Bermuda-based insurer and reinsurer AXIS Capital has posted a second quarter net income of $112 million, down from $166 million in the prior year quarter.
Operating income for the quarter was $72 million, down significantly from $137 million in the prior year quarter.
The company has also confirmed there is no change to net claims provision established for the COVID-19 pandemic in first quarter of 2020.
Gross premiums written increased by $68 million, or 4%, to $1.7 billion due to an increase of $69 million, or 7% in the insurance segment.
Net premiums written decreased by $14 million, or 1%, to $1.1 billion with a decrease of $25 million, or 5% in the reinsurance segment, partially offset by an increase of $11 million, or 2% in the insurance segment.
For the first half of 2020, the company registered a pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $143 million.
This was primarily attributable to the COVID-19 pandemic and other weather-related events, compared to $14 million in 2019.
Commenting on the second quarter 2020 financial results, Albert Benchimol, President and CEO of AXIS Capital, said, “This was a solid quarter highlighted by continued positive momentum in the underlying performance of our Company.
“We’re encouraged by the progress that we’re seeing in our results, which include a nearly 2 point year-over-year improvement in our current accident year loss ratio ex-cat and weather, and an approximately 3 point reduction to our expense ratio, reflecting our cost discipline.
“The sustained improvements that we’ve seen in recent quarters is further evidence that the actions that we’ve taken over the past three years to strengthen our portfolio and operating efficiency, and reduce volatility, are increasingly showing through in our results.
“The investments that we’ve made to strengthen AXIS’ market position are also enabling us to capitalize on firming conditions, particularly in markets that are seeing the most impactful changes. Moreover, we’re seeing improved pricing across nearly every line of business that we write, highlighted by average rate increases of 15% in the quarter throughout our Insurance segment.”
Also for the first half of 2020, estimated pre-tax losses, net of reinsurance and reinstatement premiums attributable to the COVID-19 pandemic were $98 million.
These losses were primarily associated with property-related coverages, but also included accident and health coverages.