AXIS turns a profit despite cat losses

A reduced net exposure to natural catastrophes helped AXIS post a net operating profit, but weather events still hit its third-quarter results.

The re/insurer reported a $47m net income in the third quarter of 2021, compared to a net loss of $73m in the same period last year. That was despite an underwriting loss of $59m (against a $135m loss last year) and a combined ratio of 107.4% – largely the result of cat and weather-related losses of $250 million. It was an improvement on last year’s Q3 ratio of 114.5%, however. Excluding catastrophe and weather-related losses, its combined ratio was 87.6%.

Meanwhile, its gross written premiums grew by almost a quarter in the third quarter – up by 24% – to $1.6 billion. Its insurance segment saw an increase of $241m (26%), while reinsurance was up 19% by $75m.

“Once again, our industry was challenged by severe weather events, and our focus continues to be on supporting our clients and the communities that have been impacted,” said AXIS president and CEO Albert Benchimol.

“In the face of these challenges, we continued to deliver, accelerating momentum in our progress highlighted by eight consecutive quarters of year-over-year improvement in our combined ratio ex-cat and weather. Notably, AXIS generated net operating income for the quarter, and our lower market share of the events demonstrates the progress that we’ve made in reducing our net exposure to catastrophes.”