Financial Data and Key Metrics Changes - The company reported revenues of €38 billion, reflecting a 2% increase compared to the previous period, aligning with its strategic focus on growth in certain lines while reducing exposure in others [5][10] - The solvency ratio stands at 225%, indicating a robust balance sheet, although slightly down from the previous half-year [7][23] - The company completed a €1 billion share buyback program announced in August [9] Business Line Data and Key Metrics Changes - Property and Casualty (P&C) insurance grew by 3%, with Commercial lines in France and Europe increasing by 7% and 8% respectively [10] - Life insurance protection grew by 3%, primarily driven by Switzerland and Asia, while unit-linked products decreased by 12% due to the absence of a large corporate contract from the previous year [14][15] - Health insurance saw significant growth of 14%, driven by international business from AXA France [16] - Asset Management revenues increased by 2%, with net inflows of €18 billion from third parties [17] Market Data and Key Metrics Changes - Pricing momentum is strong across all regions, particularly in Commercial lines, with property insurance price increases at XL reaching 13% [20][21] - In Personal lines, pricing increases are noted, but inflation pressures are beginning to necessitate further adjustments, especially in the UK and France [22][39] Company Strategy and Development Direction - The company aims to maintain a flat cat load in euro terms while reducing exposure to natural catastrophes, indicating a strategic shift towards more balanced risk management [30][33] - The focus remains on profitable growth in preferred business lines, with a disciplined approach to pricing [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to mitigate the impact of natural catastrophes through improved investment income and pricing strategies [29] - The company anticipates continued pricing momentum and growth in preferred lines, despite inflationary pressures [34] Other Important Information - The estimated cost of Hurricane Ian for the industry is around €60 billion, with the company's share being approximately €400 million [8][27] - The company is actively negotiating its reinsurance program for 2023, aiming to maintain current attachment points while accounting for inflation [67] Q&A Session Summary Question: Insights on lapsed momentum in France and Italy - Management noted no significant changes in lapses, with some corporate contracts lost being acceptable, and retail lapses transferring to unit-linked products [38] Question: Pricing momentum in Personal lines - Management indicated that most geographies are managing well, with the UK needing more pricing momentum and France reaching a tipping point for necessary price increases [39][40] Question: Nat cat exposure and combined ratio expectations - Management aims to keep cat load flat in euro terms, with no expected impact on the attritional loss ratio [43] Question: Gross loss from Hurricane Ian - The gross loss from Hurricane Ian is estimated at $670 million [48] Question: Nat cat budget for 2023 - Management did not provide specific percentage figures but indicated intentions to maintain the nat cat load in euro terms [48] Question: Commercial lines pricing renewals - Management noted a slight slowdown in pricing increases in Q3, primarily due to specific lines like U.S. professional liability [66] Question: Nat cat exposure reduction strategy - Management confirmed a desire to maintain a balanced portfolio and reduce exposure to natural catastrophes, despite better pricing conditions [76] Question: Market appetite for back book disposal - Management reported continued strong interest from professional buyers in various markets, including Belgium and Germany [93]
AXA(AXAHY) - 2022 Q3 - Earnings Call Transcript