AXA chief executive Ross McEwan says the management contract was put up for tender so AXA could focus on investments and insurance as its growth areas.
Kevin Finnegan, who managed the lending and mortgage administration at AXA for the past four years, and who has more than 18 years experience in banking and lending filed, will be transferring to the Public Trust as National Lending manager.
He will lead a merged team comprising both Public Trust and AXA lending staff.
The Public Trust says the deal as quite a coup for its operations and significantly increases its scale.
Before the deal Public Trust had about $100 million worth of mortgages. AXA will increase that total to more than $420 million and with its 2000 mortgages.
Public Trust will achieve economies of scale and better margins overall, as well as providing another revenue stream, Public Trustee David Hutton says.
Borrowers with AXA will now have to contact Public Trust if they have any queries.
Hutton says the successful bid for management of the mortgage book will help cement a growing relationship with AXA. The relationship started in March when it bought the New Zealand Permanent Trustees company, for an undisclosed sum.
He says other initiatives involving complementary products and services are likely.
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