27 July 2016News

AXIS sees fall in net income in first half profits

AXIS Capital Holdings has reported a significant fall in net income for its financial results for the first half of 2016.

The company’s first half 2016 net income came to $158 million, down 28 percent on the $219 million it made over the same period of 2015.

Operating income for the first half of 2016 came to $149 million, substantially down on the $230 million it reported for the first half of 2015.

The company said that for the first half of 2016 its insurance business reported gross written premiums (GWP) of $1.4 billion, an increase of 5 percent on the previous year. Its reinsurance business also saw a rise in GWP, with the first half 2016 figures coming to $1.8 billion, up 23 percent on the previous year.

In a statement Albert Benchimol, president and chief executive officer of Axis Capital said that the results had been impacted by global events in the second quarter of 2016.

He said: “During the quarter, we were tested by 20 catastrophe and weather events globally generating estimated insured losses in excess of $19 billion - amongst the highest industry loss quarters in the last decade. Our actions in recent years have positioned our portfolio to better absorb losses from catastrophe and weather. Our market share of these losses in the quarter is in line with our expectations for our global footprint and market position in exposed lines and lower than our average share in prior years.”

Axis Capital said that over the course of the second quarter of 2016 estimated catastrophe and weather-related pre-tax net losses, net of reinsurance premiums, came to $109 million, with the bulk of this coming from the Fort McMurray wildfires in Canada, US weather related events, the Japanese and Ecuadorian earthquakes and the European floods.