Wealth management inflows down, insurance sales up for AXA

AXA Asia Pacific’s latest fund flow figures for the nine months to September 30 reflect what has become an industry theme this year, rapidly declining funds management flows and healthy insurance inflows.

The figures show the group’s Australian wealth management business taking a hit, while its financial protection business is up on last year.

Total wealth management net flows for the nine months to September 30 were positive at $1.9 billion, but gross and net inflows were lower than last year.

In the 9 months to September 30 AXA reported a 29 per cent reduction in inflows into its wealth management arm. Group funds under management, administration and advice (FUMA) for the Australian business for the 9 months to September were down 15 per cent to $72.4 billion from $85.2 billion at December 31 last year.

Platform gross inflows were down 30 per cent to $1.78 billion from $2.5 billion last year, while inflows into the group’s advice business were down 34 per cent. The total AXA Asia Pacific business saw a drop in inflows of 27 per cent.

However, in a trend seen across much of the industry this year, the group’s insurance business has performed relatively well. AXA has seen a 22 per cent increase in new business for individual life policies and a 7 per cent increase in new business for individual income protection policies.

AXA has also reported a 55 per cent increase in group insurance this year.

“Australian individual new life business continued its positive momentum, up 22 per cent to $45 million,” the group said.

Total financial protection new business was up 25 per cent to $87 million.

The group’s New Zealand business was down 32 per cent over the same period to A$5.9 billion from A$8.7 billion.