Axa reports UK GI revenue of €916m

Axa noted that its direct property & casualty results are reported as a separate business unit and no longer as part of countries or regions, with Q1 2010 results restated to reflect the change. Therefore this result equated to a 3% increase on a comparable basis and and 6% increase on a reported basis on a Q1 2010 result of  €862m.

Total P&C revenue for the group was €9.84bn – an increase of 2% on the comparable Q1 2010 result of €9.24bn.

Personal lines revenue growing 4% which it said was largely due to a 3.7% average price increase. Commercial lines revenues remained stable as the 2.0% average price increase was offset by lower volumes as result of an ongoing focus on “selective underwriting”.

Commercial lines revenue (43% of total P&C revenue) were stable as the ca. 2.0% average price increase was compensated by lower volumes mainly from continued selective underwriting.

Commercial motor revenue (8% of total P&C revenue) were down 0.4% as increases in the UK (+21%) and in Germany (+6%) were offset by Mexico (-15%) and the Gulf region (-49%) due to the cancellation of an unprofitable large fleet contract.

Commercial non-motor revenue (35% of total P&C revenue) were up 0.1% mainly driven by the Gulf Region (+31%) with a strong new business in health, and France (+2%) following strong tariff increase, partly offset by Germany (-3%) mainly driven by liability and property.

Direct was up 8% mainly driven by the UK as a result of tariff increases. Personal motor net new contracts amounted to +270k. Personal non-motor revenues (20% of total P&C revenues) increased by 3% driven by France (+4%) largely attributable to price increases, and by Germany (+2%) through volumes increase in property.

This was partially offset by a decrease in the UK (-4%) notably due to selective underwriting and lower sums insured, more than offsetting strong tariff increases. Household net new contracts amounted to +122k. Overall, prices increased by 3.0% on average.

The firm said P&C revenues increased strongly both in high growth markets (+5%) mainly in Turkey and in the Gulf Region, and in direct (+10%). Net new personal contracts in high growth markets and Direct amounted to +158k and +58k respectively, representing 55% of total net new personal contracts which amounted to +392k.