AXA’s plan to sell its property reinsurance business is driven by attempt to reduce its exposure to natural disasters such as hurricanes. Credit: NASA on Unsplash.

French insurance giant AXA is considering options to divest its property reinsurance operations to reduce its vulnerability to natural disasters, including hurricanes, Reuters has reported citing three people familiar with the development.

The company has started holding talks on selling its XL Re business through a possible private sale deal or stock market listing, unnamed sources told the publication.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

However, the negotiations are at a preliminary stage and they may not result in a final deal.

The discussions come two years after French mutual insurer Covea reportedly showed interest in XL Re.

AXA refused to provide any update on the matter.

Some reinsurers have discontinued services that offer coverage to events related to disasters amid difficulties in assessing risk in the wake of climate change.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Their decisions were aided by events such as last year’s Hurricane Ian, which was considered to be the third most expensive storm in the history of the US.

The firms that are still offering those services have significantly rose their charges.

According to a new Gallagher Re report, the US property catastrophe reinsurance’s price has been increased by at least 50% at a key renewal date on 1 July.

AXA has been making attempts to minimise its XL Re’s AXA XL property and casualty (P&C) unit’s risk exposure to earn a more predictable income.

This has led to a reduction in revenues of the reinsurance business by around a third to $3.2bn last year, according to AXA’s 2022 accounts.

Until the end of December 2022, the Bermuda-based unit had approximately $2bn in book value.