AXA XL’s insurance prices rise 10% as group faces ‘mid-sized’ cat loss from Ukraine

AXA XL’s insurance revenues were stable in the first quarter with price rises of 10% offset by a focus on profitable business.

In its first-quarter activity indicator, parent group AXA said it expects underwriting losses from the war in Ukraine to be similar to a mid-sized nat cat event.

AXA XL insurance delivered growth in property lines during Q1 but lower revenue in casualty business.

AXA’s commercial lines insurance revenue, which includes AXA XL, rose by 4% in the quarter to €10.7bn.

This was driven by growth of 6% in Europe from higher volumes and rising prices, particularly in Germany and Switzerland.

AXA’s overall commercial lines revenue was up 2% to €12.2bn, as the stronger performance in insurance was tempered by a 12% fall at AXA XL Re to €1.5bn. AXA said the fall at AXA XL Re was the result of a strategic decision to reduce its nat cat exposure. Reinsurance pricing was up 8% in the quarter.

AXA’s total P&C revenues rose 2% to €18bn in Q1. Group revenues lifted slightly by 1% to €31.2bn, with health business up 6% to €4.4bn and life and savings down 3% to €8.4bn.

AXA’s group CFO Alban de Mailly Nesle said P&C commercial lines insurance enjoyed “continued favourable pricing momentum across geographies and notably at AXA XL”.

“While it is too early to provide precise guidance, based on our current assessment and the current scope of the conflict, we currently expect the net underwriting losses from the crisis [in Ukraine] to be akin to a mid-sized nat cat event,” he added.

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