Axis yesterday reported profits of $94 million for the second quarter of the year.

Chief executive officer Albert Benchimol said book value, adjusted for dividends, grew 7 per cent over the last year.

Mr Benchimol added: “Notwithstanding a more challenging market environment, we continue to make progress on our underwriting initiatives and deliver growth in the more attractive lines and markets.”

He added that the firm’s reinsurance segment had responded to changes in the market by careful exposure management, while portfolio enhancement had contributed to good results in the insurance sector.

Mr Benchimol said that “underlying improvements” had allowed the firm to absorb the impact of rate and loss trends, as well as “unusually high” large losses in the marine line of business.

The firm made pre-tax net losses of $40 million in marine insurance lines, driven by the impact of “large industry events”.

Mr Benchimol added: “We are confident our ongoing progress in distribution and portfolio management initiatives position us strongly to differentiate our value proposition for all our stakeholders.”

The firm’s second-quarter report said gross written premiums had dropped 3 per cent — one per cent on a constant currency basis — to $1.2 billion, with a decrease of 10 per cent (9 per cent on a constant currency basis) in reinsurance segment premiums written.

Mr Benchimol said, however, that had been part offset by growth in the insurance segment, of 1 per cent (3 per cent on a constant currency basis).

Pre-tax costs related to the proposed merger with PartherRe amounted to $8 million included in corporate expenses.

Net investment income totalled $89 million, a $26 million fall year on year and down by $4 million on the first quarter.

Total capital at mid-year was $6.9 billion, including $1 billion of senior notes and $628 million of preferred equity, compared to $6.8 billion at year end last year.