New business up to £1.9bn for AXA Wealth (From Basingstoke Gazette)

New business up to £1.9bn for AXA Wealth

12:22pm Thursday 19th August 2010 in

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AXA Wealth has seen its new business grow by 45 per cent to £1.9billion in the first half of this year.

The news bodes well for the Basingstoke-based company led by chief executive Mike Kellard, who heads the wealth management arm of AXA UK.

The good news follows proposals by Paris-based insurance giant AXA Group to sell its UK life business to British investment firm Resolution for £2.75bn.

The agreement includes selling AXA’s traditional life and pensions businesses and its annuity business, but not the wealth management business, which is based in Basingstoke and employs around 1,000 people.

Mr Kellard, who is also an AXA UK board member and was involved with the negotiations with Resolution, said: “It’s not a done deal yet. We’ve still got to complete the transaction, which should happen in September.

“We should be left relatively unhurt in Basingstoke and in fact our operation here will be bigger, as we will be the head office for AXA Wealth.”

The Winterthur Way office, which is the base for AXA Winterthur Wealth Management, will become the head office for some of AXA’s other products, including its award-winning Elevate wrap platform proposition.

This is one of the fastest-growing in the industry, and in the first half of this year has seen its total funds grow to £1bn.

Another is Architas, AXA’s independent multi-manager business.

Since its launch two years ago, it has seen funds under its management grow to £3.5bn.

Clearly delighted with the results, Mr Kellard said: “AXA’s focus on its wealth management proposition, in particular its strong investment behind Elevate and Architas, has driven the impressive results in the first half of the year.

“AXA Wealth operates from a position of real strength in its chosen markets, and has created real opportunities for profitable growth.

“The next phase of the journey is now beginning, and with global commitment from AXA Group, the new business aims to build on these solid foundations.

“The AXA Wealth half-year business results are strong, given there is still little evidence that consumer confidence has returned.

“It does underline in my view, however, that advisers are increasingly looking at AXA Wealth as they see us as being in a strong position for the future to support their needs and the needs of their mass affluent and high net worth clients.”