Profitable AXA promises improved planner services
The advice business of AXA Asia Pacific has experienced a strong year of performance in 2005 with operating earnings up $14.5 million, or 69.7 per cent, to $35.3 million from $20.8 million in 2004.
AXA Asia Pacific group chief executive Les Owen said the boost in earnings was “due to a combination of positive net funds flow and the continued strength of Australian equity markets.
“This has combined to increase funds under management and advice, and generate additional fee revenue,” he explained.
In 2005 funds under advice rose from $5.1 billion to $6.3 billion — a 22.5 per cent increase.
The operating earnings of AXA’s wealth management products and platforms also rose over the past 12 months to $95.6 million, compared to $64.8 million in 2004, representing a 47.5 per cent increase.
Owen said choice of fund had little impact on fund flows.
“As far as AXA is concerned, you can see that under our business super there was a spike in discontinuances immediately following the introduction of choice, but it quickly returned to normal or better than normal levels by the end of the year.”
Owen also said AXA intended to improve services to its financial planners in 2006 so the company sits in the top five for services.
“We are on track in New Zealand but the position in Australia is disappointing, where we have slipped in the WA Taylor rankings to ninth,” said Owen.
Owen said AXA will complete an acquisition of the remaining 67 per cent of the 32 planner strong Tynan McKenzie financial planning group in the second half of this year.
AXA also confirmed that it had bought National Australia Bank’s life insurance business in Hong Kong and Indonesia for $575 million.
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