AXA XL foregoes €100m GWP for ESG strategy
AXA group’s new division dedicated to large P&C commercial lines, AXA XL, will implement AXA’s corporate responsibility policies, including those that relate to the fight against tobacco, climate change, and controversial weapons, as part of its environmental, social and corporate governance (ESG) strategy.
French insurance giant AXA has recently acquired Bermuda-based property/casualty commercial lines re/insurer XL Group for $15.3 billion (€12.4 billion) in cash.
The decision to extend the AXA Group’s climate policies to AXA XL means applying underwriting and investment restrictions to a significant business book.
As a result, AXA XL will no longer underwrite the construction and operations of coal plants, coal mines, oil sands extraction and pipelines as well as arctic drilling. Beyond climate policies, tobacco and “controversial weapons” business will also be restricted. This will represent over €100 million of gross written premiums, according to a corporate statement. Moreover, the new division will apply AXA’s investment exclusions policy, constituting of €660 million in divestment.
"To tackle climate change, we must use every lever possible," said AXA CEO Thomas Buberl. "This means implementing an ambitious strategy everywhere we can. This is why I am very proud to onboard AXA XL into adopting our sustainability strategy. Above all, our conviction has always been that the fight against climate change requires collective action, therefore AXA is happy to support the future UN PSI Climate Ambition Coalition," Buberl added.
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