AXIS Capital (AXS) Q2 2024 earnings summary

Executive summary

• Net income available to common shareholders was $204 million ($2.40 per diluted share), with operating income of $250 million ($2.93 per diluted share) and annualized operating ROE of 20%.

• Gross premiums written reached $2.4 billion, up 7% year-over-year, the highest second quarter ever.

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

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

• CEO highlighted strong specialty underwriting, record operating EPS, and continued operational transformation.

Financial highlights

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

• G&A expense ratio improved to 11.4% from 13.3% a year ago; year-to-date G&A spend down 7%.

• $47 million in catastrophe losses, including $38 million from natural catastrophes and $9 million from the Red Sea conflict.

• No prior year reserve development was recognized in Q2 2024; reserve actions from Q4 2023 reinforced by current data.

• Total assets stood at $32.1 billion; reserve for losses and loss expenses was $16.7 billion.

Outlook and guidance

• 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.

• Mix shift toward short-tail lines expected to persist through 2024; liability writings to benefit from reinvestment in 2025.

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

• AXIS is positioned for continued profitable growth, supported by a strengthened book and expanding specialty market footprint.