THE $9.6 billion push by AXA Asia Pacific's major shareholder to get its hands on the Australian fund manager's Asian operations has been reinforced by a surge in new business in the region.
Three weeks after unveiling a profit recovery, thanks to increasing sales during 2009, AXA AP chief executive Andrew Penn said yesterday the expansion had continued during January and February.
Mr Penn said yesterday the growth in new business had jumped almost 70 per cent on the corresponding period a year ago.
Total new business sales of AXA's wealth management and life insurance products last year hit $1 billion as its main markets in Hong Kong, Singapore, Thailand, Malaysia, Indonesia, China, India and the Philippines shrugged off the effects of global economic downturn.
While the countries outside its main base of Hong Kong contribute a small portion of operating earnings, Mr Penn said: ''[The rest of Asia] is … becoming increasingly material in terms of value of new business.''
Market watchers said that also applied by extension to AXA SA of France, which owns 54 per cent of the Melbourne-based company and which will buy AXA AP's Asian business from either AMP or NAB, which are both bidding to buy the group.
The two $14 billion offers are both dependent on AXA SA's financial contribution for them to succeed, which will see one of them snare AXA AP's Australasian operations.
