Axis Capital Holdings Ltd. chief executive officer John Charman yesterday hit out at "senseless price cutting" in the reinsurance industry.

Mr. Charman made the statement as Axis Capital reported net income for the second quarter of $140.9 million, up 19 percent on the same period in the previous year.

Net income for the six months ended June 30, 2004 rose 37 percent to $307.6 million, or $1.84 per diluted share, from $224.9 million, or $1.55 per diluted share, for the corresponding period in 2003.

"Our results across all segments were once again very strong in the quarter, reflecting our continuing penetration of our targeted markets coupled with our low loss activity," Mr. Charman said.

But he added: "While the market continues to struggle against the senseless price cutting practised by a limited number of major carriers, we remain optimistic with respect to the opportunities afforded to an entrepreneurial, diverse and financially strong carrier like Axis where risk selection remains paramount." Mr. Charman did not identify any specific companies that there price cutting. Last week ACE Ltd. chief executive officer Evan Greenberg denied speculation that ACE was reducing rates.

Axis said gross premiums written for the quarter ended June 30, 2004 were $629.3 million compared to $551.5 million for the quarter ended June 30, 2003, an increase of 14 percent.

For the quarter ended June 30, 2004, ceded premiums increased to $141.4 million from $101.6 million a year earlier and net premiums written rose to $487.9 million from $449.8 million.

Net premiums earned increased to $486.4 million from $335.6 million.

For the quarter ended June 30, 2004, net investment income was $33.3 million and realised losses were $4.4 million, compared with $15.9 million in net investment income and $15.7 million in realised gains for the quarter ended June 30, 2003.

The increase in net investment income was due to increased invested assets on which we obtained improved investment yields.

The company generated a combined ratio of 75.3 percent, a loss ratio of 53 percent and an expense ratio of 22.3 percent compared to 81.5 percent, 58.3 percent and 23.2 percent, respectively, for the quarter ended June 30, 2003.

Axis shares were trading down $1.18 to $24.45 in afternoon trading on the New York Stock Exchange.

Axis has filed a $750 million shelf registration with the Securities and Exchange Commission for the sale of securities.

The shelf registration also registered for possible future sales up to 68,216,017 common shares held by certain of the Company's founding shareholders.