Motor and property sales cut to boost profitability
AXA is working on a major strategic review to reposition itself in the UK market, chief executive Peter Hubbard has told Insurance Times.
This move follows a crash in AXA's UK property and casualty revenues, which fell by 7% last year.
The French group slashed unprofitable lines from its UK business - particularly motor risks - as it restructured its portfolio.
It may cost AXA its place in the UK motor insurer league table. Its position at number five - with gross written premiums of £782m last year - is under pressure from competitors.
Figures out last week reveal a 34% decline in AXA's motor business.
The fall is enough to push AXA beneath Churchill/Winterthur in the Insurance Times and Standard & Poor's top 10 UK motor insurers.
Hubbard told Insurance Times the price rises that forced customers away were "one-off amendments" and that he did not expect to keep losing customers.
He said: "One of our challenges is to match volumes against profitability and we have made a pretty clear statement of that. We are right in the middle of a major review of our strategy, which we will be able to talk about later this year."
He could not say when AXA would be in a position to increase revenues.
"Our challenge is to grow the business, but to grow it profitably."
Within the property and casualty sector, revenue from commercial lines soared by 26% as AXA picked up ¤89m (£54.2m) of business from the collapsed Independent Insurance.
But premiums in personal lines crashed by 25%, which AXA attributed to its motor business.
Motor insurance makes up half the UK personal lines operation.
Non-motor insurance premiums fell by 11% as AXA cut the amount of business conducted with affinity partners. AXA UK increased its rates by an average of 16% in personal lines, a bigger rise than other parts of the group.
AXA's profitability will be revealed on publication of its annual results on 14 March.
