French insurer Covéa has reportedly not given up on its plans to diversify into the reinsurance industry and is looking at the acquisition of AXA Group’s non-life reinsurance operations, AXA XL Re.
The news comes more than a year after Covéa’s acquisition of Bermuda-based reinsurer PartnerRe was called off amid the pandemic, and roughly three years after the insurer saw its takeover approach of SCOR rejected.
But while the SCOR and Covéa saga has finally come to an end, with the pair recently coming to an agreement, reports claim that the French insurer has its eyes on yet another Bermudian reinsurance entity.
In April, AXA XL announced the consolidation of its reinsurance businesses under the AXA XL Re entity, based in Bermuda.
As explained by AXA at the time, this new unit predominantly consist of renewing reinsurance policies previously underwritten by XL Bermuda Ltd., which AXA acquired in 2018.
Reports note that during 2020, AXA XL Re recorded almost $5 billion in gross written premiums, which places it nicely inside the top 15 of the sector.
For Covéa, the takeover of AXA XL Re would strengthen its standings in the non-life reinsurance sector and diversify its offering.