AXIS Capital premiums down, net income up in third quarter

AXIS Capital Holdings Ltd. has reported a net income of $279 million for the three months ended Sept. 30, up from $137 million in the same period last year.

Net income available to common shareholders for the first nine months of the year totaled $607 million, up from $512 million in the same period of 2013, the company reported Thursday.

Gross premiums written for the third quarter dropped 1% to $897 million, with a decrease in the insurance segment offset by increases in reinsurance written premiums, AXIS noted.

Net premiums written in the quarter decreased 4% to $687 million, while net premiums earned increased 2% to $966 million.

For the insurance segment, net premiums written were $364 million in the third quarter of this year, a decrease of 8% compared with the same period last year. In reinsurance, net premiums written in the quarter were $323.7 million, up slightly from $322.7 million in Q3 last year.

The combined ratio for the quarter was 92.2%, compared with 86.3% in the third quarter of 2013.

Estimated natural catastrophe and weather-related pre-tax net losses totaled $22 million, “primarily related to weather events in North America, compared to $51 million (net of reinstatement premiums) incurred during the third quarter of 2013,” AXIS also reported.

“We delivered strong underwriting results reflecting low catastrophe losses in the quarter, ongoing favorable reserve development and the value of our diversification, as well as the benefits of a more holistic approach to risk management,” Albert Benchimol, president and CEO of AXIS Capital commented in a statement on the results.

“Investment results, however, were encumbered by the weak returns of the global equity markets,” he noted. “Our diluted book value per share adjusted for dividends, a key measure of shareholder value creation, is now 14% above last year’s level. Against a backdrop of more challenging market conditions, we believe our market reputation for superior service, strong capital and superior ratings will allow AXIS to enhance its position and access profitable business.

“We will continue to balance prudent growth and active capital management. So far this year, we have repurchased 9% of our beginning outstanding common shares, for aggregate consideration of $469 million, thus returning to shareholders 126% of the year-to-date operating income in the form of dividends and share repurchases.”