AXIS brings combined ratio down as portfolio repositioning pays dividends

AXIS Capital Holdings saw a healthy improvement in its combined ratio in its Q1 results during the first three months of 2021, insisting it demonstrated the progress the carrier is making in strengthening its business.

AXIS reported a net profit of $116 million in Q1, turning around a net loss of $185 million in Q1 2020.

Meanwhile its combined ratio fell to a healthy 98.9 percent, down from 119.8 percent in the same period the previous year.

Its insurance segment reported gross written premiums (GWP) of $1.1 billion, up from $941 million the previous year, but the reinsurance segment saw GWP fall to $1.4 billion, from $1.5 billion in Q1 2020.

Albert Benchimol, president and chief executive officer of AXIS Capital, pointed to the impact of climate events during the quarter, but emphasised the progress the business had made, specifically in bringing down its combined ratio.

"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,” he said.

Benchimol argued the results proved its 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,” he said.

Benchimol argued AXIS’ strong franchise, deep relationships and leadership position in many business lines position it well for the future. “We believe AXIS is poised to continue to demonstrate meaningful improvements to our performance in 2021 and beyond,” he said.