Group-wide direct motor slumps after UK ‘portfolio cleansing’

AXA’s UK and Ireland non-life division brought in gross revenues of €996m (£799m) in the first quarter of 2011, up 9% on the €916m it made in the same period last year.

However, AXA also reported that group-wide direct personal motor revenues slumped by 6% in the quarter as lower UK sales due to “portfolio cleansing” offset increases in other countries.

Total group personal motor revenues were up 2% in the first quarter, mainly driven by increases in Germany and the Mediterranean and Latin American region.

While the UK operation caused the slump in direct personal motor, it was one of the main drivers of a 4% group-wide increase in personal non-motor revenues. UK personal non-motor revenues were up 9%, mainly due to  tariff increases and higher volumes following new partnerships in household.

The UK business also enjoyed a 15% boost in commercial motor revenues and a 13% increase in commercial non-motor revenues.

AXA’s UK and Ireland operation achieved rate increases of 7.2% in personal lines and 3.9% in commercial lines.

The group as a whole put through rate increases of 3.5% in personal lines and 2.5% in commercial lines.

As a result of the rate increases, AXA’s group-wide non-life revenues increased 5% to €9.97bn in the first quarter of 2012 (Q1 2011: €9.51bn).

AXA Q1 2012 non-life revenue changes in % compared with Q1 2011

UK

  • Personal motor: not reported
  • Personal non-motor: +9
  • Commercial motor: +15
  • Commercial non-motor: +13

Group

  • Personal motor: +2
  • Personal non-motor: +4
  • Commercial motor: +13
  • Commercial non-motor: +3

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