Axa New Zealand, the local unit of Axa Asia Pacific Holdings, boosted earnings 24 per cent as it lifted its managed KiwiSaver funds and improved its insurance claims and expenses.
The unit operating earnings of $43.5 million in the 12 months ended December 31, compared to $35.1 million a
year earlier, contributing 6 per cent to the group's operating earnings of A$572.2 million.
Group net profit fell 11 per cent to A$601.6 million.
Axa NZ, which is set to come under AMP control in a A$13.3 billion merger, said the stronger earnings came from more KiwiSaver funds under management and better margins on its wholesale funds.
Its insurance business improved claims and expense experience.
The local wealth management business boosted earnings 14 per cent to
$10.8 million and the insurance arm lifted earnings 28 per cent to $32.7 million.
Inforce premiums rose 3 per cent to $18.9 million as at December 31, leaving Axa NZ as the country's third-biggest insurer, while its 7.6 per cent of the KiwiSaver market makes it the fourth biggest of the default providers.
The wealth manager funds under management fell 10 per cent to $5.8 billion as at December 31.
The firm's adviser network fell 15 per cent to 359 advisers at December
31, after it removed unproductive agents.
Still, the number of brokers selling Axa products rose to 1,165 as at December 31, compared to 940 a year earlier.
The financial advice industry is undergoing regulation to bring it into line with Australia, by bringing greater protections to retail investors after the collapse of the finance sector wiped out some $3.1 billion worth of deposits.
Last month, Axa AP's minority shareholders have been encouraged to accept AMP's A$6.43 a share cash and scrip offer after two years of French parent Axa SH's attempt to divest the Australasian business. Shareholders are set to vote in the deal next month, which will see AMP buy the group then sell back the Asian unit to the French parent.
Axa AP's shares fell 0.2 per cent to A$6.42 in trading on the ASX today.
