AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE: AXS) today reported net income available to common shareholders for the second quarter of 2013 of $72 million, or $0.62 per diluted common share, compared with $168 million, or $1.35 per diluted common share, for the second quarter of 2012. For the six months ended June 30, 2013, AXIS Capital reported net income available to common shareholders of $375 million, or $3.19 per diluted common share, compared with $290 million, or $2.31 per diluted common share, for the corresponding period of 2012.
Operating income 1 for the second quarter of 2013 was $50 million, or $0.43 per diluted common share, compared with $113 million, or $0.90 per diluted common share, for the second quarter of 2012. For the six months ended June 30, 2013, AXIS Capital reported operating income of $278 million, or $2.36 per diluted common share, compared with $249 million, or $1.98 per diluted common share, for the first six months of 2012.
Second Quarter Highlights 2
- Gross premiums written increased 20% to $1.2 billion, with growth of 29% in our reinsurance segment and 16% in our insurance segment;
- Net premiums written increased 24% to $993 million;
- Net premiums earned increased 11% to $946 million;
- Combined ratio of 101.7%, compared to 92.3%;
- Current accident year loss ratio of 72.4%, compared to 63.7%;
- Estimated natural catastrophe and weather-related pre-tax net losses (net of reinstatement premiums) of $140 million; tornadoes and hailstorms in the U.S. made the largest contribution to this amount, with flooding in Canada, Europe and Argentina also significant;
- Net favorable prior year reserve development of $42 million (benefiting the combined ratio by 4.4 points), compared with $75 million (benefiting the combined ratio by 8.7 points);
- Net investment income increased 12% to $83 million;
- Pre-tax total return on cash and investments of (1.3%), compared to 0.5%;
- Net income available to common shareholders of $72 million, compared to $168 million;
- Operating income of $50 million, compared to $113 million;
- Net cash flows from operations of $236 million, compared to $288 million;
- Share repurchases in the quarter totaling $228 million;
- Issued $225 million of 5.50% Series D preferred shares and redeemed the $100 million of 7.25% Series A preferred shares outstanding; and
- Diluted book value per common share of $42.67, a 4% decrease during the quarter and a 5% increase over the last 12 months.
Commenting on the second quarter 2013 financial results, Albert Benchimol, President and CEO of AXIS Capital said "For the year-to-date, we have delivered a very healthy annualized operating ROACE of 10.9%. This year-to-date result is indicative of the ability of our portfolio to absorb volatility including that presented by a quarter like this one, which was marked by a very high frequency of unrelated small and mid-sized cat and weather events around the globe.