Axis’ Tizzio: Public D&O pricing and terms “inadequate”

Market dynamics in the public D&O sector are currently inadequate, according to Axis president and CEO Vincent Tizzio, but the group is still very much committed to professional lines business.

“Professional lines for Axis remain an incredibly important business and it's a substantial business of ours. But we've been very outspoken about the risk-reward between pricing and terms and our view that it's not adequately where we think it should be,” Tizzio told The Insurer TV.

“Having said that, it's 6 percent of our portfolio globally, so we're a meaningful participant in the professional liability environment and we'll continue to participate and seek good returns,” he reiterated.

Commenting from the sidelines of the industry’s annual Rendez-Vous in Monte Carlo, Tizzio noted how much difference a year can make in relation to the tone of the conversations happening during the event.

“I think people have a healthy recognition of the catastrophe environment that we're living in. I think people are having transparent conversations around what they're trying to solve for,” he observed.

“For us, at Axis, it's been a successful Rendez-Vous. A year makes a big difference. Certainly a big difference for us,” he added.

The company announced in 2022 that it was discontinuing its property catastrophe reinsurance business as part of a switch to specialty classes.

As reported by The Insurer, a workforce reduction followed the move, along with the departure of some key leaders. Tizzio came on board to lead the follow-through on the firm’s pivot to specialty.

“We've declared ourselves a specialty underwriter, and that's what I'm going to advance,” said Tizzio.

“We have a track record over the last six to eight quarters that, I think, convincingly proves that we're well on our way to achieving our financial aspiration. And we're excited to compete and go to market.”

BofA Securities recently upgraded Axis shares to ‘buy’, stating that the stock had been undervalued and that the company should trade in line with its specialty insurance-focused peers, as opposed to reinsurers.

However, given current market conditions, refocusing on specialty is a strategy other firms are employing as well. Tizzio acknowledged the increased competition, but pointed out areas where he said Axis stands out from the crowd.

“We're situated in the best specialty markets in the world,” he said. “We have a broad product capability with demonstrated expertise, and some really strong standing, particularly in our renewable energy business, our cyber business, and our marine business, just to name a few.”

Tizzio is also very committed to the carrier’s home base of Bermuda, despite potential changes to the territory’s corporate tax laws.

“We're in close consultation with the Bermudian government. We're an active participant in ABIR. We're proud of our representation there and we'll continue to have open dialogue,” he concluded.

Watch this 4-minute video with Axis CEO Vincent Tizzio to hear more about: