AXS
Axis Capital Holdings LTD
NYSE
8-K: AXIS Capital Reports Record First Quarter Operating EPS and Strong Book Value Growth
Sentiment:
Investor Presentation
13 May 2025 4:30 PM
AXIS Capital Holdings Limited announces record first-quarter operating EPS of $3.17 and a 16.4% increase in diluted book value per share.
Better than expected
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.
Summary
- AXIS Capital Holdings Limited reported a record first-quarter operating EPS of $3.17.
- The company's diluted book value per share reached a record $66.48, a 16.4% increase over the past 12 months.
- Gross premiums written for the group increased by 5% year-over-year to $2.8 billion.
- The insurance segment saw a 5% increase in gross premiums written, reaching $1.7 billion, the highest first quarter on record.
- The reinsurance segment also experienced a 5% increase in gross premiums written, totaling $1.1 billion.
- The current accident year combined ratio, excluding catastrophes and weather, improved to 87.9%, a 1.7 percentage point improvement from the previous year.
- The company repurchased $440 million of shares during the first quarter.
- The G&A ratio decreased to 11.9% from 13.0% a year ago, with actual dollar spend down 2.6%.
- Annualized Operating Return on Average Common Equity was 19.2%.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record earnings, strong growth metrics, and efficient capital management, indicating a favorable sentiment.
Positives
- Record first-quarter operating EPS of $3.17 indicates strong profitability.
- Significant growth in diluted book value per share demonstrates effective capital management and value creation.
- Increase in gross premiums written across both insurance and reinsurance segments suggests successful business development and market penetration.
- Improvement in the current accident year combined ratio, excluding catastrophes and weather, reflects enhanced underwriting performance.
- Substantial share repurchases signal management's confidence in the company's future prospects and commitment to returning capital to shareholders.
- Reduction in the G&A ratio indicates improved operational efficiency and cost control.
- High Annualized Operating Return on Average Common Equity of 19.2% demonstrates efficient use of capital.
Risks
- The document contains forward-looking statements which are subject to various risks and uncertainties.
- These risks include the cyclical nature of the insurance and reinsurance business, natural and man-made disasters, emerging claims, and economic and market conditions.
- Strategic risks include increased competition, changes in the political environment, and the loss of key executives.
- Operational risks include changes in accounting policies, difficulties with technology, and regulatory changes.
- Credit and market risks include the inability to purchase reinsurance or collect amounts due, and the failure of policyholders to pay premiums.
Future Outlook
The company aims to be the leading Specialty underwriter, generating consistent top-quartile diluted book value per common share growth for shareholders, and is focused on cycle management and profitable growth.
Industry Context
The report highlights AXIS Capital's focus on Specialty products and strategic pillars, indicating a targeted approach within the insurance and reinsurance industry. The company's emphasis on underwriting expertise and efficient capital management aligns with industry trends focused on profitability and shareholder value.
Comparison to Industry Standards
- The document does not contain enough information to make a detailed comparison to industry standards.
- More information on the performance of comparable companies such as Chubb, Allianz, or Munich Re would be required to assess AXIS Capital's relative performance.
- Specific benchmarks for combined ratios, ROACE, and book value growth within the Specialty insurance and reinsurance sectors would also be needed for a comprehensive comparison.
Stakeholder Impact
- Shareholders benefit from increased diluted book value per share and share repurchases.
- Employees may benefit from investments in talent and productivity enhancements.
- Customers can expect continued Specialty underwriting expertise and tailored solutions.
- The company's strong financial position supports its ability to meet obligations to suppliers and creditors.
Next Steps
- The company will continue to focus on strategic priorities, including cycle management, profitable growth, and investments in capabilities.
- AXIS Capital will continue to return capital to shareholders through consistent dividends and share repurchases.
- The company will explore inorganic opportunities such as strategic investments and bolt-on acquisitions.
Key Dates
- May 13, 2025: Date of report and filing of investor presentation.
- March 31, 2025: End of first quarter 2025.
- April 24, 2025: Completion of loss portfolio transfer with Enstar affiliate.
Keywords
AXIS Capital, operating EPS, gross premiums written, diluted book value per share, reinsurance, insurance, combined ratio, share repurchases, financial results
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.