AXIS Capital Holdings saw its 2018 second quarter behave very much like the first: healthy gains in net income and premiums written.
These gains stem mostly from the Bermuda-based insurer and reinsurer’s $611.5 million acquisition of Novae Group plc in late 2017. But AXIS President and CEO Albert Benchimol also credited the insurer’s continued plans to grow the company and reduce volatility.
“As a result of our strong market position, we continue to attract and retain high-quality business, allowing us to deliver better risk adjusted returns despite ongoing challenging market conditions,” Benchimol said in prepared remarks.
AXIS reported $93 million in net income for the 2018 second quarter, or $1.11 per diluted common share. Over the same time a year ago, AXIS produced $85 million, or $1.01 per diluted common share. For the first six months of 2018, AXIS generated $155 million in net income, versus $90 million in H1 2017.
AXIS said its combined ratio for Q2 was 93.1, compared to 97.6 in the same, year-ago period.
Additional result highlights:
- Gross premiums written landed at $1.7 billion, a 21 percent ($288 million) jump over the 2017 second quarter. Broken down, further, the insurance segment saw a 34 percent increase and there was a 4 percent increase for reinsurance, something that AXIS attributes to its Novae acquisition.
- Without Novae, gross premiums written would have dipped 3 percent over the previous year, with a 4 percent decrease for insurance and 1 percent dip in reinsurance.
- Net premiums written came in at $1 billion, a 5 percent increase over the same period last year.
- Net investment income reached $110 million for the quarter, close to the $106 million produced in the 2017 second quarter. Net realized/unrealized investment losses recognized in net income for the quarter reached $45 million, up from $4 million a year ago.
- Overall, underwriting income increases for the first six months of 2018, thanks to net premiums earned going up, a decline in the current accident year loss ratio (minus catastrophe and weather-related losses, and a decrease in general and administrative expense ratio.
Source: AXIS Capital Holdings