AXA focuses on Wealth Management[

24 June 2010

Our discussions with Resolution to dispose of part of our life and savings operations have now concluded.

The net proceeds of the transaction will be used to fund the further development of the UK wealth management business and to redeploy capital more efficiently throughout the AXA Group.

AXA UK's operation will now centre around wealth management (which employs c3,000 people) and the general insurance and PPP healthcare businesses, providing focus in the three key areas which AXA believes offer the most long-term potential.

The new AXA Wealth portfolio of businesses, which represented c60% of all new Life business premiums (Q1 2010), will comprise the following:

- AXA’s wrap platform (“Elevate”), which now has £1bn funds under management, and is the fastest growing wrap platform having launched with fuller functionality in February 2010:
- Significant investment in Elevate will continue to support further enhancements, including the addition of an onshore bond to the platform this year
- Architas Multi-Manager, with £3.3bn AUM
- AXA Wealth International, including Isle of Man and Dublin
- AXA Winterthur Wealth Management including Family Suntrust, The One from Winterthur and the Winterthur Onshore Bond
- Our recognised bancassurance operation, and
- Corporate - investment only products.

The existing AXA Sun Life product range which will transfer to Resolution include:

- ASLS Personal Pension and SiPP (closed to new business last year)
- ASLS Drawdown (closed to new business last year)
- Onshore bonds administered on Lamda
- Our Corporate Pension business, excluding investment only business (Corporate TIP)
- Our Protection business, excluding Sun Life Direct, though some older SLD policies would be sold
- Our Traditional business including annuities and PPP Lifetime Care.

This new structure builds on our existing strengths and accelerates the transformation of our business from an old model traditional life company to an open, transparent, investment focused, RDR-ready financial services company, which is already seeing impressive results:

- AXA Wealth’s IFA market share is 14%
- First quarter new business growth 2010 was 42%
- AXA Wealth assets under management total £15bn with current new premium inflows of £5bn
- Targets to double AUM by 2013 and triple by 2015.

If you do have any urgent observations or questions, please email WealthManagementQuestions@AXA-wealth.co.uk or contact your sales representative in the usual way.