Axa's First-Quarter Revenue Falls as Asset Management, Life

Axa S.E. said its first-quarter revenue fell 2% as the group's asset management segment took a hard hit from the economic downturn.

Total revenue for the multiline insurer came to 27.59 billion euros (24.69 billion pounds), down on the 28.06 billion euros it recorded a year earlier. Axa said its life and savings revenue came to 16.45 billion euros, down 7%. Property/casualty revenue rose 1% to 9.11 billion euros.

Asset management revenue fell 34% to 762 million euros. According to Axa, this drop was in line with trends it had observed in the fourth quarter of 2008, with lower management fees, lower average assets under management and an ?unfavorable? change in the product mix having an impact.

Looking at annual premium equivalent by region, Axa saw declines in several countries. The United States saw annual premiums of 327 million, down 31.9%. The United Kingdom recorded premiums of 228 million euros, down 17.8%, while the Asia Pacific region saw premiums of 227 million euros, down 27.8%.

?We expect the environment to remain difficult throughout 2009, but we remain convinced that Axa has the business model, flexibility and strength to face the current global economic recession,? said Henri de Castries, the chairman of Axa?s management board, in a statement.

Axa saw its total revenues fall by 2% over 2008, whilst its net income for the year fell 84% (BestWire, Feb. 19, 2009).