AXA Wealth new business up 41% in year of transformation

AXA Wealth reported strong new business of £3.9bn in 2010, up 41% compared to 2009, as the group restructured after the deal with Resolution.

Following the £2.75bn sale of AXA UK's traditional life insurance business to the consolidator, the group refocused around a number of separate areas including AXA Wealth which is supported by the Elevate wrap.

The group says: "The retained AXA Wealth business represents a fast-growing, capital-lite and Retail Distribution Review ‘ready' business with new business revenues of £3.9bn (up 41%) and £18bn funds under management."

It says Elevate now has the backing of 900 registered IFA firms and £2bn funds under administration.

Meanwhile, 2010 underlying earnings for the AXA UK group in total were £131m compared to £235m in 2009.

Paul Evans, AXA UK & Ireland group chief executive, says: " Our priority in 2011 is to focus on delivering great service and valued products to consumers and businesses in those markets where AXA can leverage real competitive advantage. With this renewed focus, AXA's businesses in the UK and Ireland are well positioned to realize their growth potential."Axa Wealth says its Elevate platform played a significant part in the company's 23% increase in assets under administration to £18bn.

Axa Wealth says its Elevate platform and AXA Winterthur pension and bonds played a significant part in the company's 23% increase in assets under administration to £18bn.

The company says its wrap platform and multi-manager offering Architas have grown assets dramatically since launch two years ago. Elevate grew 373% to £2bn, AXA Winterthur pension and bonds were up 22% to £4.9bn, Corporate Investment Services hit £2.5bn and AXA Wealth International was up 18% to £7.7bn.

Architas Multi-Manager grew assets under management and under advice from £2.2bn to £7.7bn.

"AXA Wealth is a capital light operation, which delivers significant operational efficiencies in contrast with other traditional life companies," says CEO Mike Kellard. "This model places the focus on the quality of our people, the strength of our proposition and effectiveness of our service and systems as our primary differentiators. The business is new, it feels new, and has a huge opportunity over the next five years to secure its place as the wealth management specialist."