Axis Capital Holdings yesterday reported net income of $248 million for the third quarter — down $31 million on the same quarter last year.

The figure represents net income available to shareholders of $2.50 a share, compared to the $279 million and $2.68 a share recorded for the same period in 2014.

Operating income for the third quarter amounted to $51 million (51 cents per share) compared to $103 million ($1.27 per share) recorded in the third quarter last year. That missed expectations, with three analysts surveyed by Zacks Investment Research having earlier estimated earning of 93 cents per share.

Axis CEO Albert Benchimol said that the firm had been hit by volatility in its investment portfolio and “unusually high” offshore energy losses.

Mr Benchimol added: “We are confident that our actions to accelerate attractive new initiatives. optimise our portfolio, prune business challenged over the long term and enhance the efficiency of our platform, position us to continue to deliver shareholder value against the backdrop of an increasingly competitive market.”

And he said: “Our results in the quarter include the benefits of targeted portfolio enhancements, particularly in the insurance property and professional lines which were commenced prior to this year.

Mr Benchimol said the firm’s investment performance and losses in the offshore sector were “well understood and not unexpected given the performance of the equity markets and the high level of marine market losses this year.”

Gross premiums written by Axis increased by four per cent, equivalent to six per cent on a constant currency basis, to $937 million.

The insurance segment saw growth of nine per cent — 11 per cent on a constant currency basis — but was partially offset by a decrease of three per cent, two per cent in constant currency terms, in Axis’ reinsurance segment.

Estimated catastrophe and weather-related pre-tax net losses of $43 million included the Tianjin port explosion in China in August, which cost the firm $30 million, and losses related to US weather claims.

That compares to losses of $22 million for the same quarter last year.

During the quarter, Axis received a total fee of $315 million following the termination of the merger agreement with Bermuda-based PartnerRe.