Axa XL further cuts property catastrophe book in Q1
Further shift towards specialty in reinsurance portfolio
Axa XL saw a further double-digit reduction in its property catastrophe reinsurance revenue during the first quarter of 2020 as parent company Axa continued to reshape its portfolio.
The division's property/casualty (P&C) reinsurance revenues grew 2% to €1.9bn ($2.06bn) during the quarter, with specialty expansion more than offsetting the property cat reduction.
In the division’s insurance business, revenue rose 10% to €4.6bn, driven by double-digit growth in P&C and specialty classes.
In property, Axa XL saw 19% revenue growth in its insurance book on the back of strong rate increases in both international and North America.
Casualty saw revenue growth of 11%, with specialty up 10%, driven by strong price increases in aviation and higher new business in the group’s fine arts team.
The division’s total revenues rose 8% to €6.6bn.
During the quarter, Axa XL reported renewal price increases on 10.4% in insurance and 5.7% in reinsurance.
Excess casualty saw the most notable growth with renewal price increases of 64%, with international property up 14%. Axa XL said early indications were the favourable pricing environment had continued into April.
At group level, Axa saw total revenue grow 4% to €31.7bn.
The group said it had seen a limited impact of Covid-19 claims to date but added the confinement measures that had been introduced would have a material impact on several product lines, most notably event cancellation and business interruption.
Axa said it expected event cancellation claims to total in the mid-triple-digit-million euros range, adding it was too early to estimate the extent of business interruption claims.
Axa did not disclose what percentage of these claims it expects to incur through the Axa XL division.