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Article Excerpt
Trends in Line With 1H09
PARIS, Oct. 29 /PRNewswire-FirstCall/ --
Resilient revenues Total revenues were down 2% to EUR68,094 million On a comparable basis, total revenues were down 5%: -- Life & Savings down 6% to EUR42,706 million -- Property & Casualty up 1% to EUR20,524 million -- Asset Management down 31% to EUR2,253 million Positive insurance net inflows Life & Savings: EUR +7.0 billion P&C: +919,000(1) net new personal contracts Asset Management: EUR-51 billion Enhanced Solvency
September 30, 2009 Solvency I ratio slightly above 140%(2) (vs. 133% as of June 30, 2009)
Chairman's statement
"Our top line trends for the first nine months are in line with the ones observed in the first half of 2009, with a modest revenue drop and continued positive insurance net inflows," said Henri de Castries, Chairman of AXA's Management Board.
"Life and Savings revenues recovered modestly in the third quarter, notably with a solid performance in France. Our unit-linked business remained below normal trends, as clients evaluate the impact of the market environment on their investment plans and investment decisions. Current US sales have been impacted by lower consumer confidence following the market and economic turmoil combined with our recent product redesigns. However, we continue to believe in the strong potential of variable annuities and other unit-linked savings products to meet our clients' needs.
In Property & Casualty, sales growth remained slightly positive and we expect prices to generally increase over the coming months.
Assets under management have increased in the third quarter mainly as a result of higher equity markets. AllianceBernstein improved its investment performance and experienced lower levels of outflows from their institutional clients compared to those seen earlier in the year."
"The outlook in global financial markets has improved over the last six months, which provides a more favorable environment for our business."
9M09 KEY HIGHLIGHTS / Revenues : Key figures Euro million, except Change Change when otherwise noted on a ----------------------- reported Comp.(a) Scope & FX 9M08 9M09 basis basis Other impact(b) Life & Savings revenues 43,845 42,706 -2.6% -6.4% 0.4% 3.5% Net inflows (Euro billion) 7.8 7.0 APE(3) (Group share) 5,163 4,508 -12.7% -14.7% 0.9% 1.0% NBV(4) (Group share) 738 649 -12.2% -17.8% 0.5% 5.1% NBV to APE margin (Group share) 14.3% 14.4% 0.1pt -0.5pt Property & Casualty revenues 20,031 20,524 2.5% 0.6% 4.0% -2.1% International Insurance revenues 2,229 2,308 3.5% 2.8% 0.1% 0.6% Asset Management revenues 3,059 2,253 -26.3% -30.9% 0.1% 4.4% Net inflows (Euro billion) -10 -51 Total revenues 69,458 68,094 -2.0% -5.1% 1.4% 1.8% (a) Change on a comparable basis was calculated at constant FX and scope. (b) Mainly due to the appreciation of the USD and JPY against the Euro partly offset by the depreciation of the GBP. Numbers herein have not been audited. 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. All comments are on a comparable basis (constant Forex, scope and methodology) - Total Revenues were resilient, down 5% to Euro 68,094 million (down 6% in 1H09). - Life & Savings revenues were down 6% to Euro 42,706 million (down 7% in 1H09). France, Italy and Germany experienced positive growth, whereas the US and the UK faced unfavorable market conditions, notably in their unit-linked business. Net inflows were positive at Euro +7.0 billion (Euro +5.6 billion in 1H09) with strong positive contributions across the board driven by increased client retention. New Business Volume (APE3) was down 15% to Euro 4,508 million, mainly driven by a slowdown in Investment & Savings products through non proprietary channels. Unit-linked share was down from 50% to 38%: variable annuity "Accumulator" sales dropped in the US as a result of both declining markets and AXA's redesign actions. New business margin was down 0.5 pt to 14.4% (up vs. 13.7% in 1H09), mostly as a result of (i) higher unit costs due to lower volumes and (ii) unfavorable market conditions, partly...
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