Axis Capital Holdings Limited posted a loss of $468.1 million or $3.32 per share for the quarter ended September 30, 2005 after estimating $804.5 million in losses from Hurricanes Katrina and Rita.

This compares with net income of $6.3 million or four cents per share in the same period of 2004 when the company recorded losses from Hurricanes Charley, Frances, Ivan and Jeanne of $227.4 million for the quarter.

Chief executive officer John Charman said the company may ultimately have a ?nominal net operating loss for the 2005 calendar year? after the industry incurred the additional strain from Rita and Wilma that could together exceed $20 billion in industry losses.

Axis Capital?s operating loss for the third quarter of 2005 was $462.2 million, or $3.27 per share, compared with income of $2.8 million, or 2 cents per share, for the quarter ended September 30, 2004. The company posted an operating loss for the nine months ended September 30, 2005 of $138.5 million or 98 cents per share compared with operating income of $305.2 million or $1.83 per share in the same period of 2004.

Mr. Charman said: ?It has been an extraordinarily eventful quarter not only for AXIS but also for the industry as a whole.

?This last quarter continued to demonstrate the increased frequency of major Atlantic hurricanes, much like last year?s hurricane season. Uniquely, it was marked by the unprecedented profile and magnitude of the Katrina loss.?

Axis estimates losses for Hurricane Katrina of $723.6 million assuming an industry loss of $60 billion.

The unprecedented losses of the year could well exceed an ultimate figure of $80 billion for the industry, Mr. Charman said.

?My stated management goal has always been, at a minimum, preservation of capital, and I believe that we have achieved this.

?Our capital position is strong and I expect every one of Axis? major businesses will benefit strongly from the dramatic, positive changes underway in the marketplace,? he said.

Axis Capital posted a loss for the nine months ended September 30, 2005 of $143.4 million or $1.01 per share, compared with income of $313.9 million, or $1.89 per share, for the nine months ended September 30, 2004.

Gross premiums written in the third quarter of 2005 increased by 15.5 percent to $794.6 million primarily due to an increase in premiums written by the company?s reinsurance segment. Net premiums earned increased by 18.2 percent to $616.8 million primarily due to net premiums earned by the reinsurance segment.

Total investment income increased by 38.5 percent to $60.6 million on a combination of higher investment balances and higher investment yields.

Total shareholders? equity was $2.9 billion and total capitalisation was $3.4 billion at September 30, 2005, including $250 million of newly issued preferred equity. The company?s combined ratio increased to 185.4 percent in the quarter.