AXIS Capital reports drop in Q2 net income

Segment-wise, the company’s insurance business posted a 0.3% increase in underwriting income in the second quarter; 42.2% in the first half. The reinsurance segment, meanwhile, saw a 58.2% decline in underwriting income in Q2 but enjoyed a 19.8% rise in the six months ended June 30.

“AXIS delivered another quarter of strong operating performance, continuing our trend of year-over-year improvements in core underwriting metrics,” stated president and chief executive Albert Benchimol. “The quarter was highlighted by a combined ratio of 93.4% and operating ROE (return on equity) 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 favourable market conditions. During the quarter we announced the company’s exit from reinsurance property and catastrophe lines.”

The CEO added: “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 (excess and surplus) 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.”

According to AXIS, reorganization expenses related to its move away from property reinsurance amounted to $16 million. Focussed on casualty, specialty, accident and health, and credit lines, AXIS Re is now described as a specialist reinsurer, in line with the group’s strategy.