AXA XL Reinsurance CEO ‘bullish’ for 2024

The CEO said a shift towards a more balanced relationship between insurers and reinsurers, with a clearer division of labour, in terms of the renewal season.

Despite last year’s bludgeoning turn of events, AXA XL Reinsurance chief executive officer Renaud Guidée said the global reinsurance sector is currently facing a pivotal moment amidst escalating risks in an uncertain macroeconomic landscape.

Reflecting on 2023, the CEO in an AXA XL article said it was a transformative period for the industry. The market witnessed significant adjustments in rates, terms, and conditions in response to heightened awareness of underlying risks and threats. 

Natural catastrophe activity across Asia highlighted the importance of portfolio diversification to withstand various adverse developments throughout the year.

Despite the challenges, Guidée remains optimistic about the future. He emphasises AXA XL's balanced portfolio and global presence, positioning the company for growth opportunities across different lines of business and geographies. 

With a focus on innovation and client relationships, AXA XL aims to expand its market share and support clients' evolving needs.

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China's ongoing transformation presents promising opportunities for reinsurers, although Guidée stresses the importance of maintaining a diverse regional presence beyond specific markets.

Regarding renewals, Guidée emphasises a shift towards a more balanced relationship between insurers and reinsurers, with a clearer division of labour. 

Robust balance sheets will enable players to continue deploying capacity, although the market may become more selective in terms of risk acceptance.

In discussions about reinsurance cover, there's a growing consensus between insurers and reinsurers on the importance of aligning terms and conditions with intended coverage, ultimately benefiting policyholders.