AXA XL has moved to consolidate its reinsurance operations under the newly-formed AXA XL Re entity, in an effort to more easily bifurcate and evaluate the performance of its insurance and reinsurance business segments.
AXA XL Re’s business will predominantly consist of renewing reinsurance policies previously underwritten by XL Bermuda Ltd.
The new entity has received a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” from AM Best.
AM Best states that its ratings reflect AXA XL’s consolidated balance sheet strength, which it assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Going forward, AM Best expects AXA XL Re to serve a key strategic role within the broader AXA XL Group enterprise.
Meanwhile, S&P Global Ratings has assigned the company an ‘AA-‘ financial strength rating with a stable outlook, a reflection on its core strategic importance to AXA group.
S&P bases its view on the strategic alignment of the company’s role with the group’s objectives for expansion in the reinsurance market.
The company notes how in the coming two years, the rating could be lowered if it no longer sees AXA XL Re as core to the group.