AXA performance justifies takeover snub

AXA Asia Pacific is continuing to set new share price highs today on the back of yesterday’s announcement that fund flows and new life business grew strongly for the 12 months to December 2004.

In early trading on the Australian Stock Exchange (ASX) today, AXA stock reached $4.27 per share to record an all time high and provide comfort to AXA’s Asia Pacific sub-committee of independent directors, which torpedoed a $4.05 per share takeover deal with its French parent back in October.

Yesterday in an announcement to the ASX, AXA group chief executive, Les Owen, signalled gross retail flows for the year ending December were up 9 per cent on the corresponding period in 2003 to $8.15 billion, while total retail and wholesale flows were up 16 per cent to $12.25 billion.

Owen also noted that investment product inflows jumped 29 per cent to $2.87 billion due primarily to strong inflows into unit trusts and AXA’s Summit master trust.

However the news was not all rosy, with net retail flows falling 18 per cent from $3.56 billion to $2.93 billion due to a fall in retail mandate flows through Alliance Capital. Although total net flows into Alliance Capital were in fact up 42 per cent to $2.66 billion.

Meanwhile the group recorded positive growth across Asia with encouraging growth in Hong Kong and Indonesia.

“New business in Hong Kong also grew strongly, up 14 per cent, with particularly good performance in group business and unit linked single premiums.

“New business in South East Asia also grew, with very strong growth in Indonesia following the launch of our joint venture with Bank Mandiri at the beginning of 2004,” Owen said.