Analysis and strategy of AXA

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Analysis and strategy of AXA

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Abstract

I) Activity:

AXA is a global company that enjoys a favorable international reputation. It has acquired 3% of the world insurance market. AXA is one of the world's leading insurance companies and has a turnover of more than 90 billion €. It has 65 million customers worldwide and 150,000 employees. It has an excellent management system and is ranked third (behind UBS and Fidelity) for Asset management. Asset management is exercised within the group by two companies, Alliance Bernstein of the U.S. and AXA Investment Managers in Europe and they represent around 10% of the consolidated revenues of AXA. In late 2007, its total assets that were under management amounted to over € 800 billion (over € 1280 billion since the acquisition of Winterthur Switzerland). More recently, the group launched AXA Bank (formerly Bank Direct, a subsidiary of BNP) which they acquired for € 60 million in September 2002 which now has over 650,00 customers. The banking platform has been extended to all of Europe with the creation of the AXA Bank in Europe. This entity brings together its banking subsidiaries in France, Belgium, Germany and Hungary

In insurance, the group is positioned as number two in Europe (behind Allianz) and number one in France (it has 10.1% of the market and is positioned just behind NOC and Predica, 14% market share for damage insurance, which with 3,500 officers and 3,800 outlets is the largest in the Hexagon).

Tags: Analysis of Axa group, Axa insurance, Axa asset management,

Introduction
External analysis
1. Definition of the industry
2. Analysis of economic forces affecting the industry (PESEL)
3. Industry Analysis: Porter's Five Forces
4. Industry segmentation
Internal Analysis
1. Defining the Enterprise
2. Resource Analysis
3. Skills Analysis
4. Balanced ScoreCard analysis
5. Analysis of Corporate Governance
Final analysis
Conclusion

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[...] This area accounted for of the group's revenues in 2007; it is fourth in the area of damage insurance of premiums) but only eighth in life insurance ( of premiums). Another European country that it is present in is Turkey where it is in second place for damage insurance and fourth place for life insurance. Japan represents of the total turnover of the group of life premiums and 10% of the revenue from life insurance. AXA is the only European group that is directly involved in the life insurance market in the first world and is on par with the U.S. market. [...]

[...] - The group has ensured that it is well dispersed in terms of geographic locations, this helps to protect them in a rollover of capital markets and face the difficulties of the sector. - The group has optimized the management of its own funds by the securitization of 85% of its portfolio of automobile contracts in France. The advantage of this type of operation is manifold. It raises less capital to cover its solvency margin (in France, the need for regulatory capital is a minimum of 16% for damage premiums) while allowing it to raise funds that can be used for other activities of the group. [...]

[...] North America accounts for nearly 20% of its turnover and operating profit. The acquisition of the American society, Mony in 2004 (€ 1.5 bn) led to the specialization in life insurance products and has allowed the U.S. subsidiary of the group, AXA Financial, to strengthen its position by becoming number one in the sector of Provident Savings and number three for the Retirement Savings Plan. It has seen a 25% increase its distribution network (1,300 additional agents with an increased presence in new geographic areas with high potential).The group is also strongly positioned in asset management through the fund manager Alliance Capital Management which is a 60% subsidiary of AXA. [...]

[...] - Beyond the risks (dilution, cyclical downturn, financial structure etc.) related to its aggressive policy of external growth that has accelerated in recent years, AXA has an excellent track record for acquisition. With the acquisition of the Winterthur Swiss and Bancassurance partnership, the group has acquired a strategic position both in mature markets (Switzerland, Italy, UK, Germany and Spain) and in high-growth markets such as Asia and Eastern Europe. The divestiture of reinsurance and insurance to those in the Netherlands have also substantially reduced the volatility of future earnings and increased the financial flexibility of the group. [...]

[...] The regulatory changes also impacted the group's results. - The large size of the Life Insurance department of the premiums and 50% of the operating profit) makes the value very sensitive to changes in financial markets. - A possible appeal to the market by the insurer following a major disaster that impacts the solvency of the group. Distribution of activity, turnover in H (IFRS) - 63% of the Life Insurance / Savings / Retirement in France Germany 4th place), Japan and the second largest life insurance market after the United States In the UK, AXA Sun Life represents 16% of the global turnover of the group and of the business is life insurance. [...]

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