Highlights :
– Strategic review of AXA UK activities completed in 2010. AXA UK & Ireland has further embedded its multi-specialist model with the creation of separate businesses focused on Personal Insurance, Commercial Insurance, Healthcare, and Wealth Management, delivering products and services to 16 million customers in the UK and Ireland, equivalent to 1 in 4 families holding an AXA product.
– The retained AXA Wealth business represents a fast-growing, capital-lite and Retail Distribution Review ‘ready’ business with new business premiums of £3.9 billion1, up 41% on 2009 (on a consistent basis), and £18 billion funds under management.
– In 2010, UK Personal Insurance2 revenues3 rose by 17 per cent to £1.4 billion in 2010, due principally to growth of the private motor account in the direct channel (+71%) – taking total property & casualty (P&C) revenues to £3.6 billion (+3%).
– Excluding the impact of the exceptional winter freeze (£118million or 3.3pts of combined ratio) the total P&C current year combined ratio improved to 102.0%.
– 2010 Underlying earnings of £131 million (2009: £235million).
– Further Personal Insurance premium increases are likely in 2011 as the market continues efforts to restore profitability; in contrast, across most products, commercial property & casualty insurance rates are expected to remain soft until 2012.
Commenting on the Results, Paul Evans, AXA UK & Ireland group chief executive said: “2010 was a year of transformation for AXA UK. Having successfully completed the £2.75 billion sale of our traditional life insurance business, we have restructured our UK organisation to create specialist businesses focused on the particular needs of consumers and intermediaries in each of our target markets – personal insurance, commercial insurance to small and medium enterprises, healthcare and wealth management – all of which have significant growth potential. Building on low cost platforms developed over recent years and benefiting from a resolute focus on our target markets, AXA’s businesses in the UK and Ireland are now very well-positioned for profitable growth.
“Cost competitiveness and excellent customer service rely enormously on the efficiency of product platforms. I am delighted with the progress made in the UK Personal Lines business during 2010.
The online-only platform acquired with Swiftcover in 2007 is now able to administer all personal insurance products, for each of our brands, in all distribution channels (brokers, partners and direct) at a cost and service level advantage which will fuel profitable growth across the key areas of private motor and household. In 2010, UK Personal Insurance revenues rose by 17 per cent to £1.4 billion, due principally to growth of the private motor account in the direct channel (+71%) – taking total property & casualty revenues (including healthcare) to £3.6 billion (+3%).
“An improvement on 2009, the current year combined operating ratio of 105.3% was nevertheless disappointing, reflecting the 3.3pts of exceptional winter freeze claims. Further improvements will come through during 2011 as the premium increases applied during 2010 across Personal Lines insurance take effect, but further pricing action will be necessary together with ongoing productivity improvements.
“The retained AXA Wealth business represents a fast-growing, capital-lite and Retail Distribution Review ‘ready’ business with new business revenues of £3.9 billion (up 41%) and £18 billion funds under management. Its low-cost online investment ‘wrap’ platform ‘Elevate’ is the fastest growing platform in the UK market with over 900 registered IFA firms and £2 billion funds under administration.
“Our priority in 2011 is to focus on delivering great service and valued products to consumers and businesses in those markets where AXA can leverage real competitive advantage. With this renewed focus, AXA’s businesses in the UK and Ireland are well positioned to realize their growth potential.”
Source : AXA Press Releas
