Axa UK returns to profit in 2011 as earnings jump £196m

Axa UK saw a return to profit in 2011 as it increased underlying earnings by £196m to £133m, turning around a loss of £63m recording in 2010.

The company attributed this increase partly to platform business, which represents 42 per cent of all individual sales. Sales of Axa Wealth platform Elevate rose 75 per cent to £1.3bn in 201, bringing total platform assets under administration at the end of the year to £3.5bn.

Axa Wealth grew total assets under management from £17.9bn to £18.9bn, with sales rising to £3.8bn following similarly strong results from Architas, its specialist investment company, where total assets increased 23 per cent to £9.4bn.

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Axa’s bancassurance business also grew volumes by 22% to £382m, boosted by a new seven-year bancassurance contract to provide a financial advice service to Co-operative bank’s five million retail banking customers.

Mike Kellard, chief executive of Axa Wealth, said: “Our institutional fund platform builds and manages blended funds that have been designed with our supporting employee benefits consultants.

“This platform has proved increasingly popular with our corporate clients, and has helped grow assets from corporate schemes to strong levels.

“Equally, AXA Bancassurance’s strong banking partnerships will, I believe, continue to grow in importance as the RDR approaches, and therefore help boost our overall assets under management.”