NU Online News Service, Aug. 4, 3:03 p.m. EDT
AXIS Capital Holdings says second-quarter net income available to common shareholders dropped to $101 million from $205 million in the 2010 second quarter, as catastrophe losses drove the company's combined ratio to 98.9, compared to 86.2 a year ago.
For the 2011 first half, Pembroke, Bermuda-based AXIS reports a net loss to common shareholders of $283 million compared to net income of $17 million a year ago.
Estimated pre-tax net losses in the quarter include $75 million for tornado-spawning U.S. storms in April and May, and $31 million from the June aftershock in Christchurch, New Zealand. The quarter also included a $20 million increase in loss estimates for first-quarter catastrophes. Estimate reductions of $86 million for the March Japan earthquake and tsunami and $13 million for January Australian flooding and cyclone were offset by an increase of $119 million for the February New Zealand earthquake.
Net premiums written increased 8 percent in the quarter to $850 million.
AXIS Chairman, CEO and President John Charman says in a statement: "The year thus far, which we estimate has cost the industry over $70 billion in insured catastrophe losses, is breaking records in terms of global catastrophe activity. These losses, combined with recently introduced material changes to catastrophe models, have propelled the industry into a transitional phase, forcing it to take a new view of every aspect of catastrophe risk."
He adds, "Since the first of January, AXIS has been repositioning its portfolio to benefit from these positive opportunities following this transition as we enter 2012."
Broken down by segment, AXIS reports a combined ratio of 98.2 for reinsurance, up from 81.8 a year ago. Underwriting income for the segment was $9 million, down from $79 million a year ago.
For the insurance segment, AXIS reports a 94.4 combined ratio, up from 86.2 in the 2010 second quarter, and underwriting income of $20 million, down from $42 million a year ago.
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