AXA Asia Pacific reports tough first quarter
AXA Australia has reported wealth management net flows of negative $230 million for the first quarter of 2009 in what AXA Asia Pacific chief executive Andrew Penn called "a very challenging year for our sector”.
Total funds under management for the Australian arm of the group was down 14 per cent for the first quarter to $52.87 billion.
But the insurance arm of the business still performed, reporting a 24 per cent increase in new business (to $26 million), with individual life new business up 13 per cent to $14 million.
Total Australian wealth management gross inflows were down 45 per cent to $1.55 billion, while AXA wealth management gross inflows were down 37 per cent to $1.5 billion.
Total wealth management net flows (including AllianceBernstein) were reduced to negative $6.67 billion from $942 million last year.
AXA wealth management net flows were down $1.08 billion to negative $230 million, compared to $845.5 million in 2008.
The group’s platform gross inflows were also down 19 per cent to $394.7 million from $486.6 million last year. Net inflows were down 66 per cent to $58.1 million.
Meanwhile, advice gross inflows were up 59 per cent to $409.9 million due to the business’ acquisition of Genesys. But net flows were down $67.7 million to negative $53.8 million.
Investment gross inflows were down almost 60 per cent, and net flows were down $895 million to negative $234.4 million.
For AllianceBernstein, gross inflows were down more than 62 per cent to $573.9 million and net flows were down $6.91 billion to negative $6.76 billion, which the group attributed to continued client rebalancing away from both Australian and international equities, as well as the termination of a number of large client mandates.
Providing some good news for the group was its personal insurance business. New business in the group’s Australian financial protection arm was up 24 per cent and now sits at more than $26 million, up from $21 million last year. Both individual and group life businesses are performing well, a statement from the group said.
Reflecting the trend currently being seen across the industry, individual life new business was up 13 per cent to $13.9 million. Individual income protection new business was also up 18 per cent to $6.5 million, while group risk new business was up 78 per cent due to new tenders, the group said.
Gross inflows into AXA superannuation and pension products were down 2 per cent to $754.3 million, while net inflows were up 53 per cent to $94.5 million. The group said sales in its North product had contributed positively to results.
For ipac Asia, total gross inflows were $44.3 million, down from $288.3 million in 2008, while net flows remained positive at $17.9 million.
Total funds under management and advice was down 5 per cent to $843.1 million.
The results follow yesterday's news that the group would be cutting 120 jobs, potentially including roles from AXA-owned financial planning business ipac.
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