AXA Posts $70 Billion Consolidated Revenues for 1st Nine Months of 2004

November 11, 2004

France’s AXA announced that its consolidated revenues for the first nine months of 2004 rose 1.1 percent on a comparable basis to 54.4 billion euros ($70.3 billion).

Highlights of the report are summarized as follows:
– Life & Savings revenues were 34.6 billion euros ($44.73 billion), down 0.5 percent: “as last year revenues benefited from non-recurring premiums in Japan and Belgium, and record sales in the US, which overshadowed a strong business mix improvement in the first nine months of 2004.” In France revenues increased 10 percent “owing to a surge in Individual unit-linked premiums during the first nine months of 2004.”

– Property & Casualty revenues increased by 4.1 percent to 14 billion euros ($18.1 billion), “as the favorable pricing environment persisted in most business lines and
the Group attracted new clients.

– Asset Management revenues increased by 15.1 percent to 2.3 billion euros ($2.98 billion), “principally due to of higher average Assets Under Management (AUM) (+17 percent compared to the first nine months of 2003), the result of very strong net inflows at AXA IM (Euro 20 billion) and market appreciation.

– International Insurance revenues declined by 3.9 percent to 2.9 billion euros ($3.75 billion) “as AXA RE reduced its revenues by 12 percent in line with its strategic repositioning implemented in 2002. AXA Corporate Solutions Assurance revenues increased by 4 percent.

On a reported basis, total revenues were down by 0.5 percent from the first nine months of 2003 (54.7 billion euros [$70.73 billion]), “mainly impacted by the strength of the Euro versus other currencies (Euro -1.2 billion impact or -2.2 percent),” said the announcement.

“Revenue trends for the first nine months of 2004 demonstrate our continued focus on profitable growth,” commented AXA Chief Executive Officer Henri de Castries. “Our P&C and Asset Management revenues growth are in line with, or above, our long term targets, and we are particularly pleased with the strong new mandate wins at AXA Investment Managers.

“Total revenues in our Life and Savings activities were slightly down, as 2003 saw significant non-recurring items in Japan and Belgium and a very strong performance in the US. However, business mix continues to improve significantly as reflected by the increased percentage of unit-linked sales in our total revenues”.

The complete financial report may be obtained from the company’s Website at www.axa.com.

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