An international speciality insurer has announced it will be exiting the Australian retail insurance market in order to focus its resources on other growth opportunities.
AXIS Capital has announced its plans to withdraw its retail insurance operations in Australia after identifying the market as incapable of generating appropriate and sustainable returns for the company.
AXIS Capital President and Chief Executive Officer Albert Benchimol says: “We are confident of our ability to deliver increasing shareholder returns through the pursuit of high-return growth opportunities, including attractive external growth prospects where appropriate.”
“The refinements announced today are about strengthening the Company’s focus, and moving resources to where they can provide the greatest value to brokers and clients – ultimately driving profitable book value per share growth over the longer term,” Benchimol says.
As a result of this reform, the company anticipates a workforce reduction of as many as 100 positions, primarily in its corporate and select insurance operations.
AXIS Capital will continue to operate its international wholesale insurance and reinsurance portfolios within the Australian market.