AXIS Capital reports drop in Q2 net income

AXIS Capital reports drop in Q2 net income | Insurance Business America

AXIS Capital reports drop in Q2 net income

Results season continues with the turn of insurance group AXIS Capital to report its earnings figures for the second quarter and first half of 2022.

Here’s how AXIS performed:

Period

Net income available to common shareholders

Operating income

Q2 2022

$27 million

$149 million

Q2 2021

$228 million

$171 million

H1 2022

$169 million

$329 million

H1 2021

$344 million

$253 million

 

Segment-wise, the company’s insurance business posted a 0.3% increase in underwriting income in the second quarter; 42.2% in the first half. The reinsurance segment, meanwhile, saw a 58.2% decline in underwriting income in Q2 but enjoyed a 19.8% rise in the six months ended June 30.

“AXIS delivered another quarter of strong operating performance, continuing our trend of year-over-year improvements in core underwriting metrics,” stated president and chief executive Albert Benchimol. “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 capitalized on favourable market conditions. During the quarter we announced the company’s exit from reinsurance property and catastrophe lines.”

The CEO 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.”

According to AXIS, reorganization expenses related to its move away from property reinsurance amounted to $16 million. Focussed on casualty, specialty, accident and health, and credit lines, AXIS Re is now described as a specialist reinsurer, in line with the group’s strategy.