AXIS Specialty Limited yesterday reported second quarter net income of $30 million in its second full quarter of operation.

The venture was one of the wave of insurers to set up in Bermuda in the wake of a void in capacity following the September 11 terrorist attacks. AXIS was set up by insurance broker Marsh & McLennan.

President and CEO John Charman said: "We have continued our strategic expansion of the Axis franchise this quarter with regard to both infrastructure and underwriting activity. We have now established our European operations, headquartered in Dublin, which are fully staffed with an experienced and successful underwriting team led by John Gressier.

Mr. Charman also cited AXIS' newness to the marketplace as a plus: "Looking forward, the adverse current uncertainty in the capital markets and its inevitable consequences to balance sheets across our industry makes the attractiveness of our unencumbered capital base compelling."

Gross premiums written for the quarter and the six months ended June 30 were $260.7 million and $526.4 million, respectively, while net premiums earned were $94.5 million and $150.1 million over the same periods.

Net investment income, including realised gains, was $22.7 million and $43.3 million for the quarter and the six months.

Max Re Capital Ltd. yesterday announced it had posted a loss in the second quarter.

The company, which had reported healthy income in the last two quarters, recorded an operating loss for the quarter ended June 30 of $8.4 million compared with a net operating loss of $5.5 million for the same period the year before.

Net loss for the three month period was $5 million compared to a net loss of $4.1 million for the same period in 2001.

Despite the company posting a net loss for the quarter, CEO Robert Cooney said the company had written significant business during the period but added that investment returns had been disappointing.

"Our property and casualty underwriting continues to be strong, with an increase in gross premiums written and deposits of 56 percent year-to-date compared to the same period in 2001.

"Although our alternative investment portfolio has achieved a positive return in each quarter of this year's challenging investment environment, the absolute return on our alternative investment portfolio this year has been disappointing and below expectation."

The company's gross premiums written were $121.5 million and deposits of $10.1 million were received. This compared to gross premiums written of $152.5 million and deposits received of $86.5 million in the second quarter last year.

Scottish Annuity & Life Holdings reported a significant increase in earnings for the quarter ended ended June 30, 2002.

The life and annuities reinsurer announced its net operating earnings had increased by 126 percent over the same period last year to $8.8 million.

CEO Michael French said: "This quarter's successful results continue to reflect the high quality fundamental characteristics of our business model. As we complete the first half of this year, we are well into another year devoted to steadily building the company's earnings power and franchise value."

The company moved to Bermuda from the Caymans last year and relisted from the Nasdaq to the New York Stock Exchange in January.

The company also reported that revenue and income for the quarter and six month period had been positively impacted by its acquisition of World Wide Holdings at the end of last year.

Total revenue for the first six months increased 161 percent to $117.9 million from $45.2 million, which was principally driven by the acquisition of World-Wide and growth in the company's reinsurance business, fees and investment income.

Looking at income in exclusion of World Wide, total revenue for the quarter and six months was $50.5 and $90.8 million respectively.

President Scott Willkomm said: "We continue to make excellent progress in building a very successful global business.

"During the quarter, we continued to profitably build our life reinsurance business with stable mortality experience and steady new business volumes.

As of June 30, 2002, Scottish Annuity & Life had approximately $49.0 billion of life reinsurance in force covering 1,252,000 lives with an average benefit per life of $39,000 in our North American operations. In comparison, and as of December 31, 2001, the company said it had approximately $34.9 billion of life reinsurance in force covering 993,000 lives.