Axa Wealth aims to triple FUM by 2015

Axa UK today declared its intention to triple funds under management at its wealth division to £45bn within five years after offloading its life proposition to Resolution-owned Friends Provident.

Former Axa Life CEO Paul Evans, now Axa UK deputy chief executive, says the company will boost investment in its Elevate wrap platform and multi-manager proposition Architas, as well as its Axa Winterthur pensions operation and international business based in the Isle of Man.

Axa UK today agreed to sell its life arm - encompassing its traditional life and pensions book, IFA protection and group pension business - to Clive Cowdery's buyout vehicle Resolution for £2.75bn.

But, while Evans says it is a "sad day" to sell a part of the company, he claims the move will enable the business to focus its efforts on wealth management and, to a lesser extent, its direct-to-consumer protection operation.

"This is both a sad and exciting day," he says. "Yes, we have sold a substantial part of the business, but we are keeping a large part of it too.

"Now we can draw our attention to wealth management and our intention is to triple funds under management within the next five years."

Evans says multi-manager proposition Architas, launched in 2008, already boasts FUM of £3bn, while Elevate has £1bn FUM after signing up some 550 IFAs.

He adds Axa's Isle of Man business, which manages more than £6bn for clients, is already a market leader, while Axa Winterthur is fully RDR-ready thanks to its fee-based and transparent pricing strategy.

Axa Life launched its IFA protection business in 2005 and, says Evans, has already achieved a 10% market share.

But he says its market infancy meant it was always playing catch-up to other UK insurers.

"Scale is so important in protection. We were growing, but to catch up would have been a monumental task. We felt the business would perform much better if we sold it to Friends so the protection side of things could be combined."

The £2.75bn deal for Axa Life will see some 2,200 Axa staff move across to Resolution. Among them will be Axa protection managing director Graham Harvey and managing director of corporate benefits Paul McMahon, who will both take up senior roles at Friends Provident.