Axis Capital yesterday reported net income of $279 million for the third quarter of the year.

The figure available to common shareholders — $142 million up on the same period last year — equates to $2.68 per diluted common share.

The firm reported operating income of $133 million ($1.27 per share) — above analysts’ estimates of $1.21 a share.

The operating income for the same period in 2013 was $197 million ($1.74 per share).

Gross premiums written decreased one percent to $897 million, with a three percent decrease in insurance segment premiums partly offset by a three per increase in reinsurance premiums.

Albert Benchimol, president and chief executive officer of Axis, said: “We delivered strong underwriting results reflecting low catastrophe losses in the quarter, ongoing favourable reserve development, the value of our diversification, as well as the benefits of a more holistic approach to risk management.”

But he added: “Investment results, however, were encumbered by the weak returns of the global equity markets.

“Our diluted book value per share adjusted for dividends, a key measure of shareholder value creation, is now 14% above last year’s level.

“Against a backdrop of more challenging market conditions, we believe our market reputation for superior service, strong capital and superior ratings will allow Axis to enhance its position and access profitable business.

And he said: “We will continue to balance prudent growth and active capital management.

“So far this year, we have repurchased 9% of our beginning outstanding common shares, for aggregate consideration of $469 million, thus returning to shareholders 126% of the year-to-date operating income in the form of dividends and share repurchases.”

The insurance segment of the business reported gross premiums written of $555 in the third quarter, down $19 million (three percent) on the same period last year.

The firm’s quarterly report said: “Our accident and health and professional lines drove the decrease in premiums that was partially offset by growth in our aviation lines.

“Accident and health lines were impacted by a decrease in reinsurance premiums, primarily due to timing differences, while the professional lines decrease was driven by the continuing reshaping of our directors and officers portfolios.

“These decreases were partially offset by our aviation lines, which were positively impacted by timing of renewals of certain policies and new business.

And the report said: “Gross premiums written in the first nine months of 2014 were $1.9 billion, a decrease of two percent compared to the same period of 2013.”

The report said that the reinsurance arm of the business had gross premiums written $342 million in the third quarter, up $12 million (three percent) compared to the third quarter of last year.

And it added: “For the nine months ended September 30, 2014, gross premiums written were $2 billion, up six percent from the comparative period in 2013.

“The segment’s gross premiums written in the nine months ended September 30, 2014 were significantly impacted by a number of treaties written on a multiyear basis, especially in the liability, property and catastrophe lines, and include $131 million of premiums that relate to future underwriting years.

“After adjusting for the impact of the multiyear contracts, gross premiums written have remained consistent with the same period of 2013, with growth in liability, motor and agriculture lines offset by decreases in catastrophe and property lines.”