Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the three months ended March 31, 2014, of $137 million, or $1.24 per diluted common share, compared with $303 million, or $2.55 per diluted common share, for the corresponding period of 2013.
Operating income for the first quarter of 2014 was $137 million, or $1.24 per diluted common share, compared with $227 million, or $1.92 per diluted common share, for the first quarter of 2013.
AXIS listed first quarter highlights as follows:
- Gross premiums written increased 4 percent to $1.8 billion, with growth of 1 percent in our insurance segment and 6 percent in our reinsurance segment;
- Net premiums written increased 6 percent to $1.7 billion;
- Net premiums earned increased 8 percent to $946 million;
- Combined ratio of 91.9 percent, compared to 83.0 percent;
- Current accident year loss ratio of 62.1 percent, compared to 56.4 percent;
- No significant natural catastrophe and weather-related losses;
- Net favorable prior year reserve development of $43 million (benefiting the combined ratio by 4.6 points), compared to $54 million (benefiting the combined ratio by 6.2 points);
- Net investment income of $83 million, compared to $109 million;
-Pre-tax total return on cash and investments of 1.1 percent, compared to 0.7 percent;
- Net income available to common shareholders of $137 million and annualized return on average common equity of 10.6 percent, compared to $303 million and 22.7 percent;
- Operating income of $137 million, representing an annualized operating return on average common equity of 10.6 percent, compared to $227 million and 17.1 percent;
- Net cash flows from operations of $151 million, compared to $221 million;
- Share repurchases during the quarter totaling $179 million;
- Diluted book value per common share of $47.13, a 3 percent increase during the quarter and a 6 percent increase over the last 12 months; and
- The issuance of $250 million of 2.65 percent senior unsecured notes due in 2019 and $250 million of 5.15 percent senior unsecured notes, which are due in 2045.
All of the above comparisons refer to the first quarter of 2013, unless otherwise stated.
President and CEO Albert Benchimol commented: AXIS Capital said “AXIS reported first quarter operating income of $1.24 per share and operating ROE of 10.6 percent. We ended the quarter with diluted book value per share of $47.13, an increase of 3 percent over the quarter. In addition, we returned to shareholders over $200 million through share repurchases and dividends. This year’s quarter was impacted by lower investment income from alternative investments and higher property losses in the insurance segment.
“While market conditions have weakened a little, there remain many opportunities for profitable business across our core book. We also continue to have success in developing and nurturing new business initiatives. We completed a successful first season of coverage in our Weather & Commodities business, and we recently brought on a new Healthcare Professional Liability team. Our strategy of growing and diversifying our consolidated portfolio is delivering highly satisfactory results.”
Source: AXIS Capital