Axis net income grows on strategy of focus on underwriting profitability

Employing a strategy designed to emphasize underwriting profitability over growth, Pembroke, Bermuda-based Axis Capital Holdings Ltd. reported an uptick in net income for the first quarter of 2015 on Thursday.

Axis, which is in the midst of a newly contested merger with fellow Pembroke-based reinsurer PartnerRe Ltd., reported net income of $155.8 million for the first quarter of 2015, a 13.6% increase over the same period a year ago. However, net written premiums fell 12.1% from the same period a year ago to $1.46 billion, and the company’s combined ratio rose to 94.3%, compared with 91.9% in the first period of 2014.

“In a transitioning market, we continue to focus more on consolidating our position and improving portfolio production and underwriting profitability rather than pursing aggressive growth in larger markets that offer fewer attractive opportunities,” Albert Benchimol, president and CEO of Axis Capital, said during a conference call with analysts on Thursday.

The company was not able to discuss in depth its planned $11 billion all-stock merger with Partner Re, which became contested after Italy’s Exor S.p.A. made a $6.4 billion all-cash offer in mid-April to acquire PartnerRe.

“As you know we are party to an agreement and plan of amalgamation with PartnerRe and subject to strict confidentiality requirements as part of the transaction,” Axis General Counsel Richard T. Gieryn Jr. said on the call.