AXIS Capital, one of the UK’s leading reinsurance groups, has released its latest earnings report which shows the company has seen a fall in revenue in the second half of 2022.
AXIS Capital saw its earning for the same 202i period, fall from US$171mn to $149mn for Qarter two.
The group has stated that reorganisation expenses related to the group’s move away from property reinsurance cost the company $16mn. AXIS is now keen to specialise in accident and health, casulaty and specialty as well as credit lines. AXIS Re is also now described as a specialist reinsurer, as part of the group’s strategy.
A turbulent financial report
However, according to reports, segment-wise, the AXIS Capital Group’s insurance business also posted a 0.3% increase in underwriting income in the second quarter; 42.2% in the first half.
This is despite the fact that the reinsurance segment experienced a fall of 58.2% in underwriting income in Q2 but saw a 19.8% increase in the first half of 2022.
Speaking about the latest reports, AXIS Capital CEO and President, Albert Benchimol,explained, “AXIS delivered another quarter of strong operating performance, continuing our trend of year-over-year improvements in core underwriting metrics.
He continued, “The quarter was highlighted by a combined ratio of 93.4% and operating ROE (return on equity) of 13.7%, and record second quarter premium growth contributed to all-time high mid-year production figures including gross and net premiums written, and net premiums earned.
“This quarter our specialty insurance business again generated solid performance with a robust 16% increase in gross premiums written, 22% growth in net premiums written, and a combined ratio of 87.8%, as we further capitalised on favourable market conditions. During the quarter we announced the company’s exit from reinsurance property and catastrophe lines.”
Benchimol added: “As a measure of our progress, over the past six months our group underwriting income has risen by 36% and operating income is up 30% as compared to the prior year period. As we look to the future, we’re well positioned in strong wholesale and E&S (excess and surplus) markets and see significant opportunities to drive further profitable growth while delivering value to our customers and advancing our position as a leading specialty underwriter.”