AXA XL invests in newly combined global programme offering

AXA XL is investing in its newly combined global programme and captive offering, as the firm consolidates its position among the top multinational insurance providers. AXA is now in the final stages of combining the respective global programme and captive businesses of AXA Corporate Solutions and Bermuda-based XL Catlin, following the merger of the French insurance group with Bermuda-based XL in 2018. The combination of the two businesses sees AXA XL knocking on the door of the biggest global programme providers, AIG and Zurich. Combined, AXA XL now manages some 5,000 programmes with 37,000 policies, compared with Zurich’s 7,700 programmes. The merger gives AXA XL scale in the growing global programme market, with increased footprint, product offering and service capabilities, according to Sonja Ochsenkuehn, head of global programmes at the firm. “This puts AXA XL on the map, placing us among the top global programme providers. This market is a key part of our growth strategy and an area where we will invest. We aim to go over and beyond the best of both companies and will look to improve on all fronts,” said Ms Ochsenkuehn. Ms Ochsenkuehn said that clients, overall, have responded positively to the merger and shown “confidence in the combined strengths of AXA XL”. Client retention rates remain high, up in the 90% range for large captive business, she said. “Global programmes are increasing in their importance for many of our clients, particularly those that are expanding internationally and having to contend with continuously changing regulatory environments. This is why we’re focused on expanding our capabilities to meet their needs – across regions, segment and product,” said Ms Ochsenkuehn. During the past year, AXA XL has brought the respective global programme and captive businesses together under a single operating structure, also aligning brands and product offerings. Although there is still work to be done, the bulk of the integration is near completion and customers should now experience a consistent and harmonised offering, explained Ms Ochsenkuehn. The group has created regional global programme and captive centres in North America, Europe, the UK and Asia. These are overseen by a central team based in the UK and headed by Matthew Latham, head of captives and global programmes. Since the merger in September 2018, AXA XL has been working to combine the best of both organisations’ global programme capabilities, according to Ms Ochsenkuehn. With a single operating model and brand now in place, this work is almost complete. “Since the merger, we have been integrating the different companies and identifying the best of both organisations – the best people, processes and technology – as well as where we need to go further. It has taken time to select the right bits of each business, but I feel confident that we have now completed the integration and will be the preferred partner for our clients,” said Ms Ochsenkuehn. AXA and XL’s respective global programme businesses were largely complementary in terms of product, footprint and clients, according to Ms Ochsenkuehn. For example, XL was particularly strong in North America, where AXA was not well represented. AXA, in contrast, was stronger on large accounts in Europe, but also has a large presence in the mid-sized and SME markets. XL’s clients will also be able access MAXIS Global Benefits Network, the employee benefits business operating in 120 countries that was co-founded by MetLife and AXA. Meanwhile, XL was particularly strong in specialty lines, like cyber, terrorism and environmental liability, but underweight in some traditional areas such as motor liability or employee benefits. Through the merger, XL’s casualty clients will now be able to purchase auto cover, for example, while AXA’s clients will get access to a broader range of specialty insurances, explained Ms Ochsenkuehn. The combined group also benefits from a “larger and more flexible” footprint, she continued. “Both companies had a strong footprint in their own right and we have carefully selected the best local carrier and footprint available. We will be able to offer solutions in 215 territories and issue AXA policies in some 80 countries. This is an increase on the owned footprint of both AXA and XL by more than 20 locations each,” said Ms Ochsenkuehn. In addition, AXA XL will work during the coming months to harmonise underwriting and services for multinational clients. The group is also in the process of consolidating legal entities and aligning its underwriting and claims processes, systems and guidelines to ensure consistency for clients. One key area of the merger is technology, given the importance of IT platforms to centrally manage global programmes, share data and communicate with customers through client portals. “The goal is to continue to offer clients either what they had before or something better,” said Ms Ochsenkuehn. The group is in the process of aligning its IT systems and has selected the best global programme tools from both carriers moving forward, although Ms Ochsenkuehn acknowledges XL’s global policy administration system was one of the insurer’s key advantages. At present, AXA and XL continue to operate two separate systems but plan to have a single system up and running next year. “We’ve made a lot of progress this past year, but the hard work continues as we seek to become a major global programme player in this market,” Ms Ochsenkuehn said.

AXA XL invests in newly combined global programme offering

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