AXIS Capital(AXS) - 2024 Q4 - Annual Results

Financial Performance - AXIS Capital reported a consolidated net income of $150 million for Q4 2024, representing a 25% increase compared to the same quarter last year[39]. - Net income attributable to common shareholders was $286,069 for the quarter, a significant recovery from a loss of $150,145 in the prior year[44]. - Net income available to common shareholders for the year ended December 31, 2024, was $1,051,536, a substantial increase from $346,042 in 2023, marking a growth of 203.5%[53]. - The annualized return on average common equity improved to 20.7%, up from a negative 13.1% in the prior year[40]. - The annualized return on average common equity for Q4 2024 was 20.7%, a recovery from a negative 13.1% in Q4 2023[94]. - Earnings per common share significantly increased to $12.49 in 2024, up from $4.06 in 2023, reflecting strong profitability growth[57]. Premiums and Underwriting - The company's gross premiums written increased by 10% year-over-year, totaling $1.2 billion in Q4 2024[39]. - Gross premiums written increased by 10.7% to $1,975,324 for the quarter ended December 31, 2023, compared to $1,784,293 in the same quarter of 2022[40]. - Net premiums earned rose by 8.8% to $1,377,014 for the quarter, compared to $1,265,273 in the same quarter of the previous year[40]. - Total underwriting revenues for Q4 2024 were $1,384,030, slightly up from $1,271,323 in Q4 2023, indicating a growth of 8.8%[46]. - The combined ratio improved to 92%, down from 95% in Q4 2023, indicating better underwriting performance[39]. - The combined ratio improved to 94.2% for the quarter, down from 124.6% in the same quarter of the previous year, indicating better underwriting performance[40]. - The combined ratio for Q4 2024 improved to 94.2%, down from 124.6% in Q4 2023, showing significant operational efficiency[50]. Investment Income - The investment income for the quarter was $50 million, reflecting a 15% increase from the previous year, driven by higher interest rates[39]. - Net investment income increased by 4.7% to $195,773 for the quarter, compared to $186,937 in the same quarter of the previous year[44]. - Net investment income for Q4 2024 was $195,773, compared to $186,937 in Q4 2023, reflecting a year-over-year increase of 4.5%[46]. - The company reported a net investment gain of $108,030 for Q4 2024, contrasting with a loss of $23,041 in Q4 2023[94]. Operational Efficiency - The company plans to invest $100 million in technology upgrades to improve operational efficiency and data security over the next two years[39]. - The current accident year loss ratio for Q4 2024 was 61.6%, compared to 57.5% in Q4 2023, indicating a slight deterioration in loss performance[50]. - The net losses and loss expenses ratio decreased to 60.4% for the quarter, down from 91.1% in the same quarter of the previous year[40]. - The net losses and loss expenses ratio improved to 59.5% in 2024 from 66.7% in 2023, indicating better loss management[60]. Assets and Equity - Total assets increased by 7.5% to $32,520,293 compared to $30,250,672 in the previous year[40]. - Book value per diluted common share rose by 20.7% to $65.27, compared to $54.06 in the previous year[40]. - The weighted average diluted common shares outstanding decreased to 84,695 in Q4 2024 from 85,268 in Q4 2023, reflecting a reduction of 0.7%[50]. - Total shareholders' equity rose to $6,089,379 from $6,083,227 in the previous quarter[73]. Strategic Initiatives - AXIS Capital is focusing on enhancing its cyber insurance offerings, anticipating a 20% growth in this segment due to increasing demand[39]. - The company is exploring potential acquisitions to expand its market presence, particularly in the Asia-Pacific region[39]. - The company believes that presenting operating income (loss) per diluted common share aids in understanding recurring sources of income[122]. Challenges and Risks - Catastrophe and weather-related losses ratio was 4.3% in 2024, an increase from 2.7% in 2023, indicating potential challenges in risk management[57]. - Catastrophe and weather-related losses for Q4 2024 were $81,063, compared to $25,866 in Q4 2023, indicating an increase of 212.5% year-over-year[64]. - The current accident year loss ratio, excluding catastrophe and weather-related losses, improved to 55.7% in 2024 from 55.9% in 2023[57].