CORRECTED-Axa XL’s McGovern: Growth still achievable in 2025 despite more difficult market phase

March 20 - (The Insurer) - Axa XL Syndicate 2003 delivered a 99.6% combined ratio for 2024, with the syndicate’s underwriting profit falling to 3.9 million pounds ($5.0 million), according to its full-year report and accounts.

The result was driven by the unwinding of intra-group reinsurance recoveries for prior underwriting years, alongside reserve strengthening for long-tail liability classes.

Excluding prior year development, the syndicate reported a current year combined ratio of 95.7%

Gross written premiums rose 4.3% to 1.38 billion pounds in 2024, driven by organic growth in wholesale property classes.

The syndicate highlighted a decline in the pricing environment, most notably for aviation and energy property classes, partially offset by continued increases in wholesale casualty.

In an interview with The Insurer, Axa XL UK and Lloyd’s CEO Sean McGovern said the syndicate was confident of delivering further growth in 2025, having increased its stamp capacity by 4%.

“We are looking for strong and sustainable profit growth, inevitably influenced by what we see in the market.

“The market is clearly transitioning into a more difficult phase. We will be a responsible player, and look to grow both earnings and revenue. We still think that is achievable.”

He also highlighted the growth of the company market platform under his remit, with the combined UK and Lloyd’s GWP rising to $3.7 billion last year.

“We had growth of 12% in 2024, following 10% growth in 2023, to get to that $3.7 billion,” he said.

Across the UK and Lloyd’s business, McGovern said Axa XL's underlying combined ratio stood at 92.3%.

“We think there are growth opportunities in most product lines. We are investing in areas where we think we can build long-term differentiation for the business,” he continued.

“Our big focus is on our mid-market expansion. We’ve hired 30 colleagues and believe there are more opportunities in that segment.

“We are also focused on the proposition we are building supporting the energy transition. There continue to be huge investments going into that space. We have had 18 colleagues join in the energy transition space in the last year and a half.”