2010 financial results were positive again for AXA Assistance with a significant growth of net operating profits. The assistance company is undergoing a transformation strategy, where they intend to increase their presence in emerging markets.
AXA Assistance has recorded a 5.2 per cent rise in 2010’s turnover to 929 million EUR (882.8 million EUR in 2009). The net results have increased significantly from 12.6 million EUR in 2009 to 20 million EUR in 2010. This increase is the result of a “portfolio cleansing” and a lower effect of currency trading compared to the precedent year.
The AXA Assistance travel activity represents 24.8 per cent of the total results, progressing from 19.8 per cent in 2009, while the automobile activity has lowered (36.3 per cent in 2010 against 41.5 per cent in 2009). Finally, sales of home activity have increased, representing 22.3 per cent of total sales of the brand.
A new organisation
“Our strategy is clear and consistent with that of the AXA Group. We want to expand in emerging markets and seek profitability in mature markets, “said Serge Morelli, CEO of AXA Assistance. Present in 31 countries, the company now organises its activities in five areas (instead of 8 previously) and records a good performance in France (turnover of 222 million euros) and Asia Pacific. Emerging markets now account for 17% of sales.
Throughout its differnet business lines, AXA Assistance is aiming to operate an evolution of its model. “The world is changing,” said Serge Morelli, “on one hand, customers have different expectations and on the other hand this has an impact on our offers,” he sais. Thus, the company concentrates on innovation (700,000 euro budget last year) and a greater process automation. “Our customers demand services with high added value but with low cost,” said Serge Morelli. “The goal is to gain in competitiveness in order to win the business”.
