Reinsurance News

AXIS reports $22mn fall in Q2 operating income

27th July 2022 - Author: Jack Willard

Bermuda-based insurer and reinsurer, AXIS Capital Holdings Limited, has reported operating income of $149 million for the second-quarter of 2022, down from $171 million in the prior year quarter.

AXIS Capital Holdings logoNet income for the quarter was $27 million, down from $228 million in the prior year quarter.

Within the insurance segment, gross premiums written (GPW) increased by 16% to $1.4 billion, while net premiums written (NPW) increased by 22% to $869.4 million.

NPE within the insurance segment also increased by 21.7% to $768.7 million.

The insurance segment’s underwriting income was $93.8 million, a slight increase compared to $93.5 million from the prior year quarter.

Stratumn, by SIA Partners

Overall, the combined ratio for the insurance segment was 87.8%, compared to 85.3% from Q2 21.

However, within the reinsurance segment GPW was $643.8 million, down from $672.7 million from the prior year. NPW was down by 8.9% at $447.4 million, and NPE was down by 3.2% at $508.3 million.

The reinsurance segments underwriting income was $22.8 million, a 58.2% decrease compared to $54.7 million from the prior year quarter.

In addition, the combined ratio for the reinsurance segment was 95.9%, compared to 90.6% from Q2 21.

Moreover, AXIS Capital reported a decrease in net investment income at $92 million for Q2 22, compared to $105 million from Q2 21.

Commenting on the second quarter 2022 financial results, Albert Benchimol, President and CEO of AXIS Capital, said: “AXIS delivered another quarter of strong operating performance, continuing our trend of year-over-year improvements in core underwriting metrics.

“The quarter was highlighted by a combined ratio of 93.4% and operating ROE of 13.7%, and record second quarter premium growth contributed to all-time high mid-year production figures including gross and net premiums written, and net premiums earned. This quarter our specialty insurance business again generated solid performance with a robust 16% increase in gross premiums written, 22% growth in net premiums written, and a combined ratio of 87.8%, as we further capitalized on favorable market conditions.

“During the quarter we announced the Company’s exit from reinsurance property and catastrophe lines. This completed the shift of AXIS Re to a specialist reinsurer – with a focus on attractive Casualty, Specialty, A&H, and Credit lines – which aligns with our efforts to grow profitably with lower volatility and establish leadership in the specialist space.

“As a measure of our progress, over the past six months our group underwriting income has risen by 36% and operating income is up 30% as compared to the prior year period. As we look to the future, we’re well positioned in strong Wholesale and E&S markets and see significant opportunities to drive further profitable growth while delivering value to our customers and advancing our position as a leading specialty underwriter.”

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