AXA Asia Pacific Holdings Ltd (AXA APH) chief executive Andrew Penn said on Thursday that the global financial crisis had sparked shifts in the world's financial service industries which could lead to further merger and acquisition activities in the financial sector.

Mr Penn told his audience at the Financial Services Institute of Australasia (Finsia) Asia Financial Services Summit that "we will most likely see, and indeed are already beginning to see, an increase in global M&A activity, including AXA."

AXA APH is a takeover target of National Australia Bank Ltd (NAB) but the $13.29 billion proposal for the insurance and superannuation firm was earlier shoved back by the Australian Competition and Consumer Commission (ACCC) though its bid was much higher than that of AMP Ltd, which pushed for a takeover amounting to $12.85 billion.

Mr Penn opted not to comment on the deal, preferring instead to focus on his topic and discussing the possibility that Australian financial services could expand into the Asian region.

He said that Australian financial services companies have overlooked the opportunity to exploit the exciting Asian markets, as he stressed that "there is a very significant opportunity for Australia and Australian companies to play a more meaningful role in the region but it is an opportunity that needs to be grasped."

Mr Penn pointed out that AXA's business operations in Asia alone had grown to $9.4 billion, coming from the initial investment of $50 million in 1986, adding that "our growth continues to accelerate with year-to-date sales in the region to the end of May up 57 per cent compared to the same period in 2009."