AXIS Capital Holdings Limited has reported its third-quarter 2024 financial results, showing net income available to common shareholders of $173 million, or $2.04 per diluted share.
This compares to $181 million, or $2.10 per diluted share, for the same quarter in 2023. Operating income for the quarter reached $230 million, or $2.71 per diluted share, up from $202 million, or $2.34 per share, in the third quarter of the previous year.
In its news release, the company said that its current accident-year combined ratio, excluding catastrophe and weather-related losses, was 87.9% for the quarter and 88.1% for the nine months ended September 30, marking an improvement of 1.8 points from the prior year’s third quarter and 1.0 point year-to-date.
Net investment income totalled $205 million, reflecting a 33% increase over $154 million for the third quarter of 2023, driven by higher yields and growth in fixed-maturity assets. The book yield of fixed maturities rose to 4.4% at the end of the quarter, with a market yield of 4.9%.
Book value per diluted share was $64.65 as of September 30, up $5.36, or 9.0%, from June 30, 2024, attributed to net income and unrealised investment gains, partially offset by common share dividends of $0.44 per share.
Over the past 12 months, book value per share has increased by $13.48, or 26.3%, factoring in net income and unrealised investment gains, offset by $1.76 per share in dividends. Excluding after-tax unrealised investment losses, book value per diluted share was $65.24, representing a 2.7% increase from $63.54 at the end of the previous quarter and a 9.1% rise from $59.78 a year earlier.
Year-to-date capital returned to common shareholders stands at $253 million, including $140 million in share repurchases under Board-authorised programs and $113 million in dividends.
AXIS Capital president and CEO Vince Tizzio (pictured above) addressed the results, suggesting that in a high-catastrophe quarter marked by Hurricanes Helene and Milton, the company achieved consistent outcomes.
“AXIS produced consistent, profitable results as we continue to deliver on our stated goals from our Investor Day,” Tizzio said. “In the quarter, we generated an annualised 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.”
Tizzio also highlighted AXIS’s focus on growth markets and new revenue opportunities, emphasising that the company is well-positioned to navigate the evolving risk environment and remains committed to advancing its specialty underwriting goals as 2024 draws to a close.
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