(Reuters) – French insurance company Axa SA said on Tuesday that it would inject about 1 billion euros ($ 1.2 billion) into its Axa XL unit to strengthen the capital position of a company affected by coronavirus-related claims and costs derived from natural disasters
The news came when Axa reported a 8% reduction in nine-month revenues and said it only expected a limited impact on claims from the second wave of coronavirus locks. , which reported a loss in the first half of the year, had increased its renewal rates by 20% in insurance contracts and by 10% in reinsurance contracts.
“We want to be sure that … we distribute capital to where we want to grow. It is important that XL can take the opportunity, while there have also been losses linked to COVID this year, says CFO Etienne Bouas-Laurent to journalists.
“We intend to increase the capital of XL in this context. , He said, adding that it was business as usual and that the move would not affect the group's solvency.
Axa's Solvency II ratio ̵
The company's revenue fell to EUR 73.4 billion in January-September.