AXIS Capital Holdings has reported a 13 per cent year-on-year increase to $1.9 billion in gross written premium (GWP) for Q2 2021.
Of this increase, the insurance segment of the underwriting firm, comprising accident and health, property and casualty, professional and management liability, and cyber coverage, saw an uptick of $232 billion (equal to a 22 per cent increase), while the reinsurance segment declined by 1 per cent.
This reinsurance downturn in Q2 2021 was attributed to a decrease in catastrophe and property lines owing to non-renewals and reduced line sizes in portfolio repositioning, although this was partially offset by an increase in professional and liability lines.
AXIS Capital’s reinsurance business also provides aviation, marine, credit and surety coverage, with alternative risk solutions including captives and risk retention groups.
The company’s GWP for H1 2021 rose 8 per cent to $4.5 billion, of which the insurance business accounted for an increase of $393 million, while the reinsurance segment declined by $64 million.
The decline in reinsurance GWP in H1 was more widely connected to declines in catastrophe, motor, engineering and property coverage.
Gross catastrophe and weather-related losses, net of reinsurance, totalled $29 million for Q2 2021, marking a year-on-year decrease from $36 million in Q2 2020.
However in H1 2021, AXIS Capital’s reinsurance segment totalled gross catastrophe and weather-related losses, net of reinsurance, at $92 million, significantly lower than the H1 2020 figure of $143 million.
AXIS Capital also noted no change to the net loss estimate of $360 million for the COVID-19 pandemic in 2020.
Albert Benchimol, president and CEO of AXIS Capital, says: “Our core underwriting results were strong, and our continued progress in underwriting performance provides tangible proof that our efforts to reposition our portfolio are delivering meaningful improvements.”
“Our insurance business is well positioned in the markets experiencing the strongest conditions, while our reinsurance business demonstrated agility and discipline, growing in attractive classes, but also holding the line where terms were not deemed sufficiently attractive, and continuing to manage down catastrophe volatility.”
