AXA to Hold Today in Paris Its Autumn Investor Conference
November 25 2008 - 3:04AM
PR Newswire (US)
PARIS, Nov. 25 /PRNewswire-FirstCall/ -- AXA is hosting today an
investor conference in Paris, during which members of the
Management Board will address the effect of the current market
environment on the Group's strategy, financial targets and
management priorities. "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 clients around the world," said Henri de Castries,
Chief Executive Officer. "In this environment, we are particularly
committed to protecting the interests of our shareholders and
avoiding unwarranted dilution, while we intend to pursue the
operational initiatives of our Ambition 2012 plan, to allow the
Group to emerge better positioned from the crisis." AXA is showing
its capacity to resist to an unprecedented crisis AXA's Management
Board firmly believes that the current environment validates its
long term choice of a strategy focused on Life & Savings,
Property & Casualty and Asset Management, combined with a wide
geographical diversification. In addition, the risk management
organization developed over the years, which encompasses every key
business process from asset allocation to product development,
strongly mitigates violent market movements that have been
affecting financial institutions. AXA's 2008 underlying earnings
are expected to reach Euro 3.6 to 4.0 billion. Compared to our
previous assumptions based on June 30, 2008 market levels, this
range reflects lower asset fees (Euro -0.4/-0.3 billion) as well as
non-recurring Variable Annuity hedging costs (Euro -0.6/-0.5
billion), notably on basis risk and volatility, and deferred
acquisition cost unlocking (Euro -0.3/-0.2 billion). AXA's balance
sheet remains strong, with a solid regulatory solvency level
(Solvency 1 ratio at circa 135% at the end of October 2008), giving
the Group the capacity to absorb further market shocks. Management
of short term priorities to protect AXA's earnings power To
withstand the current unfavorable market environment, various
initiatives are being taken at both Group and local levels: -- Risk
management will remain AXA's first priority, and should notably
deliver on Variable Annuities hedging cost action plan; -- AXA
companies will continue to adapt their offer to the new
environment, as illustrated by the success of AXA Bank Europe's
short-term saving offer or AXA Equitable's recent redesign of the
Accumulator range; -- Strict expense management across the Group,
and more specifically in Asset Management and Life & Savings
businesses. AXA notes that some aspects of the crisis should be
favorable to its performance going forward, such as declining
concerns about inflation in Property & Casualty and the global
decrease in interest rates which enhances the attractiveness of
long-term savings products. AXA is in a position to benefit from
the fundamental growth potential of the insurance industry Even if
market developments make increasingly obsolete the assumptions that
underpinned AXA's 2012 financial targets, the fundamental growth
drivers of the insurance industry are, if anything, reinforced by a
crisis that increases customer risk aversion and retirement funding
needs. In this context, AXA's Management reaffirms that its
Ambition 2012 objective of becoming the industry's preferred
company is more valid than ever and that the current environment is
an opportunity for the Group to differentiate itself from
competition. To deliver on this objective, AXA is accelerating the
implementation of customer centricity projects, which through
product development and quality of service improvements, should
radically change customer perception. The Group will also continue
to leverage its global platform, with efficiency initiatives such
as its new claims management program (expected to generate Euro 0.7
billion of supplementary savings by 2012) or the roll-out across
European entities of its new fund procurement and sub-advisory
platform, Architas. All these initiatives are supported by the
strong engagement of AXA employees across the Group. About AXA AXA
Group is a worldwide leader in Financial Protection. AXA's
operations are diverse geographically, with major operations in
Europe, North America and the Asia/Pacific area. AXA had Euro 1,281
billion in assets under management as of December 31, 2007. For
full year 2007, IFRS revenues amounted to Euro 93.6 billion and
IFRS adjusted earnings to Euro 6.1 billion. The AXA ordinary share
is listed on compartment A of Euronext Paris under the ticker
symbol CS (ISIN FR0000120628 - Bloomberg: CS FP - Reuters:
AXAF.PA). The American Depository Share is also listed on the NYSE
under the ticker symbol AXA. This press release is available on the
AXA Group website: http://www.axa.com/ AXA Investor Relations:
Etienne Bouas-Laurent: +33.1.40.75.46.85 Paul-Antoine Cristofari:
+33.1.40.75.73.60 Emmanuel Touzeau: +33.1.40.75.49.05 George
Guerrero: +1.212.314.2868 AXA Media Relations: Christophe Dufraux:
+33.1.40.75.46.74 Laurent Secheret: +33.1.40.75.48.17 Armelle
Vercken: +33.1.40.75.46.42 Chris Winans: +1.212.314.5519 AXA
Individual shareholders Relations: +33.1.40.75.48.43 IMPORTANT
LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING
FORWARD-LOOKING STATEMENTS Certain statements contained herein are
forward-looking statements including, but not limited to,
statements that are predictions of or indicate future events,
trends, plans or objectives. Undue reliance should not be placed on
such statements because, by their nature, they are subject to known
and unknown risks and uncertainties. Please refer to AXA's Annual
Report on Form 20-F and AXA's Document de Reference for the year
ended December 31, 2007, for a description of certain important
factors, risks and uncertainties that may affect AXA's business. In
particular, please refer to the section "Special Note Regarding
Forward-Looking Statements" in AXA's Annual Report on Form 20-F.
AXA undertakes no obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new
information, future events or circumstances or otherwise.
DATASOURCE: AXA Group CONTACT: AXA Investor Relations: Etienne
Bouas-Laurent, +33-1-40-75-46-85, Paul-Antoine Cristofari,
+33-1-40-75-73-60, Emmanuel Touzeau, +33-1-40-75-49-05, or George
Guerrero, +1-212-314-2868; AXA Media Relations: Christophe Dufraux,
+33-1-40-75-46-74, Laurent Secheret, +33-1-40-75-48-17, Armelle
Vercken, +33-1-40-75-46-42, or Chris Winans, +1-212-314-5519; AXA
Individual shareholders Relations, +33-1-40-75-48-43 Web Site:
http://www.axa.com/
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