Profile: Axa SA (AXAHY.PK)
7 Mar 2014
AXA SA (AXA), incorporated in 1957, is engaged in the business of financial protection, insurance and asset management. AXA operates primarily in Europe, North America, the Asia-Pacific Region, and to a lesser extent, in other regions, including the Middle East, Africa, and Latin America. The Company operates in five business segments: Life & Savings, Property & Casualty, International Insurance, Asset Management and Banking. On January 15, 2010, AXA announced the acquisition of Omniasig Life. On September 7, 2010, AXA finalized the acquisition of the insurance business of Credit Agricole in Serbia.
Life & Savings Segment
AXA offers a range of Life & Savings products, including Individual and Group savings retirement products, life and health products. During the year ended December 31, 2010, the Life & Savings segment accounted for 63% of AXA’s consolidated gross revenues. In the Life & Savings segment, AXA operates primarily in Western Europe (including France, the United Kingdom, Germany, Belgium, Switzerland and the Mediterranean Region), the United States and Japan. In addition, AXA offers investment and saving products, as well as life and health products in other countries, including Australia and New Zealand, Asia (Hong Kong, Singapore, China and Indonesia), Central and Eastern Europe, the Middle East and Latin America (Mexico). The products in these markets are offered through various distribution channels, including agents, salaried sales forces, brokers, independent financial advisers, and bank networks.
The Company’s Life & Savings products include a range of investment and savings products, as well as life and health products marketed to individual and commercial clients. The Life & Savings products offered by AXA include term life, whole life, universal life, endowment, deferred annuities, immediate annuities, and other investment-based products. The health products offered include critical illness and permanent health insurance products. Investment and savings products include deferred annuities, which may be purchased with either a single premium or regular premiums, and pure savings products, which provide investment return to policyholders, while AXA bears the investment risk, and universal savings products.
Life products include term assurance, which provides a death benefit for a defined period of time; whole life products, which provide a death benefit over a person’s entire lifetime or up to a certain age, such as age 95 or 100, as long as the required premiums are paid; universal life products, which are bundled products that include a death benefit component; endowment products, which pay a level death benefit for a limited period of time or to age 65; disability products, which pay a benefit in case of disability, and immediate annuity products, which are usually single premium products with no previous accumulation period.
Property & Casualty Segment
AXA’s Property & Casualty segment includes a range of products, including mainly motor, household, property and general liability insurance for both personal and commercial customers targeting mainly small to medium sized companies. During 2010, the Property & Casualty segment accounted for 30% of AXA’s consolidated gross revenues. In the Property & Casualty segment, AXA operates mainly in the Western European markets, including France, Germany, the United Kingdom, Belgium, Switzerland and the Mediterranean Region. AXA also offers personal and commercial Property & Casualty insurance products in other countries in Central and Eastern Europe, as well as in Canada, Asia (Japan, Singapore, South Korea and Hong Kong), the Middle East, and Latin America (Mexico).
The Company’s Property & Casualty insurance operations offer a range of products, including motor, household, property and general liability insurance for both personal and commercial customers (targeting mainly small to medium sized companies) and, in certain countries, health products. In addition, AXA offers engineering services to support prevention policies in companies. AXA distributes its Property & Casualty insurance products through a number of channels, including agents, brokers, salaried sales forces, direct sales and banks and other partnerships, including car dealers. In Continental Europe, the same distribution channels are used by both AXA’s Life & Savings and Property & Casualty operations.
International Insurance Segment
AXA’s International Insurance segment’s operations include insurance products that specifically relate to AXA Corporate Solutions Assurance. Operations in the International Insurance segment are principally focused on risks, reinsurance and assistance. The insurance products, offered by AXA Corporate Solutions Assurance, include coverage to national and international corporations mainly relating to property damage, third party liability, marine, aviation and transport, construction risk, financial risk, and directors and officer liability. During 2010, the International Insurance segment accounted for 3% of AXA’s consolidated gross revenue.
AXA Corporate Solutions Assurance is the AXA Group subsidiary dedicated to worldwide Property & Casualty insurance of national and multinational corporations, and to aviation, marine and space insurance. AXA Global Life and AXA Global P&C (ex AXA Cessions) are two intra-group reinsurance companies in charge of analysis, structure and placement of reinsurance treaties on behalf of AXA Group insurance companies after a selection of third party reinsurers. AXA Global P&C activity is mainly driven by its Property pool, which provides AXA entities with cover on natural catastrophes.
AXA Assistance provides assistance services, including medical aid for travelers, automobile-related road assistance, home assistance and health-related services mainly to banking and insurance companies, tour operators, telecommunications operators, gas, water and electricity utilities and automobiles manufacturers. AXA Liabilities Managers is the Group’s specialized unit in charge of managing the AXA Group’s Property & Casualty run-off portfolios. This entity manages the internal run-off portfolios of AXA UK, AXA Germany and AXA Belgium, as well as a number of standalone run-off companies in the Other International Activities segment. AXA Corporate Solutions Assurance provides global insurance programs to international corporations that require coverage for all their worldwide locations. AXA Corporate Solutions Assurance underwrites insurance risks, such as property damage, liability, construction risks, motor fleet, marine and aviation. AXA also offers loss-prevention and risk management services. AXA Assistance provides both emergency and daily services and health management through a new range of products and claims management.
Asset Management Segment
AXA’s Asset Management segment includes diversified asset management (including investment fund management) and related services offered by AXA Investment Managers (AXA IM) and AllianceBernstein entities. During 2010, the Asset Management segment accounted for 4% of AXA’s consolidated gross revenues. These companies manage assets on behalf of institutional clients, retail investors and private clients, as well as on behalf of companies affiliated with AXA and operate in each of AXA’s markets include Western Europe, the United States and the Asia/Pacific Region.
AllianceBernstein, a 61.43% subsidiary, is a global investment management firm based in the United States. AllianceBernstein provides diversified investment management and related services to individual investors, private clients and to a range of institutional clients, including AXA and its insurance company subsidiaries. AllianceBernstein provides diversified Asset Management and related services globally to a range of clients, including diversified investment management services through separately managed accounts, hedge funds, mutual funds, and other investment vehicles to private clients (such as high-net-worth individuals, trusts and estates and charitable foundations); management of mutual funds sponsored by AllianceBernstein, its subsidiaries and affiliates, for individual investors; management of investments on behalf of institutional investors, and research portfolio analysis and brokerage-related services for institutional investors and equity capital markets services for issuers of publicly traded securities.
AXA IM is engaged in international asset management business. AXA IM provides its clients with a range of global products and through mutual funds and portfolios. AXA IM’s clients include institutional investors, individual investors to whom mutual funds are distributed through AXA and external distribution networks, and AXA’s insurance subsidiaries both for main fund and unit-linked fund backing insurance products.
AXA’s Banking segment includes banking activities (mainly retail banking, mortgages loans, savings) conducted primarily in France, Belgium, Switzerland, Germany and Central and Eastern Europe (Hungary, Slovakia and the Czech Republic). During 2010, the Banking segment accounted for 1% of AXA’s consolidated gross revenues. AXA Bank Europe is a subsidiary of AXA Holdings Belgium. It offers a range of banking products and services, such as daily banking, mortgage loans, and short-term savings for retail customers. AXA Bank products and services in Belgium are mainly distributed by a network of 911 tied but independent bank agents based in Paris. As of December 31, 2010, AXA Banque had more than 718,212 registered customers, with a retail banking product offer. Directly linked with the Company’s insurance business, banking products are offered to AXA France clients through its distribution networks. AXA Banque also manages direct clients through Internet banking relationships.
As of December 31, 2010, AXA Bank targets private customers in retail banking and is an important element of pension and asset management business of AXA Germany. AXA Bank in Switzerland offers product include savings accounts, term deposits and pension savings accounts. These products are distributed through AXAs tied agents network and the direct channel (Internet). During 2010, the bank had more than 26,850 clients. AXA Bank Hungary works in collaboration with AXA’s insurance operations in Hungary. Products, such as mortgages loans and saving accounts are offered to clients and are distributed through over 450 insurance agents and by Internet. The commercial activity of AXA Bank in Czech Republic was launched in February 2010. Its product offering consists of a savings account, to which a loyalty bonus may be added.
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