AXIS Capital Q4 Earnings Top Estimates on Solid Underwriting

Core Insights - AXIS Capital Holdings Limited (AXS) reported fourth-quarter 2024 operating income of $2.97 per share, exceeding the Zacks Consensus Estimate by 10.8% and reflecting a 1% year-over-year increase [1] - Total operating revenues reached $1.6 billion, falling short of the Zacks Consensus Estimate by 2.8%, but showing a 6.7% year-over-year growth driven by higher net investment income and premiums [2][10] - The company experienced a 14% increase in net premiums written, totaling $1.2 billion, with a notable 64% surge in the Reinsurance segment [2] Financial Performance - Net investment income rose 5% year over year to $195.8 million, surpassing the Zacks Consensus Estimate of $190 million [3] - Total expenses increased by 38.4% year over year to $1.2 billion, influenced by higher general and administrative expenses and catastrophe losses of $64 million related to Hurricane Helene [4] - Underwriting income improved significantly to $129.5 million from a loss of $274 million in the previous year, with the combined ratio improving by 3040 basis points to 94.2% [5] Segment Analysis - In the Insurance segment, gross premiums written increased by 7.4% year over year to $1.7 billion, while net premiums earned rose 11.9% to $1 billion [6] - The Reinsurance segment saw gross premiums written increase by 36.9% year over year to $275 million, although net premiums earned only increased by 0.7% to $351 million [8] Full-Year Highlights - For the full year, total operating revenues were $6.1 billion, missing the Zacks Consensus Estimate by 2.8%, but reflecting a 6.6% year-over-year increase [10] - Net premiums written for the year increased by 13% to $5.8 billion, with underwriting income rising more than three-fold to $571.5 million [11] Financial Position - AXIS Capital ended 2024 with cash and cash equivalents of $2.1 billion, doubling from the previous year, while debt stood at $1.3 billion [12] - Book value per share increased by 20.4% to $65.27, and the annualized operating return on average common equity was 18%, expanding by 760 basis points year over year [12] Capital Deployment - The company returned $350 million to shareholders in 2024, including $200 million in share repurchases and $150 million in dividends, with $200 million remaining in authorization as of December 30, 2024 [13]