Axis Capital Holdings Ltd. on Wednesday reported net income of $92.9 million for the second quarter of 2018, up 9.2% compared with same period in 2017.

Net premium written increased 20.6% to $598.2 million, due to the addition of Novae Group P.L.C., the London-based insurer and reinsurer Axis bought last year.

Axis’ 2018 second-quarter combined ratio improved to 93.1% from 97.6% in the year ago period. Net investment income rose 3.7% to $110 million.

“We continue to see very encouraging performance and evidence that our transformation efforts are generating traction,” Albert Benchimol, president and CEO of Axis Capital, said on the insurer and reinsurer’s conference call with analysts on Thursday. He added that the integration of Novae is “progressing as planned and Novae’s business is delivering an underwriting profit.”

“To achieve this repositioning, we’ve concentrated our resources on lines where we have the opportunity to be profitable,” Mr. Benchimol said, adding “we’ve exited a number of lines where we did not see profitable growth.”

The quarter benefitted from good underlying underwriting results and a low level of catastrophe losses, which were partially offset by modest noncatastrophe weather-related property losses, Peter Vogt, chief financial officer of Axis, said on the call.

The $102 million growth in net premium written – $262 million in gross premium written – was due to the contribution of Novae, without which net premium written would have declined, he said.

For the first half of 2018, net income was $155.4 million, up 72.6% compared with the same period in 2017. Axis had previously reported a sharp rise in first quarter profits.

Six-month net premiums written rose 34.4% to 1.15 billion. Axis’ six-month combined ratio improved to 89.5% from 94.0% in the year-ago period.

The insurance market continues to see increased pricing, according to Mr. Benchimol.

In Axis’s insurance business, the average rate change for the quarter was almost 4%, he said. The average year-to-date rate change is better than 4%, with first quarter rates increasing by about 5%.

Axis’ U.S insurance division saw an average rate change of more than 7% for the second quarter, and the average rate change year-to-date across the U.S property/casualty business is over 7%, Mr. Benchimol said. The average year-to-date price change in the international division is almost 4%, he said.

Reinsurance market conditions are generally following the trends in the primary lines even as “excess capacity remains a challenge,” Mr. Benchimol said.