27/11/2008

A message to customers and clients from AXA UK CEO Nicolas Moreau

On Tuesday 25 November AXA Group held its annual conference with investors, this included the effect of the current market environment on the Group's strategy, financial targets and management priorities.

There are two key messages that I would like to share with you:

• AXA Group is in a strong position to weather the current extraordinary global economic crisis and expects to come out of it better positioned to deliver for its customers
• The recent dramatic drop in the financial markets has made our Ambition 2012 financial targets increasingly obsolete. The world has changed and the financial targets which were defined in 2004 on the basis of growing equity markets are no longer realistic

I would like to reiterate that in the UK, our strategy is more valid than ever and we are still fully committed to achieve our ambition to become the industry's preferred company by 2012.

The chairman of AXA's management board, Henri de Castries has stated that "the current turmoil is an unprecedented challenge for financial institutions, but AXA has a clear business model, a solid balance sheet and highly engaged teams, attentive to the needs of its customers around the world".

It was also announced that the AXA Group would achieve underlying earnings between Euro 3.6 and 4.0 billion for 2008 and that the financial targets determined for 2012 had to be reviewed given the dramatic changes affecting the world economy.

Even if the AXA Group worldwide will see its underlying earnings decrease this year, it is still expected to perform strongly, and currently remains the number one insurer in the world in terms of capitalisation. AXA continues to enjoy a strong underlying profitability, a solid balance sheet, positive cash flows and a business model based on traditional insurance.

Set in 2004 the ambition to triple operating earnings and double income by 2012 was based on the assumption that the equity markets would grow each year by 8%. The current financial and economic crisis, which is out of our control, has made this assumption unrealistic.

While there will be difficult times ahead, AXA UK is a long-term business. We have focused on what we do well - life and pensions, wealth management, protection, health and general insurance.

My priority is to ensure that we remain as committed as ever to acting in your best interests during this challenging period, signifying that your trust in us is well founded.

If you would like to speak to someone please contact your business contact or customer services.

Kind regards,

Nicolas Moreau
Group CEO, AXA UK & Ireland