Friends/Axa to launch "best-of-breed" protection proposition

The integration of Friends Provident with Axa Life will lead to the launch of a "best of breed" protection proposition in 2011, Friends interim managing director Nathan Moss says.

Buyout vehicle Resolution, which acquired Friends Provident for £1.86bn last year, has this morning agreed a £2.75bn deal to purchase Axa UK's life arm.

The deal, which remains subject to regulatory approval, will see the combined business focus on the core areas of corporate pensions and protection and, from next year, see Friends Provident renamed Friends Life.

Moss said the protection businesses of Axa and Friends Provident were strong in different areas so could be combined to offer a "good mix" to the market.

"The protection businesses are really complimentary," he says. "Axa has a very strong menu proposition while we are strong with our protection platform (eSelect) and are very well known for our income protection business.

"It is a very good mix of the two. Our aim is to put together a best-of-breed proposition going into 2011."

Moss also confirmed plans to launch a corporate wrap by the end of the year.

"It so happens we were both (Axa and Friends) developing corporate wrap propositions with FNZ, but we were a little ahead of them so we have ring-fenced our developments and will launch this year," Moss says.

Moss was also keen to lay to rest advisers' fears over service levels following the acquisition of Axa Life.

"This is very important. We have ring-fenced all our service teams and I must stress we have a very strong service history."