Bermudian-based insurer and reinsurer, Axis Capital Holdings Ltd, reported a sharp rise in third-quarter profit, helped by stronger underwriting results and continued growth in its insurance business.

The company recorded net income available to common shareholders of $294 million, or $3.74 per diluted share, up 70 per cent from the same period last year. Operating income rose 11 per cent to $255 million, or $3.25 per diluted share, while underwriting income climbed 39 per cent to $188 million.

The quarter produced a combined ratio of 89.4 per cent and an annualised operating return on average common equity of 17.8 per cent. Book value per share increased 4.9 per cent during the quarter to $73.82, and has risen 14 per cent over the past 12 months.

Vincent Tizzio, president and chief executive, said the results reflected “disciplined execution” and the benefits of operational improvements.

“Our insurance business again delivered an excellent quarter with record third-quarter gross premiums written of $1.7 billion, representing 11 per cent growth,” he said. “In parallel, Axis Re continued its track record of solid performance with a 92.2 per cent combined ratio.”

Tizzio added that the company’s “How We Work” programme, supported by investments in data, technology and artificial intelligence, was driving efficiency gains across the business.

For the nine months ended September 30, Axis reported net income of $697 million and operating income of $775 million, both up about 11 per cent from a year earlier, with a year-to-date combined ratio of 89.5 per cent.

Third-quarter net investment income fell 10 per cent to $185 million, primarily due to lower income from fixed maturities following a loss-portfolio transfer transaction with Enstar completed earlier in the year. The company also reported net unrealised gains on equity securities and realised gains from the sale of fixed maturities.

A $46 million pre-tax increase in net unrealised gains on fixed maturities was recognised in other comprehensive income, reflecting higher market values driven by tighter credit spreads and declining American yields. That compares with a $385 million gain a year earlier.

The book yield on fixed maturities was 4.6 per cent at September 30, compared with 4.4 per cent a year earlier, while the market yield rose to 4.8 per cent.

The company said Bermuda’s new 15 per cent corporate income tax, effective January 1, contributed to an effective tax rate of 18.9 per cent for the quarter. Axis returned $145 million to shareholders through buybacks and dividends.