AXIS Capital’s Fourth Quarter 2019 Results

January 30, 2020 | 0 Comments

AXIS Capital Holdings today announced financial results for the fourth quarter ended December 31, 2019.

Commenting on the fourth quarter 2019 financial results, Albert Benchimol, President and CEO of AXIS Capital, said: “We did not deliver the financial results we expected in 2019, as our performance suffered from a record typhoon season in Japan, poor crop conditions in the U.S., as well as high loss activity in property and aviation lines.

“Notwithstanding these headwinds, our actions still enabled us to reduce our current year ex-cat loss ratio by over a point this year, bringing the reduction in our ex-cat loss ratio to more than three points over two years, with progress in both our Insurance and Reinsurance businesses.

AXIS Capital Fourth Quarter 2019 Results Bermuda Jan 2020

“With the additional portfolio remediation that we executed in 2019, we entered the new year with a stronger book that has less inherent volatility.

“We have brought down PMLs, decreased limits, and exited or reduced our participation in underperforming businesses while pushing for more rate across the board. At the same time, we’re focused on driving growth in our most attractive lines. We’re also working with our partners in distribution to use our expanding digital capabilities to create new business growth in desirable smaller accounts.

“With pricing momentum accelerating, we believe that favorable market conditions will sustain through 2020, driving more lines of business to pricing adequacy and providing us with more opportunities to leverage our market position to generate profitable growth.”

For the fourth quarter of 2019, the Company reports:

  • Net loss attributable to common shareholders of $10 million, or $(0.12) per diluted common share, and ex-PGAAP operating income of $7 million, or $0.08 per diluted common share
  • Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $140 million, or 12.1 points
  • Book value per diluted common share of $55.79, a decrease of $0.47, or 0.8%, compared to September 30, 2019
  • Pricing momentum continues to build across substantially all lines of business

For the year ended 2019, the Company reports:

  • Net income available to common shareholders of $282 million, or $3.34 per diluted common share and ex-PGAAP operating income of $234 million, or $2.77 per diluted common share
  • Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $336 million, or 7.5 points
  • Book value per diluted common share of $55.79, an increase of $5.86, or 11.7% compared to December 31, 2018

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