Axa’s Asia P&C premiums hit by poor motor salesNovember 8 2018 by Andrew Tjaardstra
Axa’s P&C gross written premiums in Asia declined 4% to €937 million (US$1.071 billion) in the first nine months of 2018, mainly as a result of “lower motor sales” in its direct Asia business, which saw premiums fall to €705 million from €765 million.
In more encouraging news for the firm, life and savings revenue grew 6% to €4.2 billion in Asia driven by strong growth in Hong Kong and Japan from higher protection revenues, while health revenues in the region climbed 3% to €1.5 billion. Overall total revenues in Asia were up 4% to €6.6 billion.
Global revenues at the firm climbed 4% to €75.8 billion. The results don’t include revenues from the XL Group; the acquisition was closed on September 12 with the group fully consolidated on October 1; Axa XL includes the XL group, Axa Corporate Solutions and Axa Art.
Natural catastrophes in the third quarter, including Typhoon Mangkhut in Hong Kong, Typhoon Jebi in Japan, Hurricane Florence in the US, Typhoon Trami in Japan and several convective storms in North America, have resulted in claims for XL of €300 million before tax and net of reinsurance. Axa said the events are the equivalent to around twice the level of natural catastrophe charges typically experienced in a third quarter.
Meanwhile Hurricane Michael, which hit Florida in October, will cost the firm around €200 million before tax and net of reinsurance.
While fourth quarter events will be reflected in Axa’s results, third quarter events will be reflected in shareholders’ equity.
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