Business

Axis swings to £12m operating loss in final quarter

The group branded the year as a ‘tremendous challenge’ to its operations

Insurance group Axis Capital has announced an £11.7m operating loss for the fourth quarter of 2020.

The figure contributes to an overall loss of £127m for the year ended 31 December 2020, a drastic fall from its £155m operating profits seen in 2019. 

In its latest update, Axis said that 2020 represented a “tremendous challenge” for the firm, as the ongoing pandemic and natural disasters caused significant challenges to its operations.

As gross premiums written for the quarter rose £104m (14.8%), the company’s underwriting loss for the same period stood at roughly £48m.

Albert Benchimol, president and CEO at Axis Capital, said: “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.”

However, according to Benchimol the group currently operates a “strong and balanced book of business” that provides encouragement for the future.

He added: “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.”

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