Strong market boosts AXA profits

AXA/axa-asia-pacific/financial-planning/cent/insurance/platforms/life-insurance/chief-executive/

13 January 2006
| By George Liondis |

A booming Australian share market and strong growth in financial planning and wealth management products have resulted in a welcome boost to the bottom line of AXA Asia Pacific.

The group reported an 18 per cent rise in interim operating earning to $185.8 million yesterday, taking profits for the six months to the end of June to $246.4 million.

The continued strength of the Australian market lifted operating earnings from AXA’s wealth management products and platforms by 48 per cent to $46 million, to help underpin the result.

Earnings from AXA’s advice businesses were also up, rising 36 per cent to $15.5 million.

AXA, which owns AXA Financial Planning, Charter Financial Planning, iPac Securities and Monitor Money and has a stake in Tynan Mackenzie, is the country’s fifth largest financial planning network.

The performance of AXA risk insurance division was also up, increasing earnings 15 per cent to $38.3 million as a result of strong life insurance sales.

Overall, AXA increased new business by 17 per cent to $45.6 million, a result “reflecting the strong growth in wealth management inflows” and “improved sales of financial products”, according to chief executive Les Owen.

However, net retail inflows were $1.37 billion for the six months, slightly down on the same period last year.

In Asia, AXA’s Hong Kong operations, which includes a small presence by financial planning group iPac, grew earnings by 10 per cent over the six months to HK$505.7 million.

Ipac has $76 million under advice in Hong Kong, a rise of 27 per cent over the past six months.

AXA declared a 6.25 per cent interim dividend for 2005 on the back of the result, up 19 per cent on 2004.

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