28 February 2002
(All figures are reported in Australian Dollars)

• The acquisition of Sterling Grace - a major strategic move to enter the independent financial advisory market which moved us to No.1 in funds under administration in New Zealand and strengthened our position in Australia
• The launch of a new range of retail and mezzanine mutual funds following the completion of our joint venture with Alliance Capital. We have achieved strong ratings from asset consultants and gatekeepers
• Growth in total funds under advice and administration to $40 billion (30 September 2000- $31 billion)
• An improvement in net retail funds flows to $1,173 million in the 15 months to 31 December 2001 (12 months to 30 September 2000 - $607 million). Funds under administration in our portfolio administration platform, Summit and Assure, reached $5.2 billion.
• Improved experience in our income protection portfolio in the final quarter. This portfolio continues to receive significant management attention and resources - particularly in claims management
• Further reductions in operating expenses, with recurring management expenses down 21 percent on an annualized basis compared to the 12 months ended 30 September 2000.

• A return to growth in agent numbers which are now at a 15 month high. The 'agent poaching' which was a feature of 2000 seems to have abated and our strategy of not following this questionable market practice has been vindicated.
• Increased productivity, and increasing new business sales in the final quarter with particular success from VITAMIN, our structured guaranteed bond, with sales of HK$235 million in a 6 week period. We are implementing a number of improvements in agency management systems and processes.
• Continuing improvements in persistency as a result of successful client retention campaigns. Persistency rates in recent months are close to our long term assumed rates.
• The broadening of our distribution channels through the success of AXA Advisers, our salaried channel. We are also focussing on increasing penetration of the broker market and will shortly launch a financial planning arm.
• The granting to our joint venture in China, AXA-Minmetals, a branch license. We are submitting a plan to the Chinese Insurance Regulatory Commission (CIRC) and are planning to start operations in the second half of 2002. Subject to approval by the CIRC AXA-Minmetals will locate its new branch in Guangzhou.
• The establishment of the Asian Life Regional Centre in Hong Kong to support our rapidly growing South East Asian operations in Thailand, Singapore, Philippines and Indonesia.