AXIS posts $17mn net loss in third quarter
AXIS Capital has reported a $17 million net loss attributable to common shareholders in Q3 2022. That contrasts with a net profit of $47 million in the same quarter of last year. The company’s Q3 operating income, however, grew from $1 million to $3 million.
It achieved a 3.1 points improvement in combined ratio, to 104.3 percent in the third quarter and a 2.7 points improvement to 96.4 percent in the year to date.
Gross written premium (GWP) for the third quarter in its insurance segment increased 12 percent year on year to $1.32 billion from$1.18 billion. The combined ratio in that segment improved by 0.5 points to 98 percent.
GWP for the third quarter in its reinsurance segment increased 17 percent year on year to nearly $390 million from almost $470 million. The combined ratio in that segment improved by 5.3 points to 109.1 percent.
Albert Benchimol, president and chief executive officer of AXIS Capital, said the third quarter provided further validation of its strategic evolution to focus its portfolio on specialty, as well as reduce its exposure to catastrophes and strengthen its underlying operations. For the year to date, he noted, the industry has suffered in excess of $100 billion of catastrophe losses, yet AXIS grew underwriting income by 75% and operating income by 30%.
"Our specialty insurance business continues to perform strongly with higher underwriting profits for both the quarter and nine-month period, and our reinsurance business has demonstrated the benefits of its lower property cat exposure with a manageable loss for the quarter and an improved underwriting result for the nine-month period,” Benchimol said.
"Stepping back, conditions and uncertainties in the market are likely to result in a favourable pricing environment into 2023 and beyond, as well as heightened demand for specialty coverages–where AXIS is very well-positioned. Our business has great momentum–we’re improving our profitability, reducing volatility, and growing where we want to. We’re focused on increasing the value that we provide to our customers and shareholders as we advance our strategy of becoming a leader in specialty."
