approximately +10%), notably in Japan, the United Kingdom, Belgium, Hong-Kong, the United States and Australia. Unit-linked new business increased by 17%.
Life & Savings New Business Value (NBV) was up 18% to Euro 652 million, driven by most of our major operations, notably France, the US, Belgium, Southern Europe, Australia and Japan. As a result, NBV margin increased to 17.3% (or 17.9% on a comparable basis) from 16.3% in the first nine months of 2004.
Property & Casualty revenues increased by 3% to Euro 14,677 million, as Personal lines were up 3%, benefiting from a resilient pricing environment and moderate portfolio growth, and Commercial lines were up 1%.
International Insurance revenues increased by 10% to Euro 3,183 million. The 13% increase at AXA RE was due to the non-recurrence of some 2004 negative premium adjustments, increased reinstatement premiums linked to 2005 major events and selected development in lines with favorable pricing conditions. AXA Corporate Solutions Assurance was up 5%, driven by Marine and Aviation.
Asset Management revenues increased by 10% to Euro 2,404 million driven by higher average Assets Under Management (AUM) (+16% compared to 9M04). Both AXA IM and Alliance Capital contributed to very strong net inflows of Euro 42 billion, excluding the impact of the sale of Alliance Capital Cash Management Services. Over the third quarter of 2005 alone, revenue growth accelerated to approximately +13%.
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Numbers here in have not been audited or adjusted for scope and currency changes. Growth rates are on a comparable basis and, accordingly, have been adjusted for changes in scope, accounting methods and currency.
APE, NBC and NBV are non-GAAP measures. Management uses these measures as key indicators of performance in assessing AXA's Life & Savings business and believes that the presentation of these measures provides useful and important information to shareholders and investors. IFRS revenues are available in Appendix 4 of this release.
* Annual Premium Equivalent (APE) represents 100% of new business regular premiums +10% of new business single premiums. APE is group share.