AXIS Capital Holdings saw its first-quarter net income and premium volume jump considerably, year-over-year, gains driven largely from its $611.5 million acquisition of Novae Group plc in late 2017.

The Bermuda-based insurer and reinsurer booked $63 million in net income, or $0.75 per diluted common share for Q1 2018, compared to $5 million, or $0.06 per diluted common share in the 2017 first quarter.

Company President and CEO Albert Benchimol said that ongoing plans to grow AXIS and reduce volatility have also helped contributed to the positive results.

“Over the past several years, AXIS has taken action to become a relevant and leading player in a select number of attractive special insurance and reinsurance markets, positioned to deliver superior results across a wide range of market conditions,” Benchimol said in prepared remarks. “Our efforts to realize AXIS’ potential are generating traction.”

Benchimol said that an effort launched earlier this year “to further modernize all of our functions” would continue this strategy.

Consolidated gross premiums written for the 2018 first quarter reached $2.7 billion, a 39 percent hike from the same period last year. That includes a 62 percent jump in the insurance segment driven largely by the Novae acquisition and a 30 percent spike in the reinsurance segment.

AXIS also reported a combined ratio of 90.8 compared to 102.1 in the 2017 first quarter.

Here some additional result highlights:

• The insurance segment reported gross premiums written of $881 million in the first quarter versus $545 million in the 2017 first quarter. Net premiums written jumped 54 percent over the same period a year ago. Without the Novae acquisitions, that number would have been a 2 percent uptick. The insurance segment reported an underwriting income overall of $69 million for the current quarter compared to $12 million through the first quarter of 2017. The division drew the attention of A.M. Best in February 2018 when it revised its outlooks for the carrier to negative from stable, based largely on its performance.

• The reinsurance segment booked $1.8 billion in gross premiums written for Q1, up from $1.4 billion in the 2017 first quarter. This jump included $50 million in gross premiums written coming from Novae in lines including motor, accident and health, credit and surety, catastrophe, liability and professional lines (partially offset by a dip in marine lines). Net premiums written jumped 25 percent in Q1 over last year, though they’d have risen 23 percent without Novae. Underwriting income came in at $74 million for the current quarter compared to $5 million in the first quarter of 2017.

• Net investment income reached $101 million for the quarter compared to $99 million in the 2017 first quarter.

Source: AXIS Capital Holdings