Middle East:AXA XL posts US$115m loss in 1H2026 for the region

AXA XL, the P&C and specialty risk division of Paris-headquartered AXA Group, has reported a EUR100m ($115.4m) loss related to the Middle East for the first half of this year.

Nevertheless, AXA XL's overall profits rose by 4% at constant exchange rates to EUR994m, the Group’s half-year financial statements show.

Mr Alban de Mailly Nesle, AXA Group CFO, said during an earnings call, “At AXA XL, we grew earnings by 4% while maintaining AXA XL insurance combined ratio stable, excluding Middle East losses and with no PYDs. This reflects effective cycle management.”

Though AXA XL pricing weakened in 1H2026, management said that the company’s pricing was still better than the market’s.

Mr Thomas Buberl, AXA Group CEO, said, “AXA XL has managed to have a better pricing than the market. When I  evaluate the performance of AXA XL, I don’t look at the price increases or decreases. I look at the underlying earnings. What I’m very pleased to see is that in this difficult environment, AXA XL has managed to progress its underlying earnings in a great way.”

The Group’s results for the first half of the year showed that AXA XL Re’s total reinsurance premiums and other revenues fell by 9% year-on-year to EUR1.8bn, as business volume declined. The company maintained a strategy of focussing on profitability rather than expanding underwriting, while reinsurance rates fell by about 5%.

Key 1H2026 highlights for AXA Group:

• Underlying earnings per share at EUR2.19, up +8% vs 1H2025

• Underlying earnings at EUR4.5bn, up +4% vs 1H2025, up +9% excluding AXA IM. (AXA completed the disposal of its asset management business (AXA IM) to BNP Paribas on 1 July 2025.)

- P&C underlying earnings at EUR3.2bn, up +6% vs 1H2025
- L&H underlying earnings at EUR2.0bn, up +11% vs 1H2025

• Gross written premiums & other revenues at EUR66.3bn, up +5% vs 1H2025

- P&C GWP at EUR35.1bn, up +3% vs 1H2025
- L&H GWP at EUR31.2bn, up +8% vs 1H2025

• Solvency II ratio at 218% as of 30 June 2026, up +3 points vs 1 January 2026.

Mr Buberl said, “Building on this excellent momentum and the resilience of our diversified business, underpinned by prudent reserving and a high-quality investment portfolio, we are confident in our ability to deliver underlying earnings per share growth in 2026 at the upper end of our target range, and to sustain organic growth with strong profitability beyond the current plan.”