AXA Wealth platform sales on Elevate have risen 107%, bringing total platform assets under administration at the end of Q2 to £2.9bn*. Platform business represents 40% of all sales, up from 21% over the same period 2010.
AXA Wealth grew total assets under management from £15.6bn to £18.9bn. Total AXA Wealth sales grew to £1.9bn following strong results from not only its wrap platform, Elevate, but also Architas, AXA Wealth's specialist investment company, with total assets up 48% to £8.6bn.
Additionally, funds under management for individual off-platform pension products grew from £4.1bn to £4.8bn and funds under management for Corporate Investment Services rose from £2.2bn to £2.5bn.
Strong bancassurance partnerships with Clydesdale and Yorkshire Banks and Britannia Building Society also helped grow volumes by 25% to £210mn. In July, AXA Wealth won a new seven-year bancassurance contract to provide a new financial advice service to Co-operative bank's five million retail banking customers.
Sales of offshore bonds via its AXA Wealth International offshore businesses, based in both the Isle of Man and Dublin, were down 4% to £546mn, impacted largely by increasing price competition.
Results highlights:
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Elevate total sales up 107% to £772mn
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Bancassurance volumes up 25% to £210mn in 2011
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Mutual Fund premiums up 72% to £535mn
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In particular, ISA business up 112% to £320m
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Architas total assets up 48% to £8.6bn
Mike Kellard, CEO, AXA Wealth, says: "AXA Wealth has continued its strong start to 2011, with further significant growth in on-platform sales, and other strategic product areas including pensions and bonds. AXA Wealth's bancassurance business, using its bespoke bancassurance wrap, is also building a credible reputation for providing a range of leading, tax efficient, ‘RDR-ready' and platform supported investment and pension products and funds. Companies such as Co-operative Financial Services can take real benefit from AXA Wealth's RDR readiness.
"The future of financial services lies in the ability of companies to meet the needs of its market, and to have the ability to innovate, adapt and respond to the rapid change sweeping through the industry. Winners will not be those trying to cling desperately to the past, but those most able to place customers at the heart of their offer, using platform technology, investment solutions, customer insight and the opportunities that RDR will create, to build competitive edge.
"AXA Wealth has set ambitious targets to meet by 2015, in particular to triple its assets under management. It hopes to deliver this through building on-platform and investment excellence, both on and offshore, and managing the new business on a capital light and new model, ‘RDR-ready' infrastructure and approach. A few weeks ago, we completed the re-alignment of our distribution division, creating a single point of contact for all advisers, regardless of product. I believe we are entering a very exciting era for our industry and I am confident that AXA Wealth has the ability, appetite and, just as important, the right attitude to win."
AXA Wealth is part of AXA UK which is itself part of the global AXA Group, which has been declared as the world's largest insurer ranked by net premiums**. The ranking, part of the world's top 25 insurers list, is based on data from AM Best's Bestlink system.
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