Axa is set to close five centres in the UK as part of a major restructuring exercise within its non-life business.
Claims centres at Cardiff and Colchester will close, along with branches in Preston and Plymouth. The Bolton claims servicing operation will transfer to Haverhill. The Cardiff commercial branch will remain open.
Axa chief executive Peter Hubbard said that the measures will cut costs 20% by the end of 2004. He added that premium income is targeted to rise by 30% in the same period.
Hubbard explained that the savings will be reinvested. About £100m will be spent in the next 30 months, he said.
Much of the money will be spent on creating a single IT platform from the nine current systems that operate within the group, Hubbard added.
The cuts are intended as a one off measure to turn the UK operation around.
The announcement was made as Axa announced its first quarter results. UK property and casualty premiums increased 8% to £425m (680m euros) compared to the same period 12 months ago. Commercial premiums rose 38% compared to teh same time last year, while personal lines premiums fell 15%. The motor book, which has already reduced by a third over the past 18 months bore the brunt of the reduced premiums.
