Strong 2005 activity performance

Henri de Castries

"Our 2012 aspirational objectives are all about focusing the Group on profitable growth initiatives centered on product innovation, distribution management and quality of service", said Henri de Castries, Chief Executive Officer of AXA.

"Product launches in Asia and Europe, distribution initiatives in the US and Japan, and improved quality of service and innovation across the board, notably in Asset Management, are at the core of our very solid 2005 performance. We are broadly on track with our long-term activity objectives in 2005 and are seeing promising signs in all of our key markets that our 2012 ambition initiatives are gaining traction."

Life & Savings new business (APE*) growth accelerated strongly throughout the year and more particularly in 4Q05. New business was up 11% to Euro 5,463 million. New business growth was supported by geographical diversification and product breadth with Europe up 8%, Asia** up 30% and the US, including MONY, up 15%.

Property & Casualty revenues increased by 3% to Euro 18,874 million mainly driven by France and Southern Europe. Growth slightly accelerated in 4Q05, benefiting from good momentum in personal lines and support from Canada as well as markets such as Turkey, Hong Kong and Singapore.

Asset Management revenues increased by 14% to Euro 3,440 million driven by higher average Assets Under Management (AUM) (+16% compared to 2004). Both AXA IM and Alliance Capital contributed to record net inflows of Euro 56 Billion***.

International Insurance revenues increased by 10% to Euro 3,813 million. The 17% increase at AXA RE was due to the non-recurrence of certain 2004 negative premium adjustments, increased reinstatement premiums linked to 2005 natural catastrophe events and selected development in lines with favorable pricing conditions. AXA Corporate Solutions Assurance was up 5%, driven by Marine and Aviation.