Yves Masson, who has been brought in from across the Channel to take on AXA UK’s direct arm, will be under pressure to improve its COR fast
AXA UK’s search for a new leader of its direct business is over. UK group chief executive Paul Evans didn’t have to look far to find his man and has jetted in the boss of the French counterpart to help solve his problems in the underperforming business.
Yves Masson was chief executive of AXA Direct Assurance in France and has been parachuted in a chief executive of personal direct and partnerships.
AXA has played up Masson’s track record of turning the French direct business into a “profitable” and “market-leading” motor and home insurer, together with managing partnerships and affinity deals. Evans and the UK business could benefit from some of that know-how right now.
Big COR problems
Last year, AXA recorded a combined ratio in private motor – which makes up the bulk of its personal lines book – of 121%, around 15 points off the market average. This was despite rates climbing 30% in 2010 and an escalation last year.
The company’s Paris-based parent reacted by announcing in its first-quarter results this year that it was “portfolio cleansing” its direct book, citing the UK as the main factor. The cleansing led to its global direct personal motor revenues slumping 6% in the first quarter.
One of the priorities on Masson’s agenda will be Swiftcover, the AXA-owned direct motor brand. He will need to get to grips with the challenge of how to make underwriting profits at the business, which piled on volume right in midst of the bodily injury and credit hire boom.
AXA Group has set a target of 97% combined ratio by 2015 and, with the UK personal lines book still some way off, Masson will be expected to deliver immediately.
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