Axis Capital

Axis has reported good results as it heightens its focus on specialty business, but it remains to be seen if it can close the value creation gap.

Need to Know

In an interview with this publication, the CEO admitted the transition “took longer than any one of us would have wanted”.

The carrier estimated losing less than $10mn of desired renewals due to exits from property and property cat reinsurance.

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Pre-tax catastrophe losses during the quarter totaled $64mn, including weather-related losses of $32mn, primarily attributable to Winter Storm Elliott.

Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.

The outgoing CEO will step down in May and spend six months as a strategic adviser to the company.

The transaction covers net reserves for losses and loss expenses of approximately $400mn and provides ground-up cover to a policy limit of $605mn.

Axis’ pivot away from property reinsurance comes just as the sector reaches one of the biggest inflection points.

Discussion on Q3 earnings calls focused heavily on the supply-demand imbalance in cat capacity, as executives discussed how they would navigate a challenging January renewal.

Inside P&C’s morning summary of the key stories to get you up to speed fast.