AXIS Capital Holdings Limited (AXS) has reported a 58.97 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $19.86 million, or $0.06 a share in the quarter, compared with $48.39 million, or $0.41 a share for the same period last year. On an adjusted basis, earnings per share were at $0.59 for the quarter compared with $1.07 in the same period last year. Revenue during the quarter grew 13.99 percent to $1,008.53 million from $884.79 million in the previous year period. Net premium earned for the quarter increased 4.03 percent or $36.36 million to $938.70 million.
Total expenses move up
Operating income for the quarter was $37.75 million, compared with $42.46 million in the previous year period. However, the adjusted operating income for the quarter stood at $50.96 million compared to $101.27 million in the prior year period. At the same time, adjusted operating margin contracted 639 basis points in the quarter to 5.05 percent from 11.45 percent in the last year period.
Net investment income was at $98.66 million for the quarter, up 100.68 percent or $49.50 million from year-ago period. The company has booked a loss on investments of $25.05 million in the quarter compared with a loss of $66.51 million for the previous year period.
Commenting on the first quarter 2017 financial results, Albert Benchimol, president and chief executive officer of AXIS Capital, said: "Notwithstanding the pressure from a number of unusual and one-time items in the quarter, we are pleased to report that, adjusted for dividends, diluted book value per common share increased by $1.00, or 2%, per common share for the quarter. The special items that impacted our operating income for the quarter include the impact of the Ogden rate change in the U.K., executive severance and retirement costs, and an impairment of an equity-method investment. In addition, we experienced high catastrophe and weather-related losses for the quarter, which were in line with higher industry losses."
Assets grow, liabilities fall
Total assets increased 1.28 percent or $268.78 million to $21,246.97 million on Mar. 31, 2017. Return on assets stood at 0.07 percent in the quarter, down 0.16 from 0.23 percent in the last year period. At the same time, return on equity was at 0.08 percent in the quarter, down 0.57 from 0.65 percent in the last year period.
Investments come down marginally Investments stood at $13,089.77 million as on Mar. 31, 2017, down 3.98 percent or $542.39 million from year-ago. Meanwhile, yield on investments went up 39 basis points to 0.75 percent in the quarter. Total debt was almost stable over the past one year at $993.23 million on Mar. 31, 2017. Shareholders equity stood at $6,230.36 million as on Mar. 31, 2017, up 4.71 percent or $280.11 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.16 percent in the quarter from 0.17 percent in the last year period.
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