- Life & Savings new business volume up 17% and new business
value up 21% PARIS, May 11 /PRNewswire-FirstCall/ -- -- Life &
Savings entities delivered very strong growth in 1Q06, with new
business(1) up 17% to Euro 1,573 million, of which Europe up 11%,
the US up 13% and Asia(2) up 43%, notably driven by Japan up 56%.
This growth was supported by geographic and distribution
diversification, as well as product breadth. Life & Savings New
Business Value(3) was up 21% to Euro 318 million, resulting in a
margin of 20.2%, up 0.7 point compared to 1Q05, owing to higher
volume together with an improved product mix in France and the US.
-- Property & Casualty revenues increased by 3% to Euro 6,181
million. Personal lines were up 4% with a strong contribution from
the UK & Ireland and Southern Europe as well as positive
evolution in France household. Commercial lines were up 2%, mainly
driven by France and the UK. Total personal motor net inflows
reached 274,000 policies. -- Asset Management revenues increased by
27% to Euro 1,004 million driven by higher average assets under
management (AUM) (+16% 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 Euro 19 billion. Note: Numbers herein have not been audited or
adjusted for scope and currency changes. Growth rates are on a
comparable basis and, accordingly, have been adjusted for changes
in scope, accounting methods and currency. APE and NBV are both in
line with the Group's EEV disclosure. They are non-GAAP measures,
which Management uses as key indicators of performance in assessing
AXA's Life & Savings business and believes to provide useful
and important information to shareholders and investors. IFRS
revenues are available in Appendix 4 of this release. "Our Life
& Savings and Asset Management activities experienced
outstanding growth in the first quarter of 2006, supported by a
favorable equity market environment and the dynamism of our local
operations," said AXA Chief Executive Officer Henri de Castries.
"Our Property & Casualty revenues development demonstrated a
good momentum in France, the UK and Asia as well as good resilience
in a competitive pricing environment. "This strong start, together
with numerous ongoing initiatives on new product launches, quality
of service improvements and distribution reinforcements, makes us
confident for the year 2006." Three months ended (Euro million,
except when otherwise noted) Change on a March 31, March 31,
comparable 2006 2005 Change basis Life & Savings new business,
group share APE 1 573 1 305 + 20.5% +17.0% NBV 318 257 +23.6%
+21.1% NBV to APE margin 20.2% 19.7% +0.5 pt +0.7 pt Property &
Casualty revenues 6 181 5 903 +4.7% +3.2% International Insurance
revenues 1 793 1 772 +1.1% -1.8% of which ACSA & other
transnational activities 1 070 1 010 +5.9% +4.7% Asset Management
Revenues 1 004 753 +33.3% +27.3% Net inflows (Euro billion): 19 9
LIFE & SAVINGS: Life & Savings entities delivered a very
strong growth in 1Q06, with new business up 17% to Euro 1,573
million, of which Europe up 11%, the US up 13% and Asia(4) up 43%,
notably driven by Japan up 56%. This growth was supported by
geographic and distribution diversification, as well as product
breadth. Unit-linked new business APE increased by 20% to represent
46% of total Life & Savings APE in 1Q06, compared to 44% in
1Q05. New business value (NBV) was up 21% to Euro 318 million,
resulting in a margin of 20.2%, up 0.7 point compared to 1Q05,
owing to higher volume together with an improved product mix in
France and the US. Annual Premium Equivalent, Group share (Euro
million) Three months ended Change on a March 31, March 31, Change
comparable 2006 2005 basis Life & Savings 1 573 1 305 +20.5%
+17.0% United States 502 406 +23.7% +13.4% France 324 286 +13.5%
+13.5% United Kingdom 230 167 +37.8% +36.3% Japan 182 119 +52.8%
+55.5% Germany 72 105 -31.1% -31.1% Benelux 119 105 +13.2% +13.2%
Southern Europe 24 28 -12.4% -12.4% Australia/New Zealand 101 76
+32.6% +27.8% Hong Kong 19 15 +32.0% +20.9% New Business Value,
Group share (Euro million) Three months ended Change on a March 31,
March 31, Change comparable 2006 2005 basis Life & Savings 318
257 +23.6% +21.1% United States 80 61 +32.8% +21.8% France 50 37
+34.7% +34.7% United Kingdom 19 16 +18.0% +16.7% Japan 99 77 +27.9%
+30.2% Germany 9 12 -27.4% -27.4% Benelux 34 30 +12.7% +12.7%
Southern Europe 5 7 -30.3% -30.3% Australia/New Zealand 7 6 +22.3%
+17.9% Hong Kong 15 11 +34.1% +22.8% The United States new business
APE increased by 13%, primarily driven by a 23% growth in Variable
Annuity and a 19% growth in Individual Life, partly offset by a 73%
decline in Fixed Annuity, as in the current interest rate
environment this product does not fit Group profitability targets,
and a 67% decrease in COLI(5), due to the non-repeat of one large
case in 1Q05. Excluding fixed annuities, COLI and mutual funds, new
business APE was up 22% with a 70% increase of Variable Annuity APE
distributed through the wholesale planner channel. The United
States NBV increased 22% to Euro 80 million, resulting in a margin
of 16.0%, up 1.1 points from 1Q05, as a result of a favorable shift
in product mix towards Variable Annuity and away from Fixed
Annuity. France new business APE increased by 13%, mainly due to
(i) individual Investment & Savings up 14%, reflecting very
strong growth in unit-linked premiums (up 48% to represent 36% of
individual Investment & Savings new business), driven by the
continued focus on unit-linked products in proprietary channels,
and following successful commercial campaigns and product launches
as illustrated by the continued momentum in sales through the
salaried network due to the launch of the Odyssiel product in 4Q05
and to (ii) the 17% growth in individual Protection and Health.
France NBV increased 35% to Euro 50 million, resulting in a margin
of 15.5%, up 2.4 points from 1Q05, owing to the continued
product-mix shift towards more profitable unit-linked products,
and, to a lesser extent, protection products. In the United
Kingdom, new business APE was up 36% driven by Investments and
Savings new business (+35%), largely due to sales of unit-linked
investment bonds, and increased sales of pension products (+41%).
The IFA channel generated most of the increase, growing by 35%.
Protection business was up 10%, following growth in AXA Protection
Account sales, launched at the end of 2004. The United Kingdom NBV
increased 17% to Euro 19 million, resulting in a margin of 8.4%,
down 1.4 points compared to 1Q05, due to a higher proportion of
pension products. Japan new business APE increased by 56%, as (i)
individual business grew by 52%, driven by Term Life products and
riders (following the launch of new products in March and September
2005) as well as SPA (savings product) sales (predominantly via the
AXA Advisors channel) partly offset by a 12% reduction in health
sales, and (ii) Group Life new business was up 158%, driven by
sales from the recently launched New Mutual Aid product. Japan NBV
increased 30% to Euro 99 million, resulting in a strong margin of
54.5%, down compared to 65.2% in 1Q05 as a result of a product mix
shift (higher sales of savings products and lower sales of medical
products). Germany new business APE was down 31% due to 1Q05
backlog(6). Excluding this backlog effect, new business increased
28% mainly due to Investment & Savings unit-linked products,
but also to strong Medical Cost Insurance new business in
non-proprietary channels. Germany NBV of Euro 9 million in 1Q06 was
down 27%, or up 185% excluding 1Q05 backlog effect. NBV to APE
margin stood at 11.9%, up 0.6 point compared to 1Q05, or up 6.5
points excluding backlog in 1Q05 owing to higher sales of
Investment & Savings unit-linked products. The newly launched
TwinStar product will be reported starting 2Q06. Benelux new
business APE increased by 13%, with Belgium up 10% and the
Netherlands up 34%. Belgium benefited from continued strong
momentum of structured unit-linked products, such as the
open-architecture product Millesimo, and Crest 30 and 40 (general
account products with no guaranteed rate). The Netherlands' growth
was driven by successful commercial campaigns for mortgages as well
as annuity products. Benelux NBV increased 13% to Euro 34 million,
in line with volume growth, resulting in a margin of 28.4%, flat
compared to 1Q05. Southern Europe new business APE decreased by
12%, as the 4% growth in proprietary channels (74% of APE) mainly
related to non unit-linked products, was more than offset by a 40%
decrease in third-party distribution as Spain was notably impacted
by the loss of a 2005 bancassurance agreement. Southern Europe NBV
decreased by 30% to Euro 5 million, resulting in a margin of 20.2%,
down 5.2 points compared to 1Q05 due to lower volume combined with
unfavorable product mix shift from protection towards savings
products. Australia/New-Zealand new business APE was up 28%, driven
by the continued success of international equity funds, including
two large international equity mandates awarded to
AllianceBernstein in March 2006. Australia/New Zealand NBV
increased 18% to Euro 7 million, resulting in a margin of 7.3%,
slightly down compared to 7.9% in 1Q05 due to the increased
proportion of sales in institutional funds. Hong Kong new business
APE was up 21% driven by a 24% increase in individual life regular
premiums, a 63% increase in non unit-linked regular premiums,
primarily due to the launch of MAXX, a new traditional
participating product, and strong growth in investment linked
products through both broker and agency channels. Hong Kong NBV
increased 23% to Euro 15 million, in line with volume growth,
resulting in a margin of 75.7%, up 1.2 points compared to 1Q05.
PROPERTY & CASUALTY: Property & Casualty revenues increased
by 3% to Euro 6,181 million. Personal lines were up 4% with a
strong contribution from the UK & Ireland and Southern Europe,
as well as positive evolution in France household. Commercial lines
were up 2%, mainly driven by France and the UK. Total personal
motor net inflows reached 274,000 policies. IFRS Revenues Three
months ended (Euro million) Change on a March 31, March 31, Change
comparable 2006 2005 basis Property & Casualty 6 181 5 903
+4.7% +3.2% - France(a) 1 709 1 667 +2.5% +3.6% - Germany(b) 1 348
1 329 +1.4% +0.7% - United Kingdom & Ireland 1 172 1 067 +9.8%
+8.7% - Belgium 444 439 +1.1% +1.1% - Southern Europe(c) 799 799
-0.0% -0.7% - Other countries 711 602 +18.1% +4.8% of which
Canada(d) 241 171 +41.1% +0.9% of which Turkey 138 108 +28.1%
+17.9% of which Asia 80 71 +12.4% +12,4% (a) Poland assumed
business, which was reported in the French P&C segment and
represented revenues of Euro 18 million in 1Q05, was discontinued
in December 2005. (b) Since June 2005, DAEV has been fully
consolidated. If full consolidation had been applied in 1Q05,
Germany P&C revenues would have been Euro 10 million higher.
(c) Seguro Directo was acquired in Portugal at the end of 2005. In
1Q06, Seguro Directo revenues were Euro 6 million. (d) Citadel was
acquired on March 1, 2006 with retroactive effect as of January 1,
2006. In 1Q06, Citadel P&C revenues were Euro 42 million.
Personal lines (59% of the P&C premiums) showed overall growth
of 4%. Motor revenues grew 4% in the first quarter of 2006, largely
driven by the UK & Ireland, followed by Southern Europe (+3%)
and Germany (+3%, driven by positive net inflows of 123,000
polices), as well as Asia (+20%) and Turkey (+17%). UK and Ireland
revenues were up 19% following revamping of the UK motor offer.
Southern Europe motor revenue growth of 3% was driven by positive
net inflows partly mitigated by some pressure on tariffs. Non-motor
revenues rose 5%, mainly driven by new product launches in the UK
household segment, and growth in all business lines in Southern
Europe. France revenues were up 4% mainly due to positive net
inflows and, to a lesser extent, average premium growth in
household. Commercial lines (40% of the P&C premiums)(7)
recorded a 2% overall growth. Motor revenues increased by 1% as
growth in France (+3%), the UK & Ireland (+3%) and Belgium
(+3%) was partly offset by a decrease in Germany (-4%) and Southern
Europe (-3%). Non-motor revenues were up 3% due to the UK &
Ireland up 7% and France up 7%, driven by construction and
liability. ASSET MANAGEMENT: Asset Management revenues increased by
27% to Euro 1,004 million driven by higher average assets under
management (AUM) (+16% 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 Euro 19 billion. IFRS revenues(8) Three months ended (Euro
million) Change on a March 31, March 31, Change comparable 2006
2005 basis Asset Management 1 004 753 +33.3% +27.3% -
AllianceBernstein 690 545 +26.4% +22.6% - AXA Investment
Managers(a)(b) 314 208 +51.2% +39.0% (a) AXA IM acquired
Framlington on October, 31, 2005. In 1Q06, AXA Framlington revenues
were Euro 20 million. (b) Excluding management and front-end fees
collected by AXA Investment Managers on behalf of external
distributors, gross revenues increased 41% on a comparable basis.
AllianceBernstein: Revenues increased by 23% compared to 1Q05, due
to higher investment advisory fees driven by 12% higher average AUM
and higher average fees. AUM increased by Euro 20 billion from
year-end 2005 to Euro 510 billion at the end of March 2006 driven
by strong investment performance (market appreciation of Euro 22
billion) and strong global net inflows of Euro 10 billion across
all client categories (Euro 5 billion from institutional clients,
Euro 3 billion from retail and Euro 2 billion from private clients)
partly offset by negative exchange rate impact (Euro -13 billion).
AXA Investment Managers: Revenues increased by 39%, while gross
revenues, excluding management and front-end fees collected on
behalf of external distributors, increased by 41%, driven by higher
average AUM (+21%) and higher average fees in most segments. AUM
increased by Euro 15 billion from year-end 2005 to Euro 448 billion
at the end of March 2006 driven by Euro 9 billion of net inflows
(of which Euro 5 billion at AXA Rosenberg, Euro 1 billion at AXA
Framlington and Euro 1 billion in Structured Finance products),
mainly from institutional clients and third party retail clients, a
Euro 8 billion increase due to market appreciation, partly offset
by a Euro 3 billion negative foreign exchange rate impact.
INTERNATIONAL INSURANCE: International Insurance revenues decreased
by 2% to Euro 1,793 million, with AXA Corporate Solutions Assurance
up 3%, driven by selective portfolio development, and AXA RE down
10% due to a strong reduction of US Cat exposed treaties. IFRS
Revenues Three months ended (Euro million) Change on a March 31,
March 31, Change comparable 2006 2005 basis International Insurance
1 793 1 772 +1.1% -1.8% - AXA Corporate Solutions Assurance 833 798
+4.4% +3.0% - AXA RE 723 762 -5.1% -10.3% - Others 236 212 +11.4%
+11.3% Insurance: AXA Corporate Solutions Assurance revenues
increased by 3%, mainly driven by portfolio development in
property, construction and aviation as well as rate increases in
motor. Portfolio development was achieved through selective new
business activity combined with low lapses despite softening
markets. Reinsurance: Revenues decreased by 10% driven by strong
reduction of US proportional coastal cat exposed treaties, in line
with the underwriting strategy aimed at diversifying the portfolio
both geographically in Property as well as in terms of lines of
business. (1) On an APE basis. Annual Premium Equivalent (APE)
represents 100% of new business regular premiums plus 10% of new
business single premiums. APE is group share. (2) Including
Australia. (3) New Business Value (NBV) is group share. NBV for
both 1Q05 and 1Q06 were computed using profitability factors by
products from year-end 2005, keeping most economic, productivity
and actuarial assumptions the same. (4) Including Australia. (5)
COLI = Corporate-Owned Life Insurance. (6) 1Q05 backlog resulted
from Life new business boom at the end of 2004 related to the tax
reform effective beginning of 2005 (7) In addition to personal and
commercial lines, other lines accounted for 1% of the P&C
premiums. (8) Net of inter-company transactions. About AXA: AXA
Group is a worldwide leader in Financial Protection. AXA's
operations are diverse geographically, with major operations in
Western Europe, North America and the Asia/Pacific area. IFRS
revenues amounted to Euro 72 billion for full year 2005 and Euro 22
billion in 1Q06. The AXA ordinary share is listed and trades under
the symbol AXA on the Paris Stock Exchange. The AXA American
Depository Share is also listed on the NYSE under the ticker symbol
AXA. AXA Investor Relations: Etienne Bouas-Laurent:
+33.1.40.75.57.25 Caroline Portel: +33.1.40.75.49.84 Sophie
Bourlanges: +33.1.40.75.56.07 Emmanuel Touzeau: +33.1.40.75.49.05
Kevin Molloy: +1.212.314.2893 AXA Media Relations: Christophe
Dufraux: +33.1.40.75.46.74 Clara Rodrigo: +33.1.40.75.47.22 Mary
Taylor: +1.212.314.5845 IMPORTANT LEGAL INFORMATION AND CAUTIONARY
STATEMENTS CONCERNING FORWARD- LOOKING STATEMENTS Certain
statements contained herein are forward-looking statements
including, but not limited to, statements that are predictions of
or indicate future events, trends, plans or objectives (including
statements herein with respect to AXA's Ambition 2012 project and
the objectives, financial and other, associated with that project).
Undue reliance should not be placed on such statements because, by
their nature, they are subject to known and unknown risks and
uncertainties and can be affected by numerous factors that could
cause actual results and AXA's plans and objectives to differ
materially from those expressed or implied in the forward looking
statements (or from past results). These risks and uncertainties
include, without limitation, the risk of future catastrophic events
(including possible future weather-related catastrophic events
and/or terrorist related incidents), economic and market
developments, legislative developments, regulatory actions or
investigations, as well as litigations and /or types of other
proceedings. Please refer to AXA's Document de Reference for the
year ended December 31, 2005 and Annual Report on Form 20-F for the
year ended December 31, 2004 for a description of certain important
factors, risks and uncertainties that may affect AXA's business.
AXA undertakes no obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new
information, future events or circumstances or otherwise. APPENDIX
1 LIFE & SAVINGS - Breakdown of APE between unit-linked, non
unit-linked and mutual funds 9 main countries/regions and modeled
business First Quarter 2006 - Group Share % UL in APE (excl. mutual
UL change on 1Q06 APE funds) comparable Mutual basis Euro million
UL Non-UL Funds 1Q06 1Q05 United States 257 114 131 69% 70% + 12%
France 89 236 27% 21% + 44% United Kingdom 205 25 89% 86% + 37%
Japan 14 167 8% 2% + 451% Germany 20 52 27% 34% - 45% Benelux 29 90
24% 26% + 6% Southern Europe 3 21 1 12% 17% - 37%
Australia/New-Zealand 5 6 90 44% 43% - 1% Hong-Kong 6 13 31% 43% -
15% TOTAL 627 725 221 46% 44% + 20% APPENDIX 2 LIFE & SAVINGS -
Annual Premium Equivalent (APE) and New Business Value (NBV) for 9
main countries/regions and modeled business - FY 2005 - Group Share
1Q05 1H05 9M05 FY05 APE NBV APE NBV APE NBV APE NBV United States
406 61 829 129 1 245 202 1 700 284 France 286 37 536 69 745 100 1
075 157 United Kingdom 167 16 381 33 599 54 817 72 Japan 119 77 258
163 432 279 589 364 Germany 105 12 144 16 195 21 270 29 Benelux 105
30 173 51 259 78 381 115 Southern Europe 28 7 71 13 99 20 140 27
Australia/NZ 76 6 171 13 309 23 428 32 Hong-Kong 15 11 32 24 50 39
75 59 TOTAL 1 305 257 2 595 512 3 934 816 5 476 1 138 APPENDIX 3
PROPERTY & CASUALTY - Split by business lines - First Quarter
2006 Personal Personal Commercial Commercial Motor Non-Motor Motor
Non-Motor Change Change Change Change % on % on % on % on Gross
comp. Gross comp. Gross comp. Gross comp. Revenues basis Revenues
Basis Revenues Basis Revenues basis France 28% 0% 26% + 4% 10% + 3%
37% + 7% Germany 37% + 3% 23% 0% 7% - 4% 27% - 1% Belgium 32% 0%
27% + 1% 8% + 3% 34% + 1% United Kingdom (a) 13% + 19% 34% + 10% 7%
+ 3% 44% + 7% Southern Europe 54% + 3% 23% + 5% 7% - 3% 16% - 15%
Canada (b) 33% - 9% 14% - 5% 8% + 1% 45% + 10% The Netherlands 9% -
6% 49% + 7% 21% - 6% 23% - 27% Others 54% + 14% 28% + 12% 2% NS 17%
+ 11% TOTAL 32% + 4% 27% +5% 8% + 1% 32% + 3% (a) Including Ireland
(b) Personal lines evolution in Canada reflects the high proportion
of 18 and 24 month contracts sold in 2005 causing a mechanic
decrease in gross written premiums in 1Q06. APPENDIX 4 - AXA GROUP
IFRS Revenues - Comparison 1Q06 vs. 1Q05 Euro million 1Q 06 1Q 05
IFRS revenue change Comp. IFRS IFRS Reported basis TOTAL 21 993 19
623 12.1% 9.6% Life & Savings 12 929 11 087 16.6% 14.0% France
3 809 3 435 10.9% 10.9% United States (1) 3 998 3 202 24.9% 17.1%
United Kingdom (2) 1 077 568 89.8% 87.7% Japan 1 262 1 124 12.3%
14.3% Germany 856 875 -2.1% -2.1% Belgium 761 842 -9.6% -9.6%
Southern Europe 280 297 -5.6% -5.6% Other countries 885 745 18.7%
11.9% of which Australia/ New-Zealand 293 261 12.5% 6.6% of which
Hong-Kong 227 173 30.9% 19.9% Property & Casualty 6 181 5 903
4.7% 3.2% France 1 709 1 667 2.5% 3.6% Germany 1 348 1 329 1.4%
0.7% United Kingdom + Ireland 1 172 1 067 9.8% 8.7% Belgium 444 439
1.1% 1.1% Southern Europe 799 799 -0.0% -0.7% Other countries (3)
711 602 18.1% 4.8% International Insurance 1 793 1 772 1.1% -1.8%
AXA RE 723 762 -5.1% -10.3% AXA Corporate Solutions Assurance 833
798 4.4% 3.0% Others 236 212 11.4% 11.3% Asset Management 1 004 753
33.3% 27.3% AllianceBernstein (4) 690 545 26.4% 22.6% AXA
Investment Managers (5) 314 208 51.2% 39.0% Other Financial
Services 87 107 -19.2% -19.4% (1) Advest was sold in December 2005.
Advest's contribution to 1Q05 revenues amounted to Euro 64 million.
(2) The UK revenues benefited from the change in classification of
some products from investment contracts to insurance contracts. (3)
Citadel was acquired on March 1, 2006 with retroactive effect as of
January 1, 2006. In 1Q06, Citadel P&C revenues were Euro 42
million. (4) As of end of June 2005, AllianceBernstein's Cash
Management Services were transferred to Federated Investors. Cash
Management Services' contribution to 1Q05 revenues amounted to Euro
34 million. (5) AXA IM acquired Framlington on October, 31, 2005.
In 1Q06, AXA Framlington revenues were Euro 20 million. DATASOURCE:
AXA CONTACT: AXA Investor Relations - Etienne Bouas-Laurent,
+33-1-40-75-57-25, or Caroline Portel, +33-1-40-75-49-84, Sophie
Bourlanges, +33-1-40-75-56-07, Emmanuel Touzeau, +33-1-40-75-49-05,
Kevin Molloy, +1-212-314-2893, or AXA Media Relations - Christophe
Dufraux, +33-1-40-75-46-74, Clara Rodrigo, +33-1-40-75-47-22, Mary
Taylor, +1-212-314-5845 Web site: http://www.axa.com/
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