The financial crisis continues to rattle Axa Asia Pacific Holdings, with the group reporting a 23 per cent decline in funds under management to $84 billion for the year ended 31 December 2008.
The financial services group said the S&P/ASX price index was down 41 per cent and the MSCI world (US$) accumulation index was also down 40 per cent.
It said 2008 was an extraordinary year in investment markets and this had a significant impact across the industry.
"The final quarter of 2008 was particularly difficult and the impact was felt across all of the markets in which we operate," Axa Asia Pacific Holdings chief executive officer Andrew Penn said.
Most affected was the New Zealand retail wealth management business, with inflows plummeting 12 per cent to NZ$770 million.
However, the group's Australian individual life new business grew 21 per cent to $61 million. The total financial protection business came in at $121 million, up 31 per cent.
In Hong Kong there was also an increasing bias towards traditional life insurance, with new business rising 14 per cent to HK$756 million.
"In this difficult environment, our diverse business model has offered us some resilience to the impact of the markets," Penn said.
"Whilst on the one hand our wealth management and other single premium sales have been significantly affected, on the other hand our financial protection business has performed strongly as our clients' needs for protection have increased."
Axa Asia Pacific Holdings is set to announce its 2008 full year results on 17 February 2009.
"It seems unlikely the environment will improve in the short-term and therefore 2009 will be challenging for our industry," Penn said.
