AXA struggles to find recovery

The global financial crisis is continuing to weigh down on AXA Asia Pacific, notwithstanding improving data over recent months, according to an announcement to the Australian Securities Exchange today covering new business and fund flows from the nine months ended 30 September.

The data revealed that total Australian wealth management gross inflows were down 41 per cent to $5.82 billion and that AXA wealth management gross inflows were down 27 per cent to $5.76 billion.

It said that total wealth management net flows, including AllianceBernstein, were down $10.4 billion.

However the company noted that, while business activity remained well below levels for 2008, signs of modest improvement were beginning to improve.

Where advice was concerned, the company reported gross inflows had increased by 38 per cent to $1.67 billion due to the inclusion of Genesys, with Genesys and AXA’s existing advice business reporting positive net flows for the second and third quarters.

Commenting on the result, AXA Asia Pacific chief executive, Andrew Penn, said the third quarter had seen further improvements in local and global equity markets but, notwithstanding this, investor confidence had not yet recovered.

Looking specifically at Australia, Penn said that AXA wealth management net fund flows for the nine months were $376 million, with the company’s North product continuing to be well supported, with funds under management now having reached $1 billion.

He said total financial protection new business was up 16 per cent to $75 million, while group life business was down 18 per cent to $16 million.