AXIS: Q2 Net Income Declines To $101 Million
Bermuda-based AXIS Capital Holdings Limited today [Aug.3] reported net income available to common shareholders for the second quarter of 2011 of $101 million, or $0.79 per diluted common share, compared with $205 million, or $1.51 per diluted common share, for the second quarter of 2010.
For the six months ended June 30, 2011, AXIS Capital reported a net loss to common shareholders of $283 million, or $2.38 per diluted common share, compared with net income available to common shareholders of $317 million, or $2.28 per diluted common share, for the corresponding period in 2010.
Operating income for the second quarter of 2011 was $83 million, or $0.65 per diluted common share, compared with $153 million, or $1.13 per diluted common share, for the second quarter of 2010.
For the six months ended June 30, 2011, AXIS Capital reported an operating loss of $316 million, or $2.66 per diluted common share, compared with operating income of $240 million, or $1.73 per diluted common share, for the first six months of 2010.
Commenting on the second quarter 2011 financial results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: “The year thus far, which we estimate has cost the industry over $70 billion in insured catastrophe losses, is breaking records in terms of global catastrophe activity.”
“These losses, combined with recently introduced material changes to catastrophe models have propelled the industry into a transitional phase, forcing it to take a new view of every aspect of catastrophe risk. Since the first of January, AXIS has been repositioning its portfolio to benefit from these positive opportunities following this transition as we enter 2012.
“Despite the impact of catastrophes on underwriting profit, AXIS had a solid second quarter. Operating income was $83 million and diluted book value per share grew 3% in the quarter. Our gross premiums written in the quarter increased 11% reflecting meaningful contributions from our new accident and health initiative and our renewable energy insurance team in London as well as continued, steady progress with our P&C operations in Canada and Australia.”
“Our reserves continued to develop favorably and we have continued to prudently diversify our investment portfolio away from risk associated with rising interest rates. Finally, our posture remains circumspect with respect to casualty insurance markets that have yet to experience some very necessary improvement.”
