Elliot Lane says AXA is still keen to beat Norwich Union and direct could be the answer
What will AXA spend its money on next? After its audacious move on brokers Layton Blackham and Stuart Alexander, the market is buzzing with rumours of another major coup in the consolidator market.
But if AXA chief executive Peter Hubbard is to succeed in toppling Norwich Union (NU) from its SME pedestal and then push further into its market share, he needs to enter a new space.
Or should that be an old space. Because AXA once dabbled heavily in the direct market and burnt its fingers. Having made in-roads in Northern Ireland with its direct motor business, AXA now needs to harness wider personal lines and commercial lines opportunities via the internet and on the mainland.
Since walking away from the AA deal, which would have placed it up close and personal with NU's strategy at the RAC, Hubbard still wants to gain the distribution and cross-selling advantage, but by using a more subtle approach.
So it seems acquiring the likes of a Swiftcover.com, or even the Kwik-Fit Insurance division which, though a broker still has the brand recognition and distribution network, could be the next gamble.
To extend the metaphor, AXA is definitely keeping its cards close to its chest since bringing all its legal and financial advice on acquisitions in-house. Whatever happens this week, the AXA team still have a few surprises up their sleeve. IT
