AXA XL has reported total revenue growth of 7% for the first quarter of 2019, driven by 16% growth for P&C insurance and 4% growth for specialty, but offset by a 2% decline for reinsurance.
Total revenue rose to €6.1 billion, made up of €2.9 billion from P&C insurance, €1.4 billion from specialty, and €1.7 billion from reinsurance.
The company explained the drop in its reinsurance revenue was mainly driven by lower volumes in property lines, reflecting reduced catastrophe-exposed business, partly offset by higher revenue in specialty lines.
In contrast, the 16% growth in AXA XL’s P&C insurance revenues was driven by higher volumes in North America professional lines, including a new multi-year contract, as well as in international property, international professional and North America construction lines.
It also benefited from positive price effects, with AXA stating that “a favourable pricing momentum is building across most lines” following the Q1 renewals.
On average, price increases on renewals were 3.3% in insurance and 1.5% in reinsurance, the company said.
AXA XL’s 4% revenue growth for specialty mainly stemmed from higher volumes and better pricing in political risk, energy and equine, livestock and aquaculture, partly offset by selective underwriting in London wholesale and marine.
Overall, parent company AXA posted gross revenues of €35.0 billion in the first quarter of 2019, representing a 3% increase from the €30.8 billion it posted for the same period last year.
Growth was supported by a 5.7% increase in P&C commercial lines revenue, which totalled €11.4 billion, and a 5.6% increase in health revenue, which totalled €3.8 billion.
“AXA delivered another strong performance in the first quarter of 2019”, said Gérald Harlin, Deputy CEO and Group CFO of AXA. “Our topline grew overall across the Group, and particularly strongly in each of our three preferred segments: Health, Protection and P&C Commercial lines.”
“AXA XL had a strong quarter of selective growth, growing in P&C Insurance and Specialty lines while maintaining underwriting discipline in Reinsurance,” he continued. “The pricing environment improved further over the quarter and we see good momentum building across most lines of AXA XL’s business.”
“Our transformation journey continued in the first quarter, with the successful placement of another tranche of EQH shares in March, leading to the deconsolidation of EQH. Our business profile is becoming increasingly simpler, clearer and more focused.”
AXA’s Solvency II ratio moved down 3 points from 193% in Q1 2018 to 190% in Q1 2019, and the insurer maintained a AA- rating with a stable outlook across all rating agencies.
“We have made significant progress towards our ambitions again this quarter,” Harlin added. “I am grateful to all our colleagues and partners for their strong support and passion, and would like to thank our clients for their continued trust.”