Axis Capital
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Market orthodoxy suggests cross-class reinsurers secure more leverage – but are there too many implicit offsets in this game? -
The ILS manager’s half-year report showed significantly lower holdings with Everest Re, as much of its portfolio has gone private.
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The segment’s lustre has been dulled by losses and capital trapping.
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The pricing on the storm and quake cover has shifted down from initial guidance, bucking early Q2 trends.
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The issuance comes as Axis is set to exit the property reinsurance market.
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Sources said the company is to part ways with around 60 staff as it completes the pivot to specialty (re)insurance.
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Many hybrids, unless they are willing to take a meaningful financial hit to secure a divestiture, will have to stick with their reinsurance businesses through the current cycle.
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The carrier has shared insurance and reinsurance risk with ILS partners in the past, but the ILS team reports to Axis Re CEO Steve Arora.
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The carrier also revealed $30mn in Russia-Ukraine Q1 losses.
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The result comes as the firm prepares to sell its reinsurance unit as it has slashed catastrophe reinsurance premium.
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Jefferies has been awarded the mandate to seek a buyer for the segment.
