Reuters exclusively reported that one of the world’s top insurers is considering a private sale or stock market listing of its property reinsurance business in a bid to cut its exposure to natural disasters like hurricanes.
AXA weighs offloading $2 billion reinsurance arm to cut disaster risk
AXA has been trying to reduce the exposure of its AXA XL property and casualty (P&C) division to make earnings more predictable. This has caused the reinsurance business to shrink, with revenues dropping by nearly a third last year to $3.2 billion, according to AXA’s 2022 accounts. Shares rose about 3% following the story, and JPMorgan analysts issued a note to clients on the back of it. AXA has a market cap of around EUR 70 bln.