AXA SA set aside €64 million ($82 million) to cover potential compensation to clients of subsidiary AXA Rosenberg, related to last year's discovery of a computer programming coding error, company officials announced in their first-half earnings release.
An independent consultant is still working to determine what impact the coding error had on client portfolios. AXA said the $82 million “represents management's current estimate” of that impact, to be reviewed at the end of 2010.
With more than $60 billion in assets under management as of March 31, the roughly $82 million provision, at less than two-tenths of a percent of overall assets, would point to a conclusion by AXA that the coding error resulted in only minor damage to client portfolios.
According to the release, “AXA Rosenberg intends to compensate clients for amounts as deemed appropriate by its board, based on the conclusions and advice of its consultants, applicable market practices, contractual provisions and regulators' review.”
Laurent Secheret, a Paris-based spokesman for the group, couldn't immediately be reached for further comment.