“The decision to close our Property Reinsurance business was not taken lightly and was driven by the significant and increasing effects of climate change and the challenges faced by the catastrophe reinsurance market. We are committed to doing all we can to help enable a smooth transition for our colleagues and partners who will be impacted by the change,” said Albert Benchimol, president and CEO of AXIS Capital
Bermuda:
AXIS Capital Holdings announced AXIS Re has exited property reinsurance to focus instead on casualty, specialty, accident and health, and credit lines.
The company announced that AXIS Re will exit its Property Reinsurance business, as part of an overall approach to reduce the company’s exposure to volatile catastrophe risk.
With the refocus of AXIS Re, AXIS Re CEO Steve Arora will leave at the end of the year, and will be replaced by Ann Haugh.
The company also announced that Vince Tizzio, who joined AXIS in January, has been appointed CEO Specialty Insurance and Reinsurance.
AXIS Re said it will honor all multi-year treaties and outstanding quotes but will no longer consider new property and catastrophe reinsurance business.
The Specialty Insurance and Reinsurance business’ core divisions include Wholesale, International, Financial Lines, Accident & Health, and Cyber, as well as AXIS Re.
“We are simplifying our organizational structure and aligning our resources to advance leadership in specialty underwriting – this is part of a multi-year effort to build on the significant progress AXIS has made to generate consistent profitable results, reduce earnings volatility, and grow a stronger overall book of business, all with an eye toward better serving customers and providing increased value to our shareholders,” said Albert Benchimol, president and CEO of AXIS Capital, in a statement.
“The decision to close our Property Reinsurance business was not taken lightly and was driven by the significant and increasing effects of climate change and the challenges faced by the catastrophe reinsurance market. We are committed to doing all we can to help enable a smooth transition for our colleagues and partners who will be impacted by the change,” Benchimol added.
“We have completed the refocusing of the reinsurance business to align with our overarching goal of being a leading specialist reinsurer. With these actions, we provide clarity on AXIS Re’s long-term risk appetite, the sustainability and predictability of our approach, and our go-forward priorities,” said the new AXIS Re CEO Haugh.
“We look to the future with a strong commitment to the casualty, specialty, A&H, and credit markets, and look forward to partnering closely with brokers and clients as we begin this new chapter,” said Haugh.
AXIS said it will introduce new products, ranging in size and complexity of risk profile, to meet the diverse needs of the global specialty market including new offerings specifically designed for small-to-mid-sized businesses.
AXIS announced that it is centralizing all underwriting analytics and support functions into one division headed by a global Chief Underwriting Officer (CUO) who will report to Benchimol. The CUO will oversee actuarial support functions previously reporting to the business segments.
This CUO organization will partner with the company’s underwriting divisions to introduce greater innovation into products and services delivered to existing and new customer segments.
This is all with a view toward preserving and enhancing the underwriting excellence at the core of AXIS and coincides with the development of enhanced integrated operating models within the company designed to heighten customer responsiveness, agility, and efficiency.