(All figures are reported in Australian Dollars)


AXA ASIA PACIFIC HOLDINGS LIMITED


AXA Asia Pacific Holdings (AXA APH) today announced profit after tax and before non-recurring items of $136 million for the 6 month period to 30 June 2002, 5% up on the result for the corresponding period last year (6 months to 30 June 2001 - $130 million, 6 months to 31 March 2001 - $198 million).

Commenting on the results Group Chief Executive, Les Owen said, "Over the past two years we have established a very clear strategic direction and have made major changes to our business focus and capability. Despite difficult global financial markets these results demonstrate that we are delivering.”

“In Australia and New Zealand we have seen a 50 per cent increase in operating earnings in wealth management and financial protection, a very encouraging result. Our income protection business has stabilised and has contributed positively to profit.

“Funds under management, administration and advice have grown, and net fund flows have once again increased.

“Our recent acquisition of ipac Securities, which builds on our earlier acquisition of Sterling Grace, is positioning us as a leading provider of financial advisory services.

“In AXA China Region operating earnings, in local currency, increased by 3 per cent.

“In Hong Kong we are starting to see the benefits of broadening our distribution channels. In addition we have seen further improvement in persistency levels.”

Investment earnings for the 6 months were $29 million down 9 per cent on 2001, (6 months to 30 June 2001 – $32 million, 6 months to 31 March 2001 – $96 million), reflecting falls in global equity markets.

The directors have declared an interim dividend of 4.75 cents per share (60 per cent franked).

Australia and New Zealand

Operating earnings for our core financial protection and wealth management business were $63 million for the 6 months to 30 June 2002, 50 per cent higher than prior period (6 months to 30 June 2001 - $42 million, 6 months to 31 March 2001 - $40 million).

Including Health, total operating earnings after tax were $89 million (6 months to 30 June 2001 - $92 million, 6 months to 31 March 2001 – $92 million).

Investment earnings after tax were $26 million (6 months to 30 June 2001 – $24 million, 6 months to 31 March 2001 – $56 million).

Of note were:

• A 50 per cent increase in operating earnings in our core business of wealth management and financial protection;

• Strong growth in total funds under management and administration up 17 per cent to $41 billon (June 2001 - $35billon);

• An increase in retail product net flows up 20 per cent to $595millon (June 2001 - $497 million);

• Encouraging progress in our income protection portfolio with an operating profit of $6 million ($10 million loss for 6 months to June 2001); and

• The sale of our health business which provides greater flexibility for us to grow in wealth management. This transaction has now been completed.

• 3 per cent increase in operating earnings to HK$318 million (HK$310 million to June 2001);

• Sales up 17 per cent to HK$441 million as a result of broadening distribution channels and a move towards wealth management products;

• Further improvement in persistency which is returning to long term assumptions;

• Stability in agent numbers and further improvements in productivity; and

• Recurring management expenses down 15 per cent to HK$180 million.

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