AXA NZ operating earnings up 24%

Tuesday 15th February 2011

AXA New Zealand has reported 24% increase in full year operating earnings.

New Zealand's biggest fund manager reported earnings for the 12 months to December 31 increased to $43.5 million compared to $35.1 million in 2009.

The company said financial protection was up 28% to $32.7 million due to improved claims and expense experience.

Wealth management was up 14% to $10.8 million compared to last year's $9.5 million due to higher KiwiSaver funds under management and improved margins on wholesale funds under management, AXA said.

Total recurring management expenses were down 1% to $61.7 million .

Development expenses increased from $5.7 million to $7.4 million reflecting increased investment in financial protection product enhancements and automated underwriting as well as ongoing simplification activity, the company said.

Individual new life insurance business was up 10% to $23.7 million reflecting increased activity due to life insurance products tax changes and higher sales from non-aligned brokers.

However, group business fell 47% to $3.5 million due to lower tender success in a market where price competition had increased.

Individual life sales and total wealth management retail inflows fell 19% to $585.2 million.

Retail funds under management, administration and advice increased 4% while total funds, administration and advice were down 10% following the relocation of investment firm AllianceBernstein in early 2010.

In addition, $320 million was withdrawn from AllianceBernstein to support reconstruction activity in Canterbury following the 7.1 magnitude earthquake which struck the region in September.

Total funds under management, administration and advice stood at $5.8 billion.

NZPA

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