Benchimol disappointed by Q3 2019 AXIS results
AXIS Capital Holdings made a profit of $28 million for the third quarter of 2019, a 35 percent fall from the $43 million profit the company posted for the same period of 2018.
However, net income for the first nine months of 2019 was $292 million, an increase on the $199 million the company posted for the same period in 2018.
AXIS made an operating loss for the third quarter of 2019 of $33 million, compared to operating income of $79 million for the third quarter of 2018. For the nine months ended September 30, 2019, AXIS Capital reported operating income of $209 million compared to operating income of $305 million for the same period in 2018.
“This was a disappointing quarter, where our performance was marred by catastrophes that impacted our industry, coupled with mid-size losses in our credit and aviation lines,” said Albert Benchimol, president and CEO of AXIS Capital.
“These losses obscure positive underlying trends that reflect our progress in building an organisation that will consistently deliver strong results. Specifically, even with higher mid-size loss experience, within our Insurance segment, the current year ex-cat loss ratio is down more than a point this quarter versus the prior year. In our Reinsurance segment, while the ex-cat loss ratio is higher this quarter, this same ratio is down over a point year-to-date, reflecting the continued execution of our strategy to improve risk adjusted returns.
“We remain focused on continuing our progress and are confident that these positive underlying trends can be sustained. AXIS has leading positions in the markets that are experiencing the most significant pricing improvements which, combined with our underwriting actions and investments in digital capabilities, put us on a strong pathway toward long-term profitable growth.”
Gross premiums written decreased by $17 million, or 1 percent, to $1.4 billion with a decrease of $74 million or 8 percent in the insurance segment, partially offset by an increase of $57 million, or 13 percent in the reinsurance segment.
Net premiums written decreased by $64 million, or 7 percent, to $856 million with a decrease of $85 million or 14 percent in the insurance segment, partially offset by an increase of $21 million, or 7 percent in the reinsurance segment.
