Half Year 2008 Earnings
News
Group, August 7, 2008
Positive Underlying Earnings growth
- Underlying Earnings up +7% to €2,766million
- Adjusted Earnings down -1% to €3,290 million
- Net Income down -29% to €2,162 million
Stable total revenues
- Life & Savings New Business Volume1 down -6% to €3,611 million
- Property & Casualty revenues up +2% to €14,519 million
- Asset Management revenues down -3% to €2,102 million
Positive net inflows
- Life & Savings net inflows: +€6.2 billion
- P&C net new personal contracts: +551,000
- Asset Management net inflows: +€2.2 billion
Very strong financial strength
- Solvency I at 148%
- Solvency II (QIS4) at ca. 175%
"First half 2008 performance proved robust in a turbulent market environment. AXA's business strategy is built to withstand severe economic conditions, and we remain well positioned to benefit from any upturn in the market environment." said Henri de Castries, Chairman of the AXA Management Board.
"Total revenues were stable despite a momentum slowdown in Life & Savings and Asset Management. However, all business lines generated positive net inflows with notably increased retention in Life & Savings."
"Underlying Earnings grew from the record level achieved in 2007, in line with our February 28, 2008 outlook, driven by the strong operating performance of our Property & Casualty operations while other businesses proved resilient. Adjusted Earnings were stable, as the hedging of our equity portfolio partially compensated for the impairments resulting from the drop in equity markets. Net Income decreased mainly due to mark-to-market accounting for certain fixed income assets in the context of credit spreads widening and rise in interest rates."
"Our Solvency remains strong, based on Solvency I and future Solvency II framework, and it is our current intention to propose a stable dividend for 2008 at €1.20 per share."