Axa SA increased first-half profit even as the group absorbed wildfire losses in Europe and a €100 mn, or $115.2 mn, hit from events in the Middle East.
The Middle East loss sat in Axa XL, the group’s specialty underwriting unit.
Axa has exposure through its war, terrorism and political violence business. The coverage protects physical fixed assets in the region, including factories, aircraft and vessels.
Most of the estimated loss remains incurred but not reported, he said. Axa has not been able to inspect many of the affected assets, which leaves part of the claims picture unresolved.
The Iran conflict has generated estimated insurance market losses of about $2.5 bn to $3 bn so far. Axis reported $31 mn of second-quarter losses linked to the conflict, enough for the company to treat the event as a catastrophe.
Axis’s losses mainly came from its terrorism and marine war books.
Axa also pointed to recent wildfires in France and Spain. The fires caused severe damage, but the group still lacks enough information to estimate claims because the events remain active.
Axa is supporting policyholders affected by the fires, as well as customers hit by storms and hail across Europe earlier this year.
The insurer activated its climate crisis response team after the fires. The team is helping policyholders with emergency housing and other immediate needs.
