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AXA group downscales its local pension fund business

The AXA Group is downscaling and restructuring its local operations after its pension fund lost 95% of  its clients, AXA told MTI, on Tuesday. The company will expand its insurance business and plans to launch a new business unit, it added.

"We will increase our bank, life and health insurance presence, and start introducing new business units in Hungary among AXA's core activities," said AXA group Hungary CEO Jacques Maire. Cyrille de Montgolfier, who oversees AXA's businesses in Central and Eastern Europe, said AXA remains committed to the Hungarian market for the long term and has confidence in the future of AXA group Hungary in spite of the unfavorable business environment at present. Membership in AXA Private Pension Fund, AXA's biggest unit in Hungary, fell from 272,000 to around 13,000, due to government measures to move Hungarians from the private pension pillar back to the state pillar, earlier this year. AXA said the restructuring of its organization in Hungary would come with layoffs but did not reveal specific numbers. AXA has about 800 employees in Hungary. AXA will keep its private pension fund, but it also seeks to enter new market segments by starting to offer retirement savings and general insurance products.