The Axa Group in the UK changes focus from life to general insurance

Tuesday, June 22, 2010

The Axa Group has been in discussion with Clive Cowdery’s life business consolidator, Resolution, to plan for the possibility of Resolution’s purchase of annuity, group pensions businesses and protection from Axa UK. They are considering the option of purchasing Axa’s products for approximately 80 percent of their book value, which is approximately £3.5bn. This will incur costs of around £2.8bn for Resolution, the Financial Times has recently reported.

In the new arrangement, Axa will retain its UK wealth management business, general insurance and health units, handing over all other packages to Resolution.

In a statement, Axa said: "This potential transaction does not call into question in any way the Axa Group’s continuing long-term commitment to the UK market going forward. The Group remains fully committed to Axa’s UK Direct Protection and Wealth Management operations. Axa Group also remains committed to all its other UK-based businesses, Axa Insurance and Axa PPP Healthcare, Bluefin and the UK operations of Axa Investment Managers."

Axa maintains that this move will enable it to focus upon its UK products, refining the service it provides and enhancing its product suite as it focuses upon a smaller sector of the UK insurance market.

The Axa group was founded in 1980, and has grown in size over the years to become an important
global player in the insurance sector. In the financial markets, AXA is positioned as a global leader in Financial Protection. Key facts about Axa include:

1. 96 million clients worldwide

2. 216 095 employees (including exclusive sales associates) worldwide (at December 31, 2009)

3. 400,000 individual shareholders

4. 90.1 billion euros in revenues (at December 31, 2009)

5. 3.5 billion euros in adjusted earnings (at December 31, 2009).