Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the third quarter of 2010 of $239 million, or $1.78 per diluted common share, compared with a net loss of $96 million, or $0.70 per diluted common share, for the third quarter of 2009.
Net income for the nine months ended September 30, 2010 was $556 million, or $4.04 per diluted common share, compared with $179 million, or $1.19 per diluted common share, for the corresponding period in 2009.
Operating income, which excludes capital gains/losses, for the third quarter of 2010 was $164 million, or $1.22 per diluted common share, compared with $152 million, or $1.00 per diluted common share, for the third quarter of 2009.
Operating income for the nine months ended September 30, 2010 was $439 million, or $3.20 per diluted common share, compared with $490 million, or $3.26 per diluted common share for the first nine months of 2009.
The earnings reported noted the following third quarter highlights:
— Gross premiums written of $751 million, a decrease of 3 percent;
— Net premiums written of $626 million, an increase of 5 percent;
— Net premiums earned of $759 million, an increase of 7 percent;
— Total underwriting income of $127 million, an increase of 79 percent;
— Combined ratio of 85.6 percent, an increase of 12.4 percentage points;
— Estimated pre-tax net losses of $85 million for the New Zealand earthquake;
— Net favorable prior year reserve development of $72 million, pre-tax, benefiting the combined ratio by 9.5 points, compared with $122 million, benefiting the combined ratio in the same period last year by 17.3 points;
— Net investment income of $112 million, a decrease of 17 percent;
— Total return on cash and investments was 2.8 percent (pre-tax);
— Net cash flows from operations of $329 million;
— Operating income of $164 million, representing an annualized operating return on average common equity2 of 12.6 percent;
— Shareholders’ equity of $5.8 billion;
— Share repurchases in the open market of $13 million in the quarter;
— Increased authorization under common share repurchase programs by $750 million; and
— Diluted book value per common share of $39.01, an increase of 7 percent.
President and CEO John Charman commented: “For the first nine months of 2010, we produced an annualized operating return on average common equity of 11.3 percent, which we view as healthy given current property and casualty insurance and reinsurance market conditions, the low investment yield environment and the global catastrophe activity this year.
“Our underwriting and investment results, coupled with prudent capital management activity, have resulted in a 23.5 percent increase in our diluted book value per share compared to a year ago. We remain committed to maximizing value creation for our shareholders without compromising our conservative, quality-based approach to the markets.”
AXIS will host a conference call on Tuesday November 2, 2010 at 8:00 AM (Eastern) to discuss the third quarter financial results and related matters. The teleconference can be accessed by dialing (866) 843-0890 (U.S. callers) or (412) 317-9250 (international callers) approximately ten minutes in advance of the call and entering the code 5-5-6-4-0-3-0. A live, listen-only webcast of the call will also be available via the Investor Information section of the Company’s web site as well as the complete earnings report.
Source: AXIS Capital
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