AXA Life Sinking Ship

Affin Holdings Bhd’s earnings in the second quarter ended June 30 was 8% higher at RM148.4mil compared with the same quarter last year, on the back of turnover that rose 23.4% to RM588.29mil.

ABB Group, Affin’s commercial banking unit, was the key contributor to the group’s overall performance with a 1.6% year-on-year improvement in profit before tax to RM271.8mil in the first half of 2017. Islamic banking income via ABB Group subsidiary Affin Islamic Bank Bhd recorded a profit before tax of RM55.7mil for the period, compared to RM68.54mil previously.

Affin Hwang IB Group’s profit before tax after zakat was RM86.8mil, 57% higher than in the previous year. Net income grew 48% to RM368.8mil owing to a 50% growth in fee income from improved market sentiments and more lucrative management and service charges.

Affin Hwang IB’s subsidiary, Affin Hwang Asset Management Bhd, saw a 45% year-on-year increase in profit before tax at RM38.6mil. In the insurance segment, Axa Affin Life Insurance Bhd (AALI) incurred a pre-tax loss of RM9.8mil, improved from a pre-tax loss of RM16.4mil a year ago. Axa Affin General Insurance Bhd (AAGI) posted a lower profit before tax of RM68mil compared to RM92.9mil last year owing to an increase in expenses from transformation initiatives.

With regard to its insurance segment, AALI is looking to cater to the mass affluent segment through various multi-distribution platforms, channels and products. Currently AALI is facing massive problem in their agency resulting from 4 years of dictatorship and bully management. Hundreds of agency were thrown under the lorry and thousands jumped to join better managed life insurers (especially AIA, Great Eastern & Prudential).