Michael Faulkner says the market is fearful of AXA's undeclared acquisition strategy
In stark contrast to AXA's new year acquisition of brokers Layton Blackham and Stuart Alexander, the insurer's move on Smart & Cook has not been shrouded in the same veil of secrecy.
The French insurer has yet to officially confirm the acquisition, but the deal has become one of the worst kept secrets in the insurance market. By the time AXA gets round to making it all official, the market will be trying to work out which company AXA will be buying next.
But AXA's broker acquisition strategy and growing intermediary business continues to vex many in the market, who are struggling to understand the insurer's endgame. AXA continues to insist that it will maintain the independence of the brokers it buys, but many find it difficult to see the sense in this.
While there is no evidence that the independence of Layton Blackham and Stuart Alexander is being diluted, there is a fear that AXA will at some point begin to demand a greater share of the business placed by its own broking operation.
Other insurers and brokers under-standably want guarantees that this will not happen.
Recent weeks have seen Stuart Reid and Chris Blackham attempting to underline their independence by giving AXA's rivals lead positions on schemes businesses.
But as AXA continues its march down the acquisition trail, the market will be looking for continued strong signals that its targets will remain independent. Buying such a large broking force as Smart & Cook will not make this challenge any easier.
Patrick Snowball's departure from Norwich Union came as little surprise, nor his announced move to Towergate, where he will take up the mantle of deputy chairman.
Ever since Snowball was beaten to the top job at Aviva by finance director Andrew Moss, following Andrew Harvey's retirement, there has been speculation as to his future at the insurer. There seemed to be little reason for the high-flying former Dragoon Guard to stay.
The role looks to be ideal for Snowball and his appointment is a major coup for Towergate. The consolidator is moving into the next stage of its growth plan and, with the potential for a public listing or sale to a major institution, Snowball's star looks to be in the ascendancy. IT
