2006 off to a good start with very strong 1Q06 activity indicators
News
Group, May 11, 2006
Portrait of Henri de Castries
"Our Life & Savings and Asset Management activities experienced outstanding growth in the first quarter of 2006, supported by a favorable equity market environment and the dynamism of our local operations" said AXA Chief Executive Officer Henri de Castries.
"Our Property & Casualty revenues development demonstrated a good momentum in France, the UK and Asia as well as good resilience in a competitive pricing environment.
"This strong start, together with numerous ongoing initiatives on new product launches, quality of service improvements and distribution reinforcements, makes us confident for the year 2006."
Life & Savings entities delivered very strong growth in 1Q06, with new business* up 17% to Euro 1,573 million, of which Europe up 11%, the US up 13% and Asia** up 43%, notably driven by Japan up 56%. This growth was supported by geographic and distribution diversification, as well as product breadth.
Life & Savings New Business Value***was up 21% to Euro 318 million, resulting in a margin of 20.2%, up 0.7 point compared to 1Q05, owing to higher volume together with an improved product mix in France and the US.
Property & Casualty revenues increased by 3% to Euro 6,181 million. Personal lines were up 4% with a strong contribution from the UK & Ireland and Southern Europe as well as positive evolution in France household. Commercial lines were up 2%, mainly driven by France and the UK. Total personal motor net inflows reached 274,000 policies.
Asset Management revenues increased by 27% to Euro 1,004 million driven by higher average assets under management (AUM) (+16% compared to 1Q05), as a result of favorable equity market conditions and very strong net inflows, as well as a favorable mix evolution for both AllianceBernstein and AXA Investment Managers. In 1Q06, Asset Management net inflows amounted to Euro 19 billion.
* On an APE basis. Annual Premium Equivalent (APE) represents 100% of new business regular premiums plus 10% of new business single premiums. APE is group share.
** Including Australia.
*** New Business Value (NBV) is group share. NBV for both 1Q05 and 1Q06 were computed using profitability factors by products from year-end 2005, keeping most economic, productivity and actuarial assumptions the same.
Numbers herein 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 and NBV are both in line with the Group's EEV disclosure. They are non-GAAP measures, which Management uses as key indicators of performance in assessing AXA's Life & Savings business and believes to provide useful and important information to shareholders and investors. IFRS revenues are available in Appendix 4 of the press release.