AXA reduces aviation war cover after Ukraine losses, sources say

The commercial arm of French insurer AXA is reducing cover offered to aviation companies as it seeks to protect the multibillion-euro business after heavy Ukraine-related losses, two underwriting and broking sources told Reuters. One of the top 10 players in global aviation insurance, AXA XL is pulling back from underwriting risk on so-called war cover, the sources said, reducing options for airline operators or lessors seeking protection against loss or damage arising from war. The retreat by a major player such as AXA XL will make it more difficult to find this specialist cover, potentially driving up premiums and increasing costs for exporters and travellers. The company has also begun to scale back some of its exposure on marine war cover, three other industry sources said. AXA XL declined to comment. The AXA XL retreat comes as the war in Ukraine nears its first anniversary on Feb. 24 and follows months of massive losses for many of the world’s largest insurers. The conflict, which Russia calls a special military operation, is likely to result in insured losses between $10b and $20b globally, a report by broker Howden said last month. Aviation war cover is one of the classes of business most exposed to “the sizeable losses that have and will transpire”, the report said.<br/>