AXIS Q1 combined ratio improvement reflects ‘efforts to reposition portfolio’

AXIS Capital Holdings (AXIS Capital) said its efforts to reposition its portfolio are producing positive results as it reported a healthy improvement in its combined ratio in its Q1 results.

Its combined ratio was 98.9 percent, as compared to 119.8 percent for the same quarter in 2020. Its net income available to common shareholders for the first quarter of 2021 was $116 million, compared to a net loss attributable to common shareholders of $(185) million for the first quarter of 2020. For its insurance segment, gross written premiums were $1.1 billion, compared to $941 million in Q1 2020. In the reinsurance segment, gross written premiums were $1.4 billion, down from $1.5 billion in Q1 2020.

Albert Benchimol, president and CEO of AXIS Capital, said: “In the first quarter of 2021, our industry was again impacted by significant climate events and our primary thoughts are with the people and communities that have been affected. We are focused on supporting the recovery efforts and fulfilling our purpose – to help people when they are down.

"Notwithstanding the substantial catastrophe activity, this was a good quarter for AXIS and one where we saw tangible proof that our efforts to reposition our portfolio are generating real traction. Our first quarter results were highlighted by a year-over-year reduction of 4.3 points to our current accident year combined ratio ex-cat and weather, with improvements seen in both segments.

"These metrics provide further evidence that our re-underwriting actions are delivering the desired impact. Our Insurance segment's combined ratio of 94 percent and our ability to generate a consolidated 99 percent combined ratio in light of notable cat and weather activity speak to the progress that we’re making.

"With market conditions favourable across virtually all of our lines of business, our performance is seeing positive momentum as the global economy continues to recover. We have a strong franchise, deep relationships with our brokers and partners in distribution, and leadership positions across our most attractive markets. We believe AXIS is poised to continue to demonstrate meaningful improvements to our performance in 2021 and beyond.”

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