AXA Notes 1% Gain in Full Year Revenues

January 28, 2005

France’s AXA Group reported from Paris that its consolidated revenues were 72.2 billion euros ($94.4 billion) for full year 2004. “On a comparable basis, revenues grew by 2 percent compared to full year 2003,” said the bulletin. But “on a reported basis, total revenues were up 1 percent from full year 2003 (Euro 71.6 billion [$93.6 billion]), mainly driven by organic growth.”

It also noted that revenues on a comparable basis were up 1.3 billion euros ($1.7 billion), or 2 percent,” and MONY’s 2H04 revenues (Euro 1.0 billion [$1.308 billion] impact, or +1 percent), partly offset by the strength of the Euro versus other currencies (Euro -1.6 billion [$2.09 billion] impact, or -2 percent).”

“As expected, our competitive product offering and the expansion of the distribution platform have contributed to our growth momentum in the fourth quarter of 2004,” stated CEO Henri de Castries. “Our P&C and Asset Management revenues growth are in line with our long term targets, and we are particularly pleased with the strong Asset Management net inflows.

“Total revenues in our Life & Savings activities have returned to growth in the fourth quarter of 2004, owing to continued strong performance in France, Southern Europe and Japan, as well as to an anticipated recovery in the United States and the United Kingdom. In addition, business mix continues to significantly improve as reflected by the increased percentage of unit- linked sales in our total revenues.

“The benefits of higher revenues within the context of improved margins will become more apparent with the disclosure of our 2004 new business contribution growth for Life & Savings operations which, we anticipate, should be higher than the half year 2004 increase.”

Earnings highlights included the following:
— 6 percent increase in life and savings income in the fourth quarter, leading to a 1 percent growth in the full year 2004 to 47.1 billion euros ($61.6 billion). 2004 sales increased 14 percent.
— Property & Casualty revenues increased by 3 percent to 17.9 billion euros ($23.4 billion), with Personal and Commercial lines growing 4 percent and 6 percent, respectively, “as the Group continued to attract new clients and favorable pricing persisted in most business lines.”
— Asset Management revenues increased by 14 percent to 3.1 billion euros ($4.05 billion), “benefiting from higher average Assets Under Management (AUM) (+16 percent versus full year 2003), the result of very strong 2004 net inflows (35 billion euros – $$45.78 billion) and market appreciation.
— International Insurance revenues were 3.4 billion euros ($4.45 billion), declining by 6 percent as AXA RE reduced its revenues by 15 percent, “in line with its strategic repositioning implemented in 2002.”

The complete financial figures can be obtained on the company’s Web site at: www.axa.com.

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