Axis Capital exceeded fourth-quarter expectations but still posted an operating loss for the year of $US154 million ($142.5 million) as a result of large claims in Thailand, Japan and New Zealand.

A 9% upswing in gross written premium to $US4.1 billion ($3.79 billion) for the year and better-than-expected fourth-quarter operating income of $US67 million ($62 million) was not enough to prevent the company posting its first loss as a listed company.

The profit result is the lowest on record for the Bermuda-based insurer, whose previous worst year was in 2005 when it banked an operating income of $US105.2 million ($97.4 million). Just two years later, operating income would top $US1.025 billion ($948 million).

Axis Capital CEO and President John Charman said the company has weathered the worst year for insurance claims on record, including $US64 million ($59.24 million) in Thai flooding claims, $US32 million ($29.6 million) related to the Japanese earthquake and $US31 million ($28.7 million) from earthquakes in New Zealand.

The insurer’s combined ratio was 112.3% for the year, 23.6 percentage points higher than in 2010. Investment returns have also fallen by 5% over the year.

“An extraordinary series of costly natural disasters, which are estimated to have cost our industry over $100 billion, took centre stage in 2011,” Mr Charman said.

“These occurred against the backdrop of a prolonged soft market at perhaps the weakest phase in its business cycle, when adequate pricing remained extremely difficult to obtain.

“Further, on the asset side, we experienced the persistence of abnormally low interest rates, which made low-risk investment income difficult to achieve.”

The release of Axis Capital’s financials comes just days after John Nichols was appointed CEO of Axis Re.

Mr Nichols, the former president of Bermuda-based Renaissance Re Ventures, will start in the role on April 2.