Lower cat loss lifts AXIS to profit in Q3
Bermuda-based AXIS Capital has experienced lower catastrophe losses in the third quarter of 2018, improving the combined ratio in both the insurance and reinsurance segments and allowing the group to return to profit.
Net income available to common shareholders for the third quarter of 2018 was $43 million compared to a net loss of $468 million in the third quarter of 2017.
The combined ratio improved to 97.9 percent from 152.9 percent over the period. Gross premiums written (GWP) increased by 20 percent to $1.4 billion in the third quarter of 2018. In the insurance segment, GWP jumped 49 percent year on year primarily due to the acquisition of the Novae Group in October 2017. At the same time, GWP in the reinsurance segment decreased 15 percent over the period.
In the insurance segment, pre-tax catastrophe and weather-related losses were $62 million primarily attributable to Hurricane Florence and weather in the third quarter, compared to $317 million in the same period in 2017. The combined ratio in insurance improved to 102.2 percent in the third quarter of 2018 from 168.6 percent a year ago.
In the reinsurance segment, pre-tax catastrophe and weather-related losses were $30 million primarily attributable to Hurricane Florence, Typhoon Jebi and US weather-related events in the third quarter of 2018 compared to $299 million reported during the same period in 2017. The combined ratio in the reinsurance segment improved to 89.5 percent from 137.1 percent over the period.
"In the third quarter we continued to see positive momentum, as our efforts to optimize our business and invest in growing our market leadership have generated real traction,” said AXIS Capital CEO Albert Benchimol.
“We advanced our positioning and relevance in key markets requiring our specialist expertise and are seeing ongoing benefits from the further integration of Novae into our business. We also continued to drive forward the implementation of our transformation programme, which is helping to improve our efficiency and position AXIS to be profitable under a wide range of market conditions,” Benchimol added.
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