AXIS Capital Reports Second Quarter Net Income Available to Common Shareholders of $143 Million, or $1.67 Per Diluted Common Share and Operating Income of $191 Million, or $2.23 Per Diluted Common Share

AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the second quarter ended June 30, 2023.

Commenting on the second quarter 2023 financial results, Vince Tizzio, President and CEO of AXIS Capital said:

“AXIS delivered strong top- and bottom-line results in the quarter as we further positioned the Company as a specialty underwriting leader. Consistent with our strategic priorities, in the quarter we drove profitable growth across our target markets while generating record performance in numerous areas including the best second quarter premium production in our Company’s history, as well as both the best ever premium and new business production for our specialty insurance business.

"In the first half of 2023, we have accelerated the positive momentum in our performance while capitalizing on favorable market conditions across the vast majority of our lines and leveraging our global platform to elevate our business, culminating in the delivery of our strongest ever six-month operating income per share.

"We’re focused on advancing AXIS as a specialty underwriting leader that produces consistent growth in both profitability and book value for our shareholders.”

Second Quarter Consolidated Results*

• Net income available to common shareholders for the second quarter of 2023 was $143 million, or $1.67 per diluted common share, compared to net income available to common shareholders of $27 million, or $0.32 per diluted common share, for the second quarter of 2022.
• Net income available to common shareholders for the six months ended June 30, 2023 was $316 million, or $3.68 per diluted common share, compared to net income available to common shareholders of $169 million, or $1.97 per diluted common share, for the same period in 2022.
• Operating income¹ for the second quarter of 2023 was $191 million, or $2.23 per diluted common share¹, compared to operating income of $149 million, or $1.74 per diluted common share, for the second quarter of 2022.
• Operating income for the six months ended June 30, 2023 was $391 million, or $4.56 per diluted common share, compared to operating income of $329 million, or $3.83 per diluted common share, for the same period in 2022.
• Fixed income portfolio book yield was 3.9% at June 30, 2023, compared to 2.4% at June 30, 2022. The market yield was 5.9% at June 30, 2023.
• Net investment income for the second quarter of 2023 was $137 million, compared to $92 million, for the second quarter of 2022, attributable to an increase in income from fixed maturities due to increased yields.
• Book value per diluted common share was $50.98 at June 30, 2023, an increase of $0.67, or 1.3%, compared to March 31, 2023, driven by net income, partially offset by net unrealized investment losses reported in accumulated other comprehensive income (loss), and common share dividends declared.
• Adjusted for dividends declared, book value per diluted common share increased by $1.11, or 2.2%, compared to March 31, 2023.
• Adjusted for dividends declared, book value per diluted common share increased by $5.11, or 10.7%, over the past twelve months.
• Adjusted for net unrealized investment losses, after-tax, reported in accumulated other comprehensive income (loss), book value per diluted common share was $58.01 at June 30, 2023, compared to $56.64 at March 31, 2023 and $55.82 at June 30, 2022.

Second Quarter Consolidated Underwriting Highlights²

• Gross premiums written increased by $171 million, or 8% ($194 million, or 9%, on a constant currency basis³), to $2.3 billion with an increase of $215 million, or 15% in the insurance segment, partially offset by a decrease of $44 million, or 7% in the reinsurance segment.
• Net premiums written increased by $130 million, or 10% ($152 million, or 12%, on a constant currency basis), to $1.4 billion with an increase of $152 million, or 17% in the insurance segment, partially offset by a decrease of $22 million, or 5% in the reinsurance segment.

• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $32 million ($28 million, after-tax), (Insurance: $26 million; Reinsurance: $6 million), or 2.6 points, primarily attributable to Cyclone Gabrielle, and other U.S. weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $67 million, (Insurance: $28 million; Reinsurance: $39 million), or 5.3 points in 2022.
• Net favorable prior year reserve development was $6 million (Insurance: $3 million; Reinsurance: $4 million), compared to $4 million (Insurance: $3 million; Reinsurance: $1 million) in 2022.

Year to Date Consolidated Underwriting Highlights

• Gross premiums written decreased by $82 million, or 2% ($17 million, or 0.4%, on a constant currency basis), to $4.7 billion with a decrease of $385 million, or 20% in the reinsurance segment, partially offset by an increase of $303 million, or 11% in the insurance segment.
• Net premiums written decreased by $75 million, or 2% ($12 million, or 0.4%, on a constant currency basis), to $3.1 billion with a decrease of $265 million, or 19% in the reinsurance segment, partially offset by an increase of $190 million, or 11% in the insurance segment.

• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $70 million ($60 million, after-tax), (Insurance: $51 million; Reinsurance: $19 million), or 2.8 points, primarily attributable to Cyclone Gabrielle, the Earthquake in Turkey, New Zealand floods, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $127 million, (Insurance: $61 million; Reinsurance: $66 million), or 5.1 points, in 2022.
• Net favorable prior year reserve development was $10 million (Insurance: $4 million; Reinsurance: $7 million), compared to $13 million (Insurance: $10 million; Reinsurance: $3 million) in 2022.

Segment Highlights

Insurance Segment

• Gross premiums written increased by $215 million, or 15%, primarily attributable to increases in property, marine and aviation, and liability lines due to favorable rate changes and new business, and accident and health lines due to new business, partially offset by a decrease in professional lines reflecting the reduction in activity in transactional liability business, together with an unattractive pricing environment for U.S. public D&O business.
• Net premiums written increased by $152 million, or 17% ($163 million, or 19%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, together with a decrease in premiums ceded in professional lines.
• The current accident year loss ratio, excluding catastrophe and weather-related losses was comparable to the same period in 2022, principally due to improved loss experience in property, and marine and aviation lines, together with changes in business mix associated with the decrease in professional lines business written in recent periods, being largely offset by higher year-over-year loss ratios in liability lines consistent with changes in loss assumptions reflected in recent periods.
• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $26 million, or 3.1 points, primarily attributable to U.S. weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance, were $28 million, or 3.6 points, in 2022.
• The underwriting-related general and administrative expense ratio decreased by 0.6 points mainly driven by an increase in net premiums earned, partially offset by increases in information technology costs and personnel costs.