AXS
Axis Capital Holdings LTD
NYSE
8-K: AXIS Capital Reports Record Operating EPS and Strong Growth in Specialty Underwriting
Sentiment:
Investor Presentation
10 February 2025 4:43 PM
AXIS Capital Holdings Limited announces record operating EPS for Q4 and full year 2024, driven by growth in specialty lines and improved underwriting performance.
Better than expected
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.
Summary
- AXIS Capital Holdings Limited reported record operating EPS of $2.97 for the fourth quarter and $11.18 for the full year 2024.
- The company's strategic focus is on specialty products, with $9.0 billion in gross premiums written (GPW) in the last twelve months.
- Insurance GPW was $6.6 billion, while Reinsurance GPW was $2.4 billion.
- The company achieved an operating ROACE of 18.6% for FY 2024.
- AXIS Capital returned $350 million to shareholders in 2024 through share repurchases and dividends.
- 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.
- Insurance produced $1.7 billion, a 7% increase from the prior year and highest volume fourth quarter for the segment.
- Reinsurance produced $275.0 million, a 37% increase driven by new business in Accident and Health lines.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record earnings, growth in key areas, and a focus on shareholder value. While risks are acknowledged, the overall tone is optimistic.
Positives
- Record operating EPS achieved for both Q4 and full year 2024.
- Strong operating ROACE of 18.6% for FY 2024.
- Growth in gross premiums written, particularly in specialty lines.
- Significant capital returned to shareholders through share repurchases and dividends.
- Increase in diluted book value per share excluding AOCI.
- Decrease in G&A ratio and actual dollar spend.
- The company's financial strength is rated A+ by S&P and A by A.M. Best.
- Gross premiums written for the group was up 11% year over year to $2.0B for the quarter, the highest production fourth quarter ever.
- Insurance produced $1.7 billion, a 7% increase from the prior year and highest volume fourth quarter for the segment.
- Reinsurance produced $275.0 million, a 37% increase driven by new business in Accident and Health lines.
Risks
- The document includes a cautionary note regarding forward-looking statements, highlighting various insurance, strategic, credit, market, liquidity, operational, regulatory, and tax-related risks.
- These risks include the cyclical nature of the insurance business, natural and man-made disasters, competition, economic conditions, and changes in regulations.
Future Outlook
The company aims to be the leading specialty underwriter, generating consistent top-quartile diluted book value per common share (DBVPS) growth for shareholders.
Management Comments
- Management is focused on operating in attractive markets, building strong capabilities, improving operational efficiency, and managing capital effectively.
Industry Context
AXIS Capital is focusing on specialty lines, which aligns with a broader industry trend towards specialized underwriting and risk management.
Comparison to Industry Standards
- AXIS Capital is ranked 14/43 insurance companies in 2024 U.S. News 2025 US Best Companies to Work For: Supporting Family Caregiving.
- The company received P&C Honors for 'ESG Initiative of the Year' in 2023 for GHG reduction goals.
- AXIS Capital achieved top ranking in Overall Commitment to ESG in 2023 Insurer's Lloyds ESG Survey.
Stakeholder Impact
- Shareholders benefit from increased book value, share repurchases, and dividends.
- Employees benefit from a focus on talent and productivity enhancements.
- Customers benefit from the company's expertise in specialty underwriting.
Next Steps
- Continue to execute on strategic priorities, including cycle management, profitable growth, and capital returns.
- Further adoption of digital & analytics.
- Continue share repurchases under the Board-authorized program.
Key Dates
- February 10, 2025: Date of report (8-K filing) and investor presentation.
- December 31, 2024: End of the full year 2024, used for financial results and metrics.
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.