AXA UK suffered a 19% fall in underlying earnings in 2008 with a huge 44% drop for the Life and Savings part of the business, down from £174m to £97m over the year.
AXA UK's Life and Savings business includes wealth management, corporate pensions, protection and direct businesses.
Total APE fell from £1,087m in 2007 to £1,026m in 2008, although revenues grew 10% for corporate pensions and 63% in the AXA Protection Account.
Revenues in AXA's wealth management business decreased by £101m to £618m, down 14% from 2007, reflecting consumer caution. However, AXA says it is well positioned to benefit when sentiment picks up following a restructure.
There was also positive news for Bluefin Advisory Services, formed by the consolidation of Thinc and PIFC Consulting, with funds under management up 53% to 0.5bn in 2008.
Nicolas Moreau, group chief executive of AXA UK, comments: "Despite the deteriorating economic outlook throughout 2008, enhancing customer service remained at the heart of our strategic development across the UK and Ireland.
"The poor state of the markets shouldn't diminish the success we've achieved in terms of improving customer satisfaction and I am determined to continue with investments across our business to bring about further change while at the same time maintaining our competitive position.
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds
Variable operating expenses