The insurer insists it is fully committed to growing its UK businesses

AXA’s decision to sell its traditional UK life and pensions business to Resolution for £2.75bn may have negative effects on the retained units, one equity analyst has argued.

“The deal makes sense in terms of the strategy to reorient the business and move towards growth markets and away from mature markets like the UK, but it could certainly have an impact on economies of scale,” Helvea analyst Marc Effgen said.

He added that the sold and remaining units would likely have shared costs.

AXA said in a statement that the sale of the units is consistent with its intention to focus on growing its wealth management business in the UK life and savings market. It added that it remained fully committed to its other UK-based businesses, including AXA Insurance, AXA PPP Healthcare, Bluefin and the UK operations of AXA Investment Managers.