AXA XL’s H1 GWP & other revenues hit €32.5bn as group looks to sell AXA IM

Global insurer AXA’s P&C and specialty risk division, AXA XL, has revealed that gross written premiums and other revenues were up 7% to €32.5 billion in H1 of 2024, while its combined ratio was 90.2%, down 0.7 points from the same period of 2023.

AXA XL’s commercial lines business saw premiums increase by 7% in H1 of 2024 to €20.2 billion, chiefly driven by 7% growth in AXA XL Insurance, reportedly reflecting favourable price effects across all lines except US Professional and Cyber, and higher volumes, notably in Property and in Casualty, combined with the renewal of a multi-year fronting deal.

There was also a growth of 23% in AXA XL’s Asia, Africa & EME-LATAM commercial lines business in H1 of 2024, while Europe and France each expanded by 5% due to favourable price effects.

In the personal lines division of AXA XL, H1 premiums increased by 6% to €10.5 billion, driven by favourable price effects in both Motor and Non-Motor.

According to AXA XL, this was partly offset by lower volumes in the UK & Ireland and Germany, and a shift in business mix towards lower-risk customers in Motor in the UK & Ireland.

Meanwhile, at AXA XL Reinsurance, premiums increased by 10% to €1.9 billion, driven by favourable price effects, notably in Property and Casualty, and higher volumes in Specialty.

P&C underlying earnings were up 7% to €2.9 billion in H1 of 2024, which AXA XL attributed to favourable technical margin and better financial results from higher investment income which more than offset the increase in unwind, partly offset by an increase in taxes, notably due to the introduction of the OECD tax.

Group-wide, AXA’s gross written premiums & other revenues in H1 of 2024 were €59.9 billion, up 7% compared to H1 of 2023.

At the same time, AXA’s underlying earnings in H1 of 2024 were €4.2 billion, up 4% vs H1 of 2023, while the firm’s net income increased by 6% in H1 of 2024 to €4.0 billion, mainly reflecting the increase in underlying earnings and net realized capital gains.

Thomas Buberl, Chief Executive Officer of AXA, commented, “AXA has made a good start to its new strategic plan ‘Unlock the Future’. In the first half of 2024, we have achieved +7% organic revenue growth and a +4% increase in underlying earnings per share.

“This reflects the strength of our business model, which is balanced between Commercial and Retail lines, and diversified across geographies. This gives us confidence in achieving underlying earnings per share growth by year-end that will be in line with the 6% to 8% plan target.

“We have delivered strong growth across all lines of business, leveraging the attractive positioning of our franchise and a positive initial contribution from growth initiatives. P&C revenues were up 7%, with continued good demand, notably in Commercial lines, and positive pricing dynamics across all lines.

“Life & Health premiums were also up 7%, including targeted growth in Employee Benefits. The planned acquisition of Nobis announced today is expected to further strengthen our P&C Retail franchise in Italy, including the expansion of our distribution network, which is one of the key levers of our strategy.”

Buberl continued, “Group underlying earnings were Euro 4.2 billion, driven by 7% earnings growth from our operating businesses, including strong profitability in Commercial lines and good progress on the short-term margin improvement plan in P&C Retail and UK Health. In line with our strategy, we are also investing for the long term, notably in technology and growth initiatives, which will support the successful execution of the plan.

“We have also taken a strategic decision to exit asset management with the intention to sell AXA IM to BNP Paribas. We intend to offset the resulting earnings dilution with a share buy-back, and we are affirming the key financial targets of our new strategic plan.

“We further intend to enter into a long-term investment management agreement with BNP Paribas that would provide a wider range of investment solutions to AXA and its customers.

I would like to thank all our colleagues, agents and partners for their commitment and support, as well as our customers for their continued trust.”

As Reinsurance News understands, AXA IM has an established cat bond and insurance-linked securities (ILS) fund management unit, so if BNP Paribas successfully acquires it, this will be the first time BNP Paribas has had its own ILS fund manager capabilities.

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