AXA XL suffers high charges in reinsurance
AXA said that catastrophes in the third quarter of 2019 and the early part of the fourth quarter would result in “above average” charges for AXA XL, mostly in reinsurance.
The company, one of the world’s biggest insurers, said Hurricane Dorian, which made landfall in the Bahamas and in the US in late August and early September, caused estimated charges of €100million, before tax and net of reinsurance. Typhoon Faxai, which impacted Japan, led to charges of some €120million. It said very preliminary estimates indicate charges of around €0.2billion for Typhoon Hagibis.
AXA said: “At this stage, given the severity of these events, and combined with ongoing wildfires in California and other smaller Nat Cat events, management estimates that AXA XL may incur claims charges of €0.4 billion in excess of the normalized level for Nat Cat at AXA XL for the second half of 2019.”
Group-wide, AXA reported revenue of €79.7 billion for the first nine months of the year, 5 percent up on the same eriod last year. P&C Commercial lines revenue rose 7 percent to €24.9 billion.
“AXA delivered another strong operating performance in the first nine months of 2019”, said Gérald Harlin, deputy chief executive chief financial officer of AXA. “AXA’s revenues grew overall by 5 percent, notably with a continued strong growth dynamic in P&C Commercial lines and in Health, and with all of AXA’s geographies contributing to this strong growth.
“AXA XL achieved significant revenue increases, notably in P&C Insurance and Specialty. The favourable pricing environment in Insurance continues to improve, with the third quarter renewals experiencing significant rate increases. Given a series of severe natural catastrophes, including Hurricane Dorian and Typhoons Faxai and Hagibis, AXA XL incurred an above average level of natural catastrophe claims in the third quarter and early into the fourth quarter, mostly from Reinsurance.”
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
Property-casualty premiums rise sharply at Munich Re
Zurich’s top line for the nine months shows good growth
Reshuffle at Lockton as new CEO named
Generali’s operating results rise
Lancashire Insurance appoints new CEO
Swiss Re confirms mulling investment in China Pacific Insurance
SCOR Global Life launches wellness wearables underwriting solution
Sirius Group combined ratio rises to 123% on cat losses
ProAssurance sees growth in Q3 but combined ratio rises
ProSight reports strong Q3 growth
James River reports Q3 loss
Atlanta Group licenses Willis Towers Watson’s Radar Live
Feature: 10 ways insurers are using insurtech to drive new business
