Axis Capital (AXS) came out with quarterly earnings of $2.93 per share, beating the Zacks Consensus Estimate of $2.52 per share. This compares to earnings of $2.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.27%. A quarter ago, it was expected that this insurance company would post earnings of $2.54 per share when it actually produced earnings of $2.57, delivering a surprise of 1.18%.Over the last four quarters, the com ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the periods ended June 30, 2024, and December 31, 2023 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet expanded, with notable growth in total assets, unearned premiums, and shareholders' equity Consolidated Balance Sheet Highlights (June 30, 2024 vs. December 31, 2023) | Metric (in thousands) | June 30, 2024 | December 31, 2023 | Change (%) | |:----------------------|:--------------|:------------------|:-----------| | Total Assets | $32,078,882 | $30,250,672 | 6.0% | | Total Liabilities | $26,419,411 | $24,987,476 | 5.7% | | Total Shareholders' Equity | $5,659,471 | $5,263,196 | 7.5% | | Reserve for losses and loss expenses | $16,738,871 | $16,434,018 | 1.9% | | Unearned premiums | $5,674,787 | $4,747,602 | 19.5% | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Operational performance improved significantly, driven by higher total revenues and a substantial increase in net income Consolidated Statements of Operations Highlights (Six Months Ended June 30, 2024 vs. 2023) | Metric (in thousands) | 2024 | 2023 | Change (%) | |:----------------------|:--------------|:--------------|:-----------| | Total Revenues | $2,875,057 | $2,728,087 | 5.4% | | Total Expenses | $2,360,808 | $2,353,755 | 0.3% | | Net Income | $607,425 | $330,773 | 83.6% | | Net Income available to common shareholders | $592,300 | $315,648 | 87.6% | | Earnings per common share | $6.99 | $3.71 | 88.4% | | Earnings per diluted common share | $6.93 | $3.68 | 88.3% | - Net premiums earned increased by **3%** for both the three and six months ended June 30, 2024, compared to the same periods in 2023[24](index=24&type=chunk) - Net investment income saw significant growth, increasing by **40%** for the three months and **32%** for the six months ended June 30, 2024[24](index=24&type=chunk) - The company reported foreign exchange gains of **$7,384 thousand** for the three months and **$30,936 thousand** for the six months ended June 30, 2024, a significant reversal from losses in the prior year periods[26](index=26&type=chunk) [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income grew despite a significant negative shift in other comprehensive income due to investment unrealized losses Consolidated Statements of Comprehensive Income Highlights (Six Months Ended June 30, 2024 vs. 2023) | Metric (in thousands) | 2024 | 2023 | Change (%) | |:----------------------|:--------------|:--------------|:-----------| | Net Income | $607,425 | $330,773 | 83.6% | | Total other comprehensive income (loss), net of tax | $(29,132) | $129,791 | -122.5% | | Comprehensive income | $578,293 | $460,564 | 25.5% | - Unrealized gains (losses) on available for sale investments, net of reclassification adjustment, shifted from a gain of **$127,143 thousand** in 2023 to a loss of **$(18,378) thousand** in 2024 for the six-month period[30](index=30&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased, supported by strong net income, while share repurchases rose dramatically Shareholders' Equity Changes (Six Months Ended June 30, 2024 vs. 2023) | Metric (in thousands) | 2024 | 2023 | Change (%) | |:----------------------|:--------------|:--------------|:-----------| | Total shareholders' equity (end of period) | $5,659,471 | $5,020,961 | 12.7% | | Net income | $607,425 | $330,773 | 83.6% | | Common share dividends | $(75,643) | $(76,769) | -1.5% | | Shares repurchased | $(114,524) | $(17,051) | 571.7% | - The company significantly increased common share repurchases, from **$17,051 thousand** in the first six months of 2023 to **$114,524 thousand** in the same period of 2024[33](index=33&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations grew substantially, though cash used in investing and financing activities also increased Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, 2024 vs. 2023) | Metric (in thousands) | 2024 | 2023 | Change (%) | |:----------------------|:--------------|:--------------|:-----------| | Net cash provided by operating activities | $902,239 | $637,314 | 41.6% | | Net cash used in investing activities | $(410,191) | $(182,117) | 125.2% | | Net cash used in financing activities | $(207,158) | $(104,948) | 97.4% | | Cash, cash equivalents and restricted cash - end of period | $1,655,063 | $1,518,270 | 9.0% | - Operating cash flow increased substantially, driven by higher net income and significant increases in unearned premiums and reserve for losses and loss expenses[35](index=35&type=chunk) - Investing activities saw a notable increase in cash used, primarily due to higher purchases of fixed maturities, available for sale, and loan advances made[35](index=35&type=chunk) [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations for the line items and policies within the consolidated financial statements [Note 1 - Organization](index=14&type=section&id=Note%201%20-%20Organization) Details the company's corporate structure and recent operational developments - AXIS Energy Transition Syndicate 2050 commenced underwriting on April 1, 2024, with AXIS Corporate Capital UK II Limited as its sole corporate member[42](index=42&type=chunk) [Note 2 - Basis of Presentation and Significant Accounting Policies](index=14&type=section&id=Note%202%20-%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Outlines the accounting principles and policies used in preparing the financial statements - The unaudited consolidated financial statements are prepared in accordance with **U.S. GAAP** for interim financial information and SEC instructions to Form 10-Q[43](index=43&type=chunk) - No notable changes to significant accounting policies occurred since the Annual Report on Form 10-K for December 31, 2023[46](index=46&type=chunk) [Note 3 - Segment Information](index=15&type=section&id=Note%203%20-%20Segment%20Information) Breaks down financial performance by the Insurance and Reinsurance operating segments - The company operates with two reportable segments: **Insurance** and **Reinsurance**, offering specialty insurance products and treaty reinsurance globally[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) Underwriting Income and Combined Ratio by Segment (Six Months Ended June 30, 2024 vs. 2023) | Metric | Insurance 2024 | Insurance 2023 | Reinsurance 2024 | Reinsurance 2023 | |:----------------------|:---------------|:---------------|:-----------------|:-----------------| | Underwriting income | $238,629 | $218,007 | $68,192 | $69,850 | | Combined ratio | 87.3% | 86.9% | 92.5% | 92.4% | Gross Premiums Written by Segment (Six Months Ended June 30, 2024 vs. 2023) | Segment | 2024 (in thousands) | 2023 (in thousands) | Change (%) | |:------------|:--------------------|:--------------------|:-----------| | Insurance | $3,388,571 | $3,099,762 | 9% | | Reinsurance | $1,706,092 | $1,566,592 | 9% | | Total | $5,094,663 | $4,666,354 | 9% | [Note 4 - Investments](index=18&type=section&id=Note%204%20-%20Investments) Details the composition and performance of the company's investment portfolio Total Investments by Type (June 30, 2024 vs. December 31, 2023) | Investment Type (in thousands) | June 30, 2024 | December 31, 2023 | |:-------------------------------|:--------------|:------------------| | Fixed maturities, available for sale | $12,585,137 | $12,234,742 | | Fixed maturities, held to maturity | $637,792 | $686,296 | | Equity securities | $589,899 | $588,511 | | Mortgage loans | $544,859 | $610,148 | | Other investments | $936,680 | $949,413 | | Equity method investments | $193,705 | $174,634 | | Short-term investments | $57,436 | $17,216 | | Total Investments | $15,545,508 | $15,260,960 | - At June 30, 2024, 4,248 fixed maturities were in an unrealized loss position of **$466 million**, primarily due to non-credit factors, with the company not intending to sell these securities before anticipated recovery[66](index=66&type=chunk)[67](index=67&type=chunk) - The mortgage loan portfolio had an allowance for expected credit loss of **$21 million** at June 30, 2024, up from $6 million at December 31, 2023, primarily related to commercial properties in the office sector[82](index=82&type=chunk)[331](index=331&type=chunk) Net Investment Income by Source (Six Months Ended June 30, 2024 vs. 2023) | Source (in thousands) | 2024 | 2023 | Change (%) | |:----------------------|:--------------|:--------------|:-----------| | Fixed maturities | $293,419 | $242,652 | 20.9% | | Other investments | $19,974 | $(4,855) | nm | | Equity securities | $5,819 | $5,445 | 6.9% | | Mortgage loans | $18,237 | $17,266 | 5.6% | | Cash and cash equivalents | $27,395 | $21,174 | 29.4% | | Short-term investments | $7,229 | $3,789 | 90.8% | | Net investment income | $358,358 | $270,601 | 32.4% | [Note 5 - Fair Value Measurements](index=28&type=section&id=Note%205%20-%20Fair%20Value%20Measurements) Explains the methodologies and inputs used to measure the fair value of financial instruments - The company uses a fair value hierarchy (**Level 1, 2, and 3**) to categorize financial instruments based on the observability of inputs used in valuation techniques[104](index=104&type=chunk)[105](index=105&type=chunk) Fair Value of Assets by Level (June 30, 2024, in thousands) | Asset Type | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total Fair Value | |:-----------------------------------------|:------------|:-------------|:-----------|:------------------------|:-----------------| | Fixed maturities, available for sale | $2,627,921 | $9,832,207 | $125,009 | — | $12,585,137 | | Equity securities | $299,689 | $290,210 | — | — | $589,899 | | Other investments | — | — | $89,786 | $846,894 | $936,680 | | Short-term investments | — | $57,436 | — | — | $57,436 | | Derivative instruments (Other Assets) | — | $1,822 | — | — | $1,822 | | Total Assets | $2,927,610 | $10,181,675 | $214,795 | $846,894 | $14,170,974 | - The fair value of CLO-Equities and other privately held investments are classified as **Level 3** due to unobservable inputs, with default rate and loss severity rates being the most judgmental for CLO-Equities[122](index=122&type=chunk)[123](index=123&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) [Note 6 - Derivative Instruments](index=41&type=section&id=Note%206%20-%20Derivative%20Instruments) Discloses the use of derivative instruments for managing foreign currency risk Derivative Instruments Fair Value (June 30, 2024 vs. December 31, 2023, in thousands) | Metric | June 30, 2024 | December 31, 2023 | |:------------------------|:--------------|:------------------| | Derivative asset fair value | $1,822 | $4,424 | | Derivative liability fair value | $4,822 | $10,165 | - The company uses foreign exchange forward contracts to manage foreign currency risk in both its investment and underwriting portfolios, with none designated as hedges[163](index=163&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk) Total Unrealized and Realized Gains (Losses) from Derivatives (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Portfolio | 2024 | 2023 | |:----------------------|:-------|:-------| | Investment portfolio | $1,023 | $(1,474)| | Underwriting portfolio| $1,081 | $8,237 | | Total | $2,104 | $6,763 | [Note 7 - Reserve for Losses and Loss Expenses](index=43&type=section&id=Note%207%20-%20Reserve%20for%20Losses%20and%20Loss%20Expenses) Provides a roll-forward of the reserve for losses and loss expenses, a key balance sheet item Reserve for Losses and Loss Expenses Roll-Forward (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:---------------------------------------------------------------------|:--------------|:--------------| | Gross reserve for losses and loss expenses, beginning of period | $16,434,018 | $15,168,863 | | Net incurred losses and loss expenses related to current year | $1,494,659 | $1,467,256 | | Net incurred losses and loss expenses related to prior years | — | $(10,357) | | Net paid losses and loss expenses | $(1,411,092) | $(1,339,515) | | Gross reserve for losses and loss expenses, end of period | $16,738,871 | $15,419,498 | - Net prior year reserve development was **$nil** for both the three and six months ended June 30, 2024, compared to favorable development in the prior year periods[176](index=176&type=chunk)[182](index=182&type=chunk)[189](index=189&type=chunk)[193](index=193&type=chunk) - Catastrophe and weather-related losses, net of reinsurance, were **$67 million** for the six months ended June 30, 2024, including $9 million attributable to the Red Sea Conflict[172](index=172&type=chunk) [Note 8 - Earnings Per Common Share](index=49&type=section&id=Note%208%20-%20Earnings%20Per%20Common%20Share) Details the calculation of basic and diluted earnings per common share Earnings Per Common Share (Six Months Ended June 30, 2024 vs. 2023) | Metric | 2024 | 2023 | |:----------------------------------------|:---------|:---------| | Net income available to common shareholders | $592,300 | $315,648 | | Weighted average common shares outstanding | 84,677 | 85,036 | | Earnings per common share | $6.99 | $3.71 | | Earnings per diluted common share | $6.93 | $3.68 | [Note 9 - Share-Based Compensation](index=49&type=section&id=Note%209%20-%20Share-Based%20Compensation) Describes the company's share-based compensation plans and related expenses - Performance Restricted Stock Units granted in 2024 include market conditions (Relative TSR) and performance conditions (Adjusted DBVPS), vesting over a three-year period[200](index=200&type=chunk)[201](index=201&type=chunk) Share-Based Compensation Expense (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:--------|:--------| | Share-based compensation expense | $23,273 | $28,240 | | Tax benefits associated with share-based compensation expense | $4,448 | $4,840 | [Note 10 - Shareholders' Equity](index=52&type=section&id=Note%2010%20-%20Shareholders'%20Equity) Details changes in shareholders' equity, including share repurchases and dividend activity Common Shares Issued and Outstanding (June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:--------|:--------| | Total shares issued at end of period | 176,580 | 176,580 | | Total treasury shares at end of period | (92,401)| (91,364)| | Total shares outstanding | 84,179 | 85,216 | - The company's share repurchase program approved in December 2023 was exhausted at June 30, 2024, and a new **$300 million** open-ended program was approved on May 16, 2024[219](index=219&type=chunk)[390](index=390&type=chunk) Common Share Repurchases (Six Months Ended June 30, 2024 vs. 2023) | Metric | 2024 (in thousands) | 2023 (in thousands) | |:----------------------------------------|:--------------------|:--------------------| | Total shares repurchased | 1,826 | 282 | | Total cost | $114,524 | $17,051 | [Note 11 - Debt and Financing Arrangements](index=53&type=section&id=Note%2011%20-%20Debt%20and%20Financing%20Arrangements) Outlines the company's debt structure and other financing facilities - Loan advances of **$45 million** to a third-party reinsurer were repaid in 2024, treated as a non-cash activity[224](index=224&type=chunk) - The **$500 million** Letter of Credit Facility was amended on March 26, 2024, reducing committed capacity to **$300 million** and extending tenors to March 31, 2026[225](index=225&type=chunk) [Note 12 - Federal Home Loan Bank Advances](index=53&type=section&id=Note%2012%20-%20Federal%20Home%20Loan%20Bank%20Advances) Discloses borrowings from the Federal Home Loan Bank program - The company had **$86 million** in borrowings under the FHLB program at June 30, 2024, secured by investments with a fair value of **$92 million**[226](index=226&type=chunk) [Note 13 - Commitments and Contingencies](index=54&type=section&id=Note%2013%20-%20Commitments%20and%20Contingencies) Discusses potential liabilities from legal proceedings and other commitments - The company is subject to routine legal proceedings in the ordinary course of business, with estimated amounts payable included in loss reserves[228](index=228&type=chunk)[229](index=229&type=chunk) [Note 14 - Other Comprehensive Income (Loss)](index=55&type=section&id=Note%2014%20-%20Other%20Comprehensive%20Income%20(Loss)) Provides a breakdown of the components of other comprehensive income Total Other Comprehensive Income (Loss), Net of Tax (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:---------------------------------------------------------------------------------------------------|:----------|:----------| | Unrealized gains (losses) arising during the period, net of reclassification adjustment | $(18,378) | $127,143 | | Foreign currency translation adjustment | $(10,754) | $2,648 | | Total other comprehensive income (loss), net of tax | $(29,132) | $129,791 | [Note 15 - Related Party Transactions](index=57&type=section&id=Note%2015%20-%20Related%20Party%20Transactions) Discloses transactions with related parties, including investments and reinsurance agreements - The company invested **$10 million** in Monarch Point Re, a collateralized reinsurer jointly sponsored with Stone Point[235](index=235&type=chunk)[236](index=236&type=chunk) - The company entered into a reinsurer novation and replacement agreement with Harrington Re and a third-party reinsurer regarding a quota share retrocessional agreement[238](index=238&type=chunk) [Note 16 - Reorganization Expenses](index=57&type=section&id=Note%2016%20-%20Reorganization%20Expenses) Details expenses incurred from corporate reorganization activities Reorganization Expenses (Three and Six Months Ended June 30, 2024, in thousands) | Period | Amount | |:----------------------|:---------| | Three months ended June 30, 2024 | $14,014 | | Six months ended June 30, 2024 | $26,312 | - Reorganization expenses were primarily related to severance costs from the **'How We Work' program**, aimed at simplifying the company's operating structure[239](index=239&type=chunk) [Note 17 - Income Taxes](index=58&type=section&id=Note%2017%20-%20Income%20Taxes) Explains the components of income tax expense and the impact of new tax legislation - Bermuda enacted a **15% corporate income tax** effective January 1, 2025, resulting in the company recording a net deferred tax asset of **$163 million**[242](index=242&type=chunk)[262](index=262&type=chunk) Total Income Tax Expense (Benefit) (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:----------|:----------| | Total income tax expense (benefit) | $(84,107) | $43,454 | - The actual tax rate for the six months ended June 30, 2024, was **(16.1)%**, compared to 11.6% in the prior year, largely influenced by the Bermuda Economic Transition Adjustment[247](index=247&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial condition and results of operations, covering consolidated and segment performance, investments, and key financial measures [Second Quarter 2024 Financial Highlights](index=61&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) Summarizes key financial results and activities for the second quarter of 2024 Q2 2024 Consolidated Financial Highlights | Metric | Amount (in millions) | |:----------------------------------------|:---------------------| | Net income available to common shareholders | $204 | | Operating income | $250 | | Gross premiums written | $2,400 | | Net premiums earned | $1,300 | | Underwriting income | $161 | | Combined ratio | 90.4% | | Net investment income | $191 | | Total cash and investments | $17,200 | | Book value per diluted common share | $59.29 | - Pre-tax catastrophe and weather-related losses, net of reinsurance, were **$47 million** (3.6 points), including $9 million attributable to the Red Sea Conflict[252](index=252&type=chunk) - The company repurchased **545,000 common shares** for **$39 million** during the quarter[253](index=253&type=chunk) [Overview](index=62&type=section&id=Overview) Provides a high-level summary of the company's business, strategy, and market outlook - AXIS Capital is a global specialty underwriter and provider of insurance and reinsurance solutions, aiming for consistent, profitable growth[254](index=254&type=chunk)[257](index=257&type=chunk) - Market conditions remain favorable, with positive rate changes expected across casualty classes, though moderation is anticipated in other classes[258](index=258&type=chunk) - Recent developments include the commencement of underwriting by AXIS Energy Transition Syndicate 2050 and reorganization expenses related to the 'How We Work' program[261](index=261&type=chunk) [Consolidated Results of Operations](index=64&type=section&id=Consolidated%20Results%20of%20Operations) Presents a detailed analysis of the company's consolidated operational results Consolidated Underwriting Results (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | Change (%) | |:----------------------------------------|:------------|:------------|:-----------| | Gross premiums written | $5,094,663 | $4,666,354 | 9% | | Net premiums written | $3,295,817 | $3,054,713 | 8% | | Net premiums earned | $2,562,519 | $2,495,944 | 3% | | Underwriting income | $306,821 | $287,857 | 6.6% | | Combined ratio | 90.8% | 91.2% | -0.4 pts | - The combined ratio improved by **1.1 points to 90.4%** for the three months ended June 30, 2024, primarily due to a decrease in the general and administrative expense ratio[267](index=267&type=chunk) - Net investment income increased by **40%** for the three months and **32%** for the six months ended June 30, 2024, contributing significantly to overall profitability[265](index=265&type=chunk) [Results by Segment](index=66&type=section&id=Results%20by%20Segment) Analyzes the underwriting performance of the Insurance and Reinsurance segments [Insurance Segment](index=66&type=section&id=Insurance%20Segment) Details the operational results and premium growth within the Insurance segment Insurance Segment Underwriting Results (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | Change (%) | |:----------------------------------------|:------------|:------------|:-----------| | Gross premiums written | $3,388,571 | $3,099,762 | 9% | | Net premiums earned | $1,876,159 | $1,659,206 | 13% | | Underwriting income | $238,629 | $218,007 | 9.5% | | Combined ratio | 87.3% | 86.9% | 0.4 pts | - Gross premiums written increased by **9%** for the six months ended June 30, 2024, driven by growth in property, marine and aviation, accident and health, credit and political risk, and professional lines[273](index=273&type=chunk)[274](index=274&type=chunk) - The current accident year loss ratio increased to **55.4%** for the six months ended June 30, 2024, primarily due to higher catastrophe and weather-related losses (**$65 million**, or 3.5 points)[285](index=285&type=chunk) [Reinsurance Segment](index=72&type=section&id=Reinsurance%20Segment) Details the operational results and premium changes within the Reinsurance segment Reinsurance Segment Underwriting Results (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | Change (%) | |:----------------------------------------|:------------|:------------|:-----------| | Gross premiums written | $1,706,092 | $1,566,592 | 9% | | Net premiums earned | $686,360 | $836,738 | (18%) | | Underwriting income | $68,192 | $69,850 | (2.4%) | | Combined ratio | 92.5% | 92.4% | 0.1 pts | - Net premiums earned decreased by **18%** for the six months ended June 30, 2024, primarily due to increased ceded premiums earned in liability, professional lines, accident and health, and motor lines[308](index=308&type=chunk) - The current accident year loss ratio for the six months ended June 30, 2024, was comparable to the prior year, with lower catastrophe and weather-related losses (**$2 million**, or 0.3 points)[314](index=314&type=chunk) [Net Investment Income and Net Investment Gains (Losses)](index=81&type=section&id=Net%20Investment%20Income%20and%20Net%20Investment%20Gains%20(Losses)) Discusses the performance of the company's investment portfolio, including income and realized gains or losses Net Investment Income (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Net investment income | $358,358 | $270,601 | 32% | - Net investment income increased significantly due to higher yields on fixed maturities and improved returns from private equity funds and other privately held investments[324](index=324&type=chunk)[326](index=326&type=chunk) Net Investment Gains (Losses) (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:----------|:----------| | Net investment gains (losses) | $(62,687) | $(44,558) | - Net investment losses increased, primarily due to realized losses on the sale of U.S. government, Agency RMBS, and corporate debt securities, partially offset by realized gains on equity securities[330](index=330&type=chunk) [Other Expenses (Revenues), Net](index=85&type=section&id=Other%20Expenses%20(Revenues),%20Net) Analyzes corporate expenses, foreign exchange impacts, interest costs, and income taxes Other Expenses (Revenues), Net (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:----------|:----------| | Corporate expenses | $53,252 | $61,664 | | Foreign exchange losses (gains) | $(30,936) | $38,814 | | Interest expense and financing costs | $34,157 | $33,632 | | Income tax expense (benefit) | $(84,107) | $43,454 | - Corporate expenses decreased due to lower personnel and executive compensation costs, while foreign exchange shifted to gains due to the strengthening U.S. dollar[337](index=337&type=chunk)[338](index=338&type=chunk) - The income tax benefit for the six months ended June 30, 2024, was primarily due to the recognition of a **$163 million** benefit related to the future Bermuda corporate income tax rate[341](index=341&type=chunk) [Financial Measures](index=87&type=section&id=Financial%20Measures) Presents key performance indicators, including return on equity and book value per share Key Financial Measures (Six Months Ended June 30, 2024 vs. 2023) | Metric | 2024 | 2023 | |:----------------------------------------|:----------|:----------| | Annualized return on average common equity | 24.1% | 14.7% | | Annualized operating return on average common equity | 19.1% | 18.3% | | Book value per diluted common share | $59.29 | $50.98 | | Increase in book value per diluted common share adjusted for dividends | $6.11 | $4.91 | - **ROACE** and **operating ROACE** increased, driven by higher net income, net investment income, foreign exchange gains, and underwriting income[346](index=346&type=chunk)[347](index=347&type=chunk) - Book value per diluted common share increased by **9.7%** for the six months ended June 30, 2024, primarily due to net income[348](index=348&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=89&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Provides a reconciliation of non-GAAP financial measures to their most comparable GAAP counterparts Operating Income Reconciliation (Six Months Ended June 30, 2024 vs. 2023, in thousands) | Metric | 2024 | 2023 | |:----------------------------------------|:------------|:------------| | Net income available to common shareholders | $592,300 | $315,648 | | Net investment (gains) losses | $62,687 | $44,558 | | Foreign exchange losses (gains) | $(30,936) | $38,814 | | Reorganization expenses | $26,312 | — | | Interest in (income) loss of equity method investments | $(9,069) | $105 | | Bermuda net deferred tax asset | $(162,705) | — | | Operating income | $470,154 | $391,232 | - Non-GAAP measures like **operating income** and **operating ROACE** are presented to provide a clearer view of underlying business performance by excluding volatile or non-recurring items[354](index=354&type=chunk)[365](index=365&type=chunk)[370](index=370&type=chunk) [Cash and Investments](index=96&type=section&id=Cash%20and%20Investments) Details the composition and changes in the company's cash and investment portfolio Total Cash and Investments (June 30, 2024 vs. December 31, 2023, in thousands) | Metric | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Total investments | $15,537,039 | $15,250,515 | | Cash and cash equivalents | $1,655,063 | $1,383,985 | | Total Cash and Investments | $17,192,102 | $16,634,500 | - The fair value of total investments increased by **$287 million** in the six months ended June 30, 2024, driven by reinvestment of interest income and cash flows from operations[376](index=376&type=chunk) - Fixed maturities had a weighted average credit rating of **A+** and an average duration of **3.1 years** at June 30, 2024[378](index=378&type=chunk) [Liquidity and Capital Resources](index=99&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet its obligations through its capital structure and liquidity sources Capital Structure (June 30, 2024 vs. December 31, 2023, in thousands) | Metric | June 30, 2024 | December 31, 2023 | |:----------------------------------------|:--------------|:------------------| | Debt | $1,314,438 | $1,313,714 | | Shareholders' equity | $5,659,471 | $5,263,196 | | Total capital | $6,973,909 | $6,576,910 | | Ratio of debt to total capital | 18.8% | 20.0% | - The debt to total capital ratio improved to **18.8%** at June 30, 2024, from 20.0% at December 31, 2023, indicating a stronger capital structure[385](index=385&type=chunk) - The company repurchased **1.8 million** common shares for **$115 million** during the six months ended June 30, 2024, and approved a new **$300 million** share repurchase program[389](index=389&type=chunk)[390](index=390&type=chunk) [Critical Accounting Estimates](index=101&type=section&id=Critical%20Accounting%20Estimates) Identifies the most significant accounting estimates that require management judgment - Key critical accounting estimates include reserves for losses, reinsurance recoverable, premium recognition, fair value measurements, and credit loss allowances[392](index=392&type=chunk) [Recent Accounting Pronouncements](index=101&type=section&id=Recent%20Accounting%20Pronouncements) Discusses the potential impact of recently issued accounting standards - No recently issued accounting pronouncements are expected to have a material impact on the company's results of operations, financial condition, or liquidity[393](index=393&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=102&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discloses the company's exposure to market risks, particularly foreign currency risk - Total net foreign currency liabilities were **$8 million** at June 30, 2024, primarily driven by exposures to the Canadian dollar, pound sterling, and Australian dollar[399](index=399&type=chunk) Pre-tax Impact of 10% Hypothetical Rate Movement on Net Foreign Currency Exposure (June 30, 2024, in thousands) | Currency | Pre-tax Impact | |:---------|:---------------| | AUD | $(218) | | CAD | $(1,968) | | EUR | $2,573 | | GBP | $(818) | | JPY | $341 | | Other | $(746) | | Total | $(837) | [Item 4. Controls and Procedures](index=103&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and internal control over financial reporting - The company's disclosure controls and procedures were deemed **effective** as of June 30, 2024[400](index=400&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2024[401](index=401&type=chunk) [PART II OTHER INFORMATION](index=89&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) Details routine legal proceedings arising from operations, with no material issues reported outside the ordinary course of business - Routine legal proceedings and arbitrations are part of the ordinary course of business, with related liabilities included in loss reserves[401](index=401&type=chunk) - No material legal proceedings outside the ordinary course of business were reported[402](index=402&type=chunk) [Item 1A. Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to the risk factors previously disclosed in the company's Annual Report - No material changes to the risk factors were reported since the Annual Report on Form 10-K for December 31, 2023[403](index=403&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's common share repurchase activities during the second quarter of 2024 Issuer Purchases of Equity Securities (Q2 2024, in thousands) | Period | Total shares purchased | Average price paid per share | |:------------------|:-----------------------|:-----------------------------| | April 1-30, 2024 | 45 | $56.88 | | May 1-31, 2024 | 495 | $61.94 | | June 1-30, 2024 | — | — | | Total | 540 | — | - The share repurchase program approved in December 2023 was exhausted at June 30, 2024, and a new **$300 million** open-ended share repurchase program was approved on May 16, 2024[405](index=405&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) Includes disclosures regarding activities related to Iran and insider trading arrangements - No material amount of premium was allocated or apportioned to activities relating to Iran for the quarter ended June 30, 2024[405](index=405&type=chunk) - No director or officer adopted, terminated, or is currently party to a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2024[405](index=405&type=chunk) [Item 6. Exhibits](index=91&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and financial data - Exhibits include certifications from the CEO and CFO (31.1, 31.2, 32.1, 32.2) and financial information formatted in Inline XBRL (101, 104)[408](index=408&type=chunk) [Signatures](index=92&type=section&id=Signatures) Contains the required signatures of the registrant's principal executive and financial officers - The report is signed by **Vincent Tizzio**, President and Chief Executive Officer, and **Peter Vogt**, Chief Financial Officer[412](index=412&type=chunk)

AXIS CAPITAL HOLDINGS LIMITED INVESTOR SUPPLEMENT FINANCIAL SECOND QUARTER 2024 | --- | --- | |------------------------------------------------------|-------| | | | | | | | AXIS Capital Holdings Limited | | | 92 Pitts Bay Road Pembroke HM 08 Bermuda | | | | | | Contact Information: Cliff Gallant | | | Investor Contact (415) 262-6843 | | | investorrelations@axiscapital.com | | | Website Information: www.axiscapital.com | | This report is for informational purposes only. It should be read in conjunction with ...

Axis Capital (AXS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 30, 2024, might help the stock move higher if these key numbers are better than expec ...

Rebrands time-tested KLDW ETF, continuing its distinctive equity strategy based on Steve Vannelli's "Knowledge Effect"NEW YORK, July 22, 2024 /PRNewswire/ -- AXS Investments, provider of ETFs and mutual funds for growth, income and diversification, today launched the AXS Knowledge Leaders ETF (KNO) to offer a time-tested, geographically diverse path to invest in the stocks of innovative companies.The AXS Knowledge Leaders ETF (KNO) is an actively managed ETF that seeks long-term capital appreciation by inve ...

Core Viewpoint - AXIS Capital Holdings Limited (AXS) has shown strong performance with a year-to-date share price increase of 30.4%, outperforming the industry and broader market indices [1] Group 1: Company Performance - AXS has a diversified product portfolio, underwriting excellence, digital capabilities, and a solid capital position, contributing to its strong performance [1] - The Zacks Consensus Estimate for AXS's 2025 earnings has increased by 0.4% in the past week, indicating analyst optimism [1] Group 2: Growth Strategy - AXS aims to be a leading specialty underwriter, focusing on growth areas such as wholesale insurance and lower middle markets, while exiting volatile catastrophe and property reinsurance [3] - The Insurance segment is expected to benefit from a diversified portfolio and leadership positions across major business lines, while the Reinsurance business will focus on strong cycle management [3] Group 3: Financial Projections - The Zacks Consensus Estimate for 2024 earnings is $10.04, reflecting a 1.9% increase on 4.5% higher revenues of $6 billion, while the 2025 earnings estimate is $11.05, indicating a 10.1% increase on 9% higher revenues of $6.5 billion [4] - The expected long-term earnings growth rate for AXS is 27.1%, significantly higher than the industry average of 10.7% [4] Group 4: Dividend and Shareholder Returns - AXS has a strong history of returning wealth to shareholders through dividends and share buybacks, with a dividend yield of 2.4%, well above the industry average of 0.3% [5] Group 5: Profitability Metrics - AXS's trailing 12-month return on equity is 19.1%, significantly higher than the industry average of 7.8%, indicating effective utilization of shareholder funds [6] - The return on invested capital (ROIC) for AXS is 11.1%, also above the industry average of 5.9%, reflecting efficiency in generating income [6] Group 6: Valuation - AXS shares are trading at a price-to-book multiple of 1.2, lower than the industry average of 1.6, suggesting a favorable entry point for investors [7]

Core Insights - Axis Capital (AXS) is currently rated 2 (Buy) by Zacks, while Cincinnati Financial (CINF) holds a 3 (Hold) rating, indicating a stronger earnings outlook for AXS [2] - AXS has a forward P/E ratio of 7.09, significantly lower than CINF's forward P/E of 19.52, suggesting AXS may be undervalued [3] - AXS's PEG ratio is 0.26, compared to CINF's 2.65, indicating AXS has a better valuation relative to its expected earnings growth [3] - AXS has a P/B ratio of 1.22, while CINF's P/B ratio is 1.52, further supporting AXS's position as a more attractive value option [3] - Overall, AXS is rated with a Value grade of A, while CINF has a Value grade of C, highlighting AXS's superior valuation metrics [3]

AXIS Capital Holdings Limited (AXS) is poised to gain from its compelling and diversified product portfolio, underwriting excellence, digital capabilities and solid capital position. These, along with solid growth projections, make the stock worth retaining.This leading specialty insurer and global reinsurer, carrying a Zacks rank #3 (Hold), aiming for leadership in specialty risks, has a VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.An OutperformerShares ...

Industry Performance - The Zacks Property and Casualty Insurance industry has gained 15.1% year to date, outperforming the Zacks S&P 500 composite's rise of 12.6% and the Finance sector's increase of 4.4% [1] - Improved performance in personal auto insurance, better investment results, and lower claims are expected to fuel insurers' performance this year [1] - Catastrophe losses are projected to contribute 680 basis points to the expected combined ratio of 100.7 in 2024, with Swiss Re estimating an improvement to 98.5% in 2024 [1] Pricing and Premiums - Global commercial insurance prices have risen for 26 consecutive quarters, increasing by 1% in Q1 2024 [2] - Premiums are expected to grow by 7% in 2024 and 4.5% in 2025, with personal auto performing better than other lines of business [2] - The industry benefits from an improved rate environment, particularly long-tail insurers [2] Company Analysis: Selective Insurance Group (SIGI) and Axis Capital Holdings Limited (AXS) - AXS has a market capitalization of $6.1 billion, while SIGI has a market capitalization of $5.7 billion [3] - AXS has gained 31% year to date, while SIGI has declined by 5.3% [4] Key Financial Metrics - AXS has a return on equity (ROE) of 19.1%, higher than SIGI's 13.7% and the industry average of 7.8% [5] - AXS's return on invested capital (ROIC) is 11.1%, surpassing SIGI's 8% and the industry average of 5.9% [6] - AXS's dividend yield of 2.4% exceeds the industry average of 0.3% and SIGI's 1.5% [7] - AXS's combined ratio was 91.1 in Q1 2024, lower than SIGI's 98.2% [10] - AXS's proforma net margin for the trailing 12 months was 10.3%, higher than SIGI's 8.1% [11] Growth Projections - The Zacks Consensus Estimate for AXS's 2024 earnings indicates a 2.5% increase, while SIGI's estimate implies a 16.6% increase [9] - For 2025, AXS's earnings are projected to increase by 8.9%, while SIGI's is expected to rise by 19.5% [9] Conclusion - AXS shows superior performance in price, ROE, ROIC, dividend yield, combined ratio, and net margin compared to SIGI, while SIGI has an advantage in leverage and growth projections [12]

An effective and prudent way to increase shareholders' wealth is by buying back shares. Companies often use funds to buy back shares from the open market to lower the number of outstanding shares. This helps boost the bottom line, in turn enabling the distribution of more profits to shareholders.Here we focus on three insurers — Axis Capital Holdings Limited (AXS) , Radian Group (RDN) and RenaissanceRe Holdings Limited (RNR) — whose board of directors recently approved new share buyback programs, banking on ...