Axa Wealth poised for variable annuity pilot

1 July 2010 0:00 am | Updated: 1 July 2010 1:56 pm | By Helen Pow

Under its £2.75bn deal to sell off its life business to Resolution, Axa is maintaining its wealth division, which it says brings in 70 per cent of the overall UK business’ profits.

Axa Wealth says the annuity has been modelled on the third-way products sold through its European arms but redeveloped for the UK market.

Chief executive Mike Kellard says: “There is definitely a gap in the market that variable annuities fill but part of the problem is that people have tried to sex them up too much by adding too many funds that they cannot hedge against. We have around nine funds but we can accurately hedge against them.”

Following the acquisition, which is expected to complete in the third quarter, Axa’s UK life business will be merged with Friends Provident, before the combined business is rebranded as Friends Life in 2011.

Axa Wealth will include Axa Winterthur Wealth management specialist pensions and investment operations, the Elevate wrap, Architas multi-manager, bancassurance, wealth international businesses and corporate-investment only products through a corporate trustee investment plan.

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