AXIS Q2 Net Income Declines by 8% to $231 Million

Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the second quarter of 2008 of $231 million, or $1.47 per diluted common share, compared with $252 million, or $1.51 per diluted common share, for the second quarter of 2007. Net income for the six months ended June 30, 2008 was $469 million, or $2.95 per diluted share, compared with $479 million, or $2.88 per diluted share, for the corresponding period in 2007.

Operating income for the second quarter, which excludes capital gains/losses, was $229 million, or $1.45 per diluted share, compared with $256 million, or $1.54 per diluted common share, for the second quarter of 2007.

Operating income for the first six months of 2008 was $434 million, or $2.73 per diluted share, compared with $483 million, or $2.91 per diluted common share, for the first six months of 2007. This same item excluding foreign exchange gains, net of tax, for the first six months of 2008 was $421 million, or $2.65 per diluted common share, compared with $474 million, or $2.85 per diluted common share, for the first six months of 2007.

Other “operating highlights” for the period include the following:
— A combined ratio of 81.2 percent, including net favorable reserve development of 12.8 percentage points;
— Record net investment income of $137 million, an increase of 21 percent;
— Annualized return on average common shareholders equity of 19.2 percent;
— Diluted book value per common share1 of $30.30, an increase of 21 percent from June 30, 2007, and 5 percent from December 31, 2007;
— Shareholders’ equity of $5.3 billion, an increase of 12 percent from June 30, 2007 and 2 percent from December 31, 2007;
— Share repurchases during the quarter of $175 million.

President and CEO John Charman commented: “I am pleased that we have been able to deliver growth in diluted book value per share of an excellent 21 percent over the last twelve months. Despite the extremely competitive market conditions, our underwriting results were good and our reserves from prior accident years continued to develop favorably. We also posted record quarterly net investment income. Our business is still generating very strong underwriting profitability even against the backdrop of increased market loss activity during this first half of the year in the property lines.”

The full report and details on accessing the investors’ conference call may be obtained on the Company’s web site at: www.axiscapital.com.

Source: AXIS Capital

Topics Profit Loss