Life & Savings New Business Volume Up 15% PARIS, Feb. 1
/PRNewswire-FirstCall/ -- - Life & Savings entities recorded
strong growth across the board in 2006, with new business volume
(APE(1)) up 15% to Euro 6,234 million, notably driven by France and
the US both up 14%, the UK up 38%, and Japan up 16%. Product mix
continued to improve with unit-linked new business APE increasing
by 30% to represent 51% of total Life & Savings APE in 2006,
compared to 45% in 2005. - Property & Casualty revenues
increased by 4% to Euro 19,793 million. Personal lines were up 5%
resulting from a combination of strong resilience in most European
countries and positive momentum elsewhere. Commercial lines were up
4%, mainly driven by France, the UK and Belgium. Personal Motor and
Household net new inflows were up strongly compared to 2005,
reaching 939,000 contracts and 231,000 contracts, respectively. -
Asset Management revenues increased by 29% to Euro 4,406 million,
driven by higher average Assets under Management (AUM) (+17%), as a
result of very strong net inflows (Euro 73 billion) and favorable
equity market conditions, combined with a favorable business mix
evolution for both AllianceBernstein and AXA Investment Managers.
2006: ANOTHER YEAR OF STRONG TOP-LINE PERFORMANCE "Our performance
in 2006 demonstrates once again that AXA, acting on the
structurally growing Financial Protection market, is capable of
meeting its long-term top-line growth targets," said Henri de
Castries, Chairman of the AXA Management Board. "All our business
segments are contributing to this growth and I am particularly
satisfied to note that this volume expansion is accompanied by
continuing improvement of our business mix, notably in Life &
Savings and Asset Management." 12 months ended (Euro million,
except Change on a when otherwise noted) December 31, December 31,
Change comparable 2005 2006 basis Life & Savings new business,
group share APE 5 476 6 234 +13.9% +14.8% Property & Casualty
revenues 18 874 19 793 +4.9% +4.3% Asset Management Revenues 3 440
4 406 +28.1% +28.6% Net inflows (Euro billion)(a) 56 73
International Insurance revenues 3 813 3 716 -2.5% +7.0% (a) FY05
net inflows exclude the impact of the sale of AllianceBernstein's
Cash Management Services to Federated Investors. 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
is in line with the Group's EEV disclosure. It is a non-GAAP
measure, which Management uses as key indicator 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 3 of this release. LIFE
& SAVINGS: Life & Savings entities recorded strong growth
across the board in 2006, with APE up 15% to Euro 6,234 million,
notably driven by France and the US both up 14%, the UK up 38%, and
Japan up 16%. Product mix continued to improve with unit-linked new
business APE increasing by 30% to represent 51% of total Life &
Savings APE in 2006, compared to 45% in 2005. Annual Premium
Equivalent, Group share (Euro million) Change on a 12 months ended
December December Change comparable 31, 2005 31, 2006 basis Life
& Savings 5 476 6 234 +13.9% +14.8% United States 1 700 1 922
+13.0% +14.0% France 1 075 1 231 +14.5% +14.5% United Kingdom 817 1
134 +38.8% +38.3% Japan 589 651 +10.5% +15.9% Germany 270 287 +6.2%
+6.2% Benelux 381 348 -8.6% -8.6% Southern Europe 140 143 +2.2%
+2.2% Australia/New Zealand 428 420 -2.1% +0.1% Hong Kong(a) 75 100
+32.4% +28.3% (a) MLC was acquired on May 8, 2006, and contributed
Euro 3 million to FY06 Hong Kong APE. The United States new
business APE increased by 14% to Euro 1,922 million, reflecting
similar trends for the year as in the 9M06, with strong growth in
Variable Annuities and Life products. Excluding Fixed Annuities,
COLI(2) business and mutual funds, APE was up 17% driven by the
continued expansion of AXA Equitable's wholesale distribution
networks, where Variable Annuity and Individual Life new business
increased by 29% and 34%, respectively. France new business APE
increased by 14% to Euro 1,231 million with Individual business up
12% and Group business up 21%. Individual business growth was
largely driven by unit-linked Investment & Savings up 31% to
represent 38% of Individual savings as well as by the 33% increase
in individual Life and Health thanks to the successful launch of
new products in proprietary channels (Heliade and Pret-a-Proteger)
and new Health offers targeting families and independent workers.
Group new business benefited from some large non unit-linked single
premiums. In the United Kingdom, new business APE was up 38%,
driven by strong growth in Investment & Savings (+55%), largely
due to strong sales of unit- linked investment bonds in the fourth
quarter, following enhancements to the offshore bond products
during the year. Pension business also continued to demonstrate
strong growth in the wake of A-day (+29%). Japan new business APE
increased by 16% to Euro 651 million driven by Individual business
up 18% which benefited from strong sales of SPA (savings product)
and Increasing Term products as part of the strategy developed
during 1H06 to counter an anticipated 2H06 sales decline of the
LTPA product class. Health sales were up 32% boosted by a very
strong fourth quarter, notably driven by a return of focus on
Medical products. Group new business decreased by 26%, driven by
lower New Mutual Aid sales. Germany new business APE increased by
6%. Excluding the 1Q05 backlog effect(3), APE increased by 29%
mainly driven by Investment & Savings unit- linked products,
notably the recently launched Twinstar product which contributed
Euro 36 million to FY06 APE, and Health business building on the
successful launch of new products mid-2005. Benelux new business
APE declined by 9%, with Belgium down 11% (or down 8% excluding the
impact of the termination of the distribution agreement with La
Poste in 2Q05), while the Netherlands increased by 6%. Belgium APE
decline was mainly due to the decrease in non unit-linked product
sales (notably Crest), as a new tax on premiums introduced in early
2006 triggered exceptionally high sales in December 2005 and a
significant decrease of the whole market in 2006. The Netherlands
APE growth was notably driven by Group pension business. Southern
Europe new business APE was up 2%, driven by the 20% growth in
proprietary channels which more than offset the 28% decline in
non-proprietary channels linked to the termination in May 2005 of a
bancassurance agreement in Spain. Overall, while single premium
products were down 15%, regular premium products benefited from new
product launches in 2006. Australia/New Zealand new business APE
was stable as strong growth in the superannuation and investment
fund inflows were offset to a large extent by a decrease in the
more volatile international equity mandates into the JV with
AllianceBernstein (which included two large mandate wins in 2005).
Excluding AllianceBernstein mandates, APE was up 13%. Hong Kong new
business APE was up 28%(4) benefiting from (i) the increase in
Individual Life regular premiums, notably through the broker
channel, (ii) strong growth in single premium unit linked products
and (iii) new unit trust products sold through bank distribution
agreements. PROPERTY & CASUALTY: Property & Casualty
revenues increased by 4% to Euro 19,793 million. Personal lines
were up 5% with strong contributions from the UK & Ireland and
Southern Europe, as well as favorable evolution in France and
Benelux Household and Germany Motor lines. Commercial lines were up
4%, mainly driven by France, the UK and Belgium. Growth also
stemmed from markets such as Asia up 11%, Morocco up 17% and Turkey
up 21%. Personal Motor and Household net new inflows were strongly
up compared to 2005, reaching 939,000 contracts and 231,000
contracts, respectively. IFRS Revenues 12 months ended (Euro
million) Change on a December December Change comparable 31, 2005
31, 2006 basis Property & Casualty 18 874 19 793 +4.9% +4.3% *
France(a) 5 070 5 187 +2.3% +3.7% * Germany(b) 2 785 2 745 -1.5%
+1.2% * United Kingdom & Ireland 4 393 4 721 +7.5% +7.1% *
Belgium 1 451 1 511 +4.1% +4.1% * Southern Europe(c) 3 012 3 152
+4.6% +3.8% * Other countries 2 163 2 477 +14.6% +4.6% of which
Canada(d) 855 1 056 +23.5% -5.0% of which Turkey 453 507 +11.9%
+20.5% of which Asia(e) 282 306 +8.4% +11.0% of which Morocco 139
163 +17.1% +17.4% (a) Poland assumed business, which was reported
in the French P&C segment and represented revenues of Euro 68
million in 2005, was discontinued in December 2005. (b) Darag was
sold in 1H06 with retroactive effect on January 1, 2006. In 2005,
Darag revenues amounted to Euro 70 million. (c) In Portugal, Seguro
Directo which was acquired at the end of 2005, contributed Euro 23
million to Southern Europe 2006 P&C revenues. (d) In Canada,
Citadel was acquired on March 1, 2006 with retroactive effect on
January 1, 2006. In 2005, Citadel recorded Euro 193 million of
P&C revenues. (e) Singapore, Hong Kong and Japan. Personal
lines (62% of P&C premiums) were up 5%. Motor revenues grew by
4%, mainly driven by the UK & Ireland up 16% due to the
successful implementation of revised pricing strategies and to new
distribution partnerships, Southern Europe up 6%, recording strong
net inflows of 294,000 policies owing to the launch of new
products, and Germany up 4% with net inflows of 157,000 policies.
Asia (up 16%) and Turkey (up 15%) also confirmed their strong
momentum. France was up 1% while the market remained flat due to a
more competitive environment. Canada was down 10%, mainly as a
result of the success of the 18/24 months policies sold in 2005
leading to less renewals in 2006. Non-motor revenues increased by
5% mainly driven by new product launches in UK Household, new
contracts in credit card insurance in France, the introduction of
natural catastrophe guarantees in Belgium Household activity, as
well as solid growth across the board in Southern Europe.
Commercial lines (37% of P&C premiums)(5) recorded a 4% growth.
Motor revenues were up 3%, as growth in the UK (+8%), Belgium
(+4%), France (+3%), Southern Europe (+3%) and Germany (1%) was
partly offset by the decrease in Ireland revenues (-12%) as a
result of decreasing average premium in a context of intense
competition. Non-motor revenues were up 4% with France up 6% driven
by Construction and Liability, the UK up 5%, driven by Property and
Belgium up 7%, with solid positive growth in most lines of
business. Germany was down 2%, experiencing increased competition
in Industrial Property while Southern Europe was down 5% following
non renewals of some low profitability contracts. ASSET MANAGEMENT:
Asset Management revenues increased by 29% to Euro 4,406 million,
driven by higher average Assets under Management (AUM) (+17%), as a
result of very strong net inflows (Euro 73 billion) and favorable
equity market conditions, combined with a favorable business mix
evolution for both AllianceBernstein and AXA Investment Managers.
IFRS revenues (6) 12 months ended (Euro million) Change on a
December December Change comparable 31, 2005 31, 2006 basis Asset
Management 3 440 4 406 +28.1% +28.6% * AllianceBernstein 2 472 2
961 +19.8% +24.8% * AXA Investment Managers(a)(b) 968 1 445 +49.3%
+38.3% (a) AXA IM acquired Framlington on October 31, 2005. In
2006, AXA Framlington revenues were Euro 126 million versus Euro 13
million in the last two months of 2005. (b) Note that excluding
management and front-end fees collected by AXA Investment Managers
on behalf of external distributors, gross revenues increased by 32%
AllianceBernstein: Revenues increased by 25% to Euro 2,961 million
compared to 2005, due primarily to higher investment advisory and
performance fees. This increase in fees was driven by 18% higher
average AUM as a result of market appreciation and net new business
inflows. Total AUM increased by Euro 54 billion from year-end 2005
to Euro 544 billion at December 31, 2006 driven by strong market
appreciation (Euro 72 billion) and strong net inflows across all
client categories (Euro 38 billion, of which Euro 22 billion from
institutional clients, Euro 10 billion from retail and Euro 7
billion from private clients) partly offset by unfavorable exchange
rate impact (Euro -57 billion). AXA Investment Managers: Revenues
increased by 38%, driven by higher average AUM (+16%) and a
favorable client and product mix evolution leading to higher
average fees. AUM increased by Euro 53 billion from year-end 2005
to Euro 485 billion as of December 31, 2006, mainly driven by Euro
35 billion net inflows(7), mainly from third-party institutional
and retail clients and Euro 20 billion favorable market impact,
partly offset by Euro -4 billion foreign exchange rate impact. Net
inflows continued to be particularly strong at AXA Rosenberg (Euro
11 billion), into the Structured Finance Division (Euro 6 billion),
at AXA Framlington (Euro 4 billion) and at AXA Private Equity (Euro
3 billion). INTERNATIONAL INSURANCE: International Insurance
revenues were up 7% to Euro 3,716 million, driven by AXA Corporate
Solutions Assurance. IFRS Revenues 12 months ended (Euro million)
Change on a December December Change comparable 31, 2005 31, 2006
basis International Insurance 3 813 3 716 -2.5% +7.0% * AXA
Corporate Solutions Assurance 1 605 1 689 +5.2% +7.2% * Others
including AXA RE(a) 2 207 2 028 -8.1% +6.6% (a) On December 21,
2006, AXA completed the sale of the business of AXA RE to Paris Re
Holdings Limited. AXA RE's revenues, reported under "Other
Transnational Activities" amounted to Euro 1,217 million in FY06
versus Euro 1,451 million in FY05, and are excluded from comparison
between FY05 and FY06 on a comparable basis. AXA Corporate
Solutions Assurance revenues increased by 7% driven by portfolio
development in Property and Construction. Such development was
achieved through selective new business activity focused on risk
managed accounts in targeted trade sectors and despite softening
market conditions. 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 79 billion for
the full year 2006. 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. IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS
CONCERNING FORWARD- LOOKING STATEMENTS This press release contains
"forward-looking statements" which involve risks and uncertainties.
These statements include, but are not limited to, statements that
are predictions of or indicate future strategy, forecasts, events,
trends, plans or objectives. Many of the forward-looking statements
are derived from operating budgets and forecasts, which are based
upon many detailed assumptions. While we believe that our
assumptions are reasonable, we caution that it is very difficult to
predict the impact of known factors, and, of course, it is
impossible for us to anticipate all factors that could affect our
actual results. All forward-looking statements are based upon
information available to us on the date of this presentation.
Forward-looking statements used herein include such statements as
defined under US federal securities laws. 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
our strategy, forecasts, 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 unforeseen events occurring
resulting in certain of our strategies, forecasts, plans and/or
objectives becoming unrealistic or unattainable; and the risk of
future catastrophic events (including possible future pandemic
and/or 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 other proceedings. We caution you that the
foregoing list of factors does not contain all of the material
factors that are important in considering the forward-looking
statements; please refer to our Annual Report on Form 20-F and
Document de Reference, each for the year ended December 31, 2005,
for a description of certain important factors, risks and
uncertainties that may affect our business. We undertake no
obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information,
future events or circumstances or otherwise. (1) Annual Premium
Equivalent (APE) represents 100% of new business regular premiums
plus 10% of new business single premiums in line with Group EEV
methodology. APE is group share. (2) COLI = Corporate-Owned Life
Insurance. (3) 1Q05 backlog resulted from a Life new business boom
at the end of 2004 due to the tax reform effective beginning of
2005. (4) Excluding MLC which was acquired on May 8, 2006, and
contributed Euro 3 million to FY06 Hong Kong APE. (5) In addition
to Personal and Commercial lines, Other lines accounted for 1% of
the P&C premiums. Please note that UK Health is no longer
reported in Other lines but is now allocated between Personal and
Commercial Non-Motor lines (6) Net of inter-company transactions.
(7) Note that 9M06 net inflows (Euro 35 bn) included Euro 6bn of
assets temporarily invested by AXA SA as a consequence of the
funding of the Winterthur acquisition. This amount was redeemed
upon completion of the Winterthur transaction in December 2006.
APPENDIX 1 LIFE & SAVINGS - Breakdown of APE between
unit-linked, non unit-linked and mutual funds 9 main
countries/regions and modeled business Full Year 2006 - Group Share
FY 06 APE % UL in APE UL change (excl. mutual funds) on Mutual
comparable Euro million UL Non-UL Funds(1) FY 05 FY 06 basis United
States 1 078 368 476 71% 75% +19% France 307 924 0 21% 25% +36%
United Kingdom 1 012 122 0 87% 89% +42% Japan 55 595 0 3% 9% +287%
Germany 121 166 0 31% 42% +46% Benelux 80 268 0 20% 23% +4%
Southern Europe 22 117 4 18% 16% -10% Australia/New-Zealand 20 28
371 43% 42% -11% Hong-Kong 36 61 3 36% 37% +30% TOTAL 2 731 2 649
854 45% 51% 30% (1) As a reference, note that FY05 mutual funds APE
amounted to Euro 408 million in the US and Euro 374 million in
Australia/ New-Zealand. APPENDIX 2 PROPERTY & CASUALTY - Split
by business lines - Full Year 2006 Personal Personal Commercial
Commercial Motor Non-Motor Motor Non-Motor % Change % Change %
Change % Change Gross on comp. Gross on comp. Gross on comp. Gross
on comp. Revenues basis Revenues basis Revenues Basis Revenues
Basis France 33% 1% 28% 4% 8% 3% 31% 6% Germany 29% 4% 32% 0% 7% 1%
25% -2% Belgium 35% 1% 27% 6% 6% 4% 32% 7% United Kingdom (a) 13%
16% 37% 8% 7% 2% 42% 5% Southern Europe 58% 6% 21% 7% 6% 3% 16% -5%
Canada (b) 33% -10% 15% -17% 9% -2% 43% 6% The Nether- lands 12% 4%
36% 5% 28% 5% 26% -1% Others 58% 13% 27% 21% 2% n.s. 14% 13% TOTAL
33% 4% 29% 5% 7% 3% 30% 4% (a) Including Ireland (b) Personal lines
evolution in Canada reflects the success of 18 and 24 month
policies sold in 2005 leading to fewer renewals in 2006 gross
written premiums, partly offset by continuous organic growth.
APPENDIX 3 - AXA GROUP IFRS Revenues - Comparison FY 06 vs. FY 05
Euro million FY 05 FY 06 IFRS revenue change IFRS IFRS Reported
Comp. basis TOTAL 71 671 78 775 +9.9% +11.0% Life & Savings 45
116 50 479 +11.9% +12.9% France 13 228 14 797 +11.9% +11.9% United
States(1) 13 940 15 389 +10.4% +13.3% United Kingdom(2) 2 395 4 292
+79.2% +78.5% Japan 4 735 5 027 +6.2% +11.4% Germany 3 585 3 681
+2.7% +2.7% Belgium 2 734 2 512 -8.1% -8.1% Southern Europe 1 439 1
357 -5.7% -5.7% Other countries 3 059 3 424 +11.9% +6.7% of which
Australia/ New-Zealand 1 225 1 254 +2.4% +1.9% of which
Hong-Kong(3) 831 1 041 +25.2% +14.7% Property & Casualty 18 874
19 793 +4.9% +4.3% France 5 070 5 187 +2.3% +3.7% Germany 2 785 2
745 -1.5% +1.2% United Kingdom + Ireland 4 393 4 721 +7.5% +7.1%
Belgium 1 451 1 511 +4.1% +4.1% Southern Europe 3 012 3 152 +4.6%
+3.8% Other countries(4) 2 163 2 477 +14.6% +4.6% International
Insurance 3 813 3 716 -2.5% +7.0% AXA Corporate Solutions Assurance
1 605 1 689 +5.2% +7.2% Others including AXA RE 2 207 2 028 -8.1%
+6.6% Asset Management 3 440 4 406 +28.1% +28.6%
AllianceBernstein(5) 2 472 2 961 +19.8% +24.8% AXA Investment
Managers(6) 968 1 445 +49.3% +38.3% Other Financial Services 428
381 -10.9% -11.4% (1) Advest was sold in December 2005. Advest's
contribution to FY05 revenues amounted to Euro 239 million. (2) The
UK revenues benefited from the change in classification of some
products from investment contracts to insurance contracts. (3) MLC
which was acquired on May 8, 2006 contributed Euro 88 million to
FY06 Hong Kong revenues. (4) In Canada, Citadel was acquired on
March 1, 2006 with retroactive effect as of January 1, 2006. In
2005, Citadel P&C revenues amounted to Euro 193 million. (5) As
of end of June 2005, AllianceBernstein's Cash Management Services
were transferred to Federated Investors. Cash Management Services'
contribution to FY05 revenues amounted to Euro 48 million. (6) AXA
IM acquired Framlington on October 31, 2005. In 2006, AXA
Framlington revenues were Euro 126 million versus Euro 13 million
in the last two months of 2005. DATASOURCE: AXA CONTACT: AXA
Investor Relations - Etienne Bouas-Laurent, +33-1-40-75-57-25, or
Sophie Bourlanges, +33-1-40-75-56-07, or Emmanuel Touzeau,
+33-1-40-75-49-05, or Kevin Molloy, +1-212-314-2893, or AXA Media
Relations - Christophe Dufraux, +33-1-40-75-46-74, or Clara
Rodrigo, +33-1-40-75-47-22, or Armelle Vercken, +33-1-40-75-46-42,
or Mary Taylor, +1-212-314-5845 Web site: http://www.axa.com/
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