AXA to focus on distribution

Distribution is the top priority in a plan to recover AXA’s Australia market position, group chief executive Les Owen, told the company’s AGM in Melbourne

Distribution is the top priority in a plan to recover AXA’s Australia market position, group chief executive Les Owen, told the company’s AGM in Melbourne.

“I am leading an urgent review of distribution and marketing structure in AXA Australia,” he says.

The results of the review are to be finalised by the end of March with an announcement of the new strategy when the company’s interim results are announced in May.

Part of that review involves talking to dealer groups to identify their expectations of AXA and what needs to be fixed.

Owen has now ruled out buying dealer groups to boost distribution. There has to be value in the acquisition, he says. “You have to be very careful about buying distribution and, unless you know how to address all the issues, then a lot of expensive mistakes can be made.”

The push on distribution is part of Owen’s plan to revitalise the Australian and New Zealand business of AXA.

“A major concern is our performance in the retail savings market. Profitable sustainable growth for the company is our number one priority,” he says.

“Being the biggest is not an objective, but we want to be in the top three in each of the markets in which we compete.”

The company is claiming its rebranding has been successful, with awareness now at 80 per cent.

But the name change hasn’t helped the poor performance of AXA during the past year.

“My initial impression is that AXA Australia hasn’t responded to the changing share of the market,” Owen says.

Costs are again to be looked at and Owen hasn’t ruled out further job losses during the next year. The product range is also to be rationalised.

“Our focus will be on looking at unit costs rather than the cost base,” he says.

“Work this year is building a platform to accelerate a move to market leadership next year,” Owen says.

The AGM also saw the final link with the 150-year-old company name severed when shareholders approved to change the name of the holding company to AXA Asia-Pacific Holdings from National Mutual Holdings.

In a surprise move, chairman Dean Wills announced he was retiring next May.

Wills says he is going to allow the new chairman to build a partnership with Owens to drive the company ahead.

The incoming chairman of AXA is the deputy chairman Rick Allert. He has been a director of the company since 1995 and deputy chairman since 1997.