AXIS Capital profit jumps 42%
AXIS Capital continued its transformation to a specialty underwriter, turning in a quarterly profit of $204 million, up 42% on the same period in 2023.
The Bermuda-based re/insurer said it improved its combined ratio by 1.1 points to 90.4%.
Gross premiums written increased by $156 million, or 7%, to $2.4 billion with an increase of $130 million, or 8% in the insurance segment, and an increase of $26 million, or 4% in the reinsurance segment.
"This was an excellent quarter and first half of the year for AXIS defined by consistent, profitable results and strong diluted book value per share growth as we pursued our ambition of achieving specialty underwriting leadership," said Vince Tizzio, president and chief executive officer of AXIS Capital said.
"In the quarter, we delivered on our stated goals, producing an annualized operating ROE of 20%, record operating EPS of $2.93, and a combined ratio of 90.4%."
He added: ""We continued to lean into attractive specialty markets where we hold leadership positions, while tapping into our deep distribution relationships. In our specialty insurance business, we delivered a solid 87.9% combined ratio while generating an 8% increase in gross premiums written, 17% net premiums written growth, and record second quarter new business volume. Within reinsurance, we produced an 89.3% combined ratio and a 4% increase in premiums highlighted by targeted growth in specialty lines, reflecting our repositioning of AXIS Re as a focused, specialist reinsurer.
"During the quarter, we also took important steps forward in enhancing our operations through our "How We Work" transformation program. This included implementing operating model changes to improve productivity, reduce our cost structure, and allow for reinvestment into the business. In summary, we are pleased with our second quarter results, feel good about the actions we are taking across all aspects of our business, and are intent on building on our momentum."
Net investment income for the second quarter of 2024 was $191 million, compared to $137 million, an increase of 40%, primarily attributable to increased yields from its fixed maturities portfolio.
By segment, AXIS's insurance segment saw gross written premiums rise 7% to $1.8 billion from $1.7 billion. Underwriting income edged up 0.9% to $115 million.
In the reinsurance segment, GWP rose 4.3% to $626 million and underwriting income jumped $34.5% to $45.5 million.
Investment income rose by $54 million, or 40%, to $166 million.
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