AXIS Capital’s 2023 Fourth Quarter Results
AXIS Capital Holdings Limited announced financial results for the fourth quarter ended December 31, 2023.
Commenting on the fourth quarter 2023 financial results, Vince Tizzio, President and CEO of AXIS Capital, said, “This was a transformative year for AXIS, one where we further elevated all aspects of how we operate and go to market, and we believe the Company is on a clear path to becoming a specialty underwriting leader. We’re capitalizing on favorable conditions in our chosen specialty markets while exhibiting underwriting discipline and strong cycle management. This was evidenced by our operating income of $486 million and a 4.5 point year-over-year improvement in the current accident year combined ratio to 91.8%.
“We’re energized by the continued profitable growth within our core specialty insurance business, highlighted by year-over-year increases in premium generation of 10% including new business premiums of 18%, and an excellent current accident year combined ratio of 87.4%. In parallel, we further solidified our repositioning of AXIS Re as a focused specialist reinsurer with increased profitability and reduced volatility.
“In 2023, through our ‘How We Work’ program, we made significant improvements to our operational infrastructure, while investing in talent, and becoming a more efficient and consistent company. We look ahead to 2024 with excitement. We have a robust global platform, strong and deep relationships with our customers, a great team and culture – and we’re relentlessly committed to taking this Company to the next level.”
Consolidated Highlights
- “Net income available to common shareholders for the year ended December 31, 2023 was $346 million, or $4.02 per diluted common share, compared to net income available to common shareholders of $193 million, or $2.25 per diluted common share, for the same period in 2022.
- “Operating income[1] for the year ended December 31, 2023 was $486 million, or $5.65 per diluted common share, compared to operating income of $498 million, or $5.81 per diluted common share, for the same period in 2022.
- “Underlying operating income[2] for the year ended December 31, 2023 was $847 million, or $9.85 per diluted common share.
- “Book value per diluted common share was $54.06 at December 31, 2023, an increase of $2.89, or 5.6%, compared to September 30, 2023, driven by net unrealized investment gains reported in accumulated other comprehensive income [loss], partially offset by net loss for the period, and common share dividends declared.
- “Book value per diluted common share increased by $7.11, or 15.1%, over the past twelve months, driven by net income, and net unrealized investment gains reported in accumulated other comprehensive income [loss], partially offset by common share dividends declared.
- “Adjusted for dividends declared, book value per diluted common share increased by $8.87, or 18.9%, over the past twelve months.
- “Book yield of fixed maturities was 4.2% at December 31, 2023, compared to 3.5% at December 31, 2022. The market yield was 5.4% at December 31, 2023.
- “Net investment income for the fourth quarter of 2023 was $187 million, compared to $147 million, for the fourth quarter of 2022, attributable to an increase in income from our fixed maturities portfolio due to increased yields.”
