Axis reportedly has reinsurance unit up for sale
Bermudian-based Axis Capital Holdings Limited has reported net income available to common shareholders for the first quarter of 2022 of $142 million.
That compares to net income available to common shareholders of $116 million for the first quarter of 2021.
Meanwhile, specialty website Insurance Insider reported that Axis Capital is preparing to sell its reinsurance unit, a segment which is writing nearly $3 billion in annual gross premiums.
It suggested that president and CEO Albert Benchimol may be preparing a major strategic repositioning of the company as a specialty insurer.
Axis Capital was trading on the New York Stock Exchange at $57.94 in midafternoon trading on Thursday, down from its daily high of $59.35. The stock opened Thursday at $56.99.
Operating income for the first quarter was $180 million, compared to operating income of $83 million for the first quarter of 2021.
Book value per diluted common share was $51.97, a decrease of $3.81, or 6.8 per cent, compared to December 31, 2021.
Mr Benchimol said of the company: "This quarter we continued to deliver strong progress along virtually all key metrics to deliver a combined ratio of 91.4 per cent.
“We continued to grow the most profitable areas of our business, improve the overall quality of our book, and lower our net cat exposure – all while providing great service to our customers.
"Our insurance segment again recorded 20 per cent premium growth on the back of double-digit rate increases, and record first quarter new business as we continued to expand our presence in attractive markets, with a focus on delivering value to our partners in the E&S, wholesale and specialty channels.
“Within our reinsurance segment, the team continued to make good progress in strengthening our portfolio while reducing our footprint in catastrophe, highlighted by a 45 per cent reduction in catastrophe lines premium.
"We’re excited by the positive momentum that we continue to see throughout our business. Our focus is to build on it – and drive sustained profitable growth, further enhance our efficiency, and ultimately achieve our goal of becoming a top quintile performer.”
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