AXIS reports Q3’24 net income of $173m, CoR hits 93%

Insurer and reinsurer AXIS Capital has disclosed a Q3 2024 net income available to common shareholders of $173 million, down slightly from $181 million in the same period last year, with a combined ratio of 93.1%.

In Q3 2024, pre-tax catastrophe and weather-related losses, net of reinsurance, were $78 million, or 5.8 points, including $43 million, or 3.2 points, attributable to Hurricanes Helene and Beryl.

Meanwhile, gross premiums written in Q3 2024 increased by $30 million, or 2%, to $1.9 billion with an increase of $69 million, or 5% in the insurance segment, partially offset by a decrease of $39 million, or 9% in the reinsurance segment.

Net premiums written increased by $261 million, or 27%, to $1.2 billion with an increase of $91 million, or 10% in the insurance segment, and an increase of $170 million, or 189% in the reinsurance segment.

According to AXIS, the increase in the reinsurance segment was mainly due to premiums ceded to Monarch Point Re in Q3 2023, following approval of the quota share retrocession agreement with Monarch Point Re in September 2023, with an effective date of January 1, 2023.

Underwriting income in the reinsurance segment in Q3 2024 was $36.4 million, down 14.2% from $42.4 million in Q3 2023, while the combined ratio was 91.4%, a slight improvement over last year.

At the same time, underwriting income in the firm’s insurance segment in Q3 2024 was $98.8 million, down from $104.6 million in Q3 2023, while the combined ratio in this segment was 90.4%, up 2.2 points from the same period of last year.

AXIS’ total operating income for Q3 2024 was $230 million, while its net investment income in the period was $205 million, an increase of $51 million or 33%, primarily attributable to income from its fixed maturities portfolio due to increased yields and an increase in fixed maturity assets.

The firm additionally revealed some figures for the opening 9 months of 2024, boasting of a net income available to common shareholders of $765 million and operating income of $700 million.

Vince Tizzio, President and CEO of AXIS, commented, “In the aftermath of Hurricanes Helene and Milton, our foremost thoughts are with the people and communities impacted by the storms. 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.

“Across the business, we are leaning into attractive growth markets and unlocking new revenue opportunities, while helping our customers navigate a dynamic risk landscape. We head into the final months of 2024 with confidence in our future and a deep commitment to help AXIS realize its best potential as a specialty underwriting leader.”

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