2005
(16/09/2005) AXA with profits bonuses announcement
AXA has reviewed with profits bonus rates following its annual bonus declaration in February. Regular and interim bonus rates on all products remain unchanged while most Market Value Reductions (MVRs) have been reduced by up to 5%. Many terminal bonuses have been increased or remain unchanged whilst others have been reduced. With profits bond payouts will increase by up to 5%.
Commenting on the announcement, Peter Shelley, With Profits Actuary at AXA, said: "Improving stock market conditions, where our funds have returned positive growth of 6% for the six months to the end of June, mean the recent modest improvements in with profits payouts continue.
"As with profits funds work on a medium to long term basis due to the smoothing element within them, it is likely to take a further period of positive stock market performance before regular bonus rates could begin to climb again. Nevertheless, long term returns remain good on maturing policies, with a typical annual return of over 9% p.a. on 20 year pension policies and over 7% p.a. on 25 year endowment policies."
Examples for illustrative purposes of typical payouts after this review of bonus rates:
AXA Sun Life (ASL) and Sun Life Assurance Society (SLAS)
With Profit Bond
| Type of Contract | Male Age | Single Premium | Term | Payout value 1st Sept '05 | Payout value 1st Oct '05 | Percentage change | Average annual growth |
|---|---|---|---|---|---|---|---|
| ASL Unitised | 30 | £10,000 | 5 | £9,031 | £9,340 | 3.4% | -1.4% |
| ASL Unitised | 30 | £10,000 | 10 | £14,518 | £14,931 | 2.8% | 4.1% |
| SLAS Unitised | 30 | £10,000 | 10 | £16,388 | £16,569 | 1.1% | 5.2% |
Personal Pension
| Type of Contract | Male Age | Single Premium | Term | Payout value 1st Sept '05 | Payout value 1st Oct '05 | Percentage change | Average annual growth |
|---|---|---|---|---|---|---|---|
| ASL Conventional | 45 | £200 | 20 | £130,819 | £130,327 | -0.4% | 9.1% |
| SLAS Conventional | 45 | £200 | 20 | £132,740 | £132,122 | -0.5% | 9.2% |
Endowment
| Type of Contract | Male Age | Single Premium | Term | Payout value 1st Sept '05 | Payout value 1st Oct '05 | Percentage change | Average annual growth |
|---|---|---|---|---|---|---|---|
| ASL Conventional Mortgage Endowment | 30 | £50 | 25 | £41,938 | £40,049 | -4.5% | 7.1% |
| SLAS Conventional Mortgage Endowment | 30 | £50 | 25 | £43,433 | £42,296 | -2.6% | 7.5% |
- Ends -
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About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2004, had €869 billion in assets under management. Reported total revenues for 2004 were approximately €72 billion. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.