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Axa Investment Managers’ earnings fall 6%

FRANCE – Axa Investment Managers’ earnings and revenues declined by six percent and 13.7% respectively in the first half, according to Axa Group’s first-half earnings report.

Axa IM, which has around 14 billion euros in European pension funds under management, saw its earnings after taxes fall to 31 million euros in the first half, down from 33 million euros a year earlier. Taking account of currency changes, the earnings were up one percent. Revenues at the division fell to 287 million euros from 332 million euros.

The operation’s parent company, insurer Axa Group, said that “lower management fees stemming from an unfavourable change in client-mix towards lower-fee segments were offset by a decrease in expenses”.

Axa Group added that its overall asset-management earnings fell 27% to 107 million euros from 147 million euros – “completely due” to a 33% slump in earnings at its US asset management arm Alliance Capital.

Total assets under management at Axa IM and Alliance rose two percent to 648 billion euros – driven by a net inflow of 13 billion euros and 36 billion euros due to a market rise.

“Our Life & savings and Asset Management operations attracted strong net inflows and helped build the base for a strong future,” said Axa Group chief executive Henri de Castries.

The Life & Savings unit’s earnings fell 23% to 680 million euros. The group was guardedly cautious about the outlook. “If financial markets stabilize at their current levels, the second half should benefit, in Life & Savings and Asset Management, from increased average assets under management.”

Axa Group’s overall operating profit rose six percent to 1.09 billion euros from 1.02 billion euros a year earlier.


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