16 August 2007
- Sharp growth in new business (in the six months to June 30 2007)
- Individual pensions up 74% to £1.05bn Single Premium Equivalent (SPE)
- Total assets under management increased to £11.15 bn1
- Strong service and distinct A-Day platform prompt rise in sales
Winterthur’s wealth management business today reported a sharp increase in new individual pensions business in the six months to June 30 2007, up 74% to £1.05 billion SPE (2006: £603 million) reflecting the continued strong progress of its predominantly single premium proposition. The company also reports a rise in assets under management to £11.15 billion, as at June 30 2007, up from £9.48 billion as at Q2 2006.
In the UK pensions segment:
- Single premium Personal Pensions up 132% to £568 million (2006: £244 mn)
- Income Withdrawal up 215% to £286 million (2006: £91 mn)
- Annual Premium Personal Pensions up 51% to £7.5million (2006: £5.0 mn)
In the UK investments segment:
- New investment bond new business grew 13% to £58 million (2006: £51 mn)
Mike Kellard, CEO, AXA and Winterthur Wealth Management, said, “I am pleased to be able to report another strong set of business results for Winterthur’s wealth management business - individual single premium pensions sales have increased by 132%, building upon a strong comparative period in 2006, and assets under management continue to reach new highs. While A-Day has continued to drive sales, Winterthur’s overall market proposition – aligned to quality IFAs and their high net worth clients, backed with a simple and transparent product range - has helped it stand out in a very busy market.”
As part of a range of initiatives brought in by Winterthur this year, the business is planning to expand its product portfolio into complementary areas for customers in the pre-, at- and post- retirement phases, and these will be supported by its leading investment platform, technology proposition and first-class service.
Kellard concludes, “The number of IFAs supporting Winterthur has increased by a further 12% over the past six months on top of the 100% increase in 2006, which is a strong endorsement of the strategy followed by Winterthur, supported by its parent AXA UK. I believe the proposed changes coming through as a result of the FSA’s Review of Retail Distribution will boost Winterthur’s appeal further and help it grow its pensions and investments business in the future.”
Paul Evans, CEO, AXA Life, says, “These results from the Winterthur wealth management business and in particular the increased level of support it has seen from IFAs over the past six months, supports our decision to operate the business separately from the AXA Life business, in order to retain its distinct proposition in the UK pensions and investments marketplace.”
1 This figure represents total assets under management for Winterthur UK Financial Services Group of Companies at 30 June 2007.
-End-
For further information:
Paul Riddell Winterthur Life, Press Office +44 (0)1256 798099
Christine Wood FD +44 (0)20 7269 7253
Notes to Editors
SPE
Except where noted otherwise, all new business figures in this announcement are on a Single Premium or Single Premium Equivalent (SPE) basis. SPE equals new single premiums plus new regular premiums x 10. This replaces the Annual Premium Equivalent (APE) basis, used up to Q3 2005.
About Winterthur Life UK Limited
Winterthur Life UK Limited is part of AXA Group, one of the largest financial institutions in the world.
Winterthur Life UK Limited is a provider of focused investment and retirement solutions and support services predominantly distributed through quality IFAs to their high net worth clients.
The company is recognised as having an innovative approach to financial products and its products feature simple, transparent charging with access to a wide range of carefully selected investment funds and fund managers via its Tailored Selection fund platform. Winterthur is also differentiated in the market through its focus on service excellence.
Winterthur Life UK Limited has a B+ financial strength rating from AKG, which denotes “very good financial strength”. At the end of 2006 Winterthur had assets under management exceeding £10 billion, and grew its new pensions business by 125% to £1.45 billion.
www.winterthur-life.co.uk
