AXIS Capital combined ratio soars to 109.4% on cat losses
AXIS Capital’s combined ratio soared to 109.4 percent in the third quarter, hit by catastrophes, and losses in its credit and aviation lines.
The ratio is up from 97.9 percent a year ago. Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums were $160 million, primarily attributable to Hurricane Dorian, the Japanese typhoons, and other weather-related events in the quarter, compared with $92 million in 2018.
Gross premiums written fell by $17 million, or 1 percent, to $1.4 billion with a decrease of $74 million or 8 percent in the insurance segment. In reinsurance, GWP rose to $512 million, from $454 million, a 13 percent increase.
Net income fell to $28 million from $43 million. As with many reinsurers, the net income figures have been kept positive by investment income, AXIS reported net investment income of $116 million.
Albert Benchimol, president and chief executive of AXIS Capital, said: “This was a disappointing quarter, where our performance was marred by catastrophes that impacted our industry, coupled with mid-size losses in our credit and aviation lines.
“These losses obscure positive underlying trends that reflect our progress in building an organization that will consistently deliver strong results. Specifically, even with higher mid-size loss experience, within our insurance segment, the current year ex-cat loss ratio is down more than a point this quarter versus the prior year. In our reinsurance segment, while the ex-cat loss ratio is higher this quarter, this same ratio is down over a point year-to-date, reflecting the continued execution of our strategy to improve risk adjusted returns.
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“We remain focused on continuing our progress and are confident that these positive underlying trends can be sustained. AXIS has leading positions in the markets that are experiencing the most significant pricing improvements which, combined with our underwriting actions and investments in digital capabilities, put us on a strong pathway toward long-term profitable growth.”
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