Outgoing AXIS CEO Benchimol upbeat on repositioning amid Q1 premium decline
Bermuda-based global re/insurer AXIS Capital saw its gross written premiums decline in the first quarter, primarily led by the reinsurance side, but its outgoing CEO Albert Benchimol (pictured) highlighted “continued progress” in repositioning the business as a more specialised underwriter.
In his final announcement as CEO of AXIS, Benchimol noted that the business is now poised for profitability and expressed confidence in his successor, Vince Tizzio, to take the business to the next level.
The company posted a net profit of $173 million, an improvement on the $142 million it posted in the same period a year earlier. Its gross written premiums decreased by 8% to reach $2.4 billion. This was mainly driven by a decrease on the reinsurance side of $341 million, or 26%, offset by an increase in insurance premiums of $88 million, or 7%.
The decrease on the reinsurance side was mainly driven by its exit from catastrophe lines in June 2022. It also exited aviation business effective January 1, 2023, did not renew certain marine business and retracted some business in its liability, and accident and health lines.
Benchimol will be succeeded by Vince Tizzio, CEO Specialty Insurance and Reinsurance of AXIS Capital on May 4, 2023.
Benchimol said: "AXIS once again delivered strong performance as we continued to advance our strategy to achieve specialty leadership, demonstrating resilience despite dynamic market conditions that included turbulence in the financial markets and heightened weather and cat activity. In the first quarter, we produced very good results across our core metrics that included a combined ratio of 91%, operating income of $200 million, and record operating income per diluted common share of $2.33.
"As I prepare to complete my tenure as CEO of AXIS, following nearly 13 years with the Company, it is gratifying to see the continued progress in our performance following years of hard work to reposition the business to a more focused specialist underwriter, well positioned to consistently deliver profitable results. I have complete confidence that the best is yet to come for AXIS. In Vince Tizzio, we have the right leader to take the Company to the next level."
Tizzio added: "With a clear focus on delivering sustainable value creation to our shareholders, we continued to drive strong growth in our priority markets while capitalizing on favorable market conditions that included a general resurgence in pricing momentum across the majority of our lines. Our Specialty Insurance business delivered record first quarter production, generating $1.4 billion in gross written premiums, a combined ratio of 87% and underwriting profit of $103 million.
"Our Reinsurance business contributed a combined ratio of 91% and $36 million of underwriting profit as we further transitioned the business to a specialist reinsurer with a smaller and less volatile book of business.
"Looking to the future, I feel confident about the growth potential for the business and believe that AXIS is on a positive trajectory toward achieving its place as a specialty leader defined by the strength of our underwriting and the value that we provide to our customers and shareholders."
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