Axis Capital Holdings Ltd recorded net income for 2014 of $771 million, compared to $684 million the year before.

The re/insurer last month announced its intention to merge with PartnerRe Ltd, with the transaction expected to close in the second half of this year. The companies have headquarters in neighbouring buildings on Pitts Bay Road.

Albert Benchimol, Axis president and CEO, in a statement yesterday, said: “We delivered operating income of $563 million and net income of $771 million, and returned $661 million to our shareholders in the form of dividends and share repurchases, reducing our outstanding shares by more than 10 per cent over the year.

“Our consolidated combined ratio was 91.6 per cent for the year. Each of our segments performed well and delivered solid underwriting results, reflecting low cat activity, ongoing favourable reserve development and a broadly diversified, well-constructed portfolio of risks.

“In addition, our fourth-quarter results showed meaningful positive results from the targeted portfolio enhancements on which we have worked diligently throughout the year.”

For the final quarter of 2014, Axis achieved net income of $164 million, down $8 million year-on-year. The firm’s operating income for the fourth quarter was $120 million, or $1.18 per diluted common share, down from $159 million during the same period in 2013.

Gross premiums written during 2014 were flat at $4.7 billion, and during the fourth quarter decreased eight per cent to $762 million.

Mr Benchimol said: “The market environment has become increasingly competitive, particularly in the reinsurance market, but Axis has leveraged its attributes to mitigate the worst effects of a highly competitive market.”

Referring to the merger with PartnerRe, he said: “We determined that greater scale and resources would provide even more benefit to our clients and shareholders, and last week we announced an exciting merger of equals with PartnerRe that would create a top 20 global P&C leader with more than $10 billion in gross premiums written and $14 billion in capital.

“The union of our two strong companies will allow us to do even more for our clients and partners in distribution, develop and convert on more business opportunities, generate significant expense and capital synergies, and deliver greater value creation for our shareholders.”