AXA LM is increasingly offering its expertise to outside investors, demonstrating its ambition to remain a top player in the legacy management market.
A varied international experience
AXA LM has integrated legacy portfolios representing a cumulative total of €9.1 billion in reserves.
Over the past 16 years, AXA LM has developed its ability to integrate new portfolios and has succeeded in creating an international platform located in the biggest legacy insurance and reinsurance markets. This platform enables AXA LM to efficiently bridge any gaps created by cultural or language differences. Additionally, AXA LM can transfer major portfolios to the teams that are able to best manage them, share tools and processes, work in a project-based organisation, and achieve synergies in key areas (claims management, cedant audits, disputes, collecting reinsurance recoveries, commutations).
For AXA LM, whose experience spans over twenty portfolios in nine different countries, these advantages are key drivers of success in its business.
Our acquisition policy
Today, insurance and reinsurance companies are increasingly looking for alternative solutions for dealing with their legacy business. There are many reasons for this: a desire to redeploy locked-in capital associated with legacy business to their growth strategy, a need to refocus their teams’ attention on core business activities, or the unsatisfactory performance of past management strategies.
With our solid experience and expertise as an international acquirer and manager of legacy business, we are an ideal partner for these insurers and reinsurers. Our recent acquisitions prove our appeal.
We have developed a unique approach to acquiring legacy portfolios, guided by four key principles.
- Designing a win-win deal
Our international platform helps us to acquire portfolios in many different countries. This gives us a great deal of flexibility in managing transactions of all sizes and structuring them in various ways.
- Ensuring peace of mind throughout the acquisition process
With our experience in integrating a large range of risks in many different jurisdictions, our absolute discretion throughout the process, and our adaptability, we can meet the seller’s specific needs.
- Protecting sellers from reputational risk
Our professionalism, expertise, and excellent relationships with regulators keep sellers safe from any reputational risk.
- Speaking the seller’s language
Our adaptable, international teams possess a thorough understanding of local issues. With our past experience in integrating and managing legacy (re)insurance business from within the AXA Group, we are familiar with and sensitive to the seller’s concerns.
Our future growth
After a decade of managing the AXA Group’s run-off liabilities, while generating stable profits and dividends, AXA LM now acquires and manages liabilities for third parties through dedicated acquisition vehicles. One of these vehicles is managed by an AXA LM subsidiary, AXA LM Fund Management. An expert M&A team was set up to select and prioritize opportunities, in addition to reinforcing AXA LM’s expertise and expanding the range of services it provides. To date, 16 acquisitions were made, using a combination of equity, debt, and cash assets.
AXA LM finalised its 16th outside acquisition in December 2016 and will continue to actively acquire new portfolios, confirming its ambitious strategy in the legacy market.
For more information, contact John Byrne or Pascal Salelles