AXIS Capital(US:AXS)2023-04-25 16:00Financial Performance - Net income attributable to common shareholders for Q1 2023 was $173 million, or $2.03 per common share, with operating income of $200 million, or $2.33 per diluted common share [207]. - The company experienced net investment income of $134 million, a 46% increase compared to the previous year [222]. - Net income available to common shareholders rose to $172.534 million for the three months ended March 31, 2023, compared to $141.637 million in the same period of 2022, marking an increase of approximately 22% [282]. - Operating income for the same period was $200.054 million, up from $179.825 million in 2022, reflecting a growth of about 11% [282]. - Earnings per diluted common share increased to $2.01 in Q1 2023, compared to $1.65 in Q1 2022, representing a growth of approximately 22% [282]. - The annualized return on average common equity improved to 16.2% in Q1 2023, up from 12.0% in Q1 2022 [282]. Premiums and Underwriting - Gross premiums written decreased by 10% to $2.4 billion, while net premiums written fell by 11% to $1.6 billion [222]. - Underwriting income was reported at $139 million, with a combined ratio of 90.9% [207]. - The combined ratio improved to 90.9% in Q1 2023, down from 91.4% in Q1 2022, reflecting better underwriting performance [224]. - The current accident year loss ratio increased to 55.2% in Q1 2023, compared to 54.8% in Q1 2022, influenced by catastrophe and weather-related losses [234]. - Ceded premiums written increased to $533 million, or 38% of gross premiums written, from $483 million, or 36%, in the prior year [230]. - The acquisition cost ratio decreased to 18.0% in Q1 2023 from 18.4% in Q1 2022, primarily due to lower variable acquisition costs [238]. - The underwriting-related general and administrative expense ratio decreased to 14.2% in Q1 2023 from 15.2% in Q1 2022, driven by an increase in net premiums earned [238]. Investment Performance - Total cash and investments amounted to $16.0 billion, with fixed maturities and cash equivalents making up 85% of this total [208]. - Net investment income for the three months ended March 31, 2023, was $133.8 million, a 46% increase from $91.4 million in the same period of 2022 [258]. - Net investment income attributable to fixed maturities increased to $118.3 million, up from $65 million, driven by higher yields [259]. - Net investment losses for the three months ended March 31, 2023, were $20.2 million, compared to $94.5 million in the same period of 2022, reflecting improved performance [264]. - The total return on average cash and investments for the three months ended March 31, 2023, was 2.0%, compared to (2.7%) in 2022 [266]. Capital Structure - Common shares repurchased totaled 262,000 for $16 million, contributing to a common shareholders' equity of $4.4 billion [208]. - The debt to total capital ratio stood at 20.9%, with total assets reported at $28.6 billion [208]. - The debt to total capital ratio improved to 20.9% from 22.0%, indicating a stronger capital structure [311]. - Corporate expenses increased by 10% to $26.4 million for the three months ended March 31, 2023, compared to $23.9 million in 2022 [267]. Foreign Currency Exposure - Total net foreign currency exposure was $(67.97) million, with a pre-tax impact of net foreign currency exposure on shareholders' equity estimated at $(6.80) million given a hypothetical 10% rate movement [320]. - As of March 31, 2023, total net foreign currency liabilities amounted to $68 million, primarily influenced by exposures to the Japanese yen, pound sterling, Australian dollar, and other non-core currencies [321]. - The net foreign currency exposure as a percentage of total shareholders' equity was reported at (1.4%) as of March 31, 2023 [320]. - The foreign currency derivatives net exposure was $280,439 thousand, indicating a significant hedge against currency fluctuations [320]. Dividends and Shareholder Returns - Cash dividends declared per common share increased to $0.44 from $0.43 [274]. - The company declared dividends for the 19th consecutive year, reflecting a commitment to returning excess capital to shareholders [279].