AXIS reports drop in 2008 profits

AXIS Capital Holdings Limited reported a 2008 Q4 net income of $131 million, compared with a net income of $306 million in 2007 Q4.
Net income for the full year of 2008 was $351 million, marking a decrease from 2007’s profit of $1.1 billion.
The company’s combined ratio for the quarter was 67.6%, marking a 3.2 decrease from the prior year’s quarter. For the entire year, the company reported a consolidated combined ratio of 89.8%, compared to 75.3% in 2007.
Net investment losses for the quarter were $26 million, marking a stark drop from the investment income in the same period of 2007 of $125 million. For the full year, net investment income decreased 49% to $247 million.
AXIS’ insurance segment reported underwriting income for the quarter of $97 million, down 8% from 2007 Q4.
“The current quarter underwriting result reflected a combined ratio of 60.2%, down 4.1 points from the prior year quarter,” an AXIS statement says.
For the full year, the insurance segment reported underwriting income of $187 million, down 50% from the prior year.
The segment’s combined ratio for the full year increased 11.6 points to 80.8% for the year. The company points to Hurricanes Ike and Gustav as drivers.
The company’s reinsurance segment reported underwriting income of $119 million in 2008 Q4, up 17% from the same period of 2007.
For the full year, the reinsurance segment’s combined ratio increased 15.8 points to 92.1% for the year, driven by net losses incurred on Hurricane Ike and Gustav of $281 million (or 18.7 points).