AXS
Axis Capital Holdings LTD
NYSE
8-K: AXIS Capital Reports Strong Fourth Quarter and Full Year 2024 Results, Driven by Underwriting and Investment Performance
Sentiment:
Quarterly Report
29 January 2025 4:25 PM
AXIS Capital announced a net income available to common shareholders of $286 million for the fourth quarter of 2024 and $1.1 billion for the full year, driven by strong underwriting and investment performance.
Better than expected
Net income available to common shareholders significantly increased compared to the previous year.
Operating return on equity improved substantially.
Diluted book value per share showed strong growth.
Summary
- AXIS Capital reported a net income available to common shareholders of $286 million, or $3.38 per diluted common share, for the fourth quarter of 2024.
- The company's operating income for the fourth quarter was $252 million, or $2.97 per diluted common share.
- The annualized return on average common equity (ROACE) for the fourth quarter was 20.7%, and the annualized operating ROACE was 18.2%.
- The combined ratio for the fourth quarter was 94.2%.
- Gross premiums written increased by $191 million, or 11%, in the fourth quarter.
- For the full year 2024, AXIS Capital reported a net income available to common shareholders of $1.1 billion, or $12.35 per diluted common share.
- The operating income for the full year was $952 million, or $11.18 per diluted common share.
- The full year ROACE was 20.5%, and the operating ROACE was 18.6%.
- The combined ratio for the full year was 92.3%.
- Book value per diluted common share increased to $65.27, a 20.7% increase compared to December 31, 2023.
- Gross premiums written increased by $649 million, or 8%, for the full year.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results, indicating a healthy and growing company. The management's comments further reinforce this positive sentiment.
Positives
- Significant increase in net income available to common shareholders for both the quarter and the full year.
- Strong operating return on equity.
- Substantial growth in diluted book value per share.
- Improved combined ratios in both the Insurance and Reinsurance segments.
- Increase in net investment income.
- Growth in gross premiums written in both Insurance and Reinsurance segments.
- Decrease in general and administrative expense ratio, driven by efficiencies from the 'How We Work' program.
- Increase in fees related to arrangements with strategic capital partners.
Negatives
- Catastrophe and weather-related losses impacted the loss ratio, with Hurricane Milton contributing significantly.
- Net investment gains turned into losses for the quarter and the year.
- Foreign exchange losses were recognized for the quarter.
Risks
- The press release includes a cautionary note regarding forward-looking statements, highlighting various risks and uncertainties that could affect actual results.
- These risks include the cyclical nature of the insurance and reinsurance business, natural and man-made disasters, emerging claims, economic conditions, and regulatory changes.
Future Outlook
AXIS Capital believes it is poised to build on its positive momentum in 2025, leveraging its specialty expertise to help customers navigate an increasingly dynamic risk landscape.
Management Comments
- Vince Tizzio, President and CEO of AXIS Capital, stated that 2024 was an excellent year for AXIS, delivering on financial and operational guideposts shared at the Investor Day.
- He highlighted the operating return-on-equity of 18.6% and 20.7% growth in diluted book value per share.
- He also mentioned significant strides in enhancing the operating model through the 'How We Work' program.
Industry Context
The announcement reflects a positive trend in the specialty insurance and reinsurance market, where companies with strong underwriting discipline and diversified portfolios are achieving improved profitability and growth.
Comparison to Industry Standards
- A combined ratio of 92.3% places AXIS Capital in a competitive position compared to industry peers such as Chubb (CB) and The Hartford (HIG), which also target combined ratios in the lowto mid-90s.
- An operating ROACE of 18.6% is a strong result, exceeding the average ROE for the insurance industry, which typically ranges from 8% to 12%.
- Companies like RenaissanceRe (RNR) and PartnerRe are key competitors in the reinsurance segment, and AXIS Capital's growth in reinsurance premiums positions it well against these players.
Stakeholder Impact
- Shareholders will likely react positively to the strong financial performance and increased book value per share.
- Employees may benefit from the company's success through performance-related compensation.
- Customers can expect continued high-quality insurance and reinsurance solutions.
- Suppliers and creditors can be confident in the company's financial stability.
Next Steps
- A conference call will be hosted on January 30, 2025, to discuss the fourth quarter and year-end financial results.
- An investor financial supplement for the quarter ended December 31, 2024, is available on the company's website.
Key Dates
- January 1, 2023: The Company exited Aviation business effective this date.
- June 2022: The Company exited Catastrophe and Property lines of business in this month.
- January 1, 2025: Effective date for Bermuda corporate income tax.
- January 29, 2025: Date of the press release and announcement of Q4 and full year 2024 financial results.
- January 30, 2025: Date of the conference call to discuss the financial results.
Keywords
AXS
Axis Capital Holdings LTD
NYSE
Sector: Financial Services
Filings with Classifications
Better than expected
13 May 2025 4:30 PM
Investor Presentation
- The company reported record first quarter operating EPS.
- The company reported record diluted book value per share.
- The company reported the highest first quarter gross premiums written for the insurance segment.
Worse than expected
30 April 2025 4:23 PM
Quarterly Report
- Net income available to common shareholders decreased from $387.9 million to $186.5 million year over year.
- The effective tax rate increased from (46.0%) to 18.6% year over year.
Worse than expected
30 April 2025 4:20 PM
Earnings Release
- Net income available to common shareholders decreased compared to the same period last year.
Better than expected
3 April 2025 8:00 AM
Proxy Statement
- The company delivered a return on average common equity (ROACE) of 20.5% and an operating return on average common equity (OROACE) of 18.6%.
- Year-end diluted book value per share (DBVPS) grew by 20.7% to $65.27.
- Record operating earnings per diluted common share reached $11.18, a 98% increase over the prior year.
- The group combined ratio improved to 92.3%, a 7.6 point improvement.
- Total gross written premiums were a record $9 billion, up 7.8% over the prior year.
- Net investment income reached a record $759 million for the year.
Capital raise
26 February 2025 4:17 PM
Annual Results
- The company may require additional capital in the future, which may not be available or may only be available on unfavorable terms.
- Any equity or debt financing, if available at all, may be on terms that are not favorable to us.
- As economic and market uncertainty continues, it is possible that access to the capital markets may become more constrained and cost of capital may increase.
Better than expected
10 February 2025 4:43 PM
Investor Presentation
- The company reported record operating EPS for Q4 and full year 2024.
- The company's diluted book value per share excluding AOCI increased by 17.5% year-over-year.
- Gross premiums written for the group was up 11% year over year to $2.0B for the quarter, the highest production fourth quarter ever.
Better than expected
29 January 2025 4:25 PM
Quarterly Report
- Net income available to common shareholders significantly increased compared to the previous year.
- Operating return on equity improved substantially.
- Diluted book value per share showed strong growth.
Better than expected
12 November 2024 8:00 AM
Investor Presentation
- The company reported record third-quarter insurance premium production.
- Net investment income reached a record high for the third quarter.
- The diluted book value per common share increased significantly.
Better than expected
30 October 2024 4:23 PM
Quarterly Report
- The company's operating income of $230 million and 17.3% annualized operating ROACE exceeded expectations.
- The 9% increase in book value per diluted common share was better than anticipated.
- The 33% increase in net investment income was a positive surprise.
Worse than expected
30 October 2024 4:23 PM
Quarterly Report
- The company's combined ratio of 93.1% indicates an underwriting loss, which is worse than expected.
- The company experienced significant foreign exchange losses of $92 million, which negatively impacted the results.
Better than expected
4 September 2024 6:56 AM
Investor Presentation
- The company reported record gross premiums written for the second quarter.
- The insurance segment achieved its highest ever production of gross premiums written.
- The company's annualized operating ROACE was 19.1%, indicating strong profitability.
- Net investment income increased by 40% compared to the same quarter last year.
- Diluted book value per share grew by 16.3% over the last 12 months.
Better than expected
30 July 2024 4:27 PM
Quarterly Report
- The company's net income available to common shareholders of $204 million, or $2.42 per common share, exceeded expectations.
- The company's operating income of $250 million, or $2.93 per diluted common share, was better than anticipated.
- The company's underwriting income of $161 million was a strong result.
Better than expected
30 July 2024 4:22 PM
Quarterly Report
- The company's net income, operating income, and operating ROACE all exceeded prior year results.
- The combined ratio improved, indicating better underwriting performance.
- Net investment income increased significantly, contributing to better overall results.
Better than expected
30 May 2024 8:45 AM
Investor Day Presentation
- The company's current accident year combined ratio has improved from 100% in 2021 to 96% in Q1 2024, indicating better underwriting performance.
- The company is targeting mid-teen diluted book value per share growth, which is an ambitious goal.
- The company has rebalanced its portfolio towards insurance, which is a higher margin business.
Better than expected
1 May 2024 4:23 PM
Quarterly Report
- The company's net income available to common shareholders significantly increased compared to the same period last year.
- The company's operating income showed a strong performance, indicating solid core business operations.
- The company's net investment income grew by 25%, contributing to overall profitability.
Better than expected
1 May 2024 4:19 PM
Quarterly Report
- The company's net income and operating income significantly exceeded the prior year's first quarter results.
- The annualized return on average common equity (ROACE) of 32.1% and operating ROACE of 18.2% are strong indicators of improved profitability.
- The specialty insurance business achieved a combined ratio of 86.6% and record premium production, demonstrating better than expected performance.
Better than expected
4 April 2024 8:29 AM
Proxy Statement
- The company achieved record premium production, strong operating income, meaningful growth in diluted book value per share, and significant improvement in the current accident year combined ratio.
Worse than expected
28 March 2024 5:11 PM
Credit Facility Amendment
- The reduction in the committed facility from $500 million to $300 million indicates a reduction in guaranteed credit availability, which is worse than the previous arrangement.
Worse than expected
26 February 2024 8:35 AM
Investor Presentation
- The reinsurance segment's combined ratio of 107.6% indicates underwriting losses, which is worse than expected.
Worse than expected
31 January 2024 4:28 PM
Quarterly Report
- The company reported a net loss for the quarter, primarily due to a significant adverse prior year reserve development, which was worse than expected.
Worse than expected
23 January 2024 4:11 PM
Preliminary Earnings Release
- The company had to strengthen its reserves by a significant $425 million pre-tax ($361 million post-tax), indicating worse than expected prior year loss development.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.