AXIS Capital Holdings Limited has reported a substantial rise in net income for the first quarter of 2024, as it climbed to $388 million from the $173 million figure that the company posted in the first quarter of 2023.
Operating income for Q124 sat at $220 million, compared to operating income of $200 million, from Q123.
Moreover, the firm also posted a combined ratio of 91.1% for Q124, compared to last year’s combined ratio of 90.9%.
Within the company’s insurance segment, gross premiums written (GPW) increased by $159 million, or 11%, attributable to increases in all lines of business with the exception of cyber lines which decreased in the quarter.
Net premiums written (NPW) within the insurance segment also increased by $140 million, or 16%, reflecting the increase in GPW in the quarter, together with a decrease in premiums ceded in cyber and professional lines.
Underwriting income within the insurance segment sat at $122,987, representing a 19% rise from the prior year’s $103,355.
Moving towards the reinsurance segment, AXIS Capital noted that GPW climbed by $114 million, or 12% ($102 million, or 11%, on a constant currency basis), which the firm attributes to an increase of $139 million which is attributable to all ongoing specialty lines of business mainly related to new business and the timing of renewals of significant contracts, partially offset by a decrease in run-off lines.
As well as this, NPW within the reinsurance segment decreased by $26 million, or 4% ($37 million, or 5%, on a constant currency basis), which the company states reflects an increase in premiums ceded to their strategic capital partners, partially offset by the increase in GPW in the quarter.
Underwriting income within the reinsurance segment was $22,676, a 37% decrease from the prior year’s $36,011.
Vince Tizzio, President and CEO of AXIS Capital commented: “The results of the first quarter once again evidence that AXIS is elevating its financial performance, producing consistent returns and strong metrics. Reflecting the increased resiliency and consistency of our portfolio, AXIS delivered 18.2% annualized operating ROE and a combined ratio of 91.1%. We continued to capitalize on generally favorable market conditions, growing gross premiums written by 11% over the prior year period.
“Our specialty insurance business continues to perform very strongly, achieving a combined ratio of 86.6% and record first quarter premium production of $1.6 billion, fueled by double digit premium growth across both our North America and London-based Global Markets divisions. During the quarter, both our insurance and reinsurance businesses leaned into our targeted markets while exhibiting strong cycle management and underwriting discipline.
“We also further invested in our global underwriting platform, tapping into new revenue channels including expanding our specialty product set in North America while launching the first-ever dedicated Global Energy Transition syndicate at Lloyd’s. In addition, we continued to strengthen our operational capabilities through our ‘How We Work’ program to build a more efficient, connected, and data-driven AXIS.”
