NEWS
AXA XL Re is in growth mode post-rebalancing its portfolio
After a period of change and rebalancing its portfolio, AXA XL Reinsurance is in growth mode, says CEO Guidée, its chief since just September 1.
After a period of change and rebalancing its portfolio, AXA XL Reinsurance is in growth mode—and sees specific opportunity in specialty lines, Renaud Guidée, the chief executive of AXA XL Reinsurance since just September 1, told Monte Carlo Today.
“AXA XL Re, alongside the rest of the reinsurance marketplace, has gone through a fundamental shift in the past 12 months,” Guidée said. “But the positive action taken by the team to re-balance the portfolio and to support clients on a multi-line basis for cat risk was the right decision at the time. The proactive communication from the teams and the transparency with brokers and cedants helped.
“The strategic shift was the correct one and the H1 results are demonstrating that. Going forward, we want to build on the portfolio changes to continue on our path of simplifying the business into our three key regions and to move into growth mode. We are in growth mode now.”
Guidée, previously chief risk officer of AXA Group, succeeded Nancy Bewlay, who has been appointed group chief underwriting officer.
He believes he is taking the reins at a key moment for the market. One of the things he is looking forward to in the new role is reconnecting with clients. “Becoming CEO of AXA XL Re allows me the opportunity to drive growth and unlock the potential I can see for us in the reinsurance market. The market is turning a corner and what interests me now is how that shift can be utilised to partner with our clients and deploy our capital effectively to meet their needs.
“The strategic shift was the correct one.”
Renaud Guidée, AXA XL Re
“On a personal level, the role allows me to reconnect with clients. I am a huge advocate for client-centricity and have seen how effective it can be in my previous roles. I want to ensure we put our clients at the centre of everything we do.”
In the context of AXA XL Re, he explains, change has meant adapting the business over the past 18 months. He says it is still in the process of simplifying its operating structure, but it has now re-engineered its portfolio and he wants to use that solid foundation to grow, while leveraging its expertise.
“We have some of the most technically expert underwriters in the marketplace. We have a wealth of data and our own in-house science and perils teams—all of which combine to enable us to thoroughly understand the risks we write,” he said.
“The work that has been put into the business over the last few years is now paying off and the July renewals have shown that.
“With the financial strength and superior ratings afforded by AXA Group, our place in the market is the strongest it’s ever been. We have the paper, the knowledge and the drive to be a key player and I will ensure that this is how the market views us.”
Strong foundations
Guidée acknowledges the inherent uncertainty in the business, stressing that the last few years have shown just how unpredictable the world can be. But he believes that unpredictability offers the reinsurance marketplace opportunities and challenges.
“How good are we at providing solutions for emerging risk? Where is there a potential to expand geographically? How do we price and rate risk that was not necessarily in focus in previous years, such as global pandemic or the evolving risk of a changing climate?
“We have a very strong foundation after a lot of hard work to redesign the business.”
“These are the challenges we face but it is our job to work with our clients to understand their needs, and to interrogate the data we have to be able to address those questions and provide solutions,” he said.
In terms of opportunities, he believes the business’s specialty lines of business can grow.
“With more adequate pricing throughout the market, our aviation, marine and energy, credit and surety books, and the specialists we have underwriting in those areas globally, can really expand their portfolios,” he said.
“The challenge for us, and for the entire marketplace, is to be able to offer our clients the solutions they need in an unpredictable environment.”
Acknowledging how fresh he is in the role, Guidée says his focus at the moment is spending time in the business and listening to clients. “We want to create dynamic partnerships with our brokers and cedants which will help us understand their risk profile and provide the products and capacity they need.
“My long- and short-term goals are very simple—to be client-focused, and to create a successful reinsurance business. We have a very strong foundation after a lot of hard work to redesign the business and we are going to ensure that are clients feel the benefit of this work.”
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