AXIS Capital posted a 2016 net income of $465 million, a fall of 23.8 percent compared with the $602 million it reported in 2015.
However, the company pointed out that the 2015 net income figure included $280 million of termination fees received following the termination of the amalgamation agreement with PartnerRe as well as reorganisation and related expenses of $46 million.
For the full year 2016, AXIS Capital reported non-GAAP operating income of $410 million, a slight increase on the $401 million the company reported in 2015.
The company’s net premiums written increased by 2 percent (4 percent on a constant currency basis) to $3.8 billion and its net premiums earned increased by 1 percent (3 percent on a constant currency basis) to $3.7 billion.
AXIS Capital’s combined ratio increased slightly to 95.9 percent, compared to the 94.7 percent figure that it reported in 2015. It said that estimated catastrophe and weather-related pre-tax net losses (net of reinstatement premiums) came to $204 million in 2016, more than double the $100 million it reported in 2015.
Albert Benchimol, president and CEO of AXIS Capital, said: "Our core operating performance strengthened in both the quarter and full year, as the improvements we have put in place allowed us to absorb higher industry cat losses and to navigate negative market conditions while still delivering for our customers, our partners in distribution, and our shareholders.
“These encouraging financial results were delivered in a year when we made significant advances in our franchise including expanding our presence and reach into Dubai, Continental Europe, and the Latin American markets; further diversifying our portfolio by introducing new products and recruiting new teams; and growing our strategic capital partnerships highlighted by the launch of Harrington Re.
“Through these initiatives and others, we are laying the foundation of a differentiated leader in global specialty risks, achieving intelligent growth in selected markets, optimising our portfolios, matching risks with the right capital, and delivering solid and stable profitability. We are confident that our progress will continue in 2017.”
AXIS Capital, Results 2016, Albert Benchimol, Reinsurance, Bermuda