AXA aiming for “distribution dominance” in personal lines, after expiry of moratorium on direct sales
AXA will raise the stakes in its battle to topple rival Norwich Union in the UK after acquiring direct writer Swiftcover.com.
After swooping on regional brokers Layton Blackham and Stuart Alexander last month, AXA has surprised the market again by performing a volte-face manoeuvre to boost its direct operation.
Swiftcover.com, the internet-only personal lines specialist, was founded by ex-Churchill director Andrew Blowers three years ago. It has made major inroads in the direct market with its popular chicken advertising campaign, highlighting its no call-centre policy.
Last August, AXA UK group chief executive Nicolas Moreau was reported to be ready to re-explore the direct route.
AXA pulled the plug on its original operation nearly four years ago after it passed its 270,000 motor and household direct policyholders to RAC's insurance arm in October 2004.
The moratorium period surrounding this deal expired at the start of July 2006.
A source said: "AXA wants to keep the pressure on the big two insurers and this strategy is coming directly from Paris.
"Talks are going ahead at the moment with many personal lines players and the buzz term is 'distribution dominance', both vertical and horizontal."
Swiftcover.com chief executive Andrew Blowers said: "We have a target this year of £100m GWP and with the policies uptake, per month, as it stands, we should clearly achieve this objective. In fact last month we registered 1,000 policies in a day which is equivalent to the levels in my Churchill days."
He added: "AXA initiated the talks, and with Primary's involvement, we negotiated the deal which gives AXA 100% control of the business. The business will also be solely underwritten by AXA. Our staff will benefit from some substantial bonuses on completion of the deal."
AXA Insurance chief executive Peter Hubbard said: "We are pleased to have agreed terms for the purchase of Swiftcover, which further strengthens our distribution platform and gives us access to personal lines customers."
Swiftcover controlled around 120,000 policies in 2006, and is growing its policy base by approximately 20,000 policies each month, the company said. Bermuda-based insurer Primary Group, headed by Philip James, was the prime investor in Swiftcover.com.
