Global mergers and acquisition (M&A) activity will be boosted following the global financial crisis, according to Axa Asia Pacific chief Andrew Penn.
"An area of major change that we can expect to see following the GFC [global financial crisis] is brought about by competitor response," Penn said at the Financial Services Institute of Australasia summit yesterday.
"In this regards we will most likely see and indeed are already beginning to see an increase in global M&A activity including Axa."
Part of the M&A activity will be driven by companies aiming to restructure their balance sheet as they look to repay government funding, he said.
However, M&A activity will also be driven by companies wanting to pursue strategic advantage in light of other industry changes, according to Penn.
"Indeed here in Australia the possible changes to the regulatory environment for financial advice, superannuation and tax are leading to an increase in M&A activity," he said.
Penn signalled further M&A activity in Asia as companies "shift their focus from survival and balance sheet restoration to growth".
"Economic growth in many of the developed markets looks softer than that available in emerging markets and in this regard Asia is clearly the most important. We are seeing an increased level of M&A activity in the region," he said.
Penn said the firm was well positioned to capitalise on the government changes to financial advice, the superannuation guarantee increase and developments from the Henry review, the Cooper review.
"We are well progressed down the path of shifting our business to a full fee for service model," he said.
"With our wealth.net platform we are well positioned to respond to the anticipated changes from the Cooper review and our innovative North product range was expanded this quarter with a post retirement option."
