NU Online News Service, Aug. 4, 3:37 p.m. EDT
Bermuda-based AXIS Capital Holdings Limited reported second-quarter net income of $159 million, a 31 percent decline from 2008 second-quarter net income of $231 million.
The specialty insurance and treaty reinsurance companysaid it was hurt by $23.7 million in net realized investment losses, driven by $21 million of other than temporary impairment charges on certain mortgage-backed corporate debt and equity securities.
Net investment income dropped to $112.2 million in the quarter from $137 million last year.
For the first six months of 2009, AXIS reported net income of $274.8 million, down from $469 million last year.
On the underwriting side, John Charman, AXIS chief executive officer and president, criticized the industry for failing to raise prices, thus prolonging the soft market.
"I am disappointed that the insurance market has failed to harden more broadly when it is so blindingly obvious that is the path it should and must take. The need for change is obvious, but the courage to change is lacking," he said.
Net premiums earned totaled $706.8 million for the quarter, up from $680.3 million for the same period in 2008. AXIS reported $299 million in net premiums earned for its insurance segment, and $407.8 million for its reinsurance segment.
Gross premiums written climbed to $914.6 million in the quarter, up from $874.2 million a year ago. Gross premiums written included $526.8 million for the insurance segment and $387.9 million for reinsurance.
The 2009 second-quarter combined ratio improved to 80.4 compared to 81.2 in last year's second quarter.
In a conference call, Mr. Charman said, "I believe this underwriting result is very respectable given our belief that in 2009 we are at the bottom of the earnings cycle across all lines"
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