AXIS Re is poised to break into the top 10 global reinsurers

AXIS Capital is ready to take the next step towards becoming one of the world’s biggest and most profitable re/insurance companies, according to Albert Benchimol, its president and chief executive officer, who warned competitors: “Now is our time.”

AXIS wants its reinsurance division, AXIS Re, to break into the top 10 in global reinsurance companies, which it is currently just outside, said Steve Arora, AXIS Re chief executive officer.

“We are repositioning the business to be more client-centric; this business is all about how you interact with clients. For example, we are very proud of our claims performance.

“Globally, on average we make our payments in five business days, and that increases customer satisfaction,” he said.

Benchimol stressed reinsurance has entered a tough but exciting new era, characterised by increased economic volatility, geopolitical risk and climate risk, with client portfolios changing and protection gaps opening up.

“Our job is to be more responsive to all those changes,” he said.

AXIS believes the way to achieve its aim is by having a clear vision, disciplined risk management and a strong performance culture. That approach led to its refocusing the business in the last 18 months, said Benchimol.

“We have pulled back from some lines where we aren’t strong, such as Australian property, excess casualty and energy,” he explained.

“That allows us to focus on areas where we really can add value for our clients, such as renewables, where we are one of the biggest underwriters globally; cyber, where we are top five; and credit and political risk.”

Benchimol argued that the terms “hard” and “soft” markets have outlived their usefulness. “This is an underwriter’s market, a disciplined market, a correcting market,” he said.

Increased access to data has given companies a more granular view of their own performance, allowing them to better analyse where they are profitable and where they are not.

This means companies can respond to mispricings in risk in individual lines, rather than repricing all businesses because of challenges in specific areas, such as a couple of bad hurricane seasons.

“Personal lines and life insurance have done a very good job of analysing the data that is available and adjusting the business accordingly.

“Specialty lines are only now starting to catch up,” Benchimol concluded.