Axis Capital has reported a steep decline of more than 50 percent in first quarter net profits, with first-quarter 2014 results of $137 million compared with $303 million a year ago.

This translates to $1.24 per diluted common share, compared with $2.55 for the corresponding period.

Axis’ net investment income was down at $83 million, compared to $109 million in the previous year, while the firm reported pre-tax total return on cash and investments of 1.1 percent.

Albert Benchimol, Axis president and chief executive officer, acknowledged the quarter was impacted by lower investment income from alternative investments and also stated there were higher property losses in the insurance segment. While there were no significant natural catastrophes and weather related losses to report, the current accident year loss ratio of 62.1 percent compared to 56.4 percent in 2013.

Axis’ combined ratio was 91.9 percent,compared to 2013’s figure of 83 percent.

“While market conditions have weakened a little, there remain many opportunities for profitable business across our core book. We also continue to have success in developing and nurturing new business initiatives,” Mr Benchimol said.

“We completed a successful first season of coverage in our weather and commodities business, and we recently brought on a new healthcare professional liability team. Our strategy of growing and diversifying our consolidated portfolio is delivering highly satisfactory results.”

The re/insurer reported that gross premiums written increased four percent to $1.8 billion, with growth of one percent in its insurance segment and six percent in their reinsurance segment, while net premiums written increased six percent to $1.7 billion; and net premiums earned increased eight percent to $946 million.