Turnover and operating profit both increase but combined ratio tops 100%
AXA Corporate Solutions, the entity dedicated to large corporate business, recorded a 8.2% growth in turnover in 2008 reaching €1.95bn.
Underlying earnings were also up by 16.8% at €113m.
But an increase in major property claims meant the company’s combined ratio reached 101.4%. This remained at a ‘satisfactory level’ reported the company.
A combined ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is paying out more money in claims that it is receiving from premiums.
AXA CS commented in a statement: ‘Despite a tumultuous year in global economic and financial terms, most of the company’s lines of business remained steady.’
The company said it was focused on selective development via a proactive approach of risk-managed clients in large mature and emerging markets and underwriting discipline.
“Despite a tumultuous year in global economic and financial terms, most of the company's lines of business remained steady.
AXA said the 8.2% increase in gross written premiums was due to:
A significant volume of new business in Marine (+14%) and sustainable growth in Cargo insurance.
Further development of Aviation activity (+12%).
New business gains in Liability (+6.2%) on major accounts.
Significant development in Construction risks cover through the company’s international branches.
Stability in Property, despite the difficult market conditions, and a willingness to resist rate reductions.