AXA’s property and casualty premiums rose 3% in the first nine months of 2026, but its large commercial and specialty unit, AXA XL, continued to shrink as it pulled back in softening markets.
P&C gross written premiums and other revenues reached €48.1bn on a comparable basis, according to AXA’s nine-month activity indicators published on 29 October. Personal lines drove the growth, rising 7% to €17.2bn, while retail P&C and commercial business outside AXA XL grew 6% in aggregate, with contributions from both price and volume. Group-wide premiums and other revenues rose 5% to €93bn.
AXA XL’s insurance business shrank 1%. Prices fell 1%, property volumes rose and casualty volumes fell, which AXA described as disciplined cycle management in a softening market. AXA XL Reinsurance premiums fell 9% to €2.2bn, which AXA also put down to discipline in softer conditions. IB US has more on the results.
That’s relevant in Australia, where AXA XL writes commercial and specialty insurance through brokers and provides reinsurance to local insurers. AXA doesn’t operate a retail P&C business in Australia, so its local exposure is through AXA XL.
AXA said natural catastrophe losses for the nine months were above its prorated annual budget of 4.5 points of combined ratio, citing elevated secondary peril activity, mainly in France, Switzerland and Italy.
Catastrophe data provider PERILS put insured losses from the late-August Raphaela hailstorms in France, Germany, Switzerland and Italy at €3.3bn, following €2.2bn from storms in the same countries in July.
That will be familiar to Australian insurers. Hail and severe convective storms are among the country’s most costly perils, and they’ve driven several of its largest insured losses in recent decades. Europe’s experience this year adds to evidence that these so-called secondary perils are becoming a primary concern for global reinsurers.
AXA’s Solvency II ratio fell to 213% at the end of September from 218% at the end of June. AXA said strong operating returns were more than offset by dividend accruals, share buybacks and unfavourable market movements. It still expects full-year underlying earnings of around €8.6bn, with underlying earnings per share growth at the top end of its 6% to 8% target.
For brokers placing large commercial and specialty risks, AXA XL’s results point to continued underwriting discipline, particularly in casualty, even as other carriers cut prices. Brokers shopping those accounts may find AXA XL less flexible on price than more growth-focused markets.
For Australian insurers buying reinsurance, AXA XL Re’s 9% contraction suggests it will stay selective at upcoming renewals. With Europe’s hail losses adding to global secondary peril experience, reinsurers are likely to look closely at Australian hail and storm exposures, aggregation and retentions when catastrophe programs come up for renewal.
