AXIS Capital(US:AXS) Zacks Investment Researchยท2024-05-02 12:51Core Viewpoint - AXIS Capital Holdings Limited reported a strong first-quarter 2024 performance with operating income per share of $2.57, exceeding estimates and showing a year-over-year increase of 10.3% [1] Financial Performance - Total operating revenues reached $1.4 billion, missing estimates by 2.8% but increasing 5% year over year due to higher net premiums earned and net investment income [2] - Net investment income surged 25% year over year to $167 million, driven by increased yields from the fixed maturities portfolio [2] - Total expenses rose 0.7% year over year to $1.15 billion, influenced by higher net losses and acquisition costs [2] - Pre-tax catastrophe losses were $20 million, a significant improvement from $38 million in the previous year [2] Underwriting Results - Underwriting income was $145.6 million, up 4.5% year over year, with a combined ratio of 91.1, deteriorating by 20 basis points [3] - In the insurance segment, gross premiums written improved 11.2% year over year to $1.5 billion, while net premiums earned increased 12.4% to $917.9 million [4] - Underwriting income in the insurance segment climbed 19% year over year to $122.9 million, with a combined ratio improving to 86.6 [4] - In the reinsurance segment, gross premiums written rose 11.8% year over year to $1 billion, although net premiums earned declined 17.8% to $340 million [5] Financial Position - Cash and cash equivalents at the end of the quarter were $1.14 billion, a 20% increase from the end of 2023 [6] - Total debts stood at $1.3 billion, a slight increase of 0.02% from the previous year [6] - Book value per share grew 5.7% from the end of 2023 to $57.13, supported by net income [6] Capital Management - AXIS Capital had $38 million remaining under its share repurchase program as of March 31, 2024 [8] Return Metrics - The annualized return on average common equity was 32.1% in the first quarter, an increase of 1,590 basis points year over year [7]