Axa reports fund growth during 2005

SYDNEY - Financial services firm Axa Asia Pacific Holdings Ltd has reported a 139.6 per cent increase in total net fund flows to A$9.55 billion ($10.6 billion) within Australia and New Zealand last year.

The firm also reported growth in its Asian businesses with total Hong Kong-based premium income up 12.1 per cent to $HK8.15 billion ($1.56 billion).

Axa group chief executive Les Owen said fund flows and new business have both grown very strongly over the past 12 months.

"This is an impressive result with almost all areas of our business performing well," he said.

"Total funds under management, administration and advice was up 34 per cent to $70.34 billion as result of strong flows and favourable investment performance."

Mr Owen said Axa has continued to experience strong growth in its Australian and international equity funds with fund inflows into its Global Equity Value Fund more than doubling over the past year.

Financial protection new regular premiums in Australia and New Zealand were up 9.8 per cent to A$110.1 million.

"We expect product improvements made in July 2005 to deliver further growth in 2006," he said.

The firm said new business in Hong Kong continued to grow strongly with its total life new business index up 20.6 per cent to $HK1.27 billion.

"There was particularly strong growth in single premiums following the successful launch of our new multi-manager investment platform, Evolution, at the end of 2004," Mr Owen said.

Meanwhile, new business in the rest of Asia also continued to grow strongly, up 59.3 per cent to A$125.5 million on a constant currency basis.

Axa previously announced a A$246.4 million half-yearly net profit for the half year ending June 30, 2005, driven by growth in its Australian and New Zealand operations.

- AAP