Axios Capital Reports Strong Financial Performance, Shifts Investment Strategy

AXIS Capital Holdings Limited reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in total investments, rising to $16.67 billion from $15.26 billion at the end of 2023. Total assets also grew to $32.72 billion, up from $30.25 billion. Shareholders' equity increased to $6.08 billion, compared to $5.26 billion at the end of the previous year.

For the third quarter of 2024, AXIS reported net income of $180.73 million, slightly down from $188.10 million in the same period of 2023. However, net income for the nine months ended September 30, 2024, surged to $788.15 million, a significant increase from $518.87 million in the prior year. The company’s net cash provided by operating activities also improved, reaching $1.49 billion compared to $1.01 billion in the same period last year.

The company’s gross premiums written for Q3 2024 increased by 5% year-over-year to $1.9 billion, driven by growth in property, accident and health, and liability lines. However, there were declines in cyber and marine and aviation lines. For the nine months, gross premiums written rose by 8% to $4.8 billion, with similar trends observed across various lines of business.

AXIS reported a combined ratio of 93.1% for Q3 2024, reflecting a slight increase in the current accident year loss ratio to 59.3%, up from 55.7% in Q3 2023. Catastrophe and weather-related losses for the quarter amounted to $78 million, contributing 7.0 points to the loss ratio, compared to $37 million in the same quarter of the previous year.

The company also noted a significant shift in its investment strategy, with a focus on specialty insurance and reinsurance markets. AXIS has been actively managing its portfolio, including a new share repurchase program approved for up to $300 million, which is open-ended and allows for repurchases based on market conditions. In the nine months ended September 30, 2024, AXIS repurchased 2.4 million shares for $155 million.

AXIS Capital's financial position remains robust, with total cash and investments amounting to $18.1 billion as of Q3 2024. The company continues to navigate market conditions while focusing on strategic growth and operational efficiency, including the implementation of its "How We Work" program aimed at simplifying its operating structure.