AXIS Capital to expand in excess casualty, renewable energy, marine, A&H

AXIS Capital will expand its presence in excess casualty, renewable energy, accident and health (A&H) and marine after reporting average rate increases of nearly 15 percent across its insurance businesses in 2020.

Rates were up 18 percent in Q4, 16 percent in Q3, 15 percent in Q2, and 10 percent in Q1, AXIS Capital said. Rates in excess casualty, renewable energy, A&H and marine specifically showed strong double-digit return on equity opportunities, AXIS said.

Reinsurance rates were up high in single digits throughout the year, with 1/1 2021 average renewal rate increases coming in at an average of 12 percent across all lines.

AXIS expects the strong pricing momentum to continue into 2021 and possibly further, driven by issues such as low interest rates, lower levels of favourable development, social inflation and the COVID-19 pandemic. The elevated frequency of hurricanes in the US during the second half of 2020 should further support firmer pricing and terms and conditions, the re/insurer added.

AXIS noted the specialty and wholesale channel saw the most growth, making up approximately 40 percent of the total premium year-to-date.

AXIS said it is focused on growing core lines of business where risk selection and rates are adequate to drive "sustainable profitable growth".