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AXA chief executive rejects criticism

AXA chief executive Mark Wood has rejected criticism of the company’s new orphan assets scheme.

Under the scheme AXA will distribute £250m from its inherited estate with £225m going to policyholders and £25m to shareholders, however critics believe the split is weighted unfairly against policyholders.

Speaking at the dinner of the association of consulting actuaries last week Wood declared:

"We are endeavouring to strike a balance between distributing the right amount of money to policyholders and retaining an appropriate amount of money to protect the interests of policyholders in the future."

He claimed AXA had run hundreds of economic scenarios to determine how much the company had to retain in its life fund to avoid financial fragility in the future.

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