AXA XL hurricane Ida claims estimated €400m net of reinsurance

Share

AXA XL, the commercial insurance and reinsurance operation of the global AXA Group, is expected to take a hit of roughly EUR 400 million from hurricane Ida, net of reinsurance recoveries and before tax.

hurricane-ida-satellite-landfallThe unit will also have taken its share of losses from the European floods that struck in the third-quarter as well, which AXA had previously revealed would cause it another roughly EUR 400 million loss, after reinsurance.

But despite this, AXA Group reported that for the first nine-months of 2021 the company continued to expand its property and casualty commercial lines business, with 7% growth in total revenues for the Group and 5% in P&C lines.

The commercial segment grew 7% though, which AXA said was largely down to “favorable price effects, notably at AXA XL.”

At the same time, AXA XL continued to derisk its business, with exposure reduction continuing across some areas of its book.

One of those is in property catastrophe risks, where AXA XL also leverages third-party reinsurance capital through its AXA XL ILS Capital Management unit.

It’s safe to assume that the units investors will share in AXA XL’s expected claims burdens from hurricane Ida and the European floods.

AXA XL’s nine-month revenues were up 6% on a comparable basis in 2021, to EUR 14.35 billion, driven by the P&C insurance and reinsurance business.

The AXA XL unit has continued to report strong price increases at renewals, of positive 15.3% across its insurance lines and 8.9% in reinsurance, as market conditions continue to improve.

The impacts of hurricane Ida and the European flooding earlier in Q3, likely drove some reinsurance and retrocession recoveries for the AXA Group, as well as some of the claims burden being shared with its third-party ILS investor base.

———————————————————————
Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.