AXIS Capital Holdings Limited has announced its financial results for the second quarter of 2023, reporting an improved net income of $143 million, which compares to the $27 million seen in the same period last year.
The firm’s underwriting experience also improved in the period, with AXIS reporting a combined ratio of 91.5%, an improvement of 1.9 points from Q2 2022’s reported combined ratio of 93.4%.
Gross premiums written increased to $2.3 billion, this includes an increase of $215 million in the insurance segment, partially offset by a decrease of $44 million in the reinsurance segment.
Net premiums written also grew compared to last year’s second quarter, to $1.4 billion with an increase of $152 million in the insurance segment, partially offset by a decrease of $22 million reinsurance.
For Q2 2023, AXIS has reported pre-tax catastrophe and weather-related losses, net of reinsurance of $32 million. This includes $26 million from insurance and $6 million from reinsurance.
According to the firm, these losses were 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 in 2022.
Both the firm’s insurance and reinsurance segments reported an improved underwriting performance in Q2 2022, increasing by 15.8% to $218 million and 47.9% to $33.9 million, respectively.
Operating income for the second quarter of 2023 was $191 million, compared to the $149 million reported in the prior year.
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.
At the same time, AXIS has also reported financial results for the six months ended June 30, 2023. This includes net income of $316 million and operating income of $391 million, with a combined ratio of 91.2%.
At $4.7 billion, H2 2023 gross premiums written fell 2%, with a decrease of $385 million in the reinsurance segment, partially offset by an increase of $303 million in the insurance segment.
Net premiums written also decreased to $3.1 billion. This included a decrease of $265 million in the reinsurance segment, partially offset by an increase of $190 million in the insurance segment.
Pre-tax catastrophe and weather-related losses, net of reinsurance, were $70 million. This includes $51 million from insurance and $19 million from reinsurance, primarily attributable to Cyclone Gabrielle, the Earthquake in Turkey, New Zealand floods, and other weather-related events.
In comparison, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums in 2022 were $127 million.
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 capitalising on favourable 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.”
