AXA AP expected to play up good Asia results
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AXA Asia Pacific (AXA AP) is likely to play up good results revealed in the release of its new business and fund flows for the 12 months ended 31 December 2009, which showed particularly good performance in Asia.
AXA AP rejected the takeover offer by AMP and AXA SA as it felt it undervalued its businesses. The National Australia Bank bid is dependent on a number of conditions, including an agreement by AXA SA to acquire the Asian businesses.
AXA AP chief executive Andrew Penn said most of its businesses performed strongly in 2009 despite the hit to industry sales as a result of the global financial crisis — particularly its Asia businesses.
Total group funds under management, administration and advice grew by 7 per cent in the second half, said Penn, although they were down 3 per cent over the year to $81 billion.
Penn described the growth of the total new business index for Hong Kong “modest”, up 3 per cent to HK$2.3 billion against the background of a market that reduced 17 per cent for the nine months to September 2009.
“Sales in the second half of the year were up 13 per cent on the first half, and up 49 per cent in the final quarter compared to the final quarter of 2008.”
There was very strong growth in Indonesia, Thailand, Singapore and Malaysia, he asserted, and the South East Asia business index was up 51 per cent to $452 million.
The new business index in India was up 14 per cent to $99 million, and China was up 73 per cent to $55 million.
“In Australia, AXA wealth management inflows were up 6 per cent in the second half compared to the first. However, wealth management inflows were down 22 per cent for the full year to $7.61 billion reflecting general market conditions,” Penn said. He added that North sales in 2009 were $934 million compared to $295 million in 2008, while total Australian individual financial protection new business was up 20 per cent to $105 million.
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