AXIS Capital 2016 Q1 Net Income: $38 Million
Bermuda-based AXIS Capital Holdings reported net income available to common shareholders for the first quarter of 2016 of $38 million, or $0.41 per diluted common share, compared with $156 million, or $1.54 per diluted common share, for the first quarter of 2015.
Operating income for the first quarter of 2016 was $101 million, or $1.07 per diluted common share, compared to $136 million, or $1.35 per diluted common share, for the first quarter of 2015.
First Quarter Highlights
- Gross premiums written increased 17% [20% on a constant currency basis] to $2.0 billion, with growth in our reinsurance segment of 21% [26% on a constant currency basis] and insurance segment of 8% [10% on a constant currency basis];
- Net premiums written increased 16% [20% on a constant currency basis] to $1.7 billion;
- Net premiums earned decreased slightly [increased 3% on a constant currency basis] to $902 million;
- Combined ratio of 91.9%, compared to 93.7%;
- Current accident year loss ratio of 63.1%, compared to 62.9%;
- Low level of catastrophe and weather-related pre-tax net losses in both periods;
- Net favorable prior year reserve development of $70 million [benefiting the combined ratio by 7.8 points], compared to $56 million [benefiting the combined ratio by 6.2 points];
- Net investment income of $49 million, compared to $92 million;
- Pre-tax total return on cash and investments of 1.3%, both including and excluding foreign exchange movements, compared to 0.7% [or 1.2% excluding foreign exchange movements];
- Net income available to common shareholders of $38 million and annualized return on average common equity of 2.9%, compared to $156 million and 11.8%;
- Operating income of $101 million, representing an annualized operating return on average common equity of 7.7%, compared to $136 million and 10.3%;
- Net cash flows used in operations of $14 million, compared to net cash flows used in operations of $28 million;
- Diluted book value per common share of $56.04, an increase of 4% compared to the prior quarter and representing an 8% increase over the last 12 months;
- Dividends declared of $0.35 per common share, with the total common dividends declared of $1.28 per share over the past twelve months;
- Growth in diluted book value per common share adjusted for dividends of $2.31, or 4%, per common share for the quarter and $5.35, or 10%, per common share over the past twelve months;
- Total common shares repurchased were 3.9 million in the quarter, including 2.5 million of common shares repurchased for a total of $136 million, and 1.4 million common shares acquired under an Accelerated Share Repurchase agreement, which terminated on January 15, 2016.
