Wealth management drives AXA result

Andrew Penn

Wealth management has again emerged as a major driver for increased profitability, with AXA Asia Pacific Holdings announcing today a 4 per cent decrease in profit after tax to $638.7 million on the back of a 25 per cent increase in wealth management earnings.

AXA reported that its profit after tax before investment experience and non-recurring items had increased by 12 per cent to $604.8 million.

The company’s annual results, released to the Australian Securities Exchange this morning, revealed that wealth management earnings for the 12 months to December 31 had risen to $110.9 million, up from $81 million a year earlier. It said funds under advice had increased 15 per cent to $9.5 billion.

Commenting on the results, AXA Asia Pacific group chief executive Andrew Penn said that in Australia and New Zealand 2007 featured the confluence of strong investment markets and a number of favourable regulatory changes.

Looking over the horizon, Penn pointed to the volatility in investment markets but said AXA was well-positioned to capitalise on the inevitable opportunities that would arise.

He said that one such opportunity was North, AXA’s new Australian superannuation and pension product launched late last year.

Penn said the North product provided customers with downside protection while still enabling them to participate in market gains on the upside, and that since its launch late last year applications had already topped $30 million.