NEW YORK (Reuters) - Axis Capital Holdings Ltd., a Bermuda insurer and reinsurer, posted a 51 percent fall in first-quarter net income, hurt mainly by investment losses.

The company posted quarterly operating income of $1.05 per share. Excluding foreign exchange gains, operating earnings stood at $1.04 a share.

Analysts on average expected Axis Capital to earn $1.11 per share, before special items, according to Reuters Estimates.

Net income available to common shareholders was $115.7 million, compared with $237.7 million a year earlier.

Net realised investment losses totaled $40.6 million for the quarter, compared with realised investment gains of $35.7 million last year.

At March 31, net unrealised losses after foreign currency hedges were $767 million, an increase of $59 million in the quarter, the company said in a statement.

Net premiums earned were $665.4 million for the quarter, up from $658.6 million a year ago.

Shares of the company closed at $26.04 yesterday on the New York Stock Exchange.