Axis sees Q2 net earnings fall 88% to $27m
Axis Capital Holdings has posted a net income available to common shareholders for the second quarter of 2022 of $27 million, an 88% year-on-year decrease from $228 million. The figure for the six months ended 30 June was $169 million, down from $344 million for the same period in 2021.
Gross written premium (GWP) in the second quarter rose by $172 million to $2.1 billion, with a 16% increase in the insurance segment, partially offset by a 4% decrease in the reinsurance segment.
In its insurance segment, second quarter GWP rose nearly 16% year on year, to almost $1.47 billion, with a combined ratio of 87.8%, which was up 2.5 points. For the six months to 30 June, GWP was up nearly 18% to almost $2.8 billion. The combined ratio was 87.7%, an increase of 1.8 points.
In reinsurance, GWP in the second quarter dipped by about 4% to just under $644 million, and the combined ratio was 88.4%, an improvement of one point. For the six months to 30 June, GWP decreased by about 7% to just over $1.95 billion, while the combined ratio dipped by one point to 94.2%.
Albert Benchimol, president and CEO of AXIS Capital, said: "The quarter was highlighted by a combined ratio of 93.4% and operating ROE of 13.7%, and record second quarter premium growth contributed to all-time high mid-year production figures including gross and net premiums written, and net premiums earned. This quarter our specialty insurance business again generated solid performance with a robust 16% increase in gross premiums written, 22% growth in net premiums written, and a combined ratio of 87.8%, as we further capitalised on favourable market conditions.”
During the second quarter, Axis announced its exit from reinsurance property and catastrophe lines. This completed the shift of AXIS Re to a specialist reinsurer–with a focus on casualty, specialty, A&H, and credit lines.
"As a measure of our progress, over the past six months our group underwriting income has risen by 36% and operating income is up 30% as compared to the prior year period,” Benchimol said.
“As we look to the future, we’re well positioned in strong wholesale and E&S markets and see significant opportunities to drive further profitable growth while delivering value to our customers and advancing our position as a leading specialty underwriter."
