Axa SA, the French insurer and parent company of Bermudian-based Axa XL, is considering getting rid of its property reinsurance business to cut its exposure to natural disasters, according to reports.

Citing three people familiar with the matter, Reuters news agency said Axa SA “has been discussing strategic options for its XL Re unit, including a possible private sale or stock market listing”.

The news agency said the discussions, described by the sources as preliminary in nature and which may not ultimately lead to a transaction, come two years after the business was reported to have attracted interest from French mutual insurer Covea.

The news comes midway through an active year for large-scale transactions and stock market listings involving Bermudian-based insurers and reinsurers, and just a month after Reuters reported that Bermudian-based Hamilton Insurance Group was also considering strategic options, including a possible initial public offering or a private sale.

Axa declined to comment, Reuters said.

A spokeswoman for Axa XL in Bermuda said the company had no comment.

Reuters cited a report by brokers Gallagher Re that revealed that prices for US property catastrophe reinsurance rose by as much as 50 per cent at the key July 1 renewal date.

The news agency added: “The high pricing environment, along with a recent bout of deals in the sector, could provide the necessary tailwinds for Axa to exit the business altogether.”

Already this year, there have been two significant deals and two capital-raising initiatives involving Bermudian-based insurers and reinsurers.

In February, Argo Group International Holdings, the specialty insurer, announced that it had entered into a definitive merger agreement with Brookfield Reinsurance that will see the company acquire Argo in an all-cash transaction valued at approximately $1.1 billion.

Argo shareholders have since voted overwhelmingly to approve the deal.

The merger remains subject to customary closing conditions, including receipt of required regulatory approvals.

Argo and Brookfield expect to complete the merger before the end of the year.

In May, an even bigger deal was announced, with Bermudian-based RenaissanceRe Holdings entering into a definitive agreement with American International Group to acquire AIG’s treaty reinsurance business, which includes Validus Reinsurance, in a near $3 billion deal.

Under the terms of the deal, RenRe will acquire Validus Re and its consolidated subsidiaries, AlphaCat Managers and its managed funds, and all renewal rights to the Assumed Reinsurance Treaty Unit of Talbot.

That transaction is expected to close in the fourth quarter of the year and is subject to customary closing conditions and regulatory approvals.

Also in May, Everest Re Group, the Bermudian-based insurer, raised nearly $1.5 billion in a fully subscribed public offering of common shares of the company.

In a filing with the US Securities and Exchange Commission, Everest Re reported that 4.14 million common shares of the company, which includes full exercise of the underwriters’ option to purchase an additional 540,000 common shares, were subscribed at a public offering price of $360 per share.

The final offering reflected an upsizing of a previously announced offering of three million shares and 450,000 option shares granted to the underwriters.

However, last month, the fickle nature of the market was in evidence as Fidelis Insurance Holdings executed an initial public offering on the New York Stock Exchange.

The company sold 15 million shares at $14 a piece, raising $210 million and leaving the Bermuda-based company with a $1.5 billion valuation. More than half of the shares sold were from existing shareholders.

However, the Fidelis listing was smaller than originally hoped and priced below the target range of $16 to $19 a share. Fewer existing shareholders than expected sold their shares.

Since its listing, the stock’s performance has been mixed.

Trading as FIHL, it fell about 6 per cent at the debut, falling under $13 at one point, and remains below its listing price.

The stock closed on Tuesday at $13.68.