AXA XL tightens grip on property cat reinsurance in strategic move

AXA XL Reinsurance recorded a 2% decline in premiums to €1.2 billion in the first quarter 2023, following a strategic move to reduce exposure in the property cat segment. However, this decline was counterbalanced by strong price increases across other lines of business.

The update on its reinsurance book came amid a wider picture of positive growth for AXA Group, which showed an overall gross written premiums increase of 1% to €31.8 billion.

Notably, P&C commercial lines enjoyed premium growth of 7% to reach €11.5 billion and P&C personal lines witnessed premium growth of 4% to reach €5.9 billion.

AXA XL Re premiums declined by 2% to €1.2 billion, driven by lower premiums in property cat reflecting reduction in exposure, which aligned with the Group's strategic focus on reducing exposure. However, it was partly offset by robust price increases.

Despite that decrease, the company witnessed growth in premiums for casualty and specialty, largely attributed to favorable pricing dynamics.

The company claimed that it is continuing to “deliberately right-size some specific businesses, including in property catastrophe reinsurance” in an effort to rebalance its reinsurance portfolio to capitalising on favorable market conditions in specific segments.

Alban de Mailly Nesle, chief financial officer of AXA, commented: “Our fundamentals are strong across all our businesses. Pricing momentum remains favorable in P&C and Health, and our Life performance is resilient reflecting the dynamism of our proprietary distribution networks.

“The Group enters the last year of its “Driving Progress 2023” plan in a position of strength. We have an attractive business mix focused on technical and cash generative lines set to deliver organic growth over time. Our balance sheet is very strong, with a high level of solvency and a prudent and diversified asset allocation. All of this places us well in the current uncertain and volatile economic environment.”

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