Axa seeks "selective" acquisitions in direct market
Axa has stressed that direct is a “growth engine” in the business in an investors presentation in Paris.
The announcement came as the insurer outlined plans to grow its revenue from Euros 1.8bn today to Euros 3.2bn by 2015 in this channel, including "selective acquisition activity" as well as "strong organic growth" and "new markets".
The UK is currently Axa's biggest direct success with 1.1m policies (5% of the market), although with 913m South Korean policies it has a 14% share; 753m in Japan, a 17% share; and 559m in Spain, a 19% share.
It also added that it plans to "identify and manage value destroyers more aggressively", and highlighted its achievement in UK commercial of cancelling unprofitable broker schemes - with a 15pt COR impact - as a major success.
Axa said that it will implement an "uncompromising" new global steering of renewal campaign" to be performed annually.
Elsewhere the group outlined that it expects to deliver a 4 point reduction in the enlarged expense ratio in mature markets through the following levers:
1.5pt - districbution
1.5 pts - operations
0.5pts - IT
0.5pts - procurement
It added in the presentation that increasing distribution efficiency will have the largest impact on its plan, mentioning renegotiating selected commission schemes and increasing digital in its distribution mix as keys to achieving this.
The group also said that maintaining its market share in mature markets like the UK implies a 3.5% top line growth.
Earlier today Axa announced plans to introduce Euros 1bn of property and casualty saving by 2015
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