AXA - Be Life Confident

Globally, AXA reported strong first half 2006 results with group underlying earnings up 19% to Euro 2.1 billion.

"AXA's performance in the first half of 2006 marks another successful milestone on our path to Ambition 2012," said Henri de Castries, chairman of the AXA Management Board. "AXA is delivering on its organic growth and profitability objectives in all business segments. The strength of the group and the performance of our local teams put us in a perfect position to successfully integrate Winterthur and further leverage the benefits of being global."

In the UK & Ireland, underlying earnings of £156 million for H1 2006 were 32% ahead, with both life and non-life operations contributing positively to this strongly improved result.

Total General and Health Insurance revenues increased (by 8% in H1 2006 at £1.7 billion). This reflects a strong performance in Property classes with increases in both Personal and Commercial lines (up 18% and 10% in H1 2006 respectively) led by growth in new partner deals. Personal motor revenues in the UK increased by £30 million, helped by the successful introduction of an updated pricing strategy. These increases were balanced by a reduction in Creditor business (down 20% to £73 million for H1 2006).

In Ireland, revenues were down marginally (-1% at €254 million in H1 2006) reflecting lower average premiums in Commercial Motor. This was offset by increased new business from young drivers at higher average premiums along with stronger retention.

The improvement in UK Health revenues was maintained (up 8% in H1 2006 at £476m) with increased volumes across individual and group business both in the UK and from UK nationals temporarily resident abroad.

General and Health Insurance underlying earnings increased by 13% to £124 million for H1 2006. The General and Health combined ratio continued the trend of improvement witnessed over recent years with an improvement of 0.6pts to 96.7% for H1 2006. This important measure of business performance continues to stay within the AXA Group's target range, helped by a more favourable claims environment and continued claims savings.

In Life & Savings business, APE was up 25% to £328 million in H1 2006. This reflected strong performance in a growing market segment. Investment and Savings new business was up 27% largely due to sales of unit linked investment bonds and increased sales of pension products (up 28%).

New business value increased by £10 million to £41² million in H1 2006 driven by increased volumes in Bonds and Pensions products. Underlying earnings of £55 million in H1 2006 improved by £25 million mainly helped by the reclassification of a bond product under IFRS rules from an investment to an insurance contract, and favourable adjustment in reserves related to resolution of past tax matters.

Nicolas Moreau, incoming group chief executive of AXA UK, commented, "I am delighted to be joining AXA UK at a time when we can announce these excellent results which have been achieved through the quality we have across our teams in the UK and Ireland. In order that we continue the momentum achieved over recent years, I am determined that we maintain our pricing discipline while we grow customer share in our chosen markets.

"I am confident that the investments we are making in re-engineering our businesses, along with the innovative enhancements we have introduced to our product range, will ensure that we continue to go from strength to strength. We have already announced significant developments to our wealth management proposition and with further innovation planned, I am confident this growth momentum will be maintained."

- Ends -