AXIS CEO 'confident' rates will remain at or above loss cost trends well into 2022

Albert Benchimol (pictured), the chief executive of Bermuda-based re/insurer  AXIS Capital Holdings, is "confident" that pricing will remain at or above loss cost trends well into 2022 and likely beyond, providing a tailwind to ongoing improvements in underwriting profitability.

The re/insurer has delivered a solid set of results for both the second quarter and first half of 2021.

In the second quarter it made a net profit of $228 million, compared with $112 million in Q2 2020. Overall, in the first six months it generated a net profit of $344 million, compared with a net loss of $73 million in the prior year period.

The company's gross premiums written increased by 13 percent to $1.9 billion in the recent quarter, with an increase of $231 million, or 22 percent, in the insurance segment, partially offset by a decrease of $6 million, or 1 percent, in the reinsurance segment.

For the six months ended June 30, the GWP increased by 8 percent to $4.5 billion, with an increase of $393 million, or 20 percent, in the insurance segment, partially offset by a decrease of $64 million, or 3 percent, in the reinsurance segment.

The combined ratio for Q2 2021 improved to 90.6 percent, from 94.7 percent in the prior year quarter. For H1 2021, the combined ratio was 94.7 percent, compared with 107.1 percent in H1 2020.

Benchimol, president and CEO of AXIS Capital, said: "We are pleased to report record operating earnings per share for the quarter and first half of the year, along with excellent production and robust underwriting and investment performance."

"Our continued progress in underwriting performance provides tangible proof that our efforts to reposition our portfolio are delivering meaningful improvements," he added. "Our insurance business is well positioned in the markets experiencing the strongest conditions, leading to 22% growth in gross premiums written to achieve a record level of premium production. Our reinsurance business demonstrated agility and discipline, growing in attractive classes, but also holding the line where terms were not deemed sufficiently attractive, and continuing to manage down catastrophe volatility."

Benchimol further noted that "During the quarter, we recorded average rate increases of 14% across our insurance book, which is higher than the previous quarter and on par with the prior year period – and we remain confident that pricing will remain at or above loss cost trends well into 2022 and likely beyond, providing a tailwind to ongoing improvements in underwriting profitability."

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