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Axis and XL profits succumb to financial crisis

XL Capital’s first-quarter net income has taken a nosedive from $US244 million ($336 million) in the same quarter last year to just $US3.1 million ($4.3 million).

The Bermuda-based insurer says net realised losses more than doubled while net premiums fell by a third.

CEO Michael McGavick says while credit spreads widened, particularly in March, the company had first quarter mark-to-market losses of $US1 billion ($1.38 billion).

Axis Capital Holdings’ profits have also plummeted, dropping 49% to $US124.9 million ($172 million) from $US247 million ($341 million) due mostly to investment losses.

Its combined ratio grew to 86.6% compared with 81.12% in the same period last year.