Bermuda-based Axis Capital Holdings Ltd is to cut “a small number” of jobs at its Bermuda office as part of a global streamlining.

But Albert Benchimol, the company’s chief executive officer, stressed yesterday that the insurer and reinsurer remains committed to the Island and has renewed the lease on its Hamilton waterfront headquarters for another ten years.

The company plans to reduce its global headcount of 1,254 staff by about 100 — with the brunt of the cuts being borne by the Australia retail insurance operation, which is to be wound down.

In an interview with The Royal Gazette, Mr Benchimol declined to reveal how many employees would be let go in Bermuda, but he said it was a small number. Those affected work in business and support functions.

“This is a very competitive market,” Mr Benchimol said. “We are aligning our resources with the best growth opportunities we have and we must make sure we are delivering our products in the most efficient way possible.

“Unfortunately, sometimes that will lead to a reduction of personnel. It was a very difficult decision to make. I’m saddened that good and dedicated employees will be losing their jobs through no fault of their own.

“We have 68 employees in Bermuda and the vast majority are Bermudians, spouses of Bermudians and PRCs. We are committed to Bermuda, it’s where our head office is. It’s where we have our board and executive meetings. We bring a lot of people here.”

The company had donated more than $5 million to charitable causes in Bermuda over the last five years alone, he added. And the decade-long lease renewal for Axis House, which is in the Waterfront complex on Pitts Bay Road, was testimony to the company’s belief that Bermuda remains the best place from which to run an international insurance and reinsurance company.

In a memo sent to staff yesterday, Mr Benchimol wrote: “All affected employees will be provided with severance packages commensurate with their time with the company, along with outplacement services. It is extremely important to me personally that each and every departing Axis employee be treated with fairness and sensitivity.”

Worldwide, Axis said it expected “a workforce reduction of approximately 100 positions, primarily in its corporate and select insurance operations”. It is understood that around half of the positions to go will be in Australia.

As well as Bermuda, Axis has offices in Bermuda, the US, Europe, Singapore, Canada, Australia and Latin America.

The company is aiming to achieve cost cuts of $30 million a year, from next year. Axis said it would first take a one-off charge of around $51 million, related to staff severance costs, the write-off of some information technology assets and lease cancellation costs.

Axis stated: “These reductions are consistent with the company’s previously announced effort to reduce its expense level and position itself to more effectively deliver greater value for its customers, brokers, and shareholders.”

Last month, Axis announced an accelerated share repurchase plan, aimed at buying back $300 million of the company’s equity by the end of this year.

Earlier this year, Axis’ agreement to merge with Bermuda rival PartnerRe was derailed by Italian investment firm Exor, which eventually struck a $6.9 billion deal to buy the reinsurer.

Mr Benchimol said PartnerRe had come to Axis with a merger offer that was initially attractive. But as the terms changed, it had become “less interesting to us”, he added. The focus since then had been on seizing growth opportunities while maximising efficiency. “We continue to be absolutely convinced of our ability to generate profitable growth on a stand-alone basis,” Mr Benchimol said. “Most of that growth will be organic, but if there is an interesting inorganic growth opportunity, we will certainly consider it.”