AXIS Capital (AXS) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly operating EPS of $2.93, net income available to common shareholders of $204 million, and annualized operating ROE/ROACE up to 20%.

• Gross premiums written reached a record $2.4 billion, with insurance segment contributing $1.8 billion and strong growth in property, credit & political risk, and A&H lines.

• Underwriting income was $161 million with a consolidated combined ratio of 90.4%.

• Net investment income rose 40% to $191 million, driven by higher yields and positive returns from alternatives.

• Continued execution on specialty underwriting leadership, operational efficiency, and transformation initiatives.

Financial highlights

• Book value per diluted common share increased to $59.29, up 16% year-over-year and nearly 10% year-to-date.

• G&A expense ratio improved to 11.4%, with year-to-date G&A spend down 7%.

• $47 million in catastrophe losses, including $9 million from the Red Sea conflict.

• No prior year reserve development recognized in Q2 2024.

• Debt to total capital ratio was 18.8%.

Outlook and guidance

• Focus on specialty underwriting, operational efficiency, and profitable growth in specialty and E&S lines.

• Insurance segment annual premium growth guidance remains 7%-12%; reinsurance expected to deliver mid-single-digit growth for the full year.

• G&A ratio target below 11% for full year 2026.

• No material change expected in insurance loss ratios for 2024; reinsurance loss ratio expected to remain in mid-60s.

• Continued emphasis on capital allocation to high-return businesses and transformation initiatives.