Axis profit climb 16% to $251m
AXIS Capital reported second-quarter net income of $251 million, or $3.38 per diluted common share - up 16 per cent year over year.
The Bermudian-based specialty underwriter also reported operating income of $211 million, or $2.84 per diluted common share.
Despite an “evolving risk landscape” the company achieved an annualised return on average common equity of 17 per cent.
Vince Tizzio, the chief executive officer of Axis, attributed the results to “consistent, profitable growth” during a period impacted by the Middle East conflict and shifting market conditions.
The company’s consolidated combined ratio stood at 93.1 per cent, producing underwriting income of $143 million.
The insurance segment was a primary driver of growth, with gross premiums written increasing by 15 per cent to reach $2.2 billion.
Mr Tizzio noted that this was propelled by expanded classes of business and contributions from the company’s “capacity solutions” capability.
Conversely, the reinsurance segment saw a planned decrease, with gross premiums written falling 25 per cent to $439 million, largely due to non-renewals and decreased line sizes in casualty lines.
The quarter’s results included $80 million in pre-tax catastrophe and weather-related losses. While $49 million of this total was attributed to natural catastrophes, $31 million was specifically linked to the ongoing Middle East conflict.
Despite these pressures, the insurance business maintained a 90 per cent combined ratio. Axis also reported net favourable prior year reserve development of $15 million during the quarter.
Net investment income reached $182 million, a slight decrease from the prior year's $187 million, primarily due to lower income from “other investments”. However, the book yield of fixed maturities improved to 4.8 per cent.
The company continued to return significant capital to its shareholders, totalling $122 million in the second quarter through $89 million in share repurchases and $33 million in common share dividends.
Book value per diluted common share rose to $80.67 marking a 14.7 per cent increase over the past twelve months.
Looking ahead, Mr Tizzio noted that Axis will celebrate its 25th anniversary in the third quarter.
The company was founded in the aftermath of the “9/11” attacks to provide tailored solutions, and the CEO said that specialised expertise is needed now even more.
He said: “Axis continued to generate consistent, profitable growth in the second quarter, amidst an evolving risk landscape impacted by the Middle East conflict and further transitioning market conditions.
“Our results were highlighted by 14.3 per cent annualised operating return-on-equity, 15 per cent year-over-year increase in book value per diluted common share, and gross premiums written of $2.7 billion, up by 6 per cent over the prior year.
“In the third quarter, Axis will celebrate its 25th anniversary. Our company was founded in the aftermath of September 11 to address an urgent need for tailored insurance solutions. Since then, that need has only intensified, reinforcing the critical role specialists play in helping clients navigate an increasingly dynamic risk environment.”
As of June 30, Axis Capital reported total shareholders’ equity of $6.5 billion.
• For more on the Axis Capital Q2 results, see Related Media
• This story was generated by machine and edited by The Royal Gazette newsroom
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