NU Online News Service, May 6, 2004, 5:10 p.m. EDT – The weakness of the dollar contributed to a drop in revenue at AXA S.A., Paris, during the first quarter.[@@]
The financial services giant is reporting the equivalent of $24.4 billion in revenue for the quarter, up from $22.1 billion in revenue for the first quarter of 2003.
But the value of the dollar fell to $1=1.2173 euros March 31, down 13% from an exchange rate of $1=1.0795 euros a year earlier, according to OANDA Corp., New York.
In local currency, AXA is reporting its revenue dropped 1.9%, to 20 billion euros. Life and savings revenue fell 3.2%, to 11.8 billion euros.
AXA gets about 15% of its life and savings revenue from the United States. The dollar value of U.S. life and health revenue held steady at about $3.6 billion, but the euro value of U.S. life and health revenue fell 11%, to 3 billion euros.
In the United States, life premium revenue and institutional separate account revenue were strong. Sales of variable annuities were flat, but AXA is introducing a new product that should broaden the company’s range of VA offerings, the company says.