AXA mulling reinsurance unit sale amid increasing cat exposure: report

Europe’s largest insurer  AXA is mulling a sale of its property reinsurance business. The move comes amid a change in cat strategy and shift towards specialty business, aiming to rebalance its portfolio.

French insurer AXA SA is considering strategic options for its XL Re unit, which may include a potential private sale or listing on the stock market, Reuters said Tuesday (July 11) citing sources familiar with the matter.

According to Reuters, the discussions regarding the unit are “preliminary in nature” and there is no guarantee that they will result in a transaction. This potential move comes two years after the business attracted interest from French mutual insurer Covea, it noted.

At the time of publication, AXA has not made any public comments on the news.

During a recent interview with sister publication Bermuda Re+ILS, the CEO of AXA XL Re Bermuda, Mark Twite, discussed the company’s strategy of rebalancing its portfolio by focusing more on specialty business and adjusting its appetite in the property-catastrophe space.

“Our approach to specialty lines is nuanced but it is also closely linked to our cat strategy,” Twite told Bermuda Re+ILS in May. “Our approach to cat business is changing as we seek more diversification. But we see that as being an opportunity to change our mix of business for the better and create a more balanced portfolio.”

Twite explained the decision to reassess the company’s property-catastrophe book was driven by the industry’s experience of consistent losses in the segment. “Extreme weather events are getting worse. We felt we needed to take a more long-term view on the product base,” he said.  To read the full interview, click here.

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