CEO: disappointing quarter for Axis
Axis Capital Holdings Limited suffered a “disappointing quarter” as its income was impacted by typhoons in Japan, Hurricane Dorian and some losses in its credit and aviation lines of business.
The Bermudian-based insurer and reinsurer made a profit of $28 million, or 33 cents per diluted share, in the third-quarter, which was down from $43 million, or 52 cents per share, a year ago.
It made an operating loss of $33 million, or 39 cents per share, compared to operating income of $79 million for the same quarter last year.
“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,” Albert Benchimol, president and chief executive officer of Axis, said.
“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 towards long-term profitable growth.”
The company’s combined ratio for the quarter was 109.4 per cent, compared to 97.9 per cent for the same period last year.
Gross premiums written were down 1 per cent, or $17 million, at $1.4 billion.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums were $160 million, compared with $92 million in 2018.
Book value per diluted common share was $56.26, an increase of 27 cents, or 0.5 per cent.
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