MANILA, Philippines – AXA, global leader in insurance, reported strong business performance in its global operations with total revenues up 3% to €92 billion, underlying earnings up 8% to €5.1 billion, adjusted earnings up 7% to €5.5 billion, and net income up by 12% to €5.0 billion.
“AXA has delivered another year of earnings growth in all business lines, with underlying earnings crossing the €5 billion mark for the first time in the company’s history” said Henri de Castries, Chairman and CEO of AXA.
“In 2014, we recorded top line growth in all our businesses, maintained our discipline in writing profitable and capital efficient business and continued to pursue active asset liability management – all contributing to AXA’s strong and sustainable performance.”
“As we look ahead, we will continue to diversify our geographical footprint and business mix, as well as further improve our operational efficiency, which should help us perform well even in a low interest rate environment. We will also accelerate the transformation of our operations, which will involve adapting to the digital revolution and developing new partnerships to serve our customers better, and create lasting value for our stakeholders.”
AXA singled out its performance in high growth markets, where its annual premium equivalent (APE, a measure of revenue) grew by 14% mostly driven by Hong Kong and Southeast Asia, India & China. Specific to its Protection & Health business, APE was up 3%, driven by Southeast Asia, India & China as well as France (mainly stemming from Group business), Hong Kong and Mexico.
Moreover, in the Life & Savings business, new business value (NBV) for Hong Kong, South East Asia, India & China also grew 14%. The Asia business now accounts for 24% of the total AXA Group NBV, and is now the largest contributor to the global business.
AXA also expanded its reach and coverage worldwide in 2014, reporting a total of 103 million customers from 59 countries, an increase from 102 million and 56 countries the prior year.
Spotlight on the Philippines
The growth story is no different for AXA Philippines. With a reported P18.35 billion in total premium income, the local entity, a joint venture between the global AXA Group and the Metrobank Group, saw an increase in market share to 11.6% in 2014 coming from 10.7% in 2013. In a recent report, the Insurance Commission placed AXA Philippines as the second largest life insurance company in the Philippines in terms of total premium income, rising up the rankings from its number three position in 2013.
Total sales or APE also increased by 16% to P4 billion from P3.6 billion the previous year, while total assets also grew by 26% to P66 billion from P52 billion in 2013.
“Not only did we increase our market share in total premium income, but also in sales volume, assets under management, and total Sum insured,” shared Rien Hermans, President & CEO of AXA Philippines. “All in all, 2014 showed that we are moving in the right direction and that we are confident that we will make 2015 even better.”
The launch of three new health products in the first quarter, as well as the launch of new offshore investment funds in Q3 helped create sales momentum for the life insurer. The year 2014 also marked the official partnership between AXA and PSBank, allowing AXA Financial Specialists access to the broad market of PSBank clients nationwide through their branches.
Also, as an innovator in the local life insurance industry, AXA launched the country’s first online life insurance store called AXA ION or AXA Insurance Online. With AXA ION (www.axaion.com.ph), Filipinos here and abroad can purchase savings, education, health, and life insurance plans on their own in just a few easy steps.
To date, AXA Philippines covers 631,600 lives and has over 2,100 exclusive agents across 30 branches in key cities nationwide, and 500 financial executives servicing 750 Metrobank and PSBank branches across the country.
To find out more about AXA Philippines, visit www.axa.com.ph. ADVT