Profits dip at AXIS despite 'solid quarter' with positive momentum

Bermuda-based re/insurer AXIS Capital Holdings saw a drop in net profit in the second quarter 2020, but highlighted a "positive momentum" in the underlying performance, as well as opportunities to capitalise on firming market conditions.

The re/insurer generated a net profit of $112 million for Q2, down from $166 million in the same period last year. For the first half of 2020, AXIS posted a net loss of $73 million, compared with a net profit of $265 million in the same period of 2019.

Gross written premiums for the quarter were $1.7 billion, an increase of $68 million from Q2 2019. For the first half, AXIS reported gross written premiums of $4.1 billion, down $84 million from the previous year.

The company's combined ratio for Q2 was 94.7 percent, compared with 96.1 percent in Q2 2019. For H1, the combined ratio increased to 107.1 percent from 96.5 percent in the same period of 2019.

Albert Benchimol, president and CEO of AXIS Capital, said: "This was a solid quarter highlighted by continued positive momentum in the underlying performance of our Company. We’re encouraged by the progress that we’re seeing in our results, which include a nearly 2 point year-over-year improvement in our current accident year loss ratio ex-cat and weather, and an approximately 3 point reduction to our expense ratio, reflecting our cost discipline. The sustained improvements that we’ve seen in recent quarters is further evidence that the actions that we’ve taken over the past three years to strengthen our portfolio and operating efficiency, and reduce volatility, are increasingly showing through in our results."

He added: "The investments that we’ve made to strengthen AXIS’ market position are also enabling us to capitalize on firming conditions, particularly in markets that are seeing the most impactful changes. Moreover, we’re seeing improved pricing across nearly every line of business that we write, highlighted by average rate increases of 15% in the quarter throughout our Insurance segment."