AXIS Capital(AXS)2025-04-30 20:23Financial Performance - Net income available to common shareholders was $187 million, or $2.30 per common share, with operating income of $261 million, or $3.17 per diluted common share [222]. - Net income available to common shareholders decreased to $186,508 in Q1 2025 from $387,896 in Q1 2024, representing a decline of approximately 52% [319]. - Operating income increased to $261,469 in Q1 2025, up from $220,162 in Q1 2024, reflecting a growth of about 18.8% [319]. - Earnings per diluted common share fell to $2.26 in Q1 2025, down from $4.53 in Q1 2024, indicating a decrease of approximately 50% [319]. - The annualized return on average common equity (ROACE) decreased to 13.7% in Q1 2025 from 32.1% in Q1 2024 [304]. Premiums and Underwriting - Gross premiums written increased by 5% to $2.8 billion, while net premiums written rose by 2% to $1.8 billion, and net premiums earned grew by 7% to $1.3 billion [233]. - Underwriting income was reported at $163 million, with a combined ratio of 90.2% [222]. - The combined ratio improved slightly to 90.2% for the three months ended March 31, 2025, from 91.1% in 2024 [237]. - The current accident year loss ratio increased to 57.0% for the three months ended March 31, 2025, from 54.1% in 2024 [253]. - Catastrophe and weather-related losses for the three months ended March 31, 2025, were $47.5 million, or 4.7 points, compared to $19 million, or 2.1 points, in 2024 [254]. Investment Income - Net investment income increased by 24% to $208 million, while net investment losses were $30 million and foreign exchange losses totaled $57 million [233]. - Net investment income rose by $40 million, or 24%, to $207,713 million for the three months ended March 31, 2025, compared to $167,383 million in 2024 [281]. - Net investment losses for the three months ended March 31, 2025, were $30 million, compared to net investment losses of $9 million for the same period in 2024 [287]. - The net investment losses in Q1 2025 were primarily due to net realized losses on corporate debt and U.S. government securities, along with net unrealized losses on equity securities [288]. Shareholder Equity and Dividends - Book value per diluted common share increased to $66.48 in Q1 2025 from $57.13 in Q1 2024, reflecting a growth of 16.5% [304]. - Cash dividends declared per common share remained stable at $0.44 for both Q1 2025 and Q1 2024 [304]. - Common equity decreased by $187 million to $5.35 billion, with $465 million spent on repurchasing 5 million common shares during the quarter [366]. Cash and Investments - Total cash and investments amounted to $17.8 billion, with fixed maturities, short-term investments, and cash comprising 88% of this total [222]. - Total investments as of March 31, 2025, were valued at $14,525,725, down from $15,035,413 as of December 31, 2024, a decrease of about 3.4% [350]. - Cash and cash equivalents increased to $3,332,767 as of March 31, 2025, compared to $3,063,621 at December 31, 2024, reflecting an increase of approximately 8.8% [350]. - Fixed maturities, available for sale, decreased to $11,865,480 as of March 31, 2025, from $12,152,753 as of December 31, 2024, a decline of about 2.4% [350]. Foreign Currency Exposure - As of March 31, 2025, total net foreign currency exposure was $115 million, primarily influenced by euro, Australian dollar, Canadian dollar, and Japanese yen [376]. - The change in total net foreign currency exposure during the three months ended March 31, 2025, was mainly due to new business written in the period [376]. - The sensitivity analysis indicates significant exposure to fluctuations in foreign currencies, particularly in the euro and Australian dollar [375].