Bermuda-based re/insurer AXIS Capital has announced a first quarter net income of $116 million, compared to a $185 million loss in the prior year quarter.
At $83 million, operating income also improved considerably from the $164 million figure announced in Q120.
Gross premiums written increased by $104 million to $2.5 billion as the insurance segment increased by $162 million.
However this improvement was partially offset by a decrease of $58 million in the reinsurance segment, primarily attributable to decreases in motor, engineering and catastrophe lines due to non-renewals and decreased line sizes associated with the repositioning of the portfolio.
The reinsurance segment also experienced a $26 million drop in net premiums written, offsetting the AXIS Capital’s 6% overall improvement to $110 million.
AXIS says this drop reflects a decrease in gross premiums written in the quarter, together with an increase in premiums ceded in liability lines, partially offset by decreases in premiums ceded in catastrophe, property, credit and surety, and professional lines.
Pre-tax catastrophe and weather-related losses were $110 million, primarily attributable to Winter Storms Uri and Viola, principally related to the state of Texas, and other weather-related events this quarter. This compares to $300 million in the prior year period.
Net investment income for the quarter was $114 million, an increase from the $93 million reported this time last year, primarily attributable to higher returns from other investments.
Commenting on the quarter’s results, Albert Benchimol, President and CEO of AXIS Capital, said, “In the first quarter of 2021, our industry was again impacted by significant climate events and our primary thoughts are with the people and communities that have been affected. We are focused on supporting the recovery efforts and fulfilling our purpose – to help people when they are down.
“Notwithstanding the substantial catastrophe activity, this was a good quarter for AXIS and one where we saw tangible proof that our efforts to reposition our portfolio are generating real traction.
“Our first quarter results were highlighted by a year-over-year reduction of 4.3 points to our current accident year combined ratio ex-cat and weather, with improvements seen in both segments.
“These metrics provide further evidence that our re-underwriting actions are delivering the desired impact, he added.
“Our Insurance segment’s combined ratio of 94% and our ability to generate a consolidated 99% combined ratio in light of notable cat and weather activity speak to the progress that we’re making.
“With market conditions favorable across virtually all of our lines of business, our performance is seeing positive momentum as the global economy continues to recover.
“We have a strong franchise, deep relationships with our brokers and partners in distribution, and leadership positions across our most attractive markets. We believe AXIS is poised to continue to demonstrate meaningful improvements to our performance in 2021 and beyond.”
