Axa life growth weak as CGT proposals hit offshore bonds

The provider says proposed changes to capital gains tax (CGT) in the first quarter of 2007 led to a drop in offshore bond sales, which fell 36% by the end of the year. Meanwhile, offshore estate planning bond sales rose 68% and individual pension business rose 14%, leading to overall wealth management growth of 7%. Total underlying earnings for the life and savings business rose 40% to £174m due to improved investment performance, higher fees and a £20m gain thanks to a 2%drop in the corporation tax rate to 28%. New business values rose 12% to £133m, which Axa attributes to volume grow...