AXIS 2019 results hit by Japan’s typhoon season

Global re/insurer AXIS Capital has reported disappointing results for 2019, after it was hit by the typhoon season in Japan, poor crop conditions in the US, and high loss activity in property and aviation lines.

The company’s net income for the year was $282 million, compared to £396,000 in 2018. Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $336 million.

Gross premiums written decreased by $11 million, or 0.2 percent, to $6.9 billion, with a decrease of $122 million, or 3 percent in the insurance segment, partially offset by an increase of $110 million, or 4 percent in the reinsurance segment.

The company’s combined ratio for 2019 was 102.6 Percent, as compared to 99.9 percent in 2018.

Commenting on the results, Albert Benchimol, president and CEO of AXIS Capital, said: "We did not deliver the financial results we expected in 2019, as our performance suffered from a record typhoon season in Japan, poor crop conditions in the US, as well as high loss activity in property and aviation lines. Notwithstanding these headwinds, our actions still enabled us to reduce our current year ex-cat loss ratio by over a point this year, bringing the reduction in our ex-cat loss ratio to more than three points over two years, with progress in both our insurance and reinsurance businesses.

"With the additional portfolio remediation that we executed in 2019, we entered the new year with a stronger book that has less inherent volatility. We have brought down PMLs, decreased limits, and exited or reduced our participation in underperforming businesses while pushing for more rate across the board. At the same time, we're focused on driving growth in our most attractive lines. We’re also working with our partners in distribution to use our expanding digital capabilities to create new business growth in desirable smaller accounts.

"With pricing momentum accelerating, we believe that favourable market conditions will sustain through 2020, driving more lines of business to pricing adequacy and providing us with more opportunities to leverage our market position to generate profitable growth."