AXIS Capital returns to profit in Q3 despite cat losses

Bermuda-based  AXIS Capital Holdings returned to profit in the third quarter of 2021, turning around the small loss it reported in the same period the previous year, thanks to its reduced exposure to natural catastrophes.

The re/insurer reported $47 million net profit in Q3 2021, compared with a net loss of $73 million in the same period last year. That was despite an underwriting loss of $59 million (against a $135 million loss last year) and a combined ratio of 107.4 percent – largely the result of cat and weather-related losses of $250 million. It was an improvement on last year’s Q3 ratio of 114.5 percent, however.

Meanwhile, gross written premiums grew by almost a quarter in the third quarter, up by 24 percent to $1.6 billion. Its insurance segment saw an increase of $241 million (26 percent), while reinsurance was up 19 percent by $75 million.

“Once again, our industry was challenged by severe weather events, and our focus continues to be on supporting our clients and the communities that have been impacted,” said AXIS president and CEO Albert Benchimol (pictured).

“In the face of these challenges, we continued to deliver, accelerating momentum in our progress highlighted by eight consecutive quarters of year-over-year improvement in our combined ratio ex-cat and weather. Notably, AXIS generated net operating income for the quarter, and our lower market share of the events demonstrates the progress that we’ve made in reducing our net exposure to catastrophes.”

Benchimol highlighted that “ AXIS is well positioned in key specialty markets and we’re increasingly confident that favorable conditions will continue through 2022 and likely beyond, providing us with an attractive path to further profitable growth.”

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