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Axis profit more than doubles to $190.6M in second quarter


Axis Capital Holdings Ltd. saw second-quarter net income more than double to $190.6 million on healthy underwriting and investment income and lower net losses and expenses, as well as an improved combined ratio.

Revenue for the three months ended June 30 rose 9.9% to $1.15 billion as net written premiums increased 0.7% to $1.00 billion, the Pembroke, Bermuda-based insurer and reinsurer said Tuesday in a statement.

Second-quarter net investment income jumped 38.2% to $114.9 million, while underwriting income rose to $126.6 million from $9.9 million in the year-ago period. Net losses and loss expenses dropped 11.9% to $565.8 million.

The company’s combined ratio improved to 90.8% compared with 101.7% during the second quarter of 2013.

“Axis reported strong results for the second quarter … Underlying these results is the continued rebalancing of our portfolio toward lower volatility and noncorrelating lines creating greater efficiency of capital overall,” Albert Benchimol, Axis president and CEO, said in the company’s earnings statement.

For the six months ended June 30, revenue increased 5.7% to $2.19 billion as net income declined 12.6% to $327.9 billion.

Total expenses increased 9.2% to $1.82 billion driven by net losses and loss expenses and acquisition costs.

Six-month net premiums written rose 3.9% to $2.66 billion, while net investment income rose 2.9% to $197.6 million.

Axis’ six-month combined ratio improved to 91.3% from 92.7% in the year-ago period.