Axis Capital has reported second quarter net income of $216 million or $2.72 per diluted common share.

The company also had operating income of $261 million, or $3.29 per diluted common share.

Vincent Tizzio, president and chief executive, said the firm delivered an excellent second quarter highlighted by record profitability.

“We continued our trend of strong performance, with 18.6 per cent diluted book value per share growth over the prior year,” Mr Tizzio said. “In the quarter, we produced an annualised operating return on equity of 19 per cent and an 88.9 per cent combined ratio.”

He said Axis also set new company records for first-half underwriting income and production, while targeting premium adequate business that met their risk-adjusted returns.

“Our insurance segment continued to excel, generating an 85.3 per cent combined ratio and all time highs in premium volume at $1.9 billion,” he said. “We also had underwriting income at $152 million, with increasing contributions from our new and expanded products.”

Axis Capital’s reinsurance business generated steady and positive bottom-line results, with a 92 per cent combined ratio.

Mr Tizzio said the company’s sustained profitable growth was supported by the ongoing enhancement of its operations through its How We Work programme, enabled by investments in technology and artificial intelligence.

“While we acknowledge the progress achieved, we remain steadfast in advancing our strategy and providing value to our customers and the broader market,” Mr Tizzio said.

Quarter highlights included a gross premiums written increase of $76 million, or 3 per cent, to $2.5 billion with an increase of $118 million, or 7 per cent in the insurance segment, partially offset by a decrease of $43 million, or 7 per cent in the reinsurance segment.

Net premiums written increased by $62 million, or 4 per cent, to $1.6 billion with an increase of $96 million, or 8 per cent in the insurance segment, partially offset by a decrease of $35 million, or 9 per cent in the reinsurance segment.