AXIS Capital’s Fourth Quarter 2020 Results
AXIS Capital Holdings Limited announced financial results for the fourth quarter ended December 31, 2020.
Commenting on the fourth quarter 2020 financial results, Albert Benchimol, President and CEO of AXIS Capital, said: “This was a year of tremendous challenge. First and foremost, our thoughts are with the people and families afflicted by COVID-19 and those whose lives were upended by extreme weather.
“For our business, the combined impact of the pandemic which affected both our underwriting and investment results and elevated hurricane activity that made 2020 the fifth costliest cat year on record, led to disappointing financial results that overshadowed significant underlying progress.
“In 2020, AXIS materially strengthened our core performance, highlighted by a year-over-year improvement of 4.6 points to our current accident year combined ratio ex-cat and weather. This progress in our underwriting metrics demonstrates that all of the work that we’ve done in recent years to reposition our portfolio and drive targeted growth in our most attractive markets is delivering tangible results.
“In addition, I’m proud of our team for stepping up in the face of adversity. We never missed a beat in delivering excellent service and claims support to our clients – and we stayed true to our values, supporting our people, customers, and communities.
“We begin 2021 with positive momentum and confidence. We have great talent, deep relationships with our clients and partners in distribution, a strong and balanced book of business, and leadership positions in markets that are seeing the most meaningful pricing corrections. With all of the progress that’s been achieved, we’re confident that we will see profitable growth and continued improvement in our underwriting and profitability – and we are focused on delivering value to our shareholders.”
For the fourth quarter of 2020, the Company reports:
- Improvement of 4.5 points in current accident year combined ratio, excluding catastrophe and weather-related losses, compared to the prior year
- Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $198 million, or 18.4 points, including the previously disclosed amount of $125 million, or 11.6 points, attributable to the COVID-19 pandemic
- Net loss attributable to common shareholders of $5 million, or $[0.06] per diluted common share, and operating loss1 of $16 million, or $[0.20] per diluted common share1
- Book value per diluted common share of $55.09, an increase of $0.34, or 1%, compared to September 30, 2020
For the year ended 2020, the Company reports:
- Improvement of 4.6 points in current accident year combined ratio, excluding catastrophe and weather-related losses, compared to the prior year
- Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $774 million, or 17.7 points, including $360 million, or 8.2 points, attributable to the COVID-19 pandemic
- Net loss attributable to common shareholders of $151 million, or $[1.79] per diluted common share, and operating loss of $174 million, or $[2.08] per diluted common share
