Gross revenues also rose by 7% across the group, said a statement

Insurer giant Axa has reported a 4% rise in its underlying earnings for 2022, despite the impact of the war in Ukraine and a rise in motor claims across Europe.

According to its full-year financial results for 2022 – posted last week (23 February 2023) – an increase in property and casualty (P&C) premium income bolstered performance.

The group reported underlying earnings of €7.3bn (£6.46bn) with higher investment earnings also boosting bottom line performance.

However, the war in Ukraine, a series of major natural catastrophes and a decision to walk away from some natural catastrophe reinsurance business impacted performance.

In the UK and Ireland the insurer posted solid results off the back of continued hardening market conditions.

Axa UK and Ireland saw gross revenues rise by 7% year across the year for 2022 on a comparable basis – with revenue increasing from €5.3bn (£4.68bn) to €5.76bn (£5.09bn).

P&C revenues increased by 4% to €3.7 billion (£3.3bn), with health income rising to €2.02bn (£1.78bn) – an increase of 12%.

However, Axa’s specialty risk and reinsurance operation Axa XL saw revenues increase from €1.1bn (£0.97bn) to €1.2bn (£1.06bn), which resulted in a fall of 7% based on exchange rate changes.

Resilient model

Overall, the group saw a 9% increase in revenues with gross revenues of €102.3bn (£90.53bn) signalling a 2% increase on the 2021 figures at a constant exchange rate.

Axa said the revenues had been driven across the group by a 2% increase P&C business with a 5% growth in commercial lines insurance “from continued favourable price effects”.

The hardening market also saw personal lines business increase by 4%.

However, the decision by Axa XL to reduce its exposure to natural catastrophe risk after a string of major events in 2022 saw its natural catastrophe revenue reduce by 27%.

Group chief executive Thomas Buberl said: “Axa delivered a strong performance in 2022 despite a challenging environment – a confirmation of the resilience of our business model.

“We remain focused on executing our strategy.

“We recorded good growth across our technical and cash-generative businesses, particularly in P&C insurance, health and protection, while continuing to reposition away from nat cat reinsurance and traditional general account business.

“Our fundamentals are strong and our distinctive franchise can deliver sustainable growth in the future, in particular by addressing new areas of coverage, including from the energy transition.”

  • Insurance Times has converted euro amounts into pounds using an exchange rate of €1.23 = £1, which was correct as of 1 February 2023.

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