Axa Asia Pacific wrote 24% more new financial protection business in Australia in the three months to March 31 this year compared with 12 months earlier, but this bright spot pales beside a huge outflow in wealth management funds during the period.

The first-quarter total net outflow for wealth management was $6.7 billion, compared with a $942.1 million inflow last year.

Driving this result was a net outflow of $6.76 billion from AllianceBernstein, in which Axa owns a 50% stake.

The turnaround from a $150 million inflow last year is put down to “continued client rebalancing away from equities, particularly international equities, and the termination of a number of large client mandates”.

An Axa Asia Pacific spokesman told insuranceNEWS.com.au the relationship with AllianceBernstein remains strong.

“The outflow is part of what happens when markets go up and down,” he said.

Strong sales in group and individual life businesses drove the financial protection result of $26.1 million, up from $21 million.

Total funds under management in the March quarter were $52.9 billion, down 14% on the December quarter’s $61.6 billion.

The spokesman confirmed reports that Axa Asia Pacific intends to cut up to 120 jobs, mostly from its Melbourne head office. Some staff in Sydney will also go.

Some 90 jobs were cut from Axa’s Australian operations in November as the sharemarket freefall squeezed demand for wealth management services.