Axa to Close Financial Planning Unit Offices in Hong Kong and Singapore

Ipac Wealth Management Asia, a financial planning unit of Axa SA, said it will close its Hong Kong and Singapore offices in the first half of 2012 as the French parent aims to focus on insurance business in Asia.

"The divestiture of these fee-based financial planning businesses would be consistent with the ambition to focus on continuing the strong growth of insurance businesses in Asia," said Axa in a statement. Ipac'sHong Kong and Singapore offices were set up in 2003 with about 100 employees, offering advice on life financial planning, private client, risk and investment information.

After its acquisition of part of Axa Asia Pacific Holdings in March 2011, Axa said it would focus more on the growing Asian life and savings markets. The French insurer and Australian wealth manager AMP Ltd. jointly acquired Axa Asia Pacific for A$13.3 billion (US$13.7 billion) in 2010. Paris-based Axa acquired Axa Asia Pacific'sAsia life businesses and sold the latter's Australia and New Zealand operations to AMP (Best's News Service, April 1, 2011).

Axa reviewed several options and its strategy in Asia after the transaction, and decided to close the Ipac Hong Kong and Singapore offices, said Nikki Quinn, a project manager with Axa. The size of Axa's life insurance business doubled after the transaction and its focus is more on life insurance.

"All clients will be contacted shortly to discuss their portfolios and options open to them as a result of this action," said Axa. The clients' investments and insurance policies are not impacted by the closure as the Hong Kong and Singapore offices do not hold client money or have direct access to the investments, said Ipac in a statement.

The closure of the Hong Kong and Singapore offices will not affect the activities of Ipac Australia, which was transferred to AMP in 2011. Ipac Taiwan will continue to operate locally as a wholly owned subsidiary of Axa.

(By Iris Lai, Hong Kong bureau manager: [email protected])