AXIS Capital Holdings, a Bermuda-based specialty insurance and treaty reinsurance firm, has reported a fall in its net income for the first quarter of 2016, to $38 million, compared with $156 million, for the first quarter of 2015, weighed down by weak investment results.
Operating income for the first quarter of 2016 was also down to $101 million, compared with $136 million for the first quarter of 2015.
The company’s gross premiums written increased 17 percent (20 percent on a constant currency basis) however, to $2 billion, with growth in the firm’s reinsurance segment of 21 percent (26 percent on a constant currency basis) and insurance segment of 8 percent (10 percent on a constant currency basis).
Net premiums written increased 16 percent also (20 percent on a constant currency basis) to $1.7 billion.
The combined ratio also fared well, at 91.9 percent for the first quarter of 2016, compared with 93.7 percent in the same time period last year.
Net investment income was down to $49 million in Q1 2016 however, compared with $92 million in Q1 2015, which was due to weak hedge fund performance, according to the firm.
Albert Benchimol, president and chief executive officer of AXIS Capital, said: "We were able to generate operating income of $101 million for the quarter, even as investment results bore the weight of weak hedge fund performance. Importantly, our underwriting operations generated a strong combined ratio of 91.9 percent.
“The strategic and tactical actions we have implemented are positively impacting our overall results, notwithstanding a competitive marketplace. We continue to improve our overall portfolio, pursuing more attractive business, while at the same time shedding business that no longer meets profitability requirements. This was particularly evident in our reinsurance segment, where we are reaping the benefits of increased investment in our customer-centric business initiatives.”
AXIS Capital Holdings, Insurance, Reinsurance, First Quarter 2016 Results, Albert Benchimol, Bermuda