AXIS Capital Holdings Ltd. reported a fourth-quarter net loss of $19 million primarily on losses from Superstorm Sandy.

The Pembroke, Bermuda-based insurer and reinsurer says it suffered significant catastrophe and weather-related losses in the quarter. Sandy accounted for about $331 million in pre-tax losses, net of reinstatement premiums.

The company's fourth quarter net loss to common shareholders was $18.6 million. President and CEO Albert Benchimol declared it “a small loss for the period.”

The loss compares to net income of $80 million for Q4 of 2011. Fourth-quarter revenues were up 3 percent, or $30 million, to $975 million.

For the year, net income to common shareholders was $495 million compared to $9 million for 2011. Revenues rose 3 percent, or $125 million, to $3.9 billion.

Sandy has hit carriers' financial results hard, with some reporting $300 million or more in losses. Last week, Chubb reported a 77 percent drop in Q4 profits on Sandy catastrophe losses of $882 million pre-tax.

During a conference call with financial analysts, Benchimol said AXIS “experienced strong results across most parts of our company in Q4, but these were fully offset by the impact of Storm Sandy.”

Considering the company's high exposure in the Mid-Atlantic and Northeast U.S., he said operating income of $422 million for the year is an acceptable return.

Turning to the insurance market, pricing trends are pointing upward Benchimol said. He pointed to AXIS own rate change of average 4 percent and 5 percent in the quarter. He said there is wide variation across different lines and markets. However, retentions are higher than they were in 2011 “which is a good outcome for business we know well in an improving market.”

As far as Sandy's impact on pricing, he said “pricing was stronger in December than it was in November, which is good news.”

One line of business Benchimol said the company is venturing into is crop insurance because it is viewed as a growth area. Food products are becoming a bigger part of the economy on both the local and international level.

Addressing rates in general, he said “the market is about as good as we've seen it in a long, long time.” Primary insurers are getting out of markets or withdrawing some business, said Benchimol. This is a prime opportunity for AXIS to become available to these new customers, saying “once they find a new carrier it'll be more difficult to access that business.”

Special Reports /

AXIS Suffers Q4 Loss from Superstorm Sandy

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