AXIS Capital 2014 Q2 Net Income: $191M
Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the second quarter of 2014 of $191 million, or $1.79 per diluted common share, compared with $72 million, or $0.62 per diluted common share, for the second quarter of 2013.
Net income available to common shareholders for the six months ended June 30, 2014, was $328 million, or $3.03 per diluted common share, compared with $375 million, or $3.19 per diluted common share, for the corresponding period of 2013.
Operating income for the second quarter of 2014 was $173 million, or $1.63 per diluted common share, compared with $50 million, or $0.43 per diluted common share, for the second quarter of 2013.
For the six months ended June 30, 2014, AXIS Capital reported operating income of $310 million, or $2.86 per diluted common share, compared with $278 million, or $2.36 per diluted common share, for the first six months of 2013.
Operating income and operating return on average common equity are “non-GAAP financial measures” as defined in Regulation G. A reconciliation of operating income to net income available to common shareholders [the nearest GAAP financial measure].
The calculation of operating return on average common equity are provided in this release, as is a discussion of the rationale for the presentation of these items.”
Axis Capital’s second quarter highlights included:
- Gross premiums written increased 1 percent to $1.2 billion, with growth of 9 percent in our reinsurance segment partially offset by a decrease in written premiums of 3 percent in our insurance segment
- Net premiums written increased 1 percent to $1.0 billion
- Net premiums earned increased 6 percent to $1.0 billion
- Combined ratio of 90.8 percent, compared to 101.7 percent
- Current accident year loss ratio of 65.1%, compared to 72.4%
- Estimated natural catastrophe and weather-related pre-tax net losses of $36 million, primarily related to U.S. weather events, compared to $140 million [net of reinstatement premiums] incurred during the second quarter of 2013
- Net favorable prior year reserve development of $85 million [benefiting the combined ratio by 8.5 points], compared to $42 million [benefiting the combined ratio by 4.4 points]
- Net investment income of $115 million, compared to $83 million
- Pre-tax total return on cash and investments of 1.6 percent, compared to 1.3 percent
- Net income available to common shareholders of $191 million and annualized return on average common equity of 14.5 percent, compared to $72 million and 5.6 percent
- Operating income of $173 million, representing an annualized operating return on average common equity of 13.1 percent, compared to $50 million and 3.9 percent
- Net cash flows from operations of $241 million, compared to $236 million
- Share repurchases during the quarter totaling $139 million
- Diluted book value per common share of $49.69, a 5 percent increase during the quarter and a 16 percent increase over the last 12 months
- Dividends declared of $0.27 per common share, compared to $0.25 per common share
- Growth in diluted book value per common share adjusted for dividends of $2.83, or 6 percent, per common share
