Reorganisation expenses related to the company’s exit from property reinsurance business were $16m
In the company’s latest earnings report, Albert Benchimol, president and CEO of AXIS Capital, commented on the re/insurer’s decision to exit reinsurance property catastrophe lines following the announcement that AXIS Re chief executive Steve Arora will depart at the end of the year.
The decision to exit property reinsurance business is part of an overall approach to reduce the Company’s exposure to volatile catastrophe risk.
AXIS Re has stated it will honour all multi-year treaties and outstanding quotes but will no longer consider new property and catastrophe reinsurance business.
According to Benchimol, the changes made during Q2 ”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.”
Net income available to common shareholders for the second quarter of 2022 was down considerably at $27m, compared to net income of $228m for the second quarter of 2021.
Reorganisation expenses related to the company’s exit from property reinsurance business were $16m.
Earlier this year there were rumours Axis was preparing to put its $3 billion reinsurance arm on the market. It came after the company revealed the unit had taken a hit in Q1, with a 9% or $125 million reduction in gross written premiums.