AXA Posts Strong Q1 Results

France’s AXA Group’s earnings figures for the first quarter of 2006 show strong growth in its three main sectors of operation – summarized as follows:

— Life & Savings entities new business up 17 percent to €1.573 billion ($2 billion), of which Europe up 11 percent, the US up 13 percent and Asia up 43 percent, notably driven by Japan up 56 percent. “This growth was supported by geographic and distribution diversification, as well as product breadth.”
— Life & Savings New Business Value up 21 percent to €318 million ($406 million), resulting in a margin of 20.2 percent, up 0.7 point compared to 1Q 05, “owing to higher volume together with an improved product mix in France and the US.”
— Property & Casualty revenues increased by 3 percent to €6.181 billion ($7.9 billion). “Personal lines were up 4 percent with a strong contribution from the UK & Ireland and Southern Europe as well as positive evolution in France household. Commercial lines were up 2 percent, mainly driven by France and the UK. Total personal motor net inflows reached 274,000 policies.”
— Asset Management revenues increased by 27 percent to €1.004 billion ($1.283 billion) “driven by higher average assets under management (AUM) (+16 percent 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 €19 billion [$24.28 billion].”

AXA’s International Insurance revenues decreased by 2 percent to €1.793 billion ($2.29 billion), with AXA Corporate Solutions Assurance up 3 percent, “driven by selective portfolio development, and AXA RE down 10 percent due to a strong reduction of US Cat exposed treaties.”

AXA is in the process of selling AXA Re and its subsidiaries in a deal worth around $145 million (See IJ Website April 10). It has received a binding offer from Paris Re Holdings Limited, a newly-created company sponsored by a consortium of international investors led by Trident III, L.P., a fund managed by Stone Point Capital LLC. Trident III was originally established an as an investment vehicle by MMC Capital – a unit of Marsh, Inc. AXA also said it would take a participatory interest of between 5 and 10 percent in the new venture. Other lead investors include Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, ABN Amro and New Mountain Capital. The agreement, if accepted, would see AXA’s reinsurance business ceded to Paris Re in 2007.

The full earnings report may be obtained on the Group’s Website at: www.axa.com.

Topics USA Profit Loss AXA XL