Bermuda-based Axis Capital, the firm currently attempting to acquire PartnerRe, posted a drop in profits in the second quarter of 2015.
Axis’ profits fell to $63.3 million in the second quarter of 2015, compared with $190.7 million in profits in the second quarter of 2014.
Its gross written premiums (GWP) decreased by 3 percent to $1.2 billion in the second quarter of 2015, driven by Axis’ reinsurance segment.
Within its reinsurance segment, GWP fell 10 percent to $427.3 million in the second quarter of 2015, compared with $477.2 million in the same period of the prior year. The results were impacted by treaties written on a multi-year basis during the second quarter of 2014, which reduced premium available for renewal during the current quarter.
“After adjusting for the impact of the multi-year contracts and foreign exchange movements, our gross premiums written decreased by $25 million,” said Axis. “The decrease was primarily driven by catastrophe lines, due to timing differences and treaty restructurings, and professional lines, due to a restructuring of a large treaty, which were offset by growth in the motor lines where the increase was due to favourable premium adjustments and new European business.”
However, GWP for Axis’ insurance segment increased by 1 percent in the second quarter of 2015 to $761 million, compared with $754 million in the same period of the prior year.
Axis’ combined ratio also deteriorated to 96.9 percent in the second quarter of 2015, compared with 90.8 percent in the second quarter of 2014.
Albert Benchimol, president and chief executive officer of Axis, said: “Notwithstanding a more challenging market environment, we continued to make progress on our underwriting initiatives, and deliver growth in the more attractive lines and markets.
“Our reinsurance segment is responding to the secular and cyclical changes in the reinsurance market through proactive exposure management. Our insurance results this quarter reflect our recent portfolio enhancement activities, as underlying improvements allowed us to absorb the impact of rate and loss trends, as well as unusually high large loss experience in the marine line of business.
“We are confident our ongoing progress in distribution and portfolio management initiatives position us strongly to differentiate our value proposition for all of our stakeholders.”
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