AXIS Capital (AXS) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 net income available to common shareholders of $173 million ($2.04 per diluted share) and operating income of $230 million ($2.71 per diluted share), with annualized operating ROACE of 17.3% and book value per diluted share rising to $64.65, up 9% in the quarter and 26.3% year-over-year.

• Gross premiums written reached a record $1.9 billion, with insurance segment at $1.5 billion, driven by property, credit & political risk, and A&H lines.

• Net investment income reached a record $205 million, up 33% year-over-year, fueled by higher yields and increased fixed maturity assets.

• Combined ratio for Q3 2024 was 93.1%; for the nine months ended September 30, 2024, combined ratio was 91.6%.

• CEO highlighted resilience amid high catastrophe losses, continued operational efficiency, and confidence heading into year-end.

Financial highlights

• Net income available to common shareholders was $173 million ($2.04 per diluted share), with operating income of $230 million ($2.71 per diluted share) and annualized operating ROE of 17.3%.

• Gross premiums written grew to $1.9 billion, highest Q3 production ever; insurance segment at $1.5 billion, up 5% year-over-year.

• Combined ratio was 93.1% for the quarter; insurance at 90.4%, reinsurance at 91.4%.

• Net investment income reached $205 million, up 33% year-over-year.

• Total capital returned to shareholders year-to-date was $253 million, including $140 million in share repurchases and $113 million in dividends.

Outlook and guidance

• Management expressed confidence in future performance, citing strong underwriting, operational efficiency, and focus on specialty underwriting.

• Insurance gross premiums growth outlook maintained at the low end of 7%-12% for full-year 2024.

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

• Ongoing share repurchases with $300 million authorized in May 2024; $260 million remains under current program.

• AXIS expects to pursue targeted growth in sectors with strong premium adequacy and market dislocations, focusing on disciplined underwriting.