French insurer Axa’s UK
wealth management unit Axa Wealth is “firmly on track” to grow its
assets under management (AUM) and administration to £45bn ($72bn)
by 2015, believes Axa Wealth CEO Mike Kellard.
To achieve this target will
require a significant acceleration in the 10% year-on-year growth
pace reported by Axa Wealth in the first nine months of 2011.
Specifically, Axa Wealth’s total AUM ended September 2011 at
£18.3bn, an increase of £1.6bn on the £16.7bn a year
earlier.
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An area that has emerged as a
key growth driver is Axa Wealth’s platform business, Elevate, which
delivered 41% of total sales in the first nine months of 2011, up
from 23% of sales in the same period in 2010. Elevate, which offers
some 2,000 investment funds, grew its sales by 87% to £1.13bn,
taking total platform assets under administration at the end of
September 2011 to £3.1bn
Also increasing in
significance in Axa Wealth’s growth strategy are bancassurance
partnerships with Clydesdale and Yorkshire Banks, both units of
National Australia Bank, and Britannia Building Society, a unit of
Co-operative Financial Services (CFS). In total, these partnerships
reflected a 23% increase in sales to £293m.
Axa Wealth has recently
strengthened its bancassurance channel through the extension of its
partnership with CFS to include the in-branch financial advice in
Britannia’s 248 branches and in all of its 90 Co-operative Bank
branches. The agreement provides Axa Wealth with exposure to a
total of 5m customers of CFS, the financial services arm of
Co-operative Group, the UK’s largest mutual business.
Under the agreement, Axa
Wealth will deploy 265 advisers across Co-operative Bank’s branch
network. The new team will include the transfer of roles from the
existing CFS business and what Axa Wealth termed “a significant
number” of new roles that will be offered to CSF staff.
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By GlobalDataThe additional 265 advisers will bring Axa Wealth’s total
number of advisers focused on the retail banking segment to more
than 500.
