Global re/insurer AXA has released its financial report for Q1 2023, with the company’s gross written premiums and other revenues increasing by 1% to €31.8 billion.
Alban de Mailly Nesle, the Chief Financial Officer of AXA, said, “AXA performed well in the first quarter of 2023. We delivered robust growth in technical lines and our balance sheet remains very strong with a 217% Solvency II ratio.”
The company’s commercial lines premiums increased by 7% to €11.5 billion, driven by both favourable price effects and higher volumes across all countries in Europe.
Personal lines premiums increased by 4% to €5.9 billion, resulting from higher premiums in Motor (+6%) insurance, mostly from favourable price effects across all countries, with the exception of Switzerland, where pricing is stable, and in Non-Motor (+2%), from favourable price effects, in particular in Europe, partly offset by lower volumes.
Nesle also said, “Our activity indicators are again of excellent quality. We recorded strong premium growth in P&C Insurance up 6% and in Protection Insurance up 2%. We also continue to deliberately right-size some specific businesses, including in Property Catastrophe Reinsurance, in traditional G/A Savings and across some Group Health international contracts. This should be largely completed by year-end. Our fundamentals are strong across all our businesses. Pricing momentum remains favourable in P&C and Health, and our Life performance is resilient reflecting the dynamism of our proprietary distribution networks.”
The Group has set an underlying earnings target of above €7.5 billion in 2023.
“The Group enters the last year of its “Driving Progress 2023” plan in a position of strength. We have an attractive business mix focused on technical and cash-generative lines set to deliver organic growth over time. Our balance sheet is very strong, with a high level of solvency and a prudent and diversified asset allocation. All of this places us well in the current uncertain and volatile economic environment,” commented Nesle.
The gross written premiums written for Q1 2023 is €31.8 billion compared to €31.2 billion for Q1 2022. Property & Casualty was €17.6 billion for Q1 2022 and has increased to €18.6 billion in Q1 2023. Life & Health premiums were €13.1 billion for Q1 2022 and have decreased to €12.8 billion in Q1 2023.
AXA XL Insurance reflects a reacceleration of pricing across most lines of business and higher volumes in Property and Specialty lines, partly offset by lower premiums in North American professional lines and continued underwriting discipline in international Casualty.
AXA XL Reinsurance premiums decreased by 2% to €2 billion, driven by lower premiums in Property Cat reflecting a reduction in exposure, in line with the Group’s strategy, partly offset by strong price increases.
The re/insurer states that Group’s natural catastrophe experience in the first quarter of 2023 was in line with expectations.
Nesle also said, “This year marks an important milestone for our company and our industry as we move to the new IFRS17/9 accounting standards. Today we are publishing our 2022 results restated under the new standards and confirm that our earnings power remains unchanged, and there is no change to cash and capital. We are confident that we will achieve more than Euro 7.5 billion underlying earnings in 2023, including a negative Euro 0.1 billion foreign exchange impact, subject to prevailing market conditions and a normalized level of natural catastrophe charges.”
