Axis Capital Holdings Ltd has reported second quarter net income of $204 million, up from $143 million in the prior year quarter.

Operating income was $250 million, compared with $191 million in the second quarter of 2023.

Net investment income was $191 million, compared with $137 million in the second quarter of 2023, an increase of $54 million or 40 per cent, primarily attributable to income from the company's fixed maturities portfolio due to increased yields.

Gross premiums written increased by $156 million, or 7 per cent, to $2.4 billion with an increase of $130 million, or 8 per cent, in the insurance segment, and an increase of $26 million, or 4 per cent, in the reinsurance segment.

Net premiums written increased by $127 million, or 9 per cent, to $1.6 billion with an increase of $173 million, or 17 per cent, in the insurance segment, partially offset by a decrease of $46 million, or 11 per cent, in the reinsurance segment.

Pre-tax catastrophe and weather-related losses, net of reinsurance, were $47 million or $38 million after tax (Insurance: $46 million; Reinsurance: $1 million), or 3.6 points, including $9 million, or 0.7 points attributable to the Red Sea conflict.

Vince Tizzio, president and CEO of Axis Capital, said: “This was an excellent quarter and first half of the year for Axis defined by consistent, profitable results and strong diluted book value per share growth as we pursued our ambition of achieving specialty underwriting leadership.

“In the quarter, we delivered on our stated goals, producing an annualised operating return on equity of 20 per cent, record operating earnings per share of $2.93, and a combined ratio of 90.4 per cent.”

He added: “We continued to lean into attractive specialty markets where we hold leadership positions, while tapping into our deep distribution relationships.

“In our specialty insurance business, we delivered a solid 87.9 per cent combined ratio while generating an 8 per cent increase in gross premiums written, 17 per cent net premiums written growth, and record second quarter new business volume.

“Within reinsurance, we produced an 89.3 per cent combined ratio and a 4 per cent increase in premiums highlighted by targeted growth in specialty lines, reflecting our repositioning of Axis Re as a focused, specialist reinsurer.

“During the quarter, we also took important steps forward in enhancing our operations through our ‘How We Work’ transformation programme.

“This included implementing operating model changes to improve productivity, reduce our cost structure, and allow for reinvestment into the business.”

He added: “In summary, we are pleased with our second quarter results, feel good about the actions we are taking across all aspects of our business, and are intent on building on our momentum.”