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.”

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