Axis Capital Holdings Ltd has reported second quarter net income available to common shareholders of $27 million.

That compares to net income available to common shareholders of $228 million for the second quarter of 2021.

Gross premiums written increased by $172 million to $2.1 billion with an increase of $201 million in the insurance segment, partially offset by a decrease of $29 million in the reinsurance segment.

Net premiums written increased by $113 million to $1.3 billion with an increase of $157 million in the insurance segment, partially offset by a decrease of $44 million in the reinsurance segment.

Net investment income of $92 million decreased from $105 million for the second quarter of 2021, primarily attributable to lower gains from other investments, partially offset by an increase in income from fixed maturities attributable to increased yields.

Albert Benchimol, president and CEO of Axis Capital, said: “Axis delivered another quarter of strong operating performance, continuing our trend of year-over-year improvements in core underwriting metrics.

"The quarter was highlighted by a combined ratio of 93.4 per cent and operating ROE of 13.7 per cent, and record second quarter premium growth contributed to all-time high midyear production figures including gross and net premiums written, and net premiums earned.

“This quarter our specialty insurance business again generated solid performance with a robust 16 per cent increase in gross premiums written, 22 per cent growth in net premiums written, and a combined ratio of 87.8 per cent, as we further capitalised on favourable market conditions.”

He added: "During the quarter we announced the company’s exit from reinsurance property and catastrophe lines. This completed the shift of Axis Re to a specialist reinsurer – with a focus on attractive casualty, specialty, A&H, and credit lines – which aligns with our efforts to grow profitably with lower volatility and establish leadership in the specialist space.

"As a measure of our progress, over the past six months our group underwriting income has risen by 36 per cent and operating income is up 30 per cent as compared to the prior year period.”

Reorganisation expenses related to the company’s exit from property reinsurance business were $16 million.

Net realised and unrealised losses recognised in net income for the quarter were $173 million, including net unrealised losses of $84 million ($71 million excluding foreign exchange movements), following a decrease in the market value of Axis’ equity securities portfolio during the quarter, compared to net realised and unrealised gains of $73 million in the second quarter of 2021.

The company declared dividends of $0.43 per common share, with total dividends declared of $1.71 per common share over the past 12 months.