Hurricane winds batter Axis profit 67%
Axis Capital Holdings recorded a 67% slump in net profit of $US351 million ($535 million) last year as the company felt the full force of US hurricane winds.
The result was a fraction of the $US1.06 billion ($1.62 billion) the company earned in 2007 while fourth-quarter net profit fell 57% to $US131 million ($200 million) compared to the previous year.
The insurer reported a full-year combined ratio of 89.8% with Hurricanes Ike and Gustav the chief culprits of the sharp decline in the profitability measure from 75.3% a year ago. The two catastrophes cost Axis more than $US400 million ($609 million).
Axis Capital CEO and President John Charman said despite unprecedented turmoil the company maintained underwriting discipline when faced with “irrational and excessive pricing competition”.
Standard & Poor’s this month lifted the financial strength and counterparty credit ratings of Axis Capital operating units from A to A+.
The result was a fraction of the $US1.06 billion ($1.62 billion) the company earned in 2007 while fourth-quarter net profit fell 57% to $US131 million ($200 million) compared to the previous year.
The insurer reported a full-year combined ratio of 89.8% with Hurricanes Ike and Gustav the chief culprits of the sharp decline in the profitability measure from 75.3% a year ago. The two catastrophes cost Axis more than $US400 million ($609 million).
Axis Capital CEO and President John Charman said despite unprecedented turmoil the company maintained underwriting discipline when faced with “irrational and excessive pricing competition”.
Standard & Poor’s this month lifted the financial strength and counterparty credit ratings of Axis Capital operating units from A to A+.