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31 October 2024News

AXIS Capital profit slips as catastrophe losses rise

AXIS Capital’s third quarter net income dropped 3.8% to $173 million as the Bermuda-based re/insurer recorded $145 million in catastrophe and weather-related losses.    

The company said gross written premiums rose by $30 million to $1.9 million and net premiums written increased by $261 million or 27% to $1.2 billion, largely driven by increases in the reinsurance segment. 

The company’s combined ratio edged up to 93.1% from 92.7%.  Underwriting income dropped to $135 million from $147 million in the same period in 2023. 

"In the aftermath of Hurricanes Helene and Milton, our foremost thoughts are with the people and communities impacted by the storms,” said Vince Tizzio, chief executive officer of AXIS Capital. “At times like this, our industry has an opportunity to demonstrate the value that insurance brings, and I thank our claims team for the excellent work they are doing to support our customers.

“In a high catastrophe quarter for the industry, AXIS produced consistent, profitable results as we continue to deliver on our stated goals from our Investor Day. In the quarter, we generated an annualized operating ROE of 17.3% and a group combined ratio of 93.1%, while delivering double digit growth in diluted book value per share over the last twelve months. 

“We also continue to enhance our operating efficiency through our "How We Work" transformation initiative, leading to a 12.1% G&A ratio, a 1.4 point improvement over the prior year quarter.”

Operating income for the third quarter was $230 million compared to $202 million in 2023. 

Net investment income rose 33% to $205 million from $154 million. primarily due to income from our fixed maturities portfolio due to increased yields and an increase in fixed maturity assets.

Net losses and loss expenses rose to $831 million from $783 million while investment income rose 8.6% to $227 million.

The insurance segment’s GWP rose 4.7% to $1.5 billion driven by increases in property, accident and health and credit and political risk, offset by a decrease in cyber. Underwriting income dropped 5.6% to $98.8 million. The combined ratio increased to 90.4% from 88.2%.

In the reinsurance segment, GWP fell 8.7% to $409 million while net premiums increased from $90 million to $260 million as a  result of premiums ceded to Monarch Point Re in the third quarter of 2023.

Investment income jumped $51 million or 33% to $205 million while net investment gains were $32 million compared to a loss of $53 million in 2023. 

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