AXA XL continues to grow reinsurance premiums with support of alternative capital

AXA XL, the commercial P&C underwriting arm of AXA Group, grew its gross reinsurance premiums written by 11% through the first-half of 2025, with alternative capital sources from third party and ILS investors supporting this expansion of the business.

Overall, AXA XL grew 6% across the business unit, but it was AXA XL Reinsurance that grew strongest as the company continues to expand in the well-priced marketplace.

Gross written premiums had expanded by by 12% for the AXA XL Reinsurance division during the first-quarter of this year, suggesting a slight slow-down in Q2, although this is likelys more to do with renewal timings and January being the largest opportunity of the year.

After the first-quarter, AXA’s CFO Alban de Mailly Nesle explained that the majority of the premium growth in the first-quarter had been ceded to insurance-linked securities (ILS) strategies.

It appears that the second-quarter of 2025 has seen a similar scenario, as executives once again highlighted the important role of alternative capital in supporting AXA XL’s continued reinsurance growth.

The company said that business ceded to alternative capital was once again a meaningful support for reinsurance premium expansion across the first-half.

“AXA XL Reinsurance increased by 11% (or €+212 million) driven by higher volumes notably thanks to business ceded via Alternative Capital, combined with price increases in Casualty lines,” the companies half-year report states.

The majority of premium growth in Q1 was attributed to cessions to third-party and alternative capital and it seems likely that trend continued in Q2.

As we explained before, reinsurance premiums are ceded to ILS strategies or sidecars under the management of AXA Group’s alternative reinsurance capital and insurance-linked securities (ILS) management division, AXA XL ILS Capital Management, which sits within the commercial arm AXA XL.

Frédéric de Courtois, Deputy Chief Executive Officer, in charge of Finance, Operations, Strategy, Risk, and Underwriting of AXA Group, commented during a media briefing today, “Looking at reinsurance, growing by 11% which is driven by business development connected with cessions to alternative capital, with respect to net premiums. We want to underwrite business and transfer this to alternative capital, which we have done.”

Later in the call de Courtois further stated on ILS and alternative capital, “For the past two or three years, we have restructured the AXA XL Re business, which is about reinsurance. It’s important to note that it worked. The market is sound, but within that market, AXA XL Re has performances which are quite satisfying.

“We’ve reduced our exposures. We’ve implemented underwriting which is more disciplined, so we’re very happy with their performance. Beyond this, we’re not specifically doing any business when it comes with the ILS funds or the cat bonds. That’s not our positioning.

“Having said that sometimes AXA XL Re disposes business in this form to ILS funds, which generally are financed by private equity funds, or to cat bonds. This is what we call AXA XL Re’s retrocessions on certain business. It could be given to these funds which essentially are involved in nat cat.

“Also in the past, and that will be the case probably in the future for our insurance business, we cede cat bonds to ILS funds and for us, we see these opportunities in terms of retrocessions, but we are not active when it comes to underwritings.”

You can read more about AXA’s first-half results over on our sister publication Reinsurance News.