Axis Capital Holdings Ltd (AXS, Financial) released its earnings report for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a net income of $181 million, or $2.10 per diluted common share, a significant improvement from a net loss of $17 million, or $(0.20) per diluted common share, for the third quarter of 2022. The operating income for the third quarter of 2023 was $202 million, or $2.34 per diluted common share, compared to an operating income of $3 million, or $0.03 per diluted common share, for the third quarter of 2022.
Financial Highlights
For the nine months ended September 30, 2023, Axis Capital Holdings Ltd (AXS, Financial) reported a net income of $496 million, or $5.77 per diluted common share, and an operating income of $593 million, or $6.90 per diluted common share. The company's annualized return on average common equity (ROACE) stood at 15.4%, with an annualized operating ROACE of 18.4%. The combined ratio improved by 4.7 points to 91.7%.
The company's book value per diluted common share was $51.17, an increase of $4.22, or 9.0%, compared to December 31, 2022. The catastrophe and weather-related losses ratio was 2.9%, a decrease of 6.0 points.
CEO's Commentary
“AXIS delivered another strong quarter as we produced excellent results across multiple measures. The quarter was highlighted by record operating earnings per share on both a third quarter and year-to-date basis. The continued positive momentum in our performance reflects the progress we’ve made in enhancing our integrated underwriting strategy to drive outstanding cycle management, deliver consistent profitable results and generate increased book value per share." - Vince Tizzio, President and CEO of AXIS Capital
Underwriting Highlights
For the third quarter of 2023, gross premiums written increased by $198 million, or 12%, to $1.9 billion. The current accident year loss ratio, excluding catastrophe and weather-related losses, was 56.3%, a decrease of 0.8 points from the same period in 2022. The combined ratio improved by 11.6 points to 92.7%.
For the nine months ended September 30, 2023, gross premiums written increased by $116 million, or 2%, to $6.6 billion. The current accident year loss ratio, excluding catastrophe and weather-related losses, was 56.1%, an increase of 0.6 points from the same period in 2022. The combined ratio improved by 4.7 points to 91.7%.
Axis Capital Holdings Ltd (AXS, Financial) continues to demonstrate strong financial performance, with significant improvements in net income, operating income, and combined ratio. The company's strategic initiatives and disciplined underwriting approach have contributed to these positive results.
Explore the complete 8-K earnings release (here) from Axis Capital Holdings Ltd for further details.
