AXIS Capital combined ratio soars to 109.4% on cat losses

AXIS Capital’s combined ratio soared to 109.4 percent in the third quarter, hit by catastrophes, and losses in its credit and aviation lines.

The ratio is up from 97.9 percent a year ago. Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums were $160 million, primarily attributable to Hurricane Dorian, the Japanese typhoons, and other weather-related events in the quarter, compared with $92 million in 2018.

Gross premiums written fell by $17 million, or 1 percent, to $1.4 billion with a decrease of $74 million or 8 percent in the insurance segment. In reinsurance, GWP rose to $512 million, from $454 million, a 13 percent increase.

Net income fell to $28 million from $43 million. As with many reinsurers, the net income figures have been kept positive by investment income, AXIS reported net investment income of $116 million.

Albert Benchimol, president and chief executive of AXIS Capital, said: “This was a disappointing quarter, where our performance was marred by catastrophes that impacted our industry, coupled with mid-size losses in our credit and aviation lines.