S&P improves Axis’s ratings outlook

  • Axis Capital: stable credit ratings outlook from S&P

    Axis Capital: stable credit ratings outlook from S&P


Axis Capital Holdings’ credit ratings outlook has been upgraded by Standard and Poor’s Global Ratings to stable from negative.

The ratings agency also affirmed the Bermudian insurer and reinsurer’s A+ financial strength rating and A- long-term issuer credit and senior debt ratings.

“Axis’s capital management and implementation of its various strategic initiatives are bearing fruit and will help rebuild the company’s capital redundancy at the ‘AAA’ level by year-end 2019, based on S&P Global Ratings’ risk-adjusted capital model,” S&P said.

S&P pointed out that Axis’s capitalisation declined because of its $611.5 million acquisition of Novae Group in late 2017, though the situation was made worse by late-2017 catastrophe losses that were well above normal levels.

S&P gave credit to Axis for taking a number of steps after that to rebalance its finances.

“Axis stopped its share buybacks; is lowering its net aggregate property-catastrophe probable maximum losses through reinsurance/retrocession usage and alternative capital; and has exited underperforming lines of business such as onshore energy, US retail property and excess casualty lines,” S&P stated.

The rating agency added that Axis would realise about $100 million in expense savings per year due to the Novae integration and “additional corporate cost synergies”.

S&P also pointed out that the industry faced “ongoing heightened competitive pressures in the global property/casualty reinsurance sector and US specialty insurance lines of business”, as well as possible earnings volatility due to severity risks with property-catastrophe exposures.

You must be registered or signed-in to post comment or to vote.

Published Dec 17, 2018 at 8:00 am (Updated Dec 16, 2018 at 9:30 pm)

S&P improves Axis’s ratings outlook

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts