AXIS posts $468m loss in Q3
Bermuda-based AXIS Capital Holdings said on Oct. 25 that the company made a net loss attributable to common shareholders of $468 million in the third quarter of 2017.
This compares to a net income of $177 million in the third quarter of 2016.
For the nine months ended September 30, 2017, the net loss attributable to common shareholders was $378 million compared with net income of $335 million in the corresponding period in 2016.
"During the month of September, our industry experienced substantial natural catastrophe loss activity, comparable to full year levels incurred in 2005 and 2011, which were the highest catastrophe loss years on record,” CEO Albert Benchimol, commented.
"The financial impact of this series of events was consistent with our expectations, reflecting lessons learned from prior large cat experience and recent changes to our portfolio.
AXIS estimated catastrophe and weather-related pre-tax net losses, net of reinstatement premiums, were $617 million in the third quarter.
“We expect the market to react strongly to industry losses this quarter, which when combined with low interest rates and sustained multi-year pricing erosion, will drive adjustments to risk-based pricing,” Benchimol noted.
"As a leader in the global wholesale marketplace that absorbed so much volatility, we are strategically well positioned for improving conditions.”
AXIS has recently completed the acquisition of Novae, creating a $2 billion participant in the London specialty market, with a top-10 position at Lloyd’s within a $6 billion international specialty re/insurer.
“Our teams are working to ensure our operations are brought together seamlessly to maximize our ability to respond to opportunities, and, most importantly, we are encouraged by the positive market reaction to the combination,” Benchimol said.
“We are optimistic that the international specialty insurance market will deliver more benefits than we originally contemplated when the transaction was announced, and that we will approach the January 2018 renewal season with a strong platform, a strengthened brand, and a renewed commitment to deliver a superior value proposition to all of our stakeholders."
The combined ratio jumped to 152.9 percent in the third quarter compared to 92.6 percent in the same period a year ago. The current accident year loss ratio was 126.2 percent compared to 65.1 percent in the third quarter of 2016.
Overall, gross premiums written increased by $226 million, or 24 percent year on year, to $1.2 billion in the third quarter. Net premiums written increased 40 percent year on year to $833 million in the third quarter.
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