Insurancedamage the combined ratio was 90

It is a key region for AXA, which represents only 10 of its turnover but 13 of its business results. It is mainly a large reservoir of growth and future profits with 41 of the value of new business in life insurance (1). "The Asia-Pacific is an eldorado for insurers," said Philippe Donnet, who has been appointed head of the new regional platform for AXA. "But our competitors do it there are not deceived and the tickets are expensive", he said.

Local companies do the lion's share of China or India. Americans are also very aggressive, especially the world leader in AIG. Other European players also try to access the first ranks, like the Dutch ING or even the British Prudential.

High population and economic growth, strong currencies, penetration moderate insurance in many countries, comfortable margins... Many are the reasons that push the insurers to expand in the region. "Mink growth rates high from 15 to 20 without abandoning an inch of profitability", says Philippe Donnet, who is pleased that all the countries of the region are now profitable. Life insurance, the margin on new business (2) is 78 in Hong Kong, from 62 to Japan, 53 in the Philippines and 31 in Indonesia or Thailand. It is 17 compared to the United States, by 15 in France.

Insurance-damage, the combined ratio was 90.3 in 2005 in the five countries of Southeast Asia where AXA is present. What sharpening his appetites of growth. "We want to strengthen us everywhere," he continued.

Many challenges

AXA in particular would like to return to foot in Korea of the South, an important market that he had left in 2001 in difficult conditions. It searches for a partner to sell the insurance damage in India. "It would be also interesting to take positions in the Viet Nam, where one feels a tremor of the market."

All means are being considered: start-up, partnerships for distribution, joint ventures and acquisitions. "One cannot imagine (the enterprise project) Ambition 2012 in this region without external growth." All conditions are met, explains Philippe Donnet. Need to be opportunistic. If an opportunity presented itself, of significant size, we will try to seize the. "AXA Asia Pacific Holdings, 51 of the Group subsidiary, based in Australia, still has a right to look at acquisitions in life insurance. Because the French failed to return to the minority of this subsidiary in summer 2004, the shareholders having held the price offered insufficient. "But this structure do we gene absolutely not", says Philippe Donnet.

The challenges remain however many in the region. Competition is tough, as Hong Kong where it lists no less than 129 companies insurance-damage. The regulation is sometimes restrictive, as in China where the licenses are assigned in dribs and drabs. Political risks are high in some countries, as in Thailand where the military coup has weighed on the market of the business.

Finally, it is also attract young Asian talent", concludes Philippe Donnet. This is not a sinecure. The five members of the Executive Committee of AXA Asia Pacific, none is of Asian origin.