Axis Capital Holdings saw its profit fall to $38 million during the first three months of the year. That was $118 million less than it reported for the same period last year.

However, the company increased its gross written premiums by 17 per cent to $2 billion, with growth in its reinsurance segment surging 21 per cent to $1.3 billion.

And Axis lowered its combined ratio to 91.9 per cent, down from 93.7 per cent for the corresponding quarter in 2015.

A $43 million reduction in net investment income, which fell to $49 million, acted as a drag on the company’s revenues, as did $67 million of net realised investment losses — which compared to losses of $43 million a year ago.

“We are pleased to report growth in diluted book value per share, adjusted for dividends, of 4 per cent for the quarter and 10 per cent for the last 12 months,” said Albert Benchimol, chief executive officer of Axis.

The company’s operating income declined $35 million year-on-year.

Mr Benchimol said the operating income of $101 million had been achieved “even as investment results bore the weight of weak hedge fund performance”.

He added: “Importantly, our underwriting operations generated a strong combined ratio of 91.9 per cent. The strategic and tactical actions we have implemented are positively impacting our overall results, notwithstanding a competitive marketplace.

“We continue to improve our overall portfolio, pursuing more attractive business, while at the same time shedding business that no longer meets profitability requirements. This was particularly evident in our reinsurance segment, where we are reaping the benefits of increased investment in our customer-centric business initiatives.”

Axis achieved an increase in the market value of its fixed income investment portfolio during the first quarter. This increase was partially offset by the repurchase of $136 million of its common shares.

As of yesterday there was remaining authorisation from the board for Axis to repurchase a further $625 million of its common shares. That authorisation continues until the end of this year.

Axis’s net income available to common shareholders for the first quarter was $0.41 per diluted common share.

On the New York Stock Exchange yesterday, Axis’s shares fell $1.18, or 2.16 per cent, to close at $53.41.