France’s AXA Group reported excellent results for the last quarter of 2005 and a full year increase in gross revenues of 6.9 percent. Overall sales rose from €67 billion ($33.72 billion) in 2004 to €71.7 billion ($87.56 billion). Asset Management revenues recorded net inflows of €56 billion ($68.4 billion).
Earnings highlights cited in AXA’s report included the following:
– Life & Savings: new business growth accelerated strongly throughout the year and more particularly in the 4th quarter of 2005. New business was up 11 percent to €5.463 billion [$6.67 billion]. New business growth was supported by geographical diversification and product breadth with Europe up 8 percent, Asia up 30 percent and the US, including MONY, up 15 percent.
– Property & Casualty: revenues increased by 3 percent to €18.874 billion [$23 billion], mainly driven by France and Southern Europe. Growth slightly accelerated in the 4th quarter of 2005, 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 percent to €3.44 billion [$4.2 billion] driven by higher average Assets Under Management (AUM) (+16 percent compared to 2004).
– International Insurance: revenues increased by 10 percent to €3.813 billion [$4.656 billion]. The 17 percent 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 percent, driven by Marine and Aviation.
“Our 2012 aspirational objectives are all about focusing the Group on profitable growth initiatives centered on product innovation, distribution management and quality of service”, commented Chief Executive Henri de Castries. “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.”
The full report and additional comments may be obtained on AXA’s Website – in French and English at: http://www.axa.com.
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