AXA is to revamp its distribution arm with the aim of attracting more independent advisers back to using the company’s products.
AXA is to revamp its distribution arm with the aim of attracting more independent advisers back to using the company’s products.
However, the head of distribution, Tim Coulson, is leaving and the search is on for his replacement.
AXA group chief executive Les Owen says management of distribution will now focus on aligned and non-aligned dealerships which will be managed internally. In the past, National Mutual used external managers to look after the dealer groups. All the agreements with these managers have now been terminated.
The move came as Owen announced a major shake-up in the way the company operates; a strategy to reinstate AXA as a major player in the Australian financial services industry.
The new plan is to focus on retail and superannuation with risk protection as the third business direction.
“In the past we focussed on risk protection products and ignored the retail and superannuation markets,” Owen says. “The focus was on products, not distribution.”
The target now is for AXA to be in the in the top five managers for inflows by 2003. This will mean it will have to quadruple inflows in the next three years to meet the 8 per cent market share target. AMP and Commonwealth share a 10 per cent market share in inflows.
A transformation team has been formed by Owen to achieve these goals. The team, led by Andy Penn, will look at distribution (including direct), investment management, management information, the staff and e-commerce. This team reports direct to Owen.
As part of the operational shake-up, Owen says a number of non-core assets are being reviewed with an eye to a possible sale. These assets include the New Zealand health business and possibly AXA Trustees.
AXA has also announced its half-year results which saw regular retail investment premiums in Australia fall by 88 per cent to $6.9 million. This compared to $7.8 million in the corresponding half year.
However, retail investment deposits were up 116 per cent to $615 million while the Summit master trust saw inflows of $309 million in the first half, up 158 per cent.
AXA operating profit before abnormals, however, fell by 14 per cent to $145 million.
