Axis Capital Holdings Ltd. boss John Charman is expecting a hike in rates for aviation insurance.

Chief executive officer Mr. Charman said the crash of an Air France jet into the Atlantic Ocean in June could be the catalyst for a long overdue increase in the price airlines pay for insurance.

In a conference call with analysts last week, Mr. Charman said Axis has reduced its exposure to aviation almost four years ago, but now intended to take advantage of better pricing.

Mr. Charman described the crash of the Air France jet, which plunged into the sea while en route from Rio de Janeiro to Paris leaving 228 people dead, as a "terrible tragedy".

Some of Axis's Bermuda rivals took significant hits from the catastrophe. Among those to have revealed their share of claims, plus expenses, from the crash in second-quarter earnings statements were Aspen, who paid out $12.5 million, Validus ($11 million), IPC ($9 million) and XL Capital ($4.6 million).

"I think that the Air France loss was the straw that broke the camel's back and the market has no option but significantly move in a different direction," Mr. Charman said. "And we've been sitting patiently for nearly four years now waiting for it."

Mr. Charman, who has led the Bermuda-based insurer and reinsurer throughout its seven-year history, said Axis had withdrawn from the majority of its aviation business in November 2005, "because we saw huge price reductions being passed on to airlines, which we felt at that time, would make the account unprofitable".

Mr. Charman said Axis had maintained long-standing relationships with some top airlines, cutting its exposure when risk was inadequately priced.

"That allows us to quickly ramp up when the market hardens and we will be able to move back in reasonably freely," Mr. Charman added.