Bermuda’s AXIS Capital Holdings Limited reported net income available to common shareholders of $228 million, or $1.37 per diluted common share for the quarter ended March 31, 2007, compared with net income of $195 million, or $1.19 per diluted common share, for the quarter ended March 31, 2006, an average ROE of 22.6 percent.
Operating income for the first quarter of 2007 was $227 million, or $1.37 per diluted share, compared with $205 million, or $1.25 per diluted common share, for the quarter ended March 31, 2006. This same item excluding foreign exchange gains, net of tax, for the first quarter of 2007 was $225 million, or $1.36 per diluted common share, compared with $196 million, or $1.20 per diluted common share, for the quarter ended March 31, 2006.
Operating highlights for the first quarter also included the following:
— Gross premiums written increased by 12 percent to $1,303 million;
— Net premiums written increased by 15 percent to $1,139 million;
— Net premiums earned increased by 8 percent to $685 million;
— Combined ratio of 80.7 percent included net favorable prior period reserve development of 9.6 percentage points;
— Pre-tax net investment income increased by 34 percent to $125 million;
— Annualized return on average common shareholders’ equity was 22.6 percent; and
— Diluted book value per common share increased by 27 percent from March 31, 2006, and by 5 percent from December 31, 2006, to $25.11.
Commenting on the first quarter 2007 financial results, President and CEO John Charman stated: “We are pleased to report that we have delivered an annualized return on average common equity of 22.6 percent for the quarter. In the quarter, we continued to aggressively reduce premium writings in areas where competition has been excessive but to grow appropriately when opportunities meet or exceed our underwriting profitability goals. Our execution strategy remains strong. We expect that our current underwriting portfolio will continue to generate healthy returns across the diverse product lines and geographies in which we have a presence. These returns, combined with our significant cash flow and investment earnings power, position us well to continue to produce meaningful book value growth in line with our excellent performance since inception.”
The full report and a replay of the investors’ conference call can be obtained on the Company’s web site at: http://www.axiscapital.com.
AXIS will host a conference call today, May 1st, 2007 at 8:00 AM (Eastern) to discuss the first quarter financial results and related matters. The teleconference can be accessed by dialing (800) 659-1966 (U.S. callers) or (617) 614-2711 (international callers) and entering the pass code 33693955 approximately ten minutes in advance of the call. A live, listen-only web cast of the call will be available via the Investor Information section of the web site.
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