Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders for the quarter ended June 30, 2007 of $252 million, or $1.51 per diluted common share, compared with $223 million, or $1.37 per diluted common share, for the quarter ended June 30, 2006. Net income for the six months ended June 30, 2007 was $479 million, or $2.88 per diluted share, compared with $419 million, or $2.56 per diluted share, for the corresponding period in 2006.
Operating income, which excludes capital gains/losses for the period was $256 million, or $1.54 per diluted share, compared with $232 million, or $1.42 per diluted common share, for the second quarter of 2006. AXIS noted that “this same item excluding foreign exchange gains, net of tax, for the second quarter of 2007 was $249 million, or $1.50 per diluted common share, compared with $214 million, or $1.31 per diluted common share, for the second quarter of 2006.”
Operating income for the first six months of 2007 was $483 million, or $2.91 per diluted share, compared with $437 million, or $2.68 per diluted common share, for the six months of 2006. This same item excluding foreign exchange gains, net of tax, for the first six months of 2007 was $474 million, or $2.85 per diluted common share, compared with $410 million, or $2.52 per diluted common share, for the first six months of 2006.
Other operating highlights for the second quarter and first half of 2007 included the following:
— Gross premiums written in the quarter of $959 million were largely comparable with the second quarter of 2006 after considering the impact of upward premium adjustments last year.
— Year-to-date, gross premiums written increased 5 percent to $2.262 billion, with increases in the reinsurance segment offsetting reductions in more competitive lines within the insurance segment.
— Net premiums earned increased 2 percent to $694 million for the quarter and 5 percent to $1.379 billion for the year-to-date.
— Pre-tax net investment income increased 24 percent to $114 million for the quarter and 29 percent to $239 million for the year-to-date.
— The combined ratio for the quarter was 75.4 percent and compared favorably with 78.3 percent in the same period last year.
— Annualized return on average common shareholders’ equity was 24.1 percent for the quarter and 23.6 percent for the year-to-date.
— Diluted book value per common share increased 25 percent from June 30, 2006 to $25.76. Diluted book value per common share increased 7 percent from December 31, 2006, despite the negative mark-to-market impact of rising interest rates.
— Total shareholders’ equity increased 6 percent from December 31, 2006 to $4.7 billion. Capital management initiatives during the first half of 2007 included a $101 million share repurchase and increased dividends.
Commenting on the second quarter 2007 results, President and CEO John Charman, stated: “We are pleased to report that we have delivered an annualized return on average common equity of 24 percent for the first half of this year against the backdrop of increased non-U.S. catastrophe activity. Our diluted book value per share has increased 25 percent over the last twelve months. Our franchise diversity and depth are strong, as evidenced by the overall stability and quality of our premium volume for the first half of this year. In the quarter, we closed the acquisition of Media Pro, which represents a significant milestone in continuing to strategically broaden our specialty franchise in the small and middle market.”
The full report and additional information, including a replay of the earnings conference call may be obtained on the Company’s web site at: www.axiscapital.com.
Source: AXIS Capital
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