AXA has made its commitment to the wealth management sector official, with the sale of its traditional life and pensions book, IFA protection and group pension business to Resolution for £2.75 billion ($4.1 billion). 

As part of the changes at AXA, Paul Evans, chief executive of AXA Life, will become AXA UK deputy CEO, while Mike Kellard has been appointed CEO of the new AXA Wealth business and will be appointed to the AXA UK board, both subject to regulatory approval.

AXA’s decision to focus its UK business on wealth management through AXA Wealth, which it has been building out over the last three years, comes following a review of its life business activities, and in light of a number of changes to the UK life industry, such as the Retail Distribution Review, Solvency 2 and the growth of wrap platforms, according to the firm.

“AXA has for some time recognised that the traditional life industry model needs to evolve to respond to advisor and consumer needs and regulatory changes.  Over the past three years, AXA’s new model wealth business has been built by AXA Wealth CEO, Mike Kellard, with these factors in mind,” Evans said in a statement.

“Our priorities are to rapidly grow the asset base of our wrap platform Elevate and our multi-manager, Architas, as well as our specialist pensions business AXA Winterthur. We have a multi-channel route to market which places us in a strong position to manage the many changes that are taking place in our marketplace.”

AXA Wealth incorporates AXA Elevate wrap, Architas Multi-Manager, AXA Wealth International, AXA Winterthur, AXA Bancassurance and Sun Life Direct. AXA’s other businesses – AXA Insurance, AXA PPP healthcare and Bluefin – are unaffected by the deal.