AXIS: “We Had A Very Good First Quarter”
Bermuda-based AXIS Capital Holdings Limited on Thursday [Apr. 25] reported net income available to common shareholders for the first quarter of 2013 of $303 million, or $2.55 per diluted common share, compared with $122 million, or $0.96 per diluted common share, for the first quarter of 2012.
Operating income for the first quarter of 2013 was $227 million, or $1.92 per diluted common share, compared with $136 million, or $1.07 per diluted common share, for the first quarter of 2012.
First Quarter Highlights:
- Gross premiums written increased 15 percent to $1.7 billion, with growth of 15 percent in the reinsurance segment and 14 percent in the insurance segment;
- Net premiums written increased 15 percent to $1.6 billion;
- Net premiums earned increased 3 percent to $874 million;
- Combined ratio of 83.0 percent, compared to 94.8 percent;
- Current accident year loss ratio of 56.4 percent, compared to 65.7 percent;
- Net favorable prior year reserve development of $54 million [benefiting the combined ratio by 6.2 points], compared with $45 million [benefiting the combined ratio by 5.4 points];
- Net investment income decreased 6 percent to $109 million;
- Pre-tax total return on cash and investments of 0.7 percent, compared to 2.1 percent;
- Net income available to common shareholders of $303 million and annualized return on average common equity of 22.7 percent, compared to $122 million and 9.7 percent;
- Operating income of $227 million, representing an annualized operating return on average common equity of 17.1 percent, compared to $136 million and 10.8 percent;
- Net cash flows from operations of $221 million, compared to $176 million;
- Share repurchases in the quarter totaling $131 million; and
- Diluted book value per common share of $44.67, an increase of 4 percent during the quarter and 13 percent over the last 12 months.
Commenting on the first quarter 2013 financial results, Albert Benchimol, president and CEO of AXIS Capital said “AXIS had a very good first quarter, with solid contributions from both our insurance and reinsurance segments.
“Overall, gross premiums written were up 15 percent. Both segments contributed strong and diversified premium growth as well as solid underwriting profits. Our operating ROE for the quarter was 17.1 percent and we ended the quarter with record diluted book value per share of $44.67, an increase of 4 percent from year-end 2012 and 13 percent over the last twelve months.
“We continue to find good risks in an improving marketplace and are very pleased with the progress of our newer initiatives in both insurance and reinsurance. We believe the combination of attractive opportunities and our strong capital position should allow us to both continue on a path of profitable growth and return to our shareholders the bulk of our earnings for this year, in the form of dividends and share repurchases. We remain focused on executing on our plan of diversified growth, lower earnings volatility, and superior economic value creation for the benefit of our shareholders.”
