(Bloomberg) -- Axis Capital Holdings Ltd. will cut about 100 jobs and scale back operations in Australia after the reinsurer lost a bidding war for PartnerRe Ltd.

Costs tied to the reorganization reduced third-quarter earnings by about $51 million before taxes, including expenses for severance and lease cancellation, the Bermuda-based company said Wednesday in a statement. The cuts represent 8 percent of the 1,250 jobs that the company had when it filed its annual report in February. Reductions will be focused in the corporate and select-insurance operations.

Axis is among reinsurers that have been pressured by falling rates amid increased competition from Wall Street money managers seeking weather-related bets. Chief Executive Officer Albert Benchimol was outbid this year by Italy’s Exor SpA, the investment vehicle for the billionaire Agnelli family, for PartnerRe.

“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 said in the statement.

Axis said it would wind down its retail insurance operations in Australia while still serving that market through its international wholesale insurance and global reinsurance businesses. The reorganization is expected to save about $30 million annually before taxes, according to the statement.

Benchimol intends to boost the firm’s value through accessing a “broad range of capital” to complement its balance sheet, he said in the statement. Axis will also continue to work with third parties and generate fee income from providing tailored products to investing firms, he said.

“The company is looking at different avenues where it can generate alpha in a very difficult business, that may get more difficult in this hurricane season, and as the level of excess capital continues to build,” Amit Kumar, an analyst at Macquarie Group Ltd., said by phone. He said in a note to clients Tuesday that staff layoffs are “not necessarily a path to value creation.”

The reinsurer gained 4.4 percent this year through Tuesday. The company said its $300 million share repurchase program is expected to be completed by the end of the year and the board will review the stock buybacks and dividend policy at a December meeting. Axis is scheduled to report third-quarter results on Oct. 27.

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Axis to cut 100 jobs after losing PartnerRe bidding war to Exor

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