Global insurance and reinsurance firm AXA has purchased significantly more protection for its European exposures at the January 2024 renewals, growing its European windstorm reinsurance in particular by 40% to reach €3.9 billion.
AXA has purchased significantly more catastrophe reinsurance limit overall for 2024, with its European flood reinsurance tower also growing by 20% to reach €2.1 billion, its European quake tower growing 17% to €2.1 billion, and its US hurricane and earthquake reinsurance towers climbing 20% each to €1.2 billion.
See the image below for AXA’s renewed 2024 group catastrophe reinsurance program:
While the limit secured has risen, the retentions for each slice of protection are unchanged from the firm’s 2023 nat cat reinsurance arrangements.
One of the key drivers for the increased reinsurance buying for 2024 is AXA’s rising exposure levels, as the company has continued to expand its overall premiums written, despite a reduction in its reinsurance arm, as covered earlier today.
AXA also disclosed that its average expected natural catastrophe charge budget has risen from last year’s €2 billion to €2.5 billion for 2024, net of reinsurance and pre-tax.
Within this higher nat cat budget for 2024, the firm has made an additional €200 million allowance for losses from secondary perils.
