Axis Capital Holdings Ltd sustained catastrophe losses exceeding half a billion dollars in the first quarter and posted a net loss of $384 million.The Bermuda re/insurer’s chief executive officer John Charman said the industry’s high natural disaster losses, low investment returns and aggressive pricing over a number of years were driving an increase in rates from which Axis was well positioned to benefit.Axis’ first-quarter operating loss of $414 million, or $3.65 per common share was more severe than the $3.35 per share expected by a group of analysts surveyed by Bloomberg.The company estimated pre-tax net losses (net of reinstatement premiums) of $87 million for Australian loss events, including flooding and Cyclone Yasi, $203 million for February’s New Zealand earthquake, and $287 million for last month’s Japanese earthquake and tsunami.“The first quarter of 2011 has been an extraordinarily challenging quarter, not only for Axis but also for the industry as a whole, marked by an unprecedented series of natural catastrophes including one of the largest earthquakes ever recorded,” Mr Charman said.“The scale of these losses is indicative of the terrible human tragedies we have witnessed during the period and our deepest sympathies are with those who have suffered from these events.“Currently, there is great uncertainty within the industry over the scale and distribution of total insured losses, which we believe are likely to exceed $50 billion. Against the backdrop of this uncertainty, we believe that we have been prudent in estimating our catastrophe losses.“Therefore, our results this quarter are heavily influenced by an accumulation of expensive major natural catastrophes, slow pick-up in demand for our products, and continuing low investment yields.“On a positive note, these industry-wide pressures, coming on the back of four to five years of aggressive price competition, are now driving an earlier exit from the absolute bottom of the property and casualty pricing cycle in a number of lines. We believe our major global businesses stand to gain meaningfully in the coming year.”The company recorded a nine percent increase in gross premiums written to $1.5 billion in the first three months of the year.Its combined ratio - reflecting the proportion of premium dollars spent on claims and expenses - was 161.3 percent, compared to 98.3 percent in the same period of last year. Excluding catastrophe losses, the combined ratio was 88.1 percent for this year’s first quarter compared to 77 percent in 2010.Diluted book value per common share on a treasury stock basis fell 9.3 percent to $35.69 as of March 31, compared to $39.37 at the end of 2010.