National Mutual axes its old image

By Richard Braddell

MELBOURNE - The change of name to Axa Australia and the replacement next year of its chief executive by an appointee out of London has been viewed by some Australian media as symbolic of the rout of the old guard by National Mutual's 51 per cent French parent.

But not everyone agrees. Axa's move to exert control over its Australasian offshoot was inevitable and signals that the company is at last getting its ducks in a row after a period of drift, personnel at one of Axa Australia's leading rivals say.

And the rout label is also strongly rejected by Axa Australia's outgoing chief executive, Tony Killen, who says that while it is colourful, it does little to accurately reflect what is happening at the renamed National Mutual.

While it is undeniable that tensions between the French parent and National Mutual's previous chief, Geoff Tomlinson, led to his departure, Mr Killen, who is in his 36th year with the group, hardly looks under pressure to go.

Indeed, he says his decision to quit is in keeping with his goal to retire by age 55, the age he will reach in May next year.

And while his successor, Les Owen, comes from another part of the Axa empire, Sun Life in London, Mr Killen says Mr Owen's appointment was determined in Australia by Axa Australia's parent company National Mutual Holdings, whose board is dominated by Australian citizens.

Mr Killen views the business he controls as one that is still very much Australian centred, although one which has the support and resources of a global group.

He regards that as important in helping to end a period of drift in which the company has lost market, as evidenced by its eclipse by the aggressively expansionist Colonial.

Mr Killen outlines two grand themes for Axa Australia. The first is cost-cutting, with a $A150 million-a-year reduction well on its way to being achieved over a four-year target with costs down $A43 million in the 1998 year.

But Mr Killen also sees the Axa rebranding as a chance to relaunch and reinvigorate the company.

While staff have rallied to the call, so has the parent Axa, which is chipping in the extra cost of doubling of the sales and marketing budget to $A20 million for the next three years.

The result is that Axa Australia's new image will come at no cost to the minority shareholders, who control 49 per cent of the company.