AXA Plans To Offload Its Property Reinsurance Unit To Reduce Losses: Report

AXA SA AXAHYAXAHF is reportedly considering offloading its property reinsurance business, XL Re unit, to curtail risks related to natural disasters.

The company is discussing options for its $2 billion reinsurance arm, to either sell it or list it on the stock market, as per Reuters.

In 2022, AXA's Property & Casualty Reinsurance revenues declined to $3.2 billion vs $4.6 billion in 2021. 

The company has been aiming to reduce exposure of the business to be in the profitable lane.

As per the report, some reinsurers stopped this line of business last year after the third costliest storm in history hit the U.S., and others raised prices significantly.

Price Action: AXAHY shares closed higher by 2.36% at $28.64 on Tuesday.