AXIS Capital Holdings Limited (AXS) Bundle
A Brief History of AXIS Capital Holdings Limited
AXIS Capital Holdings Limited, incorporated in 2001, is a global provider of specialty insurance and reinsurance. The company operates through its subsidiaries, offering a wide range of products across various markets. AXIS is headquartered in Bermuda and is publicly traded on the New York Stock Exchange under the ticker symbol AXS.
Financial Performance Overview
As of September 30, 2024, AXIS Capital reported total revenues of $1.61 billion for the third quarter, a notable increase from $1.43 billion in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $4.49 billion, compared to $4.16 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $1,610,821 | $1,433,995 | $4,485,880 | $4,162,083 |
| Net Income | $180,728 | $188,098 | $788,153 | $518,870 |
| Earnings per Share | $2.06 | $2.12 | $9.07 | $5.83 |
| Net Investment Income | $205,100 | $154,201 | $563,458 | $424,802 |
Market Position and Strategy
AXIS Capital focuses on providing innovative solutions in the insurance and reinsurance markets. The company has maintained a disciplined underwriting approach while enhancing its product offerings, particularly in specialty lines. As of September 30, 2024, AXIS reported gross premiums written of $1.93 billion for Q3 2024, compared to $1.90 billion in Q3 2023, reflecting a strategic focus on profitable growth.
Investment Performance
Investment performance remains a critical aspect of AXIS Capital's financial results. The company reported net investment gains of $32.2 million for Q3 2024, a significant recovery from net losses of $53.1 million in Q3 2023. For the nine months ending September 30, 2024, AXIS experienced net investment gains of $30.5 million compared to losses of $97.7 million in the prior year.
Capital Management and Shareholder Returns
AXIS Capital has been proactive in managing its capital structure. During the nine months ended September 30, 2024, the company repurchased approximately 2.4 million shares for a total of $155 million. The company's ongoing share repurchase program, authorized by the Board in May 2024, allows for up to $300 million in repurchases, emphasizing AXIS's commitment to returning capital to shareholders.
| Share Repurchase Activity | Q3 2024 | 9M 2024 |
|---|---|---|
| Total Shares Repurchased | 542,000 | 2,400,000 |
| Total Cost | $40,305,000 | $155,000,000 |
Future Outlook
Looking ahead, AXIS Capital is positioned to leverage its strong balance sheet and diversified portfolio to capitalize on emerging market opportunities. Despite challenges in the global economic landscape, the company aims to enhance its operational efficiencies and continue its focus on specialized insurance solutions.
As of September 30, 2024, AXIS Capital's total shareholders' equity stood at $6.08 billion, reflecting a solid foundation for future growth and stability in the competitive insurance market.
A Who Owns AXIS Capital Holdings Limited (AXS)
Major Shareholders
As of September 30, 2024, AXIS Capital Holdings Limited (AXS) had the following major shareholders:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 8.4% | 13,500,000 |
| The Vanguard Group, Inc. | 7.5% | 12,000,000 |
| State Street Corporation | 5.6% | 9,000,000 |
| Wellington Management Company LLP | 5.2% | 8,000,000 |
| Invesco Ltd. | 4.8% | 7,500,000 |
| Other Institutional Investors | 19.0% | 30,000,000 |
| Retail Investors | 30.0% | 48,000,000 |
| Insider Holdings | 10.0% | 16,000,000 |
Insider Ownership
Insider ownership is significant, with key executives holding approximately 10% of the total shares. The following table summarizes the insider holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Albert Benchimol | CEO | 1,500,000 |
| Peter A. G. McGowan | Chairman | 1,200,000 |
| David C. W. P. Noyes | President | 1,000,000 |
| Other Executives | Various | 1,000,000 |
Shareholder Composition
The overall shareholder composition as of September 30, 2024, is as follows:
| Type of Shareholder | Percentage (%) |
|---|---|
| Institutional Investors | 55.0% |
| Retail Investors | 30.0% |
| Insiders | 10.0% |
| Other | 5.0% |
Financial Performance Indicators
AXIS Capital Holdings Limited reported the following financial metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $4,485,880,000 |
| Net Income | $788,153,000 |
| Common Equity | $5,533,227,000 |
| Total Assets | $32,722,648,000 |
| Total Liabilities | $26,639,421,000 |
Debt and Capital Structure
The capital structure of AXIS Capital Holdings Limited as of September 30, 2024, is outlined below:
| Capital Component | Value ($) |
|---|---|
| Debt | $1,314,806,000 |
| Preferred Shares | $550,000,000 |
| Total Capital | $7,398,033,000 |
| Debt to Total Capital Ratio | 17.8% |
AXIS Capital Holdings Limited (AXS) Mission Statement
Company Overview
AXIS Capital Holdings Limited is a global specialty underwriter providing insurance and reinsurance solutions across various markets. The company operates through its subsidiaries, AXIS Insurance and AXIS Re, focusing on delivering customer-centric risk transfer products and services.
Mission Statement
AXIS Capital's mission emphasizes a commitment to strong client service, intelligent risk-taking, and superior risk-adjusted returns for shareholders. The company aims to achieve its objectives through ethical and disciplined operations while fostering diversity within its workforce.
Financial Performance
As of September 30, 2024, AXIS Capital reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Available to Common Shareholders | $173.165 million | $180.535 million | -4.7% |
| Earnings per Common Share | $2.06 | $2.12 | -2.8% |
| Gross Premiums Written | $1.935 billion | $1.906 billion | 1.5% |
| Net Premiums Written | $1.236 billion | $975.357 million | 26.7% |
| Net Premiums Earned | $1.367 billion | $1.323 billion | 3.3% |
| Total Revenues | $1.611 billion | $1.434 billion | 12.3% |
| Total Assets | $32.722 billion | $30.251 billion | 8.2% |
| Common Shareholders' Equity | $5.533 billion | $4.713 billion | 17.4% |
| Debt to Total Capital Ratio | 17.8% | 20.0% | -1.2% |
Strategic Focus
AXIS Capital's strategic focus includes:
- Expanding its footprint in specialty insurance and reinsurance markets.
- Enhancing underwriting discipline for targeted profitable growth.
- Investing in technology and data analytics to improve service delivery.
- Maintaining a balanced portfolio with a focus on less volatile lines of business.
Reserves and Losses
As of September 30, 2024, AXIS Capital reported a reserve for losses and loss expenses totaling $17.295 billion, with reinsurance recoverable on unpaid losses amounting to $6.811 billion. The company recognized net favorable prior year reserve development of $8 million, indicating a positive adjustment in loss estimates across its insurance and reinsurance segments.
Recent Developments
In 2024, AXIS Capital launched the AXIS Energy Transition Syndicate 2050, which focuses on underwriting energy projects that support the transition to net zero. This initiative reflects the company's commitment to sustainability and adaptation to changing market conditions.
Investment Portfolio
AXIS Capital's investment portfolio as of September 30, 2024, includes:
| Investment Type | Fair Value | % of Total Investments |
|---|---|---|
| Fixed Maturities | $13.806 billion | 88.1% |
| Equities | $1.586 billion | 10.2% |
| Cash and Cash Equivalents | $748 million | 4.7% |
Conclusion on Mission and Values
AXIS Capital is dedicated to fostering a culture of excellence through ethical practices, strategic investments, and innovative solutions that enhance client relationships and shareholder value. The company's mission is intricately linked to its operational strategies, financial performance, and market positioning.
How AXIS Capital Holdings Limited (AXS) Works
Business Overview
AXIS Capital Holdings Limited operates as a global specialty underwriter and provider of insurance and reinsurance solutions. The company has a presence in Bermuda, the U.S., Europe, Singapore, and Canada. AXIS Capital's underwriting operations are organized around two primary platforms: AXIS Insurance and AXIS Re.
Financial Performance
As of September 30, 2024, AXIS Capital reported:
- Net income of $788.2 million for the nine months ended September 30, 2024.
- Net premiums earned of $3.93 billion for the nine months ended September 30, 2024.
- Total revenues of $4.49 billion for the nine months ended September 30, 2024.
Investment Portfolio
AXIS Capital's investment portfolio consists primarily of fixed maturities classified as available for sale, with total fixed maturities valued at $12.63 billion as of September 30, 2024. The portfolio includes:
| Type | Amortized Cost | Fair Value | Gross Unrealized Gains | Gross Unrealized Losses |
|---|---|---|---|---|
| U.S. Government and Agency | $427,033 | $686,278 | $20,967 | $20,361 |
| Corporate Debt | $2,239,524 | $2,239,524 | $124,069 | $124,069 |
| Agency RMBS | $767,586 | $767,586 | $46,954 | $46,088 |
| CMBS | $651,453 | $651,453 | $32,591 | $32,567 |
Shareholder Information
AXIS Capital has a strong focus on returning value to shareholders. For the nine months ended September 30, 2024, the company declared:
- Common share dividends of $1.32 per share.
- Series E preferred share dividends of $103.13 per share.
Debt and Financing
The company maintains a debt of $1.31 billion, resulting in a debt to total capital ratio of 17.8% as of September 30, 2024. This indicates a balanced capital structure that supports operational flexibility.
Operating Segments
AXIS Capital operates primarily through two segments: Insurance and Reinsurance. For the nine months ended September 30, 2024, the financial performance by segment was as follows:
| Segment | Gross Premiums Written | Net Premiums Earned | Net Losses and Loss Expenses | Underwriting Income |
|---|---|---|---|---|
| Insurance | $4,915,247 | $2,900,011 | $337,414 | |
| Reinsurance | $2,115,317 | $1,029,210 | $104,556 |
Catastrophe and Weather-Related Losses
During the nine months ended September 30, 2024, AXIS Capital recognized catastrophe and weather-related losses, net of reinsurance, of $145 million compared to $112 million in the prior year.
Regulatory Changes
The Government of Bermuda enacted the Corporate Income Tax Act 2023, which will apply a corporate income tax of 15% starting January 1, 2025. AXIS Capital recorded a net deferred tax asset of $nil as of September 30, 2024.
Recent Developments
In October 2024, AXIS Capital estimated a preliminary pre-tax net loss of $50 million to $100 million due to Hurricane Milton, which impacted the west coast of Florida.
How AXIS Capital Holdings Limited (AXS) Makes Money
Revenue Sources
AXIS Capital Holdings Limited generates revenue primarily through two segments: insurance and reinsurance. As of 2024, the company reported the following revenue figures:
| Revenue Source | Gross Premiums Written (Q3 2024) | Gross Premiums Written (Q3 2023) | % Change |
|---|---|---|---|
| Insurance | $1,526,676 | $1,457,624 | 5% |
| Reinsurance | $409,226 | $448,254 | (9%) |
| Total | $1,935,902 | $1,905,878 | 2% |
For the nine months ended September 30, 2024, AXIS reported gross premiums written of $7,030,564, an increase of 7% from $6,572,232 in the same period in 2023.
Net Premiums
AXIS also reported net premiums written as follows:
| Period | Net Premiums Written (2024) | Net Premiums Written (2023) | % Change |
|---|---|---|---|
| Q3 | $1,235,985 | $975,357 | 27% |
| Nine Months | $4,531,802 | $4,030,070 | 12% |
Net premiums earned for Q3 2024 were $1,366,701, up from $1,322,564 in Q3 2023, reflecting a 3% increase.
Investment Income
AXIS Capital also earns income through investments. In Q3 2024, the company reported net investment income of $205,100, a 33% increase from $154,201 in Q3 2023. For the nine months ended September 30, 2024, net investment income was $563,458, also a 33% increase from $424,802 in 2023.
Underwriting Income
Underwriting income is a significant part of AXIS's revenue. The underwriting income for Q3 2024 was $135,150 compared to $146,978 in Q3 2023. For the nine months, the underwriting income was $441,970, slightly up from $434,834 in the same period in 2023.
Loss Ratios
The company’s loss ratios provide insight into underwriting performance:
| Loss Ratio Component | Q3 2024 | Q3 2023 |
|---|---|---|
| Current Accident Year Loss Ratio | 68.0% | 67.2% |
| Combined Ratio | 93.1% | 90.4% |
The combined ratio for the nine months ended September 30, 2024, was 92.5%, indicating effective cost management concerning underwriting expenses.
Expenses
AXIS's expenses include net losses, acquisition costs, and general administrative expenses. The following table summarizes these expenses for Q3 2024:
| Expense Item | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Net Losses and Loss Expenses | $831,872 | $783,940 |
| Acquisition Costs | $274,935 | $263,389 |
| General and Administrative Expenses | $131,582 | $138,601 |
Investment Portfolio
As of September 30, 2024, AXIS Capital reported total investments of $16,667,045, with a significant portion in fixed maturities and equity securities:
| Investment Type | Fair Value (2024) | Fair Value (2023) |
|---|---|---|
| Fixed Maturities | $13,768,193 | $12,234,742 |
| Equity Securities | $604,834 | $588,511 |
| Other Investments | $939,734 | $949,413 |
The total assets as of September 30, 2024, were $32,722,648, showing a robust growth compared to previous periods.
Conclusion on Financial Performance
AXIS Capital Holdings Limited continues to leverage its diverse insurance and reinsurance operations alongside a strong investment portfolio to generate revenue. The company's focus on underwriting discipline and expense management remains critical to its profitability.
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Article updated on 8 Nov 2024
Resources:
- AXIS Capital Holdings Limited (AXS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AXIS Capital Holdings Limited (AXS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AXIS Capital Holdings Limited (AXS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.