"The Global Financial provider provides financial services throughout the world. It deals in various forms of insurance like life, health, etc. It also provides investment management solutions. Strictly speaking, the company operates in five departments. They are Life & Savings, Property & Casualty, International Insurance (including reinsurance), Asset Management and Other Financial Services.
The 9th largest company in the world (according to Fortune Global 500 list, 200), AXA was founded in the year 1816 as Mutuelle de L'assurance contre L'incendie. Later after a series of acquisitions till 1982, it took the name AXA. The company's acquisitions included Compagnie Parisienne de Garantie in the year 1978, after which it became Mutuelles Unies and the Drouot Group in the year 1982. The AXA is a French company dealing in global insurance. At present, the company has its branches in Western Europe, North America and the Asia Pacific region and the Middle East. AXA is a corporation of different business, which works independently according to the rules of the country in which it is operative. It has its headquarters in the 8th Arrondissement of Paris. In the year 2010, the company was successful in earning Euro 90.97 billion revenues with a net profit of Euro 2.749 billion. In this Euro 12.6 of the revenues came from the Americas, Euro 61.4billion came from Europe, Euro 9.7billion from Asia-Pacific, Euro 0.4billion from Middle East and Euro 0.3billion from Africa. AXA is now operative in 6 different countries across the world with about 214,000 employees to look after its 95 million clients.
AXA has achieved its present stature by being innovative in attending the clients need. They have focused themselves on three main ideals, which explain their ability to meet the client's expectations. These ideals are their attentiveness to the clients, their reliability and availability at all times for the customers. The company in addition to aspiring for extended external growth is also successful in maintaining a healthy relationship with the existing clients. The company has always idealized five principles, which has been the driving force behind its success. They can be precisely termed as the three pillars supporting its success. They are being innovative at every step, offering the best service with expert business management, separate management divisions to equalize the work, uncompromising attitude towards quality while at the same time providing superior productivity. AXA is now planning its increased growth, keeping in mind the potential mature market and the increasing requirement of insurance in the developing countries."
[...] United States is the second leading standalone market for the enterprise accounting for 12% of total group revenues. AXA Investment Managers is the leading investment subsidiary operated worldwide holding approximately 48% of parent corporation's assets under management. AXA Group is publicly traded on Euronext Paris, with market capitalization of €20.7 billion (June 2012). The company discontinued its listing on New York Stock Exchange in March 2010. Mutuelles AXA and BNP Paribas SA are the leading shareholders with combined holding of approximately 20% of equity (February 2012). [...]
[...] ➢ Threats: A) The company's business performance is likely to be affected by the ongoing slowdown in the global economy. Due to recessionary economy, consumers are left with lower disposable incomes and tend to reduce their discretionary spending. B) In the UK, the company might be subject to regulatory implications attributed to charging of hidden premiums and cancellation fees to B2C customer base. This might hamper long-term brand positioning in emerging markets (Datamonitor, 2012). Thus overall, AXA has unique market positioning attributed to vertically integrated distribution network along with expansion of brand equity in fast moving emerging markets such as India, China, Singapore, Malaysia etc. [...]
[...] Asia it has signed strategic distribution partnership with banking and other non financial institutions to improve operating margins on long- term basis (Datamonitor, 2012). ➢ Weaknesses: A) In 2011, life & savings new business generated stood at €1.44 billion, with annual decline of 4% for past 5 years (2007- 2011). Further, the core life & savings business activity declined by 7.7% annually in 2011 (Datamonitor, 2012). B) For the fiscal year ending December 2011, France accounted for 26% and 20% of total property & casualty and life & savings segmental revenue mix for AXA Group. [...]
[...] On long- term basis, AXA Group plans to focus across Asian property & casualty segment via direct and indirect expansion mode (partnership with financial institutions along with acquisition of core regional assets). Future Research Scope The future research scope involves the following: ➢ Changing P&C and life and savings insurance segments across emerging markets with regional focus on AXA's dominant Asian markets such as China, India, Singapore, Malaysia etc ➢ Broader comparative study on top ten European life & savings insurance companies such as AXA, Allianz etc. [...]
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