AXIS Reports $22mn Fall In Q2 Operating Income
AXIS Reports $22mn Fall In Q2 Operating Income
AXIS Capital Holdings Limited, a Bermuda-based insurer and reinsurer, has announced operational income of $149 million for the second quarter of 2022, down from $171 million in the same quarter last year.
The quarter’s net income was $27 million as opposed to $228 million in the same quarter the previous year.
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Gross premiums written (GPW) in the insurance sector climbed by 16% to $1.4 billion, while net premiums written (NPW) increased by 22% to $869.4 million.
Additionally, NPE in the insurance sector rose by 21.7 percent to $768.7 million.
Underwriting income for the insurance business was $93.8 million, a modest rise from the $93.5 million of the same quarter last year.
AXIS Reports $22mn Fall In Q2 Operating Income
In all, the combined ratio for the insurance segment was 87.8%, up from 85.3% in Q2 21.
GPW in the reinsurance category, however, was $643.8 million as opposed to $672.7 million in the previous year. NPW decreased by 8.9% to $447.4 million, and NPE decreased by 3.2% to $508.3 million.
Underwriting income for the reinsurance segment was $22.8 million, down from $54.7 million in the same period last year by 58.2 percent.
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Additionally, the reinsurance segment’s combined ratio was 95.9%, up from Q2 21’s 90.6 percent.
In addition, AXIS Capital reported a drop in net investment income for Q2 22 from $105 million to $92 million.
Albert Benchimol, President and CEO of AXIS Capital, commented on the company’s financial results for the second quarter of 2022 by saying: “AXIS produced another quarter of solid operating performance, maintaining our pattern of year-over-year increases in core underwriting measures.
“The quarter was highlighted by a combined ratio of 93.4 percent and an operating return on equity (ROE) of 13.7 percent. Record second quarter premium growth also led to all-time high mid-year production numbers, including gross and net premiums written and net premiums earned.
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As we continued to take advantage of the favorable market conditions, our speciality insurance business once again produced strong performance this quarter with a healthy 16 percent increase in gross premiums written, 22 percent growth in net premiums written, and a combined ratio of 87.8 percent.
AXIS Reports $22mn Fall In Q2 Operating Income
“During the quarter we announced the Company’s exit from reinsurance property and catastrophe lines. This completed the shift of AXIS Re to a specialist reinsurer – with a focus on attractive Casualty, Specialty, A&H, and Credit lines – which aligns with our efforts to grow profitably with lower volatility and establish leadership in the specialist space.
“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 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.”
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