AXA XL is cutting back on casualty and reinsurance as commercial and specialty markets soften, even as its French parent grows overall on the strength of personal lines.
AXA’s property and casualty gross written premiums and other revenues rose 3% on a comparable basis to €48.1 billion in the first nine months of 2026, according to its nine-month activity indicators, published on October 29. Group-wide premiums and other revenues rose 5% to €93 billion, with life and health up 7% to €44.8 billion.
AXA XL, the group’s commercial and specialty business, went the other way. Its insurance premiums fell 1%, with prices down 1%. Volumes rose in property but fell in casualty, which AXA described as disciplined cycle management in a softening market.
AXA XL Reinsurance contracted more sharply, with premiums down 9% to €2.2 billion. AXA said this reflected discipline in softening market conditions.
The rest of AXA’s business grew. Personal lines premiums rose 7% to €17.2 billion. Retail P&C and commercial business outside AXA XL grew 6% in aggregate, with growth coming from both price and volume.
AXA said natural catastrophe losses in the first nine months were above its prorated annual budget of 4.5 points of combined ratio, mainly because of severe convective storms in France, Switzerland and Italy. Catastrophe data provider PERILS put insured losses from the late-August Raphaela hailstorms across France, Germany, Switzerland and Italy at €3.3 billion.
AXA’s Solvency II ratio fell to 213% at the end of September from 218% at the end of June, as dividend accruals, share buybacks and unfavorable market movements more than offset a strong operating return. The group still expects full-year underlying earnings of around €8.6 billion, with underlying earnings per share growth at the top end of its 6% to 8% target.
AXA XL is one of the largest commercial and specialty carriers in the US market. Its decision to cut casualty volumes rather than match falling prices is a significant signal for brokers placing large and complex casualty accounts.
The pullback fits other evidence of a split market. The latest Ivans Index showed US general liability renewal increases slowing to just over 3% by September, while industry forecasts still expect general liability and commercial auto to lose money this year. Carriers that keep cutting prices in casualty are doing so against rising loss costs. Large carriers such as AXA XL are choosing not to follow.
For brokers, that means more variation between markets. Clients may find some carriers offering lower prices on casualty programs, while AXA XL and similar carriers hold firm. Brokers will need to weigh price against the stability of a carrier’s appetite, especially for long-tail accounts where switching carriers frequently can create gaps.
In reinsurance, AXA XL Re’s 9% contraction suggests it will remain selective at the January 1 renewals. US cedents, especially in casualty, may find one of the larger reinsurers less willing to grow its share.
Property is a different story. AXA XL is growing property volumes as pricing softens, which gives brokers placing large US property programs another source of capacity at more competitive terms.
