2006
(06/07/2006) AXA Insurance announces changes to its commercial distribution network
AXA Insurance has today announced changes to its distribution network in the light of AXA's global ambition to become the preferred company for our customers and distributors.
As part of this 2012 ambition, AXA Insurance is looking to further improve efficiency and service within its client services activities through process improvements and consolidation within its broker branch network and its commercial direct business - AXA Solutions. As a result around 200 jobs will be lost.
Impact on Brokers
AXA Insurance will employ new ways of working with brokers that have been successfully developed at its Ipswich branch.
These changes will impact on clerical business support for brokers and the following five branches will close by 30th September 2006 - Sheffield , Southampton , Maidstone , Cardiff and Carlisle. It is anticipated that around 150 jobs will be lost over the next six months.
Mark Cliff, distribution director at AXA Insurance said: "It is always regrettable when jobs are lost but consolidation in the broker market means that we have to change our operating model and distribution network so that we are better placed to meet both broker and customers' needs by being a real expert friend.
"The new operating model, piloted at Ipswich , will be rolled out across the branch network. It means that our underwriters will concentrate on their core skills and we will be able to introduce service standards that will give brokers greater certainty in the regulated environment within which we work.
"Last year the profitability of the property and casualty business in the UK grew by 33% and in the first quarter of 2006 revenues increased by 8.7% compared with the same quarter in 2005. The challenge is to continue to grow our revenues without adversely affecting profitability.
"We have made great strides in growing our business but we must constantly manage our cost-base in the extremely competitive financial services marketplace in which we operate. We are investing in technology and process improvements but, unfortunately, we also have to reduce our staff numbers. We have worked in close partnership with Amicus and managers' forum representatives to minimise the number of redundancies."
Impact on AXA Solutions
AXA Insurance is also looking to introduce efficiencies within its Commercial Direct business - AXA Solutions. This will mean a loss of around 45 jobs from its Glasgow based operation by the end of the year.
Mark Cliff continued, "We are currently conducting a feasibility study to determine how best to implement any operational changes in the Commercial Direct business. The precise implications will be announced once the study has been concluded later in the year."
This announcement is specific to AXA Insurance and does not refer to AXA's other businesses in the UK.
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About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2005, had € 1,064 billion in assets under management. AXA reported total IFRS revenues of € 72 billion and IFRS underlying earnings of € 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.