AXS
AXIS CAPITAL HOLDINGS LIMITED
INVESTOR FINANCIAL SUPPLEMENT
FOURTH QUARTER 2024
AXIS CAPITAL HOLDINGS LIMITED
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Cliff Gallant
Investor Contact
Website Information:
www.axiscapital.com
This report is for informational purposes only. It should be read in conjunction with the documents that the Company files with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.
AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
Page(s)
Basis of Presentation
i-iv
I. Financial Highlights
1
II. Income Statements
a. Consolidated Statement of Operations
2-6
b. Consolidated Segment Data
7
c. Gross Premiums Written by Segment by Line of Business
8
d. Consolidated Data
9
e. Segment Data
10-11
f. Net Investment Income
12
III. Balance Sheets
a. Consolidated Balance Sheets
13
b. Cash and Invested Assets:
14
• Cash and Invested Assets Portfolio
• Cash and Invested Assets Composition
15
• Mortgage-Backedand Asset-BackedSecurities Composition
16
IV. Loss Reserve Analysis
a. Paid to Incurred Analysis
17
b. Paid to Incurred Analysis by Segment
18
V. Share Analysis
a. Earnings Per Common Share Information
19
b. Book Value Per Diluted Common Share and Tangible Book Value Per Diluted Common Share - Treasury Stock Method
20
VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity
21
b. Rationale for the Use of Non-GAAP Financial Measures
22-25
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
AXIS Capital Holdings Limited's ("AXIS Capital" or the "Company") underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.
DEFINITIONS AND PRESENTATION
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for losses and loss expenses, measurements of potential losses in the fair value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.
Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:
Insurance Risk
Strategic Risk
i
Credit and Market Risk
Liquidity Risk
Operational Risk
Regulatory Risk
Risks Related to Taxation
Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10- K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.
We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
ii
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
BUSINESS DESCRIPTIONS
INSURANCE SEGMENT
Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:
Professional Lines: provides directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
Property: provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This line of business includes primary and excess risks, some of which are catastrophe-exposed.
Liability: provides cover for primary and low to mid-level excess and umbrella commercial liability, and environmental liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability business predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking, and other services.
Cyber: provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability. Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability.
Marine and Aviation: Marine provides cover for a range of exposures including offshore energy, offshore renewable energy, cargo, liability including kidnap and ransom, fine art, specie, and hull war. Offshore energy coverages include physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. Aviation provides hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.
Accident and Health: includes personal accident, travel insurance and specialty health products for employer and affinity groups, and pet insurance.
Credit and Political Risk: provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign and corporate credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. Surety bonds are also provided to large corporate and commercial clients and to mid to large sized construction clients.
iii
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
BUSINESS DESCRIPTIONS (CONTINUED)
REINSURANCE SEGMENT
Our reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis written on an excess of loss or a proportional basis. For excess of loss business, we typically indemnify the reinsured for a portion of losses, individually and in the aggregate, in excess of a specified individual or aggregate loss deductible. For proportional business, we assume an agreed percentage of the underlying premiums and accept liability for the same percentage of losses and loss expenses. Our business is primarily produced through reinsurance brokers worldwide. The following are the lines of business in our reinsurance segment:
Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, environmental liability, and excess casualty.
Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis.
Professional Lines: provides protection for directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis.
Credit and Surety: Credit reinsurance provides protection for trade credit insurance and credit and political risk insurance. Trade credit insurance protects sellers of goods and services in the event of a non- payment by the buyer of those goods and services. Credit and political risk insurance covers a range of risks predominantly corporate and sovereign non-payment. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands, contract, and commercial obligations in a variety of jurisdictions around the world. Mortgage reinsurance is provided to mortgage guaranty insurers, U.S. government sponsored entities and other mortgage market participants. These entities seek to manage their credit risk exposure emanating from defined pools of mortgage loans.
Motor: provides protection to insurers for motor liability and motor property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. Traditional non-proportional and proportional reinsurance as well as structured solutions are offered predominantly relating to European exposures.
Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis.
Marine and Aviation: Marine includes specialty marine exposures such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis. Aviation provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023.
Run-off lines
Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis. The Company exited this line of business in June 2022.
Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company exited this line of business in June 2022.
Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. The Company exited this line of business in 2020.
iv
AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
Quarters ended December 31,
Years ended December 31,
2024
2023
Change
2024
2023
Change
HIGHLIGHTS
Gross premiums written
$ 1,975,324
$ 1,784,293
10.7%
pts
$ 9,005,888
$ 8,356,525
7.8%
pts
Gross premiums written - Insurance
86.1%
88.7%
(2.6)
73.5%
73.5%
-
Gross premiums written - Reinsurance
13.9%
11.3%
2.6
pts
26.5%
26.5%
-
pts
Net premiums written
$ 1,225,549
$ 1,072,255
14.3%
$ 5,757,351
$ 5,102,325
12.8%
Net premiums earned
$ 1,377,014
$ 1,265,273
8.8%
$ 5,306,235
$ 5,083,781
4.4%
Net premiums earned - Insurance
74.5%
72.5%
2.0
pts
74.0%
68.1%
5.9
pts
Net premiums earned - Reinsurance
25.5%
27.5%
(2.0)
pts
26.0%
31.9%
(5.9)
pts
Net income (loss) available (attributable) to common shareholders
$
286,069
$
(150,145)
nm
$ 1,051,536
$
346,042
nm
Operating income (loss) [a]
$
251,816
$
(106,991)
nm
$
952,035
$
486,133
95.8%
Annualized return on average common equity [b]
20.7%
(13.1%)
33.8
pts
20.5%
7.9%
12.6
pts
Annualized operating return on average common equity [c]
18.2%
(9.3%)
27.5
pts
18.6%
11.0%
7.6
pts
Total shareholders' equity
$ 6,089,379
$ 5,263,196
15.7%
$ 6,089,379
$ 5,263,196
15.7%
PER COMMON SHARE AND
Earnings (loss) per diluted common share
$3.38
($1.76)
nm
$12.35
$4.02
nm
COMMON SHARE DATA
Operating income (loss) per diluted common share [d]
$2.97
($1.25)
nm
$11.18
$5.65
97.9%
Weighted average diluted common shares outstanding
84,695
85,268
(0.7%)
85,176
86,012
(1.0%)
Book value per common share
$66.75
$55.26
20.8%
$66.75
$55.26
20.8%
Book value per diluted common share (treasury stock method)
$65.27
$54.06
20.7%
$65.27
$54.06
20.7%
Tangible book value per diluted common share (treasury stock
$62.97
$51.34
22.7%
$62.97
$51.34
22.7%
method) [a]
FINANCIAL RATIOS
Current accident year loss ratio, excluding catastrophe and
55.7%
55.4%
0.3
pts
55.7%
55.9%
(0.2)
pts
weather-related losses [a]
Catastrophe and weather-related losses ratio [a]
5.9%
2.1%
3.8
pts
4.3%
2.7%
1.6
pts
Current accident year loss ratio [a]
61.6%
57.5%
4.1
pts
60.0%
58.6%
1.4
pts
Prior year reserve development ratio
(1.2%)
33.6%
(34.8)
pts
(0.5%)
8.1%
(8.6)
pts
Net losses and loss expenses ratio
60.4%
91.1%
(30.7)
pts
59.5%
66.7%
(7.2)
pts
Acquisition cost ratio
20.1%
20.1%
-
pts
20.2%
19.7%
0.5
pts
General and administrative expense ratio [e]
13.7%
13.4%
0.3
pts
12.6%
13.5%
(0.9)
pts
Combined ratio
94.2%
124.6%
(30.4)
pts
92.3%
99.9%
(7.6)
pts
INVESTMENT DATA
Total assets
$32,520,293
$30,250,672
7.5%
$32,520,293
$30,250,672
7.5%
Total cash and invested assets [f]
$17,953,660
$16,733,674
7.3%
$17,953,660
$16,733,674
7.3%
Net investment income
$
195,773
$
186,937
4.7%
$
759,229
$
611,742
24.1%
Net investment gains (losses)
$
(108,030)
$
23,041
nm
$
(138,534)
$
(74,630)
85.6%
Book yield of fixed maturities
4.5%
4.2%
0.3
pts
4.5 %
4.2%
0.3
pts
1
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2024 AND 2023
Quarters ended December 31,
Years ended December 31,
2024
2023
2024
2023
Revenues
Net premiums earned
$
1,377,014
$
1,265,273
$
5,306,235
$
5,083,781
Net investment income
195,773
186,937
759,229
611,742
Net investment gains (losses)
(108,030)
23,041
(138,534)
(74,630)
Other insurance related income
7,016
6,050
30,721
22,495
Total revenues
1,471,773
1,481,301
5,957,651
5,643,388
Expenses
Net losses and loss expenses
831,956
1,152,262
3,158,487
3,393,102
Acquisition costs
276,273
253,918
1,070,551
1,000,945
General and administrative expenses
189,186
169,849
666,202
684,446
Foreign exchange losses (gains)
(112,090)
69,871
(50,822)
58,115
Interest expense and financing costs
16,761
18,344
67,766
68,421
Reorganization expenses
-
-
26,312
28,997
Amortization of intangible assets
2,729
2,729
10,917
10,917
Total expenses
1,204,815
1,666,973
4,949,413
5,244,943
Income (loss) before income taxes and interest in income of equity method investments
266,958
(185,672)
1,008,238
398,445
Income tax (expense) benefit
19,410
41,762
55,595
(26,316)
Interest in income of equity method investments
7,264
1,328
17,953
4,163
Net income (loss)
293,632
(142,582)
1,081,786
376,292
Preferred share dividends
7,563
7,563
30,250
30,250
Net income (loss) available (attributable) to common shareholders
$
286,069
$
(150,145)
$
1,051,536
$
346,042
2
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended
December 31,
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q4 2022
2023
UNDERWRITING REVENUES
Gross premiums written
$
1,975,324
$
1,935,902
$
2,440,236
$
2,654,427
$
1,784,293
$
1,758,696
$
8,356,525
Ceded premiums written
(749,775)
(699,917)
(866,492)
(932,354)
(712,038)
(662,142)
(3,254,200)
Net premiums written
1,225,549
1,235,985
1,573,744
1,722,073
1,072,255
1,096,554
5,102,325
Gross premiums earned
2,207,338
2,159,646
2,117,937
2,044,647
2,035,926
2,050,239
7,973,577
Ceded premiums earned
(830,324)
(792,945)
(813,459)
(786,606)
(770,653)
(710,077)
(2,889,796)
Net premiums earned
1,377,014
1,366,701
1,304,478
1,258,041
1,265,273
1,340,162
5,083,781
Other insurance related income
7,016
6,838
8,526
8,340
6,050
3,076
22,495
Total underwriting revenues
1,384,030
1,373,539
1,313,004
1,266,381
1,271,323
1,343,238
5,106,276
UNDERWRITING EXPENSES
Net losses and loss expenses
831,956
831,872
765,988
728,671
1,152,262
798,214
3,393,102
Acquisition costs
276,273
274,935
265,091
254,254
253,918
275,573
1,000,945
Underwriting-related general and administrative expenses [a]
146,299
131,582
120,768
137,793
139,216
137,220
551,467
Total underwriting expenses
1,254,528
1,238,389
1,151,847
1,120,718
1,545,396
1,211,007
4,945,514
UNDERWRITING INCOME (LOSS) [b]
129,502
135,150
161,157
145,663
(274,073)
132,231
160,762
OTHER (EXPENSES) REVENUES
Net investment income
195,773
205,100
190,975
167,383
186,937
147,085
611,742
Net investment gains (losses)
(108,030)
32,182
(53,479)
(9,207)
23,041
(42,558)
(74,630)
Corporate expenses [a]
(42,887)
(33,621)
(27,673)
(25,580)
(30,633)
(50,252)
(132,979)
Foreign exchange (losses) gains
112,090
(92,204)
7,384
23,552
(69,871)
(78,989)
(58,115)
Interest expense and financing costs
(16,761)
(16,849)
(17,010)
(17,147)
(18,344)
(16,426)
(68,421)
Reorganization expenses
-
-
(14,014)
(12,299)
-
(9,485)
(28,997)
Amortization of intangible assets
(2,729)
(2,729)
(2,729)
(2,729)
(2,729)
(2,729)
(10,917)
Total other (expenses) revenues
137,456
91,879
83,454
123,973
88,401
(53,354)
237,683
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME
266,958
227,029
244,611
269,636
(185,672)
78,877
398,445
(LOSS) OF EQUITY METHOD INVESTMENTS
Income tax (expense) benefit
19,410
(47,922)
(40,547)
124,654
41,762
(27,341)
(26,316)
Interest in income (loss) of equity method investments
7,264
1,621
7,900
1,169
1,328
(3,045)
4,163
NET INCOME (LOSS)
293,632
180,728
211,964
395,459
(142,582)
48,491
376,292
Preferred share dividends
(7,563)
(7,563)
(7,563)
(7,563)
(7,563)
(7,563)
(30,250)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON
$
286,069
$
173,165
$
204,401
$
387,896
$
(150,145)
$
40,928
$
346,042
SHAREHOLDERS
3
Disclaimer
Axis Capital Holdings Limited published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 21:59:48.850.