Jobs to be lost as Axa steps back from bancassurance

INSURANCE giant Axa is to cut 70 adviser roles at Clydesdale and Yorkshire banks as demand for bancassurance products slumps.

The roles will be cut from offices in Scotland and Northern England and will affect Axa employees based in the banks’ branches.

In 2008, Clydesdale owner National Australia Bank (NAB) ditched its in-house fund manager MLC and transferred £1.2 billion in assets to Axa, which then resulted in the loss of 78 jobs.

France-owned Axa’s wealth division offers similar “white label” financial products to IFA network Sesame Bankhall and the Co-operative Bank.

Last year, a seven-year partnership with the Co-operative group to provide financial advice to the firm’s five million retail banking customers boosted Axa’s funds under management to £18.9bn.

A spokeswoman for the insurer said: “Axa has announced changes to its Clydesdale and Yorkshire bancassurance structure resulting in a net reduction of around 70 roles across Northern England and Scotland.

“Those people affected have been briefed, and every effort will be made to keep redundancies to a minimum, through natural attrition, redeployment and re-skilling.”

Last week NAB’s chief executive Cameron Clyne said it was still likely the group would sell the Clydesdale and Yorkshire banks in an effort to improve the Australian parent’s balance sheet.

NAB tried but failed to find a buyer for the loss-making banks following a review. Previously the bank announced it would undertake a major restructuring, which will mean the loss of 1,400 jobs over three years, a withdrawal from the UK commercial property market and the closure of 29 financial solutions centres.