Axis Capital Holdings Ltd. swung to a 2018 third-quarter profit of $43.4 million from a loss of $467.7 million during the third quarter of 2017, the Bermuda-based insurer and reinsurer said in its earnings statement after close of markets Wednesday.

Modest but continued pricing increases and the addition of Novae Group PLC, the London-based insurer and reinsurer Axis bought last year, largely drove Axis results.

“We continue to see improved pricing in the marketplace,” said Albert Benchimol, president and CEO of Axis Capital, speaking on the company’s earnings call Thursday morning. “After a decade of price cuts, we are seeing some encouraging signs of strengthening discipline in the industry.”

Net premiums written increased 47.9% from a year ago to $602.1 million, Axis said in its earnings statement.

On the company’s earnings call, Peter Vogt, chief financial officer of Axis, said the $195 million increase in net premiums written in the company’s insurance segment was due to the addition of premium from the acquisition of Novae.

The insurance segment saw average rate increases of roughly 4% during the quarter, Mr. Benchimol said, but rate increases trended upward through the quarter and neared 5% in September, he added.

Within insurance, the U.S. division had rate increases of about 7% for the quarter, while international saw closer to 3% on average, according to Mr. Benchimol.

Investment income grew 20.2% to $114.4 million, driven by an increase in income from fixed income securities, Mr. Vogt said.

The company’s third-quarter combined ratio improved to 97.9% from 152.9% in the year-ago period, the earning statement said. The improvement was almost entirely driven by a decrease in the catastrophe- and weather-related loss ratio, Mr. Vogt said.

Axis had $92 million in catastrophe- and weather-related losses during the quarter, Mr. Vogt said, driven “mostly” by Hurricane Florence. The total loss broke down to $62 million in the company’s insurance operations and $30 million in the reinsurance operations.

The almost 55-point improvement in the company’s quarterly combined ratio was due to an almost 54-point drop in the catastrophe- and weather-related loss ratio, Mr. Vogt said.

Fee income from strategic capital partners tripled to $18 million from $6 million in third quarter 2017, according to Mr. Vogt. “This important part of our business continues to grow well,” he said.

The company will continue to adjust its business mix, according to Mr. Benchimol.

“We have our own vision on risk and return and will take independent actions to secure a more stable and profitable portfolio,” Mr. Benchimol said.

“Looking forward, ongoing modest pricing increases should make several lines more attractive to us,” Mr. Benchimol said. “On the other hand, we’ve already reduced business that did not offer adequate returns, and we are resolute to shed more business if we do not get the right risks at the right price.”