Axis Capital reports Q2 and half year results
Bermudian-based Axis Capital Holdings Ltd has reported net income available to common shareholders of $228 million, or $2.67 per diluted common share, for the second quarter of the year.
That compares to net income available to common shareholders of $112 million, or $1.33 per diluted common share, for the second quarter of 2020.
Axis reported operating income of $171 million, or $2 per diluted common share, compared to an operating income of $72 million, or 84 cents per diluted common share, for the second quarter of 2020.
Net income available to common shareholders for the six months ended June 30 was $344 million, or $4.04 per diluted common share, compared to a net loss attributable to common shareholders of $73 million, or 87 cents per diluted common share, for the same period in 2020.
Operating income for the six months ended June 30 was $253 million, or $2.98 per diluted common share, compared to an operating loss of $93 million, or $1.11 per diluted common share, for the same period in 2020.
Axis reported an improvement of 2.7 points in current accident year combined ratio, excluding catastrophe and weather-related losses, compared to the prior year.
The company had an annualised return on average common equity of 19.3 per cent and annualised operating ROACE of 14.4 per cent.
Axis reported a book value per diluted common share of $55.50, an increase of $2.47, or 4.7 per cent, compared to March 31.
Gross premiums written increased by $225 million, or 13 per cent ($204 million, or 12 per cent on a constant currency basis), to $1.9 billion with an increase of $231 million, or 22 per cent, in the insurance segment, partially offset by a decrease of $6 million, or one per cent, in the reinsurance segment.
Net premiums written increased by $148 million, or 14 per cent ($129 million, or 12 per cent on a constant currency basis), to $1.2 billion with an increase of $110 million, or 18 per cent, in the insurance segment and an increase of $38 million, or eight per cent, in the reinsurance segment.
Pre-tax catastrophe and weather-related losses, net of reinsurance, were $29 million, (Insurance: $11 million; Reinsurance: $17 million) or 2.5 points, compared to $36 million (Insurance: $16 million; Reinsurance: $20 million), or 3.5 points, in 2020.
There was no change to the net loss estimate of $360 million established for the Covid-19 pandemic in 2020.
Albert Benchimol, president and CEO of Axis Capital, said: "We are pleased to report record operating earnings per share for the quarter and first half of the year, along with excellent production and robust underwriting and investment performance.
"Our core underwriting results were strong, as evidenced by this quarter’s current year ex-cat combined ratio of 88.7 per cent. Our continued progress in underwriting performance provides tangible proof that our efforts to reposition our portfolio are delivering meaningful improvements.
"Our insurance business is well positioned in the markets experiencing the strongest conditions, leading to 22 per cent growth in gross premiums written to achieve a record level of premium production.
“Our reinsurance business demonstrated agility and discipline, growing in attractive classes, but also holding the line where terms were not deemed sufficiently attractive, and continuing to manage down catastrophe volatility.
"During the quarter, we recorded average rate increases of 14 per cent across our insurance book, which is higher than the previous quarter and on par with the prior year period – and we remain confident that pricing will remain at or above loss cost trends well into 2022 and likely beyond, providing a tailwind to ongoing improvements in underwriting profitability."