Bermuda-based Axis Capital Holdings Limited reported an 8 percent dip in second-quarter net income compared to the same period in 2007. The company attributed results to increases in market competition and loss activity in the property lines.
Net income was reported at $240.5 million compared to $260.8 a year ago.
Gross premiums written dropped from $959.4 million for both the insurance and reinsurance segments in 2007 to $874.2 million this past quarter. For the insurance segment, Axis said it decreased its written premiums due to the competitive market conditions.
Underwriting income for the insurance segment fell to $51 million from $98.4 million a year ago. The reinsurance segment remained relatively unchanged at $87.3 million. In total, the company's underwriting income fell from $185.8 million a year ago to $138.3 million this past quarter.
Axis reported a combined ratio of 81.2, deteriorating from 75.4 a year ago. The increase resulted from a jump in the insurance segment combined ratio to 80.3 from 67.1 in 2007.
The company attributed that increase partly to a rise in the current accident-year loss ratio, reflecting a higher frequency and severity of large property losses. The combined ratio for the reinsurance segment improved to 77.3 from 78.
Net investment income climbed to $137 million this past quarter from $113.7 million for the same period in 2007. The company also saw net realized investment gains of $1.6 million in the second quarter of 2008 compared to a net realized loss of $4.7 million a year ago.
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