AXA culls advisers

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A cull of advisers with ‘low productivity' has seen AXA New Zealand's aligned adviser force shrink by 18% over the past year to 313, while the total adviser network was 15% lower at 359.

Thursday, February 17th 2011, 5:00AM 2 Comments

by Benn Bathgate

AXA New Zealand CEO Ralph Stewart said uncertainty around the pending AMP takeover was not to blame for the reduction in adviser numbers.

"If there was any external reason I think it would be adviser regulation," he said.

"It's emerging as an impact [on the advisory market]. There's been an awful lot and I think we'll see more of it."

Stewart said the ‘low productivity' terminology in the report was "probably a little bit aggressive" and that while it can vary, it usually applies to advisers who fail to meet a minimum requirement of writing premiums just below the $30,000 mark per annum.

"In some cases, particularly older advisers who've been writing a lot of business, we just have a conversation and work out whether it's important we stick together or not."

For the year to December 31, 2010, AXA saw an 18% reduction in aligned advisers, down from 380 in 2009 to 313, while Spicers advisers rose 10% from 42 in 2009 to 46.

"It's normal business for Spicers to buy books of business if they come up for sale, sometimes they include and sometimes they don't include advisers," Stewart said.

He said AXA-aligned advisers were responsible for two thirds of sales, while "advisers who are strictly brokers and don't have an alignment to any particular manufacturer" were responsible for the remaining third.

Stewart also revealed AXA has signed up 165 advisers to its Quality Advice Network (QAN), a support service for advisers dealing with the new regulatory environment, and that they had been "overwhelmed" by demand for the service.

"It's belonging to a gathering of advisers that fundamentally have a belief in quality financial advice," he said.

"It has nine modules and each module allows advisers to use them according to their own business model. For example, if you're an AFA you can complete your training, get all your online assessments and online credit collection process through module two. If you're an RFA and you've got some investment business you can use the QAN to service your customers without having to lose them."

Overall, Stewart said AXA performed well in a year dominated by regulatory issues and a slow economy.

"2010 was a difficult year and for profit to be up almost a quarter - 24% - we're delighted."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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