AXIS Capital triples net income

Strong underwriting and investment income drive record earnings

AXIS Capital triples net income

Insurance News

By Kenneth Araullo

AXIS Capital Holdings has reported trebling its net income available to common shareholders to US$1.1 billion for the year ended December 31, 2024, or US$12.35 per diluted common share, up from US$346 million, or US$4.02 per diluted common share, in 2023.

Operating income for the year was US$952 million, or US$11.18 per diluted common share, compared to US$486 million, or US$5.65 per diluted common share, the previous year. 

The company’s combined ratio for the current accident year, excluding catastrophe and weather-related losses, stood at 89.5% for the fourth quarter of 2024 and 88.5% for the full year. The fourth-quarter figure was 0.6 percentage points higher than the prior-year period, while the full-year result reflected an improvement of 0.6 percentage points compared to 2023. 

AXIS reported net investment income of US$196 million for the fourth quarter, up from US$187 million a year earlier, primarily due to higher yields from fixed maturities, though this was partially offset by lower returns on alternative investments. The book yield for fixed maturities was 4.5% at year-end, compared to 4.2% at the end of 2023, while the market yield stood at 5.3%. 

The company recorded US$85 million in fees from arrangements with strategic capital partners in 2024, an increase from US$61 million in 2023.

AXIS also benefited from an income tax credit of US$19 million in the fourth quarter, mainly due to adjustments to deferred tax assets and liabilities that were no longer required, as well as an increase in the Bermuda net deferred tax asset ahead of the implementation of Bermuda's corporate income tax on January 1, 2025.

Excluding these tax benefits, the effective tax rate was 5.4%, reflecting pre-tax income in the company’s UK and US operations. 

For the full year, AXIS reported an income tax benefit of US$56 million, also attributed to Bermuda’s tax changes and adjustments to deferred tax assets and liabilities. Without these benefits, the effective tax rate was 13.8%, reflecting pre-tax income across the US, UK, and Europe. 

Book value per diluted common share increased by 1% from 30 September 2024 to US$65.27 at year-end, reflecting net income offset by net unrealized investment losses and dividends of US$0.44 per share.

AXIS insurance, reinsurance divisions

AXIS saw growth across its specialty lines, with the insurance division achieving a combined ratio of 89.1% for the full year, alongside a 7.7% increase in premiums to US$6.6 billion. The reinsurance segment recorded a combined ratio of 91.8%, with premiums rising by 7.9% to US$2.4 billion. 

Vince Tizzio (pictured), president and CEO of AXIS Capital, said the company met its financial and operational targets for the year.

“In 2024, we made significant strides in enhancing our operating model through our 'How We Work program'. This included building new capabilities, investing in technology and data, and adding strong talent to complement our existing team,” he said.

“As we progress into 2025, we believe AXIS is poised to build on its positive momentum, while leveraging our specialty expertise to help our customers navigate an increasingly dynamic risk landscape,” Tizzio said.

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