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

Axa XL’s insurance revenue was 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 SA said it expects underwriting losses from the war in Ukraine to be similar to a mid-sized natural catastrophe event.

Axa XL delivered growth in property insurance during the first quarter but lower revenue in casualty business.

Axa’s commercial lines insurance revenue, which includes Axa XL, rose 4% in the quarter to €10.7 billion ($11.32 billion).

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

Axa’s overall commercial lines revenue was up 2% to €12.2 billion, as the stronger performance in insurance was tempered by a 12% fall at Axa XL Re to €1.5 billion. Axa said the fall in reinsurance revenue was due to a strategic decision to reduce its natural catastrophe exposure. Reinsurance pricing was up 8% in the quarter.

Axa’s total property/casualty revenue rose 2% to €18 billion in the first quarter.

Alban de Mailly Nesle, group chief financial officer, said property/casualty commercial lines insurance enjoyed “continued favorable pricing momentum across geographies and notably at Axa XL”.

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