Axis returns to profit in third quarter

Bermuda-based Axis Capital Holdings has returned to profit with a combined ratio of 97.9 percent after the firm experienced lower catastrophe losses in the third quarter of 2018.

The firm reported net income available to shareholders of $43mn, or $0.52 per share, compared to net loss of $468mn for the third quarter of 2017.

Operating income for the third quarter of 2018 was $81mn, compared to an operating loss of $446mn, for the same period last year.

The combined ratio improved to 97.9 percent from 152.9 percent over the quarter.

Gross premiums written were up 20 percent over the quarter to $1.4bn.

In the insurance segment, GWP jumped 49 percent year-on-year primarily due to the acquisition of the Novae Group in October 2017. At the same time, GWP in the reinsurance segment decreased 15 percent over the period.

Adjusting for the impact of the Novae acquisition, gross premiums written decreased by $92mn, or 8 percent, with a decrease of $2mn in the insurance segment and a decrease of $90mn or 17 percent in the reinsurance segment.

Net premiums written increased by 10 percent to $920mn.

Commenting on the third quarter 2018 financial results, Albert Benchimol, president and CEO of AXIS Capital, said: “In the third quarter we continued to see positive momentum, as our efforts to optimize our business and invest in growing our market leadership have generated real traction.”

“We advanced our positioning and relevance in key markets requiring our specialist expertise and are seeing ongoing benefits from the further integration of Novae into our business.”

Benchimol added: “We also continued to drive forward the implementation of our transformation program, which is helping to improve our efficiency and position AXIS to be profitable under a wide range of market conditions.”