Bermudian insurers Axis Capital and XL Group have reported profits for the third quarter ending September 30, despite the cost of this year’s catastrophes.

Axis Capital has reported a $U225 million ($219 million) pre-tax profit for the quarter. This compared to $257 million ($250 million) profit for the corresponding period last year.

Gross premiums for the September quarter were $US835 million ($814 million) while net losses were $US507 million ($494 million). This compared to the 2010 September quarter premium income of $US759 million ($740 million) and net losses of $US422 million ($411 million).

While the September quarter revenue was positive, the catastrophes earlier this year have made a significant impact on Axis’ nine-month figures.

The insurer has reported an operating loss of $US221 million ($215 million) for the nine months ending September 30, with Hurricane Irene, Tropical Storm Lee and floods in Denmark costing it $US65 million ($63 million).

The cost of the Christchurch and Japanese events for Axis have increased by $US26 million ($25 million), with New Zealand losses now topping $US85 million ($83 million).

Axis CEO John Charman admits the market is tough and the company’s bottom line is also being hit by poor investment performance.

“Our underwriting units fought hard to find opportunities to grow profitably,” he said. “The results were adversely impacted by a reduction in the valuation of our alternative investments due to the extreme volatility in the financial markets.”

Fellow Bermudian insurer XL Group has reported a $US42.3 million ($41.2 million) profit for the September quarter. This compared to $US77.5 million ($75 million) in the corresponding 2010 period.

Gross premiums were up 16.4% to $US1.7 billion ($1.6 billion) for the quarter compared to $1.5 billion ($1.4 billion) in the three months ending September 30, 2010.

Natural catastrophe looses for the quarter were put at $US110.6 million ($108 million).

XL Group CEO Mike McGavick says the company saw improving rates for most lines during the quarter.

“The quarter saw accelerating rate achievement in most lines,” he said. “In far more parts of the market the long-overdue response to unrealistic risk pricing is under way.”