The insurer announced that it has barred withdrawals from its AXA Life Property and AXA Pension Property funds for up to six months, as it tries to avert a fire sale of assets, becoming the latest company hit by the slowing commercial-property market.
AXA's move to slow investor withdrawals follows similar moves by Dutch insurer Aegon NV, U.K. insurer Friends Provident and Morley Fund Management, a unit of U.K. insurer Aviva PLC, among others. The funds have been forced to impose waiting periods on investors to avoid a liquidity crisis, as investors clamor to take their money out of the falling commercial-property sector.
The six-month period "will permit the managers of the funds to sell selected properties in a considered manner and at a reasonable price," said Ian Colquhoun, managing director of AXA's investment office. AXA "maintains the view that property remains a solid long-term investment," he added.
AXA said last year's revenue rose to €93.63 billion ($139.33 billion) in 2007 from €77.97 billion the year earlier.
The insurer's annual premium equivalent climbed 24% to €7.69 billion. The measure represents new business growth for life insurance by combining the value of payments on new regular-premium policies, and 10% of the value of payments made on one-time, single-premium products.
U.S. new business annual premium equivalent rose 19% on strong sales of variable annuities and life products, the company said. "Variable annuities growth was primarily driven by the continued expansion in the third party distribution networks, especially independent financial advisory firms," AXA said.
Annual premium equivalent in Japan fell 18%, mainly because some of its products no longer benefited from favorable tax conditions. But AXA said this impact was partly offset by sales of medical and cancer products.
Property-and-casualty revenue was up 28% to €25.02 billion, bolstered by growth in the U.K. and the Mediterranean region.
"The property-and-casualty revenues demonstrated good resilience in a competitive pricing environment, especially in retail lines, with a strong contribution of direct business and emerging markets," AXA Chief Executive Henri de Castries said in a statement.
Mr. de Castries said last year's strong revenue reflected good internal growth as well as the contribution from Winterthur.
AXA said assets under management totaled €1.09 trillion as of Dec. 31, up 15% from the year before. It attributed the increase to positive net inflows of €28 billion over the period, market appreciation of €45 billion and an additional €68 billion booked mainly from Winterthur transfers. The growth partly offset a negative exchange-rate impact of €77 billion, the insurer said.