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Gaps, greying and rules fire up Axa

Gaps in insurance cover, the greying population and changes to the regulatory environment will fire future growth, Axa Asia Pacific says.

Speaking at the company’s annual general meeting last week, Chairman Rick Allert also pointed to the company’s investment in India and Malaysia as “accelerated” growth drivers for the company, which announced a 23% increase in net profit to $668 million for 2006.

“We remain optimistic about the possibilities for continued profitable growth in the markets in which we operate,” Mr Allert said.

CEO Andy Penn says Axa will concentrate on underinsurance in Australia. He says low savings ratios and the ageing population will offer opportunities for the company to increase its market share.

“Our latest market research shows us that Australians on average have only a quarter of the life insurance they need. This presents us with attractive growth prospects in financial protection.”

New regulations tightening the regimes against money laundering and financial support of terrorism will increase administration costs, but the company is in full support of the changes.

Axa’s brush with the Australian Prudential Regulation Authority (APRA) was mentioned, and Mr Allert praised Federal Government plans to wind back APRA’s role in imposing bans on directors and officers.

“It was very disappointing that for almost two years we had to deal with a misconceived action by APRA against directors of our staff superannuation fund,” he said.