The decision by Paris-based Axa to shut ipac Asia offices in Hong Kong and Singapore will have no effect on ipac’s Australian operations, a spokesperson told InvestorDaily.
“There’s no impact,” the spokesperson said.
He added ipac Australia would look at ways it could assist ipac Asia clients, about half of whom are expatriate Australians working in Asia.
Ties across ipac, founded in Australia about 30 years ago, remain strong, according to the spokesperson.
“Even though we no longer have the same owner, we share a brand name,” he said.
Axa SA informed ipac Asia clients of its decision last week in an email.
Ipac Wealth Management Asia chief executive Gary Harvey told InvestorDaily Axa SA had launched a strategic review after it bought Axa Asia Pacific’s businesses in Asia, including ipac Asia, in March last year.
“In light of its ambition to grow material insurance businesses in the region, combined with the difficult economic climate over recent years, I regret to tell you that the ipac businesses in Hong Kong and Singapore will be closed,” Harvey said in the email to clients.
“The conclusion of that review was there were not enough synergies between its life insurance operations and its financial advisory businesses to warrant retaining those businesses.”
More than 90 per cent of Axa SA’s annual revenue comes from life and casualty insurance.
“It’s fair to say Axa is making sure it stays focused on its core business,” Harvey said of the closures.
Axa’s Singapore and Hong Kong offices would shut by the middle of 2012, Harvey said, adding clients’ investments and insurance policies would be unaffected.
He said a total of about 80 employees, including about 25 advisers, would lose their existing jobs but Axa would aim to redeploy them in their insurance operations in Asia or help them find work elsewhere.
Many of the advisers have worked for large financial services groups in Australia, including National Australia Bank and HSBC.
The ipac Australia spokesman said advisers in Asia may not necessarily want to relocate to Australia but their familiarity with the ipac business model would make a good fit with the Australian business.
“Clearly there are some talented people there, and there’s always a need for talented advisers,” he said.
