AXA, a French insurer and reinsurer, has now released its Q1 2022 results, which show a 1% increase in revenue across the group to €31.3 billion, reflecting growth in P&C, personal lines, and health, partially offset by a decrease in life & savings.
Commercial lines revenues increased by 2% to €18 billion in its P&C operation, with a particularly strong 4% increase in commercial lines primary insurance across most geographies.
Overall, revenues at AXA XL Insurance were stable, with the company reporting growth in property lines and lower revenues in casualty, reflecting continued underwriting discipline and a focus on profitability.
AXA XL's growth was offset in Q1 2022 by an 18% decline in revenue at AXA XL Reinsurance to €1.5 billion, owing to a 12% reduction in natural catastrophe exposure.
Natural catastrophe losses in the insurance and reinsurance industries have recently risen, with 2021 expected to be another year with above-average losses. As a result, some have chosen to exit the nat cat space in order to reduce the volatility of their portfolio, as AXA XL Reinsurance did in Q1 2022.
AXA XL's renewal price increases remained strong in the first quarter, at 10% in insurance and 8% in reinsurance.
Revenues in personal lines increased by 1% to €5.8 billion, driven by higher non-motor revenues across all geographies.
"AXA performed well in the first quarter of 2022, delivering high-quality revenue growth," said Alban de Mailly Nesle, Chief Financial Officer of AXA. Across the Group, we continue to see strong performance in our technical and fee-based businesses.
"Our mix is excellent, with Health revenues increasing by 6%, Unit-Linked by 5%, and P&C Commercial lines Insurance increasing by 4%, with continued favorable pricing momentum across geographies, particularly at AXA XL."
"The Group is still very focused on disciplined execution." We have been repositioning our Reinsurance portfolio, with Nat Cat exposure already reduced by 40% in the first quarter's renewals, while continuing to deliver a high-quality Life & Savings business mix with further reductions in traditional G/A."
"We delivered this performance amid the uncertainty caused by rising geopolitical tensions sparked by the war in Ukraine," he added. We are deeply saddened by the tragic situation in Ukraine as an organization with deep European roots. AXA is fully complying with all applicable international sanctions and has ceased underwriting new insurance business involving Russian-owned assets in Russia. While it is too early to provide precise guidance, we currently expect the net underwriting losses from the crisis to be comparable to a mid-sized Nat Cat event based on our current assessment and the current scope of the conflict.
"I'd like to express my heartfelt gratitude to AXA's employees, agents, and partners who have expressed their solidarity and participated in a variety of actions to help address the humanitarian crisis, including donations and volunteer initiatives."
"With a strong balance sheet and a Solvency II ratio of 224 percent, AXA is well positioned against the current uncertain macroeconomic backdrop." In this environment, our strategic shift away from financial risks is particularly pertinent.
"We remain confident in our ability to execute our strategy, focusing on our core attractive segments, particularly Health, Protection, and Property and Casualty Insurance, where the demand for insurance coverage remains high."