The following is a summary of the AXIS Capital Holdings Limited (AXS) Q4 2024 Earnings Call Transcript:
Financial Performance:
AXIS Capital operating ROE reached 18.6% with a book value per share increase of 20.7% year-on-year.
Record operating earnings per share at $11.18, a 98% increase from last year.
Business Progress:
Expanded underwriting and product capabilities; launched Energy Transition Syndicate at Lloyd's.
Insurance combined ratio of 89.1% with a 7.7% premium increase; Reinsurance ratio at 91.8% with 8% growth.
Opportunity:
Opportunities for growth in cyber, A&H, renewable and traditional energy sectors.
Focus on expanding less volatile, short-tail premium lines.
Risk:
Facing increased competition in global property, marine, and aviation markets.
Exposed to social inflation in liability lines and evolving cyber risk landscape.
Financial Performance:
AXIS Capital reported a strong financial performance in 2024 with operating return on equity of 18.6% and a year-end book value of $65.27 per share, representing a 20.7% increase from the previous year.
Record operating earnings per share were $11.18, significantly up by 98% from the prior year.
Delivered a combined ratio of 92.3% for the year, a 7.6-point improvement over the previous year. This reflects efficient management of losses and expenses.
Gross premiums written exceeded $9 billion, marking an 8% growth, driven by both new business and existing operations.
Business Progress:
AXIS focused on expanding underwriting and product capabilities, enhancing operating models, and recruiting complementary talent.
Significant growth in the Insurance business with a combined ratio of 89.1% and premium up by 7.7%.
Progress in Reinsurance segment highlighted by a combined ratio of 91.8% and premium growth of nearly 8%.
The How We Work program advanced, focusing on long-term profitable growth through operational and technological enhancements.
Launched the Energy Transition Syndicate at Lloyd's, generating significant new business.
Opportunities:
AXIS sees continued opportunities for growth in specialty areas like cyber, A&H, renewable energy, and traditional energy sectors.
Expansion in both insurance and reinsurance sectors, supported by improved product capabilities and market conditions.
Enhanced focus on less volatile, short-tail premium lines.
Risks:
Increased competition in certain global markets, particularly in property, marine, and aviation units.
Exposure to social inflation, particularly affecting liability lines with increasing claim awards.
Challenges in the cyber risk landscape due to evolving threats and regulations.
More details: Axis Capital Holdings IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
