Earnings

James River CEO Frank D’Orazio said the firm’s losses from Hurricane Ian will be contained in the third quarter, as he discussed the carrier’s Q3 earnings in a call with analysts.

The carrier cited inflation, supply chain issues and labor shortages as the drivers behind an increase in auto loss severity and its third-quarter loss ratio compared to Q3 2021.

The company’s combined ratio edged up by 0.3 points despite a two-point reduction in expenses and a 3.4-point reduction in cats.

A 3.9-point decline in the casualty and specialty segment offset a 2.5-point deterioration in the company’s property business.

The company reported a $5mn loss related to Hurricane Ian, which affected the specialist’s excess property underwriting division.

The personal lines unit reported a combined ratio of 107.3%, marking a 3.5-point deterioration from the 103.8% CoR reported in the prior-year quarter.

The firm’s North America CoR deteriorated 8.3 points to 114%, but the international division’s CoR improved 13.3 points to 81.4%.

CinFin management said premium adjustments for rising costs of building materials are about to double from last year.

Meanwhile, Tricia Griffith said the commercial lines business experienced minimal impact from Ian, as physical damage and comprehensive cover are smaller parts of its premium.

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

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The firm’s commercial lines CoR climbed over 18 points to 99% while the personal lines unit’s CoR deteriorated 1.8 points to 104.5%.