Swiftcover brings claims operations in house
Friday, 05 June 2009
Swiftcover, a wholly owned subsidiary of AXA Insurance, today announces that it has acquired the business of SIMS, a specialist personal motor claims provider, which manages all of Swiftcover's claims activity.
Swiftcover is SIMS's major customer and over the past 5 years the two companies have grown together, both in scale and customer offering, sharing similar ethos and culture and working closely on product development. As a core activity for any insurance business, claims is a key source of competitive advantage and this acquisition is a logical step in the continued expansion of Swiftcover and the development of AXA's direct product offerings.
The acquisition of SIMS will allow better integration of claims and policy platforms, improve customer communication and enable a consistent experience for both the AXA and Swiftcover direct insurance products. It also provides a very progressive, low cost business model which AXA believes will facilitate the ongoing development of its claims function in future.
SIMS was formed in 2004 and employs around 320 people based at three sites in the UK in Tunbridge Wells and Tonbridge in Kent and Staverton in Gloucestershire.
The in-sourcing of the SIMS business will provide significant synergies and will facilitate additional leverage of procurement power through unification of contracts and scale.
Steve Hardy, Managing Director of AXA Direct and Chief Executive of Swiftcover said:
"The way we manage a claim is a key part of the promise we make to our customers when they buy one of our policies. We have ambitious plans to grow our offering under both the Swiftcover and AXA brands. By having our claims handling function in house, we can plan and manage our growth much more effectively and further improve on the service we give to our customers while continuing to handle claims in the most cost-effective way possible."
Tony Peppard, Managing Director of SIMS said:
"Everyone in our business should be proud of the contribution they have made to the success of both SIMS and Swiftcover over the past 5 years. This acquisition is an important milestone for both companies and marks the end of the beginning and the road ahead for expansion into new lines of business with great opportunities for all of us in our new unified organisation."
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Allyson Da-anoy AXA Insurance press office +44 020 7369 3935 / 07964 502313
Miranda Bellord AXA Insurance press office +44 020 7977 5164 / 07964 501800
Notes to Editors:
AXA Insurance is one of the largest general insurers in the UK and underwrites a broad range of products for individuals and businesses. Products are distributed primarily through brokers and corporate partners, with a growing presence in the direct market through its website www.axa.co.uk and Swiftcover, the 100% online insurance provider. AXA Insurance is part of the AXA UK group of operating companies.
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. For full year 2008, IFRS revenues amounted to Euro 91.2 billion and IFRS adjusted earnings to Euro 3.7 billion. AXA had Euro 981 billion in assets under management as of December 31, 2008.
The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISIN FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American Depository Share is also listed on the NYSE under the ticker symbol AXA. Our previous company performance is not a guide to how we may perform in the future.
Any opinions expressed in this media communication are made as at the date of this publication but are subject to change without notice.
Based in Cobham and employing over 250 people, www.swiftcover.com was born out of a desire to revolutionise the general insurance market. Swiftcover started trading in June 2005, jointly owned by the founding management team and international insurer Primary Group.
Swiftcover offers car, travel and pet insurance online, and is Britain's only insurance company without call centres, which means that the cost savings can be passed directly onto the customer and premiums are kept low. In 2008 swiftcover.com featured as the cheapest insurance quote on the comparison website moneysupermarket.com more often than any other insurer.
This powerful operating model combined with successful marketing and competitive pricing has proven to be a tremendous success. This year Swiftcover has over half a million live policies and is considered to be the fastest growing insurer in the UK.
In 2007, AXA UK acquired Swiftcover. It is now a wholly owned subsidiary of AXA Insurance UK PLC which forms part of the AXA Group.
SIMS's full name is Supplier and Incident Management Solutions Ltd.
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