Logtail nowrap12/17/2022 ![]() ![]() AXIS Capital’s financial leverage, while lower, also remains higher than Moody’s expectations at the current rating level.For the first nine months of 2020, AXIS Capital reported a net loss attributable to common shareholders of approximately $146 million and a combined ratio of 109.6%, reflecting 17.5 points of catastrophe and coronavirus-related losses. While AXIS Capital has taken steps to reduce catastrophe exposures, the company's earnings have been uneven and volatile. These strengths are tempered by the company’s low and volatile profitability, meaningful catastrophe exposures, higher financial leverage relative to some of its peers and the potential for reserve volatility arising from claims inflation in the firm’s long-tail casualty lines.The negative rating outlook reflects Moody’s view that AXIS Capital’s profitability has been weak relative to its peers, reflecting elevated catastrophe losses (including coronavirus-related losses this year), as well as the underperformance of certain business lines, including its Lloyd’s of London business. ![]() nwsys/RATIONALEAccording to Moody's, AXIS Capital’s ratings reflect its diversified mix of specialty insurance and reinsurance business, good historical operating returns, solid reserve position and high quality investment portfolio. ![]()
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