Resolution has agreed acquisition of the majority of AXA's UK life assurance business. Friends Provident Holdings will acquire the AXA UK life business. This transaction is a logical next step in Resolution's consolidation strategy in the UK life sector. Combined with the Friends Provident business acquired in November 2009, the deal today creates a platform with a wide range of options for future consolidation.
Trevor Matthews of Friends Provident comments, “This deal combines two major players in the UK life market, both of which have a rich heritage. There is a good operational fit between both organisations. Bringing them together will make us one of the market leaders in our core business of protection in the UK. This combined group will have a substantial offering in protection products, and a real opportunity to deliver cost efficiencies allowing us to compete more effectively."
AXA UK will sell to Resolution its life protection business, which provides life, income and critical illness cover. AXA UK will retain and invest in AXA Wealth which includes Sun Life Direct.AXA’s healthcare insurance for individuals and companies is not part of the sale and will continue with their long term growth plans underlining AXA’s commitment to the UK.
Nicolas Moreau of AXA says, “This is a significant step in AXA UK’s overall growth strategy that builds on the market leading position that we have developed in our wealth management business. The UK life industry is changing fast. Regulatory and market changes will reshape the structure of the UK life industry which is why we are taking steps actively to refocus and shape our own future. AXA UK has all the ingredients for future success - a clear strategy, a compelling brand, attractive products, enhanced customer service and strong capital management, and I am confident that this will position us well to grow our UK healthcare insurance businesses over the coming years.”
Life insurance: News update: 24 June 2010