0001214816AXIS CAPITAL HOLDINGS LTDfalse00012148162023-11-012023-11-010001214816us-gaap:CommonStockMember2023-11-012023-11-010001214816us-gaap:SeriesEPreferredStockMember2023-11-012023-11-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2023
AXIS CAPITAL HOLDINGS LIMITED
(Exact Name Of Registrant As Specified In Charter)
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Bermuda | | 001-31721 | | 98-0395986 |
(State of Incorporation) | | (Commission File No.) | | (I.R.S. Employer Identification No.) |
92 Pitts Bay Road
Pembroke, Bermuda HM 08
(Address of principal executive offices, including zip code)
(441) 496-2600
(Registrant’s telephone number, including area code)
Not applicable
(Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): | | | | | |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e(4)(c)) |
Securities registered pursuant to Section 12(b) of the Exchange Act: | | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common shares, par value $0.0125 per share | AXS | New York Stock Exchange |
Depositary shares, each representing a 1/100th interest in a 5.50% Series E preferred share | AXS PRE | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 | Results of Operations and Financial Condition |
On November 1, 2023, AXIS Capital Holdings Limited, a Bermuda company, issued a press release reporting its third quarter 2023 results and the availability of its third quarter 2023 investor financial supplement. The press release and the investor financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
The information in this Current Report on Form 8-K, including the information set forth in Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
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Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits | | | | | | | | |
Exhibit Number | | Description of Document |
| | Press release dated November 1, 2023 |
| | Third quarter 2023 Investor Financial Supplement |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: November 1, 2023
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| AXIS CAPITAL HOLDINGS LIMITED | |
| | | |
| | |
| By: | /s/ Conrad D. Brooks | |
| | Conrad D. Brooks | |
| | General Counsel | |
| | | | | | | | |
Miranda Hunter (Investor Contact): | (441) 405-2635; | investorrelations@axiscapital.com |
Nichola Liboro (Media Contact): | (917) 705-4579; | nichola.liboro@axiscapital.com |
AXIS CAPITAL REPORTS THIRD QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $181 MILLION, or $2.10 PER DILUTED COMMON SHARE AND OPERATING INCOME OF $202 MILLION, or $2.34 PER DILUTED COMMON SHARE
For the third quarter of 2023, the Company reports:
•Annualized return on average common equity ("ROACE") of 16.1% and annualized operating ROACE of 18.0%
•Improvement of 11.6 points in the combined ratio to 92.7%
•Catastrophe and weather-related losses ratio of 3.2%, a decrease of 13.4 points
For the nine months ended September 30, 2023, the Company reports:
•Net income available to common shareholders of $496 million, or $5.77 per diluted common share and operating income of $593 million, or $6.90 per diluted common share
•Annualized return on average common equity ("ROACE") of 15.4% and annualized operating ROACE of 18.4%
•Improvement of 4.7 points in the combined ratio to 91.7%
•Catastrophe and weather-related losses ratio of 2.9%, a decrease of 6.0 points
•Book value per diluted common share of $51.17, an increase of $4.22, or 9.0%, compared to December 31, 2022
Pembroke, Bermuda, November 1, 2023 - AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the third quarter ended September 30, 2023.
Commenting on the third quarter 2023 financial results, Vince Tizzio, President and CEO of AXIS Capital said:
“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.
“During the quarter, we continued to grow in our chosen markets across both our insurance and reinsurance businesses, while capitalizing on favorable market conditions across nearly all our lines. This included achieving our highest-ever third quarter production on record for our specialty insurance business, coupled with an 88.2% combined ratio in the quarter. The repositioning of AXIS Re as a more focused and less volatile specialist continues to take hold as evidenced by a 92.7% combined ratio and solid new business growth in our key areas.
“Through our ‘How We Work’ initiative we’ve continued to enhance our operating model to increase our agility and efficiency. We’re energized for the future and see exciting upside potential for our business as we lean further into our markets to unlock new revenue opportunities, maximize our strong distribution relationships, and fully leverage our global platform to deliver value to our customers.”
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 1 -
Third Quarter Consolidated Results*
•Net income available to common shareholders for the third quarter of 2023 was $181 million, or $2.10 per diluted common share, compared to net loss attributable to common shareholders of $(17) million, or $(0.20) per diluted common share, for the third quarter of 2022.
•Net income available to common shareholders for the nine months ended September 30, 2023 was $496 million, or $5.77 per diluted common share, compared to net income available to common shareholders of $152 million, or $1.77 per diluted common share, for the same period in 2022.
•Operating income1 for the third quarter of 2023 was $202 million, or $2.34 per diluted common share1, compared to operating income of $3 million, or $0.03 per diluted common share, for the third quarter of 2022.
•Operating income for the nine months ended September 30, 2023 was $593 million, or $6.90 per diluted common share, compared to operating income of $331 million, or $3.86 per diluted common share, for the same period in 2022.
•On September 22, 2023 we entered into a quota share retrocession agreement, with an effective date of January 1, 2023, to retrocede reinsurance business to Monarch Point Re. With regard to the retroactive element of the agreement, we recognized a loss expense of $7 million in the third quarter. With regard to the prospective element of the agreement, we ceded premiums of $244 million to Monarch Point Re in the third quarter.
•Corporate expenses of $41 million, an increase of $15 million, compared to September 30, 2022, mainly due to performance-related compensation costs and executive-related compensation costs associated with the transition in our senior leadership.
•Reorganization expenses of $29 million include impairments of computer software assets and severance costs associated with the departures of certain employees mainly attributable to our "How We Work" program which focuses on simplifying our operating structure. Reorganization expenses are excluded from operating income.
•Book yield of fixed maturities was 4.1% at September 30, 2023, compared to 2.9% at September 30, 2022. The market yield was 6.2% at September 30, 2023.
•Net investment income for the third quarter of 2023 was $154 million, compared to $88 million, for the third quarter of 2022, attributable to an increase in income from our fixed maturities portfolio due to increased yields.
•Book value per diluted common share was $51.17 at September 30, 2023, an increase of $0.19, or 0.4%, compared to June 30, 2023, driven by net income, partially offset by net unrealized investment losses reported in accumulated other comprehensive income (loss), and common share dividends declared.
•Adjusted for dividends declared, book value per diluted common share increased by $0.63, or 1.2%, compared to June 30, 2023.
•Adjusted for dividends declared, book value per diluted common share increased by $9.43, or 21.7%, over the past twelve months.
•Adjusted for net unrealized investment losses, after-tax, reported in accumulated other comprehensive income (loss), book value per diluted common share was $59.78 at September 30, 2023, compared to $58.01 at June 30, 2023 and $55.21 at September 30, 2022.
* Amounts may not reconcile due to rounding differences.
1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 2 -
Third Quarter Consolidated Underwriting Highlights2
•Gross premiums written increased by $198 million, or 12%, to $1.9 billion with an increase of $140 million, or 11% in the insurance segment, and an increase of $58 million, or 15% in the reinsurance segment.
•Net premiums written decreased by $61 million, or 6%, to $1.0 billion with a decrease of $169 million, or 65% in the reinsurance segment, partially offset by an increase of $107 million, or 14% in the insurance segment.
| | | | | | | | | | | | | | | | | |
| Three months ended September 30, |
KEY RATIOS | 2023 | | 2022 | | Change |
Current accident year loss ratio, excluding catastrophe and weather-related losses3 | 56.3 | % | | 57.1 | % | | (0.8 | pts) |
Catastrophe and weather-related losses ratio | 3.2 | % | | 16.6 | % | | (13.4 | pts) |
Current accident year loss ratio | 59.5 | % | | 73.7 | % | | (14.2 | pts) |
Prior year reserve development ratio | (0.2 | %) | | (0.4 | %) | | 0.2 | pts |
Net losses and loss expenses ratio | 59.3 | % | | 73.3 | % | | (14.0 | pts) |
Acquisition cost ratio | 19.9 | % | | 18.7 | % | | 1.2 | pts |
General and administrative expense ratio | 13.5 | % | | 12.3 | % | | 1.2 | pts |
Combined ratio | 92.7 | % | | 104.3 | % | | (11.6 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 89.7 | % | | 88.1 | % | | 1.6 | pts |
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $42 million ($36 million, after-tax), (Insurance: $37 million; Reinsurance: $5 million), or 3.2 points, primarily attributable to Maui wildfires, Hurricane Idalia, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $212 million, (Insurance: $113 million; Reinsurance: $99 million), or 16.6 points in 2022.
•Net favorable prior year reserve development was $3 million (Insurance: $2 million; Reinsurance: $1 million), compared to $5 million (Insurance: $3 million; Reinsurance: $2 million) in 2022.
2 All comparisons are with the same period of the prior year, unless otherwise stated.
3 The current accident year loss ratio, excluding catastrophe and weather-related losses is calculated by dividing the current accident year losses less pre-tax catastrophe and weather-related losses, net of reinsurance, by net premiums earned less reinstatement premiums.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 3 -
Year to Date Consolidated Underwriting Highlights
•Gross premiums written increased by $116 million, or 2% ($183 million, or 3%, on a constant currency basis4), to $6.6 billion with an increase of $443 million, or 11% in the insurance segment, partially offset by a decrease of $326 million, or 14% in the reinsurance segment.
•Net premiums written decreased by $136 million, or 3% ($71 million, or 2%, on a constant currency basis), to $4.0 billion with a decrease of $434 million, or 26% in the reinsurance segment, partially offset by an increase of $298 million, or 12% in the insurance segment.
| | | | | | | | | | | | | | | | | |
| Nine months ended September 30, |
KEY RATIOS | 2023 | | 2022 | | Change |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.1 | % | | 55.5 | % | | 0.6 | pts |
Catastrophe and weather-related losses ratio | 2.9 | % | | 8.9 | % | | (6.0 | pts) |
Current accident year loss ratio | 59.0 | % | | 64.4 | % | | (5.4 | pts) |
Prior year reserve development ratio | (0.3 | %) | | (0.4 | %) | | 0.1 | pts |
Net losses and loss expenses ratio | 58.7 | % | | 64.0 | % | | (5.3 | pts) |
Acquisition cost ratio | 19.6 | % | | 19.5 | % | | 0.1 | pts |
General and administrative expense ratio | 13.4 | % | | 12.9 | % | | 0.5 | pts |
Combined ratio | 91.7 | % | | 96.4 | % | | (4.7 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 89.1 | % | | 87.9 | % | | 1.2 | pts |
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $112 million ($96 million, after-tax), (Insurance: $88 million; Reinsurance: $24 million), or 2.9 points, primarily attributable to Cyclone Gabrielle, the Earthquake in Turkey, Maui wildfires, New Zealand floods, Hurricane Idalia, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $339 million (Insurance: $174 million; Reinsurance: $166 million), or 8.9 points, in 2022.
•Net favorable prior year reserve development was $13 million (Insurance: $5 million; Reinsurance: $8 million), compared to $18 million (Insurance: $12 million; Reinsurance: $5 million) in 2022.
4Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures is provided above and a discussion of the rationale for the presentation of these items is provided later in this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 4 -
Segment Highlights
Insurance Segment | | | | | | | | | | | | | | | | | |
| Three months ended September 30, |
($ in thousands) | 2023 | | 2022 | | Change |
Gross premiums written | $ | 1,457,624 | | | $ | 1,317,890 | | | 10.6 | % |
Net premiums written | 885,252 | | | 777,789 | | | 13.8 | % |
Net premiums earned | 885,714 | | | 782,101 | | | 13.2 | % |
Underwriting income | 104,610 | | | 15,738 | | | nm |
| | | | | |
Underwriting ratios: | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 51.5 | % | | 52.6 | % | | (1.1 | pts) |
Catastrophe and weather-related losses ratio | 4.2 | % | | 14.1 | % | | (9.9 | pts) |
Current accident year loss ratio | 55.7 | % | | 66.7 | % | | (11.0 | pts) |
Prior year reserve development ratio | (0.2 | %) | | (0.3 | %) | | 0.1 | pts |
Net losses and loss expenses ratio | 55.5 | % | | 66.4 | % | | (10.9 | pts) |
Acquisition cost ratio | 19.1 | % | | 17.8 | % | | 1.3 | pts |
Underwriting-related general and administrative expense ratio | 13.6 | % | | 13.8 | % | | (0.2 | pts) |
Combined ratio | 88.2 | % | | 98.0 | % | | (9.8 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 84.2 | % | | 84.2 | % | | — | pts |
nm - not meaningful is defined as a variance greater than +/- 100%
•Gross premiums written increased by $140 million, or 11%, primarily attributable to increases in property, liability, and marine and aviation lines due to favorable rate changes and new business, and accident and health lines mainly due to new business, partially offset by decreases in cyber lines as we continue to reshape the portfolio together with timing differences, and professional lines largely attributable to U.S. public D&O business, together with the reduction in activity in transactional liability business.
•Net premiums written increased by $107 million, or 14%, reflecting the increase in gross premiums written in the quarter, together with a decrease in premiums ceded in professional lines.
•The current accident year loss ratio, excluding catastrophe and weather-related losses decreased by 1.1 points, principally due to changes in business mix associated with the increase in property lines and the decrease in professional lines business written in recent periods, together with improved loss experience in property lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $37 million, or 4.2 points, primarily attributable to Maui wildfires, Hurricane Idalia, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $113 million, or 14.1 points, in 2022.
•The acquisition cost ratio increased by 1.3 points, primarily related to a decrease in ceding commissions due to changes in business mix associated with the increase in property lines and the decrease in professional lines business written in recent periods.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 5 -
•The underwriting-related general and administrative expense ratio decreased by 0.2 points, mainly driven by an increase in net premiums earned, largely offset by an increase in performance-related compensation costs.
| | | | | | | | | | | | | | | | | |
| Nine months ended September 30, |
($ in thousands) | 2023 | | 2022 | | Change |
Gross premiums written | $ | 4,557,386 | | | $ | 4,114,776 | | | 10.8 | % |
Net premiums written | 2,788,849 | | | 2,491,120 | | | 12.0 | % |
Net premiums earned | 2,544,920 | | | 2,303,640 | | | 10.5 | % |
Underwriting income | 322,617 | | | 203,948 | | | 58.2 | % |
| | | | | |
Underwriting ratios: | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 51.7 | % | | 51.6 | % | | 0.1 | pts |
Catastrophe and weather-related losses ratio | 3.5 | % | | 7.4 | % | | (3.9 | pts) |
Current accident year loss ratio | 55.2 | % | | 59.0 | % | | (3.8 | pts) |
Prior year reserve development ratio | (0.2 | %) | | (0.5 | %) | | 0.3 | pts |
Net losses and loss expenses ratio | 55.0 | % | | 58.5 | % | | (3.5 | pts) |
Acquisition cost ratio | 18.6 | % | | 18.4 | % | | 0.2 | pts |
Underwriting-related general and administrative expense ratio | 13.7 | % | | 14.3 | % | | (0.6 | pts) |
Combined ratio | 87.3 | % | | 91.2 | % | | (3.9 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 84.0 | % | | 84.3 | % | | (0.3 | pts) |
•Gross premiums written increased by $443 million, or 11%, primarily attributable to increases in property, liability, marine and aviation, and credit and political risk lines due to favorable rate changes and new business, and accident and health lines mainly due to new business, partially offset by a decrease in professional lines largely attributable to U.S. public D&O business, together with the reduction in activity in transactional liability business.
•Net premiums written increased by $298 million, or 12% ($318 million, or 13%, on a constant currency basis), reflecting the increase in gross premiums written, together with a decrease in premiums ceded in professional lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $88 million, or 3.5 points, primarily attributable to the Earthquake in Turkey, Maui wildfires, Cyclone Gabrielle, New Zealand floods, Hurricane Idalia, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $174 million, or 7.4 points, in 2022.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 6 -
Reinsurance Segment | | | | | | | | | | | | | | | | | |
| Three months ended September 30, |
($ in thousands) | 2023 | | 2022 | | Change |
Gross premiums written | $ | 448,254 | | | $ | 389,918 | | | 15.0 | % |
Net premiums written | 90,105 | | | 258,995 | | | (65.2 | %) |
Net premiums earned | 436,850 | | | 502,765 | | | (13.1 | %) |
Underwriting income (loss) | 42,368 | | | (44,772) | | | nm |
| | | | | |
Underwriting ratios: | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 66.2 | % | | 64.2 | % | | 2.0 | pts |
Catastrophe and weather-related losses ratio | 1.0 | % | | 20.3 | % | | (19.3 | pts) |
Current accident year loss ratio | 67.2 | % | | 84.5 | % | | (17.3 | pts) |
Prior year reserve development ratio | (0.2 | %) | | (0.4 | %) | | 0.2 | pts |
Net losses and loss expenses ratio | 67.0 | % | | 84.1 | % | | (17.1 | pts) |
Acquisition cost ratio | 21.5 | % | | 20.1 | % | | 1.4 | pts |
Underwriting-related general and administrative expense ratio | 4.2 | % | | 4.9 | % | | (0.7 | pts) |
Combined ratio | 92.7 | % | | 109.1 | % | | (16.4 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 91.9 | % | | 89.2 | % | | 2.7 | pts |
nm - not meaningful
•Gross premiums written increased by $58 million, or 15%, primarily attributable to increases in liability, and credit and surety lines due to new business and increased line sizes, and professional lines largely driven by new business.
•Net premiums written decreased by $169 million, or 65%, reflecting the increase in premiums ceded in liability, professional lines, credit and surety, accident and health, and motor lines associated with the quota share retrocession agreement entered into with Monarch Point Re, partially offset by an increase in gross premiums written in the quarter.
•The current accident year loss ratio decreased by 17.3 points, with a decrease in catastrophe and weather-related losses ratio of 19.3 points, partially offset by an increase in the current accident year loss ratio, excluding catastrophe and weather-related losses of 2.0 points.
◦Pre-tax catastrophe and weather-related losses, net of reinsurance, were $5 million, or 1.0 point, primarily attributable to weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $99 million, or 20.3 points, in 2022.
◦The current accident year loss ratio, excluding catastrophe and weather-related losses, increased by 2.0 points, principally due to changes in business mix associated with the exit from catastrophe and property lines of business, the impact of the loss expense related to the retrocession agreement entered into with Monarch Point Re, partially offset by changes in business mix due to the increase in credit and surety lines of business written in the recent periods which carry a relatively lower loss ratio.
•The acquisition cost ratio increased by 1.4 points, primarily related to adjustments attributable to loss-sensitive features driven by improved loss performance mainly in credit and surety, and accident and health lines.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 7 -
•The underwriting-related general and administrative expense ratio decreased by 0.7 points, mainly driven by a decrease in personnel costs associated with the exit from catastrophe and property lines of business, partially offset by a decrease in net premiums earned, an increase in performance-related compensation costs, and a decrease in fees related to arrangements with strategic capital partners.
| | | | | | | | | | | | | | | | | |
| Nine months ended September 30, |
($ in thousands) | 2023 | | 2022 | | Change |
Gross premiums written | $ | 2,014,846 | | | $ | 2,341,123 | | | (13.9 | %) |
Net premiums written | 1,241,221 | | | 1,675,382 | | | (25.9 | %) |
Net premiums earned | 1,273,588 | | | 1,516,523 | | | (16.0 | %) |
Underwriting income | 112,217 | | | 22,505 | | | nm |
| | | | | |
Underwriting ratios: | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 64.9 | % | | 61.6 | % | | 3.3 | pts |
Catastrophe and weather-related losses ratio | 1.8 | % | | 11.1 | % | | (9.3 | pts) |
Current accident year loss ratio | 66.7 | % | | 72.7 | % | | (6.0 | pts) |
Prior year reserve development ratio | (0.6 | %) | | (0.3 | %) | | (0.3 | pts) |
Net losses and loss expenses ratio | 66.1 | % | | 72.4 | % | | (6.3 | pts) |
Acquisition cost ratio | 21.5 | % | | 21.3 | % | | 0.2 | pts |
Underwriting-related general and administrative expense ratio | 4.9 | % | | 5.4 | % | | (0.5 | pts) |
Combined ratio | 92.5 | % | | 99.1 | % | | (6.6 | pts) |
| | | | | |
Current accident year combined ratio, excluding catastrophe and weather-related losses | 91.3 | % | | 88.3 | % | | 3.0 | pts |
nm - not meaningful•Gross premiums written decreased by $326 million, or 14% ($281 million, or 12%, on a constant currency basis). The decreases in catastrophe and property lines were associated with the exit from these lines of business in June 2022. The decrease in marine and aviation lines was attributable to the non-renewals of marine business and the exit from aviation business effective January 1, 2023. In our ongoing specialty lines, a decrease in liability lines was partially offset by increases in credit and surety, and professional lines. The decrease in liability lines was primarily due to non-renewals of U.S. regional multi-line business that included a high proportion of property exposures and the decreased line size on a significant contract following the exit from catastrophe and property lines of business. The increase in credit and surety lines and professional lines was due to new business.
•Net premiums written decreased by $434 million, or 26% ($389 million, or 23%, on a constant currency basis), reflecting the decrease in gross premiums written, together with an increase in premiums ceded in professional lines, liability, accident and health, credit and surety, and motor lines associated with the quota share retrocession agreement entered into with Monarch Point Re.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $24 million, or 1.8 points, primarily attributable to Cyclone Gabrielle, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $166 million, or 11.1 points, in 2022.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 8 -
Investments
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended September 30, | | Nine months ended September 30, |
($ in thousands) | 2023 | | 2022 | | 2023 | | 2022 |
| | | | | | | |
Net investment income | $ | 154,201 | | $ | 88,177 | | $ | 424,802 | | $ | 271,744 |
Net investments losses | (53,114) | | (146,458) | | (97,671) | | (414,231) |
Change in net unrealized gains (losses) on fixed maturities(5) | (157,943) | | (296,487) | | (17,909) | | (1,142,423) |
Interest in income (loss) of equity method investments | 2,940 | | (7,560) | | 2,835 | | 5,040 |
Total | $ | (53,916) | | $ | (362,328) | | $ | 312,057 | | $ | (1,279,870) |
| | | | | | | |
Average cash and investments(6) | $ | 16,281,540 | | $ | 15,824,697 | | $ | 16,057,260 | | $ | 16,003,712 |
| | | | | | | |
Total return on average cash and investments, pre-tax: | | | | | | | |
Including investment related foreign exchange movements | (0.3 | %) | | (2.3 | %) | | 1.9 | % | | (8.0 | %) |
Excluding investment related foreign exchange movements(7) | — | % | | (1.8 | %) | | 2.0 | % | | (6.8 | %) |
| | | | | | | |
•Net investment income increased by $66 million, or 75%, in the quarter, compared to the third quarter of 2022, attributable to an increase in income from our fixed maturities portfolio due to increased yields.
•Net investment losses recognized in net income for the quarter included net unrealized losses of $37 million ($28 million excluding foreign exchange movements), attributable to a decrease in the market value of our equity securities portfolio.
•Net unrealized losses, pre-tax of $158 million ($124 million excluding foreign exchange movements) were recognized in other comprehensive income (loss) in the quarter due to a decrease in the market value of our fixed maturities portfolio attributable to increased yields, compared to net unrealized losses, pre-tax of $296 million ($250 million excluding foreign exchange movements) recognized during the third quarter of 2022.
•Book yield of fixed maturities was 4.1% at September 30, 2023, compared to 2.9% at September 30, 2022 and 3.5% at December 31, 2022. The market yield was 6.2% at September 30, 2023.
5 Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end.
6 The average cash and investments balance is calculated by taking the average of the period end fair value balances.
7 Pre-tax total return on cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $(49) million and $(83) million for the three months ended September 30, 2023 and 2022, respectively and foreign exchange (losses) gains of $(9) million and $(189) million for the nine months ended September 30, 2023 and 2022, respectively.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 9 -
Capitalization / Shareholders’ Equity
| | | | | | | | | | | | | | | | | | | | | |
| September 30, | | December 31, | | | | | | |
($ in thousands) | 2023 | | 2022 | | Change | | | | |
Total capital8 | $ | 6,346,566 | | | $ | 5,952,224 | | | $ | 394,342 | | | | | |
•Total capital of $6.3 billion included $1.3 billion of debt and $550 million of preferred equity, compared to $6.0 billion at December 31, 2022, with the increase driven by net income, partially offset by common share dividends declared.
•At September 30, 2023, we had $100 million of remaining authorization under our Board-authorized share repurchase program for common share repurchases through December 31, 2023.
Book Value per diluted common share
| | | | | | | | | | | | | | | | | |
| September 30, | | June 30, | | September 30, |
| 2023 | | 2023 | | 2022 |
Book value per diluted common share9 | $ | 51.17 | | $ | 50.98 | | $ | 43.50 |
•Dividends declared were $0.44 per common share in the current quarter and $1.76 per common share over the past twelve months.
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended, | | Twelve months ended, |
| September 30, 2023 | | September 30, 2023 |
| Change | | % Change | | Change | | % Change |
Book value per diluted common share | $ | 0.19 | | | 0.4 | % | | $ | 7.67 | | | 17.6 | % |
Book value per diluted common share - adjusted for dividends declared | $ | 0.63 | | | 1.2 | % | | $ | 9.43 | | | 21.7 | % |
•Book value per diluted common share increased by $0.19 in the quarter, driven by net income, partially offset by net unrealized investment losses reported in accumulated other comprehensive income (loss), and common share dividends declared.
•Book value per diluted common share increased by $7.67 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 net unrealized investment losses, after-tax, reported in accumulated other comprehensive income (loss), book value per diluted common share was $59.78.
•Adjusted for dividends declared, the book value per diluted common share increased by $0.63 for the quarter, and increased by $9.43 over the past twelve months.
8 Total capital represents the sum of total shareholders' equity and debt.
9 Calculated using the treasury stock method.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 10 -
Conference Call
We will host a conference call on Thursday, November 2, 2023 at 9:30 a.m. (ET) to discuss the third quarter financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers), or 1-412-902-6506 (international callers), and entering the passcode 6504226 approximately ten minutes in advance of the call. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay of the teleconference will be available for two weeks by dialing 1-877-344-7529 (U.S. callers), or 1-412-317-0088 (international callers), and entering the passcode 6757410. The webcast will be archived in the Investor Information section of our website.
In addition, an investor financial supplement for the quarter ended September 30, 2023 is available in the Investor Information section of our website.
About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $5.0 billion at September 30, 2023, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.
Website and Social Media Disclosure
We use our website (www.axiscapital.com) and our corporate LinkedIn (AXIS Capital) and X Corp. (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program which can be found in the Investor Information section of our website (www.axiscapital.com). The contents of our website and social media channels are not part of this press release.
Follow AXIS Capital on LinkedIn and X Corp.
LinkedIn: http://bit.ly/2kRYbZ5
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 11 -
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2023 (UNAUDITED) AND DECEMBER 31, 2022 | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | 2023 | | 2022 |
| | | | | | |
| | | (in thousands) |
Assets | | | |
Investments: | |
Fixed maturities, available for sale, at fair value | $ | 11,723,368 | | | $ | 11,326,894 | |
Fixed maturities, held to maturity, at amortized cost | 712,840 | | | 698,351 | |
Equity securities, at fair value | 556,262 | | | 485,253 | |
Mortgage loans, held for investment, at fair value | 610,277 | | | 627,437 | |
Other investments, at fair value | 954,571 | | | 996,751 | |
Equity method investments | 162,412 | | | 148,288 | |
Short-term investments, at fair value | 115,959 | | | 70,310 | |
Total investments | 14,835,689 | | | 14,353,284 | |
Cash and cash equivalents | 889,574 | | | 751,415 | |
Restricted cash and cash equivalents | 377,741 | | | 423,238 | |
Accrued interest receivable | 99,978 | | | 94,418 | |
Insurance and reinsurance premium balances receivable | 3,207,444 | | | 2,733,464 | |
Reinsurance recoverable on unpaid losses and loss expenses | 6,031,527 | | | 5,831,172 | |
Reinsurance recoverable on paid losses and loss expenses | 594,375 | | | 539,676 | |
Deferred acquisition costs | 503,617 | | | 473,569 | |
Prepaid reinsurance premiums | 1,973,378 | | | 1,550,370 | |
Receivable for investments sold | 17,306 | | | 16,052 | |
Goodwill | 100,801 | | | 100,801 | |
Intangible assets | 189,612 | | | 197,800 | |
| | | |
Operating lease right-of-use assets | 104,240 | | | 92,214 | |
Other assets | 547,242 | | | 438,338 | |
Total assets | | | | $ | 29,472,524 | | | $ | 27,595,811 | |
| | | | | | |
Liabilities | | | | | |
Reserve for losses and loss expenses | $ | 15,555,256 | | | $ | 15,168,863 | |
Unearned premiums | 4,995,785 | | | 4,361,447 | |
Insurance and reinsurance balances payable | 1,900,188 | | | 1,522,764 | |
Debt | 1,313,358 | | | 1,312,314 | |
Federal Home Loan Bank advances | | 85,790 | | | 81,388 | |
Payable for investments purchased | 87,992 | | | 19,693 | |
Operating lease liabilities | 116,547 | | | 102,577 | |
Other liabilities | 384,400 | | | 386,855 | |
Total liabilities | | | | 24,439,316 | | | 22,955,901 | |
| | | | | | |
Shareholders' equity | | | | |
Preferred shares | 550,000 | | | 550,000 | |
Common shares | 2,206 | | | 2,206 | |
Additional paid-in capital | 2,375,678 | | | 2,366,253 | |
Accumulated other comprehensive income (loss) | (775,439) | | | (760,300) | |
Retained earnings | 6,628,179 | | | 6,247,022 | |
Treasury shares, at cost | (3,747,416) | | | (3,765,271) | |
Total shareholders' equity | 5,033,208 | | | 4,639,910 | |
| | | |
| | | | |
| | | | |
Total liabilities and shareholders' equity | $ | 29,472,524 | | | $ | 27,595,811 | |
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 12 -
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | Three months ended | | Nine months ended |
| | | 2023 | | 2022 | | 2023 | | 2022 |
| | | | | | | | | |
| | | (in thousands, except per share amounts) |
| Revenues | | | | | | | |
| Net premiums earned | $ | 1,322,564 | | | $ | 1,284,866 | | | $ | 3,818,508 | | | $ | 3,820,163 | |
| Net investment income | 154,201 | | | 88,177 | | | 424,802 | | | 271,744 | |
| Net investment gains (losses) | (53,114) | | | (146,458) | | | (97,671) | | | (414,231) | |
| Other insurance related income | 10,344 | | | 1,092 | | | 16,444 | | | 9,998 | |
| Total revenues | 1,433,995 | | | 1,227,677 | | | 4,162,083 | | | 3,687,674 | |
| | | | | | | | |
| Expenses | | | | | | | |
| Net losses and loss expenses | 783,940 | | | 941,911 | | | 2,240,840 | | | 2,444,196 | |
| Acquisition costs | 263,389 | | | 240,511 | | | 747,027 | | | 746,443 | |
| General and administrative expenses | 179,283 | | | 158,245 | | | 514,596 | | | 492,872 | |
| Foreign exchange gains | (50,570) | | | (135,660) | | | (11,755) | | | (236,934) | |
| Interest expense and financing costs | 16,445 | | | 15,915 | | | 50,077 | | | 46,720 | |
| Reorganization expenses | 28,997 | | | 6,213 | | | 28,997 | | | 21,941 | |
| | | | | | | | |
| Amortization of intangible assets | 2,729 | | | 2,729 | | | 8,188 | | | 8,188 | |
| Total expenses | 1,224,213 | | | 1,229,864 | | | 3,577,970 | | | 3,523,426 | |
| | | | | | | | |
| Income (loss) before income taxes and interest in income (loss) of equity method investments | 209,782 | | | (2,187) | | | 584,113 | | | 164,248 | |
| Income tax (expense) benefit | (24,624) | | | 363 | | | (68,078) | | | 5,304 | |
| Interest in income (loss) of equity method investments | 2,940 | | | (7,560) | | | 2,835 | | | 5,040 | |
| Net income (loss) | 188,098 | | | (9,384) | | | 518,870 | | | 174,592 | |
| | | | | | | | |
| | | | | | | | |
| Preferred share dividends | 7,563 | | | 7,563 | | | 22,688 | | | 22,688 | |
| | | | | | | | |
| Net income (loss) available (attributable) to common shareholders | $ | 180,535 | | | $ | (16,947) | | | $ | 496,182 | | | $ | 151,904 | |
| | | | | | | | |
| Per share data | | | | | | | |
| Earnings (loss) per common share: | | | | | | | |
| Earnings (loss) per common share | $ | 2.12 | | | $ | (0.20) | | | $ | 5.83 | | | $ | 1.79 | |
| Earnings (loss) per diluted common share | $ | 2.10 | | | $ | (0.20) | | | $ | 5.77 | | | $ | 1.77 | |
| Weighted average common shares outstanding | 85,223 | | | 84,660 | | | 85,099 | | | 84,930 | |
| Weighted average diluted common shares outstanding | 86,108 | | | 84,660 | | | 85,927 | | | 85,674 | |
| Cash dividends declared per common share | $ | 0.44 | | | $ | 0.43 | | | $ | 1.32 | | | $ | 1.29 | |
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 13 -
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| 2023 | | 2022 |
| Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total |
| | | | | | | | | | | |
| (in thousands) |
Gross premiums written | $ | 1,457,624 | | | $ | 448,254 | | | $ | 1,905,878 | | | $ | 1,317,890 | | | $ | 389,918 | | | $ | 1,707,808 | |
Net premiums written | 885,252 | | | 90,105 | | | 975,357 | | | 777,789 | | | 258,995 | | | 1,036,784 | |
Net premiums earned | 885,714 | | | 436,850 | | | 1,322,564 | | | 782,101 | | | 502,765 | | | 1,284,866 | |
Other insurance related income (loss) | (22) | | | 10,366 | | | 10,344 | | | 151 | | | 941 | | | 1,092 | |
Net losses and loss expenses | (491,368) | | | (292,572) | | | (783,940) | | | (519,006) | | | (422,905) | | | (941,911) | |
Acquisition costs | (169,384) | | | (94,005) | | | (263,389) | | | (139,436) | | | (101,075) | | | (240,511) | |
Underwriting-related general and | | | | | | | | | | | |
administrative expenses(10) | (120,330) | | | (18,271) | | | (138,601) | | | (108,072) | | | (24,498) | | | (132,570) | |
Underwriting income (loss)(11) | $ | 104,610 | | | $ | 42,368 | | | 146,978 | | | $ | 15,738 | | | $ | (44,772) | | | (29,034) | |
| | | | | | | | | | | |
Net investment income | | | | | 154,201 | | | | | | | 88,177 | |
Net investment gains (losses) | | | | | (53,114) | | | | | | | (146,458) | |
Corporate expenses(10) | | | | | (40,682) | | | | | | | (25,675) | |
Foreign exchange gains | | | | | 50,570 | | | | | | | 135,660 | |
Interest expense and financing costs | | | | | (16,445) | | | | | | | (15,915) | |
Reorganization expenses | | | | | (28,997) | | | | | | | (6,213) | |
| | | | | | | | | | | |
Amortization of intangible assets | | | | | (2,729) | | | | | | | (2,729) | |
Income (loss) before income taxes and interest in income (loss) of equity method investments | | | | | 209,782 | | | | | | | (2,187) | |
Income tax (expense) benefit | | | | | (24,624) | | | | | | | 363 | |
Interest in income (loss) of equity method investments | | | | | 2,940 | | | | | | | (7,560) | |
Net income (loss) | | | | | 188,098 | | | | | | | (9,384) | |
Preferred share dividends | | | | | 7,563 | | | | | | | 7,563 | |
Net income (loss) available (attributable) to common shareholders | | | | | $ | 180,535 | | | | | | | $ | (16,947) | |
| | | | | | | | | | | |
Net losses and loss expenses ratio | 55.5 | % | | 67.0 | % | | 59.3 | % | | 66.4 | % | | 84.1 | % | | 73.3 | % |
Acquisition cost ratio | 19.1 | % | | 21.5 | % | | 19.9 | % | | 17.8 | % | | 20.1 | % | | 18.7 | % |
General and administrative expense ratio | 13.6 | % | | 4.2 | % | | 13.5 | % | | 13.8 | % | | 4.9 | % | | 12.3 | % |
Combined ratio | 88.2 | % | | 92.7 | % | | 92.7 | % | | 98.0 | % | | 109.1 | % | | 104.3 | % |
| | | | | | | | | | | |
10 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $41 million and $26 million for the three months ended September 30, 2023 and 2022, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
11 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 14 -
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| 2023 | | 2022 |
| Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total |
| | | | | | | | | | | |
| (in thousands) |
Gross premiums written | $ | 4,557,386 | | | $ | 2,014,846 | | | $ | 6,572,232 | | | $ | 4,114,776 | | | $ | 2,341,123 | | | $ | 6,455,899 | |
Net premiums written | 2,788,849 | | | 1,241,221 | | | 4,030,070 | | | 2,491,120 | | | 1,675,382 | | | 4,166,502 | |
Net premiums earned | 2,544,920 | | | 1,273,588 | | | 3,818,508 | | | 2,303,640 | | | 1,516,523 | | | 3,820,163 | |
Other insurance related income | 90 | | | 16,354 | | | 16,444 | | | 470 | | | 9,528 | | | 9,998 | |
Net losses and loss expenses | (1,398,486) | | | (842,354) | | | (2,240,840) | | | (1,346,585) | | | (1,097,611) | | | (2,444,196) | |
Acquisition costs | (473,413) | | | (273,614) | | | (747,027) | | | (422,979) | | | (323,464) | | | (746,443) | |
Underwriting-related general and | | | | | | | | | | | |
administrative expenses(12) | (350,494) | | | (61,757) | | | (412,251) | | | (330,598) | | | (82,471) | | | (413,069) | |
Underwriting income(13) | $ | 322,617 | | | $ | 112,217 | | | 434,834 | | | $ | 203,948 | | | $ | 22,505 | | | 226,453 | |
| | | | | | | | | | | |
Net investment income | | | | | 424,802 | | | | | | | 271,744 | |
Net investment gains (losses) | | | | | (97,671) | | | | | | | (414,231) | |
Corporate expenses(12) | | | | | (102,345) | | | | | | | (79,803) | |
Foreign exchange gains | | | | | 11,755 | | | | | | | 236,934 | |
Interest expense and financing costs | | | | | (50,077) | | | | | | | (46,720) | |
Reorganization expenses | | | | | (28,997) | | | | | | | (21,941) | |
| | | | | | | | | | | |
Amortization of intangible assets | | | | | (8,188) | | | | | | | (8,188) | |
Income before income taxes and interest in income of equity method investments | | | | | 584,113 | | | | | | | 164,248 | |
Income tax (expense) benefit | | | | | (68,078) | | | | | | | 5,304 | |
Interest in income of equity method investments | | | | | 2,835 | | | | | | | 5,040 | |
Net Income | | | | | 518,870 | | | | | | | 174,592 | |
Preferred share dividends | | | | | 22,688 | | | | | | | 22,688 | |
Net income available to common shareholders | | | | | $ | 496,182 | | | | | | | $ | 151,904 | |
| | | | | | | | | | | |
Net losses and loss expenses ratio | 55.0 | % | | 66.1 | % | | 58.7 | % | | 58.5 | % | | 72.4 | % | | 64.0 | % |
Acquisition cost ratio | 18.6 | % | | 21.5 | % | | 19.6 | % | | 18.4 | % | | 21.3 | % | | 19.5 | % |
| | | | | | | | | | | |
General and administrative expense ratio | 13.7 | % | | 4.9 | % | | 13.4 | % | | 14.3 | % | | 5.4 | % | | 12.9 | % |
Combined ratio | 87.3 | % | | 92.5 | % | | 91.7 | % | | 91.2 | % | | 99.1 | % | | 96.4 | % |
| | | | | | | | | | | |
12Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $102 million and $80 million for the nine months ended September 30, 2023 and 2022, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
13Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 15 -
AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Three months ended | | Nine months ended |
| 2023 | | 2022 | | 2023 | | 2022 |
| (in thousands, except per share amounts) |
| | | | | | | |
Net income (loss) available (attributable) to common shareholders | $ | 180,535 | | $ | (16,947) | | $ | 496,182 | | $ | 151,904 |
Net investment (gains) losses(14) | 53,114 | | 146,458 | | 97,671 | | 414,231 |
Foreign exchange gains(15) | (50,570) | | (135,660) | | (11,755) | | (236,934) |
Reorganization expenses(16) | 28,997 | | 6,213 | | 28,997 | | 21,941 |
Interest in (income) loss of equity method investments(17) | (2,940) | | 7,560 | | (2,835) | | (5,040) |
Income tax benefit | (7,245) | | (5,117) | | (15,138) | | (14,779) |
Operating income | $ | 201,891 | | $ | 2,507 | | $ | 593,122 | | $ | 331,323 |
| | | | | | | |
Earnings (loss) per diluted common share | $ | 2.10 | | $ | (0.20) | | $ | 5.77 | | $ | 1.77 |
Net investment (gains) losses | 0.62 | | 1.72 | | 1.14 | | 4.83 |
Foreign exchange gains | (0.59) | | (1.59) | | (0.14) | | (2.77) |
Reorganization expenses | 0.34 | | 0.07 | | 0.34 | | 0.26 |
Interest in (income) loss of equity method investments | (0.03) | | 0.09 | | (0.03) | | (0.06) |
Income tax benefit | (0.10) | | (0.06) | | (0.18) | | (0.17) |
Operating income per diluted common share | $ | 2.34 | | $ | 0.03 | | $ | 6.90 | | $ | 3.86 |
| | | | | | | |
Weighted average diluted common shares outstanding | 86,108 | | 85,376 | | 85,927 | | 85,674 |
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Average common shareholders' equity | $ | 4,477,086 | | 3,973,027 | | $ | 4,286,559 | | $ | 4,327,040 |
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Annualized return on average common equity | 16.1 | % | | (1.7 | %) | | 15.4 | % | | 4.7 | % |
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Annualized operating return on average common equity(18) | 18.0 | % | | 0.3 | % | | 18.4 | % | | 10.2 | % |
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14 Tax expense (benefit) of $(4,318) and $(608) for the three months ended September 30, 2023 and 2022, respectively, and $(8,198) and $(33,519) for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
15 Tax expense (benefit) of $2,318 and $(3,757) for the three months ended September 30, 2023 and 2022, respectively, and $(1,695) and $21,191 for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
16 Tax expense (benefit) of $(5,245) and $(752) for the three months ended September 30, 2023 and 2022, respectively, and $(5,245) and $(2,451) for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
17 Tax expense (benefit) of $nil for the three and nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
18 Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure, is presented above, and a discussion of the rationale for its presentation is provided later in this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 16 -
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this press release, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this press release may include, but are not limited to, information regarding our estimates for catastrophes and other weather-related losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives including our exit from catastrophe and property reinsurance lines of business, our expectations regarding pricing and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.
Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:
Insurance Risk
•the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;
•the occurrence and magnitude of natural and man-made disasters, including the potential increase of our exposure to natural catastrophe losses due to climate change and the potential for inherently unpredictable losses from man-made catastrophes, such as cyber-attacks;
•the effects of emerging claims, systemic risks, and coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions;
•actual claims exceeding reserves for losses and loss expenses;
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 17 -
•losses related to the Israel-Hamas conflict, Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses;
•the adverse impact of inflation;
•the failure of any of the loss limitation methods we employ;
•the failure of our cedants to adequately evaluate risks;
Strategic Risk
•underwriting and investment exposure in light of the recent disruption in the banking sector, which we expect to be within our risk appetite for an event of this nature;
•changes in the political environment of certain countries in which we operate or underwrite business, including the United Kingdom's withdrawal from the European Union;
•the loss of business provided to us by major brokers;
•a decline in our ratings with rating agencies;
•the loss of one or more of our key executives;
•increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters;
•the adverse impact of contagious diseases (including COVID-19) on our business, results of operations, financial condition, and liquidity;
Credit and Market Risk
•the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;
•the failure of our policyholders or intermediaries to pay premiums;
•general economic, capital and credit market conditions, including banking and commercial real estate sector instability, financial market illiquidity and fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency exchange rates;
•breaches by third parties in our program business of their obligations to us;
Liquidity Risk
•the inability to access sufficient cash to meet our obligations when they are due;
Operational Risk
•changes in accounting policies or practices;
•the use of industry models and changes to these models;
•difficulties with technology and/or data security;
•the failure of the processes, people or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties;
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 18 -
Regulatory Risk
•changes in governmental regulations and potential government intervention in our industry;
•inadvertent failure to comply with certain laws and regulations relating to sanctions, foreign corrupt practices, data protection and privacy; and
Risks Related to Taxation
•changes in tax laws.
Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.
We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 19 -
Rationale for the Use of Non-GAAP Financial Measures
We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this press release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Underwriting-Related General and Administrative Expenses
Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.
Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.
The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 20 -
Consolidated Underwriting Income (Loss)
Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.
We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.
Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).
Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income (loss).
Reorganization expenses in 2023 include impairments of computer software assets and severance costs associated with the departures of certain employees mainly attributable to our "How We Work" program which focuses on simplifying our operating structure. Reorganization expenses in 2022 included severance costs and impairments of computer software assets mainly attributable to our exit from catastrophe and property reinsurance lines of business which was part of an overall approach to reduce our exposure to volatile catastrophe risk. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 21 -
Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).
We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.
Operating Income (Loss)
Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments.
Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.
Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses) and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).
Reorganization expenses in 2023 include impairments of computer software assets and severance costs associated with the departures of certain employees mainly attributable to our "How We Work" program which focuses on simplifying our operating structure. Reorganization expenses in 2022 included severance costs and impairments of computer software assets mainly attributable to our exit from catastrophe and property reinsurance lines of business which was part of an overall approach to reduce our exposure to volatile catastrophe risk. Reorganization expenses are primarily driven by business decisions, the nature and timing of
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 22 -
which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated operating income (loss).
Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).
Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments in order to understand the profitability of recurring sources of income.
We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.
We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.
Constant Currency Basis
We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 23 -
Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movements
Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax total return on cash and investments excluding foreign exchange movements to pre-tax total return on cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 24 -
AXIS CAPITAL HOLDINGS LIMITED
INVESTOR FINANCIAL SUPPLEMENT
THIRD QUARTER 2023
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| AXIS Capital Holdings Limited | | | |
| 92 Pitts Bay Road | | | |
| Pembroke HM 08 Bermuda | | | |
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| Contact Information: | | | |
| Miranda Hunter | | | |
| Investor Contact | | | |
| (441) 405-2635 | | | |
| investorrelations@axiscapital.com | | | |
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| Website Information: | | | |
| www.axiscapital.com | | | |
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This report is for informational purposes only. It should be read in conjunction with the documents that the Company files with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. |
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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS | | | | | | | | |
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II. Income Statements | | |
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III. Balance Sheets | | |
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b. Cash and Invested Assets: | | |
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IV. Losses Reserve Analysis | | |
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V. Share Analysis | | |
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VI. Non-GAAP Financial Measures | | |
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VII. Additional Information Regarding the Company's Exit from Catastrophe and Property Lines of Business | | |
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AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
AXIS Capital Holdings Limited's ("AXIS Capital" or the "Company") underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.
DEFINITIONS AND PRESENTATION
•All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2022 and consolidated statements of operations for the years ended December 31, 2022 and December 31, 2021.
•Amounts may not reconcile due to rounding differences.
•Unless otherwise noted, all data is in thousands, except for ratio information.
•NM - Not meaningful is defined as a variance greater than +/- 100%; NA - Not applicable
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for catastrophes and other weather-related losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives including our exit from catastrophe and property reinsurance lines of business, our expectations regarding pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.
Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:
Insurance Risk
•the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;
•the occurrence and magnitude of natural and man-made disasters, including the potential increase of our exposure to natural catastrophe losses due to climate change and the potential for inherently unpredictable losses from man-made catastrophes, such as cyber-attacks;
•the effects of emerging claims, systemic risks, and coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions;
•actual claims exceeding reserves for losses and loss expenses;
•losses related to the Israel-Hamas conflict, Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses;
•the adverse impact of inflation;
•the failure of any of the loss limitation methods we employ;
•the failure of our cedants to adequately evaluate risks;
Strategic Risk
•underwriting and investment exposure in light of the recent disruption in the banking sector, which we expect to be within our risk appetite for an event of this nature;
•changes in the political environment of certain countries in which we operate or underwrite business, including the United Kingdom's withdrawal from the European Union;
•the loss of business provided to us by major brokers;
•a decline in our ratings with rating agencies;
•the loss of one or more of our key executives;
•increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters;
•the adverse impact of contagious diseases (including COVID-19) on our business, results of operations, financial condition, and liquidity;
Credit and Market Risk
•the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;
•the failure of our policyholders or intermediaries to pay premiums;
•general economic, capital and credit market conditions, including banking and commercial real estate sector instability, financial market illiquidity and fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency exchange rates;
•breaches by third parties in our program business of their obligations to us;
Liquidity Risk
•the inability to access sufficient cash to meet our obligations when they are due;
Operational Risk
•changes in accounting policies or practices;
•the use of industry models and changes to these models;
•difficulties with technology and/or data security;
•the failure of the processes, people or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties;
Regulatory Risk
•changes in governmental regulations and potential government intervention in our industry;
•inadvertent failure to comply with certain laws and regulations relating to sanctions, foreign corrupt practices, data protection and privacy; and
Risks Related to Taxation
•changes in tax laws.
Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.
We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
BUSINESS DESCRIPTIONS
INSURANCE SEGMENT
Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:
Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
Property: provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects, and onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This line of business includes primary and excess risks, some of which are catastrophe-exposed.
Liability: provides cover for primary and low to mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability business predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking, and other services.
Cyber: provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability. Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability.
Marine and Aviation: Marine provides cover for traditional marine classes, including offshore energy, renewable offshore energy, cargo, liability including kidnap and ransom, fine art, specie, and hull war. Offshore energy coverages include physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. Aviation provides hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.
Accident and Health: includes personal accident, travel insurance and specialty health products for employer and affinity groups, and pet insurance.
Credit and Political Risk: provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign and corporate credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events.
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
BUSINESS DESCRIPTIONS (CONTINUED)
REINSURANCE SEGMENT
Our reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis, written on an excess of loss or a proportional basis. For excess of loss business, we typically indemnify the reinsured for a portion of losses, individually and in the aggregate, in excess of a specified individual or aggregate loss deductible. For proportional business, we assume an agreed percentage of the underlying premiums and accept liability for the same percentage of losses and loss expenses. Our business is primarily produced through reinsurance brokers worldwide. The following are the lines of business in our reinsurance segment:
Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, and excess casualty.
Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis.
Professional Lines: provides protection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis.
Credit and Surety: Credit reinsurance provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Mortgage reinsurance is provided to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.
Motor: provides protection to insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. Traditional proportional and non-proportional reinsurance as well as structured solutions are offered.
Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis.
Marine and Aviation: Marine includes specialty marine classes such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis. Aviation provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023.
Run-off lines
Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis. The Company exited this line of business in June 2022.
Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company exited this line of business in June 2022.
Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption. The Company exited this line of business in 2020.
AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended September 30, | | | Nine months ended September 30, | |
| | | 2023 | | 2022 | | Change | | | 2023 | | 2022 | | Change |
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HIGHLIGHTS | | Gross premiums written | $ | 1,905,878 | | | $ | 1,707,808 | | | 11.6 | % | | | | $ | 6,572,232 | | | $ | 6,455,899 | | | 1.8 | % | |
Gross premiums written - Insurance | 76.5 | % | | 77.2 | % | | (0.7) | | pts | | | 69.3 | % | | 63.7 | % | | 5.6 | | pts |
Gross premiums written - Reinsurance | 23.5 | % | | 22.8 | % | | 0.7 | | pts | | | 30.7 | % | | 36.3 | % | | (5.6) | | pts |
Net premiums written | $ | 975,357 | | | $ | 1,036,784 | | | (5.9 | %) | | | | $ | 4,030,070 | | | $ | 4,166,502 | | | (3.3 | %) | |
Net premiums earned | $ | 1,322,564 | | | $ | 1,284,866 | | | 2.9 | % | | | | $ | 3,818,508 | | | $ | 3,820,163 | | | — | % | |
Net premiums earned - Insurance | 67.0 | % | | 60.9 | % | | 6.1 | | pts | | | 66.6 | % | | 60.3 | % | | 6.3 | | pts |
Net premiums earned - Reinsurance | 33.0 | % | | 39.1 | % | | (6.1) | | pts | | | 33.4 | % | | 39.7 | % | | (6.3) | | pts |
Net income (loss) available (attributable) to common shareholders | $ | 180,535 | | | $ | (16,947) | | | nm | | | | $ | 496,182 | | | $ | 151,904 | | | nm | |
Operating income [a] | $ | 201,891 | | | $ | 2,507 | | | nm | | | | $ | 593,122 | | | $ | 331,323 | | | 79.0 | % | |
Annualized return on average common equity [b] | 16.1 | % | | (1.7 | %) | | 17.8 | | pts | | | 15.4 | % | | 4.7 | % | | 10.7 | | pts |
Annualized operating return on average common equity [c] | 18.0 | % | | 0.3 | % | | 17.7 | | pts | | | 18.4 | % | | 10.2 | % | | 8.2 | | pts |
Total shareholders’ equity | $ | 5,033,208 | | | $ | 4,343,423 | | | 15.9 | % | | | | $ | 5,033,208 | | | $ | 4,343,423 | | | 15.9 | % | |
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PER COMMON SHARE AND COMMON SHARE DATA | | Earnings (loss) per diluted common share | $2.10 | | | ($0.20) | | | nm | | | | $5.77 | | | $1.77 | | | nm | |
Operating income per diluted common share [d] | $2.34 | | | $0.03 | | | nm | | | | $6.90 | | | $3.86 | | | 78.8 | % | |
Weighted average diluted common shares outstanding | 86,108 | | | 84,660 | | | 1.7 | % | | | | 85,927 | | | 85,674 | | | 0.3 | % | |
Book value per common share | $52.60 | | | $44.80 | | | 17.4 | % | | | | $52.60 | | | $44.80 | | | 17.4 | % | |
Book value per diluted common share (treasury stock method) | $51.17 | | | $43.50 | | | 17.6 | % | | | | $51.17 | | | $43.50 | | | 17.6 | % | |
Tangible book value per diluted common share (treasury stock method) [a] | $48.44 | | | $40.64 | | | 19.2 | % | | | | $48.44 | | | $40.64 | | | 19.2 | % | |
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FINANCIAL RATIOS | | Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.3 | % | | 57.1 | % | | (0.8) | | pts | | | 56.1 | % | | 55.5 | % | | 0.6 | | pts |
Catastrophe and weather-related losses ratio | 3.2 | % | | 16.6 | % | | (13.4) | | pts | | | 2.9 | % | | 8.9 | % | | (6.0) | | pts |
Current accident year loss ratio | 59.5 | % | | 73.7 | % | | (14.2) | | pts | | | 59.0 | % | | 64.4 | % | | (5.4) | | pts |
Prior year reserve development ratio | (0.2 | %) | | (0.4 | %) | | 0.2 | | pts | | | (0.3 | %) | | (0.4 | %) | | 0.1 | | pts |
Net losses and loss expenses ratio | 59.3 | % | | 73.3 | % | | (14.0) | | pts | | | 58.7 | % | | 64.0 | % | | (5.3) | | pts |
Acquisition cost ratio | 19.9 | % | | 18.7 | % | | 1.2 | | pts | | | 19.6 | % | | 19.5 | % | | 0.1 | | pts |
General and administrative expense ratio [e] | 13.5 | % | | 12.3 | % | | 1.2 | | pts | | | 13.4 | % | | 12.9 | % | | 0.5 | | pts |
Combined ratio | 92.7 | % | | 104.3 | % | | (11.6) | | pts | | | 91.7 | % | | 96.4 | % | | (4.7) | | pts |
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INVESTMENT DATA | | Total assets | $ | 29,472,524 | | | $ | 27,119,753 | | | 8.7 | % | | | | $ | 29,472,524 | | | $ | 27,119,753 | | | 8.7 | % | |
Total cash and invested assets [f] | $ | 16,132,296 | | | $ | 15,640,704 | | | 3.1 | % | | | | $ | 16,132,296 | | | $ | 15,640,704 | | | 3.1 | % | |
Net investment income | $ | 154,201 | | | $ | 88,177 | | | 74.9 | % | | | | $ | 424,802 | | | $ | 271,744 | | | 56.3 | % | |
Net investment gains (losses) | $ | (53,114) | | | $ | (146,458) | | | (63.7 | %) | | | | $ | (97,671) | | | $ | (414,231) | | | (76.4 | %) | |
Book yield of fixed maturities | 4.1 | % | | 2.9 | % | | 1.2 | | pts | | | 4.1 | % | | 2.9 | % | | 1.2 | | pts |
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[a] Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE") and tangible book value per diluted common share are non-GAAP financial measures as defined by Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, annualized return on average common equity ("ROACE") and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this document.
[b] Annualized ROACE is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders’ equity determined using the
common shareholders’ equity balances at the beginning and end of the period.
[c] Annualized operating ROACE is calculated by dividing annualized operating income (loss) for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
[d] Operating income (loss) per diluted common share is calculated by dividing operating income (loss) for the period by weighted average diluted common shares outstanding.
[e] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[f] Total cash and invested assets represents the total cash and cash equivalents, fixed maturities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three months ended September 30, | | Nine months ended September 30, |
| | | | 2023 | | 2022 | | 2023 | | 2022 |
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Revenues | | | | | | | | |
| Net premiums earned | | $ | 1,322,564 | | | $ | 1,284,866 | | | $ | 3,818,508 | | | $ | 3,820,163 | |
| Net investment income | | 154,201 | | | 88,177 | | | 424,802 | | | 271,744 | |
| Net investment gains (losses) | | (53,114) | | | (146,458) | | | (97,671) | | | (414,231) | |
| Other insurance related income | | 10,344 | | | 1,092 | | | 16,444 | | | 9,998 | |
| Total revenues | | | 1,433,995 | | | 1,227,677 | | | 4,162,083 | | | 3,687,674 | |
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Expenses | | | | | | | | |
| Net losses and loss expenses | | 783,940 | | | 941,911 | | | 2,240,840 | | | 2,444,196 | |
| Acquisition costs | | 263,389 | | | 240,511 | | | 747,027 | | | 746,443 | |
| General and administrative expenses | | 179,283 | | | 158,245 | | | 514,596 | | | 492,872 | |
| Foreign exchange gains | | (50,570) | | | (135,660) | | | (11,755) | | | (236,934) | |
| Interest expense and financing costs | | 16,445 | | | 15,915 | | | 50,077 | | | 46,720 | |
| Reorganization expenses | | 28,997 | | | 6,213 | | | 28,997 | | | 21,941 | |
| Amortization of intangible assets | | 2,729 | | | 2,729 | | | 8,188 | | | 8,188 | |
| Total expenses | | | 1,224,213 | | | 1,229,864 | | | 3,577,970 | | | 3,523,426 | |
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Income (loss) before income taxes and interest in income (loss) of equity method investments | | 209,782 | | | (2,187) | | | 584,113 | | | 164,248 | |
| Income tax (expense) benefit | | (24,624) | | | 363 | | | (68,078) | | | 5,304 | |
| Interest in income (loss) of equity method investments | | 2,940 | | | (7,560) | | | 2,835 | | | 5,040 | |
Net income (loss) | | 188,098 | | | (9,384) | | | 518,870 | | | 174,592 | |
| Preferred share dividends | | 7,563 | | | 7,563 | | | 22,688 | | | 22,688 | |
Net income (loss) available (attributable) to common shareholders | | $ | 180,535 | | | $ | (16,947) | | | $ | 496,182 | | | $ | 151,904 | |
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | | | | | |
| Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | Q3 2021 | | | | | | | | | | 2022 | | | | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | $ | 1,905,878 | | | $ | 2,284,378 | | | $ | 2,381,976 | | | $ | 1,758,696 | | | $ | 1,707,808 | | | | | | | | | $ | 1,646,489 | | | | | | | | | | | $ | 8,214,595 | | | | | | | |
Ceded premiums written | (930,521) | | | (838,021) | | | (773,620) | | | (662,142) | | | (671,024) | | | | | | | | | (650,018) | | | | | | | | | | | (2,951,539) | | | | | | | |
Net premiums written | 975,357 | | | 1,446,357 | | | 1,608,356 | | | 1,096,554 | | | 1,036,784 | | | | | | | | | 996,471 | | | | | | | | | | | 5,263,056 | | | | | | | |
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Gross premiums earned | 2,046,222 | | | 1,969,662 | | | 1,921,768 | | | 2,050,239 | | | 2,012,426 | | | | | | | | | 1,879,280 | | | | | | | | | | | 7,936,382 | | | | | | | |
Ceded premiums earned | (723,658) | | | (703,917) | | | (691,569) | | | (710,077) | | | (727,560) | | | | | | | | | (667,853) | | | | | | | | | | | (2,776,056) | | | | | | | |
Net premiums earned | 1,322,564 | | | 1,265,745 | | | 1,230,199 | | | 1,340,162 | | | 1,284,866 | | | | | | | | | 1,211,427 | | | | | | | | | | | 5,160,326 | | | | | | | |
Other insurance related income | 10,344 | | | 5,524 | | | 577 | | | 3,076 | | | 1,092 | | | | | | | | | 7,665 | | | | | | | | | | | 13,073 | | | | | | | |
Total underwriting revenues | 1,332,908 | | | 1,271,269 | | | 1,230,776 | | | 1,343,238 | | | 1,285,958 | | | | | | | | | 1,219,092 | | | | | | | | | | | 5,173,399 | | | | | | | |
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UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | 783,940 | | | 736,257 | | | 720,642 | | | 798,214 | | | 941,911 | | | | | | | | | 911,369 | | | | | | | | | | | 3,242,410 | | | | | | | |
Acquisition costs | 263,389 | | | 253,265 | | | 230,373 | | | 275,573 | | | 240,511 | | | | | | | | | 231,712 | | | | | | | | | | | 1,022,017 | | | | | | | |
Underwriting-related general and administrative expenses [a] | 138,601 | | | 133,255 | | | 140,395 | | | 137,220 | | | 132,570 | | | | | | | | | 134,826 | | | | | | | | | | | 550,289 | | | | | | | |
Total underwriting expenses | 1,185,930 | | | 1,122,777 | | | 1,091,410 | | | 1,211,007 | | | 1,314,992 | | | | | | | | | 1,277,907 | | | | | | | | | | | 4,814,716 | | | | | | | |
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UNDERWRITING INCOME (LOSS) [b] | 146,978 | | | 148,492 | | | 139,366 | | | 132,231 | | | (29,034) | | | | | | | | | (58,815) | | | | | | | | | | | 358,683 | | | | | | | |
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OTHER (EXPENSES) REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | 154,201 | | | 136,829 | | | 133,771 | | | 147,085 | | | 88,177 | | | | | | | | | 107,339 | | | | | | | | | | | 418,829 | | | | | | | |
Net investment gains (losses) | (53,114) | | | (24,370) | | | (20,190) | | | (42,558) | | | (146,458) | | | | | | | | | 10,932 | | | | | | | | | | | (456,789) | | | | | | | |
Corporate expenses [a] | (40,682) | | | (35,248) | | | (26,416) | | | (50,252) | | | (25,675) | | | | | | | | | (23,134) | | | | | | | | | | | (130,054) | | | | | | | |
Foreign exchange (losses) gains | 50,570 | | | (30,104) | | | (8,710) | | | (78,989) | | | 135,660 | | | | | | | | | 28,032 | | | | | | | | | | | 157,945 | | | | | | | |
Interest expense and financing costs | (16,445) | | | (16,738) | | | (16,894) | | | (16,426) | | | (15,915) | | | | | | | | | (15,954) | | | | | | | | | | | (63,146) | | | | | | | |
Reorganization expenses | (28,997) | | | — | | | — | | | (9,485) | | | (6,213) | | | | | | | | | — | | | | | | | | | | | (31,426) | | | | | | | |
Amortization of value of business acquired | — | | | — | | | — | | | — | | | — | | | | | | | | | (1,028) | | | | | | | | | | | — | | | | | | | |
Amortization of intangible assets | (2,729) | | | (2,729) | | | (2,729) | | | (2,729) | | | (2,729) | | | | | | | | | (3,149) | | | | | | | | | | | (10,917) | | | | | | | |
Total other (expenses) revenues | 62,804 | | | 27,640 | | | 58,832 | | | (53,354) | | | 26,847 | | | | | | | | | 103,038 | | | | | | | | | | | (115,558) | | | | | | | |
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INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS | 209,782 | | | 176,132 | | | 198,198 | | | 78,877 | | | (2,187) | | | | | | | | | 44,223 | | | | | | | | | | | 243,125 | | | | | | | |
Income tax (expense) benefit | (24,624) | | | (27,558) | | | (15,896) | | | (27,341) | | | 363 | | | | | | | | | (1,186) | | | | | | | | | | | (22,037) | | | | | | | |
Interest in income (loss) of equity method investments | 2,940 | | | 2,100 | | | (2,205) | | | (3,045) | | | (7,560) | | | | | | | | | 11,911 | | | | | | | | | | | 1,995 | | | | | | | |
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NET INCOME (LOSS) | 188,098 | | | 150,674 | | | 180,097 | | | 48,491 | | | (9,384) | | | | | | | | | 54,948 | | | | | | | | | | | 223,083 | | | | | | | |
Preferred share dividends | (7,563) | | | (7,563) | | | (7,563) | | | (7,563) | | | (7,563) | | | | | | | | | (7,563) | | | | | | | | | | | (30,250) | | | | | | | |
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS | $ | 180,535 | | | $ | 143,111 | | | $ | 172,534 | | | $ | 40,928 | | | $ | (16,947) | | | | | | | | | $ | 47,385 | | | | | | | | | | | $ | 192,833 | | | | | | | |
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[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.
[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | | | | | |
| Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | Q3 2021 | | | | | | | | | | | | 2022 | | | | | | |
KEY RATIOS/PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.3 | % | | 56.1 | % | | 55.8 | % | | 55.5 | % | | 57.1 | % | | | | | | | | 55.4 | % | | | | | | | | | | | | 55.5 | % | | | | | | |
Catastrophe and weather-related losses ratio | 3.2 | % | | 2.6 | % | | 3.1 | % | | 4.7 | % | | 16.6 | % | | | | | | | | 20.7 | % | | | | | | | | | | | | 7.8 | % | | | | | | |
Current accident year loss ratio | 59.5 | % | | 58.7 | % | | 58.9 | % | | 60.2 | % | | 73.7 | % | | | | | | | | 76.1 | % | | | | | | | | | | | | 63.3 | % | | | | | | |
Prior year reserve development ratio | (0.2 | %) | | (0.5 | %) | | (0.3 | %) | | (0.6 | %) | | (0.4 | %) | | | | | | | | (0.9 | %) | | | | | | | | | | | | (0.5 | %) | | | | | | |
Net losses and loss expenses ratio | 59.3 | % | | 58.2 | % | | 58.6 | % | | 59.6 | % | | 73.3 | % | | | | | | | | 75.2 | % | | | | | | | | | | | | 62.8 | % | | | | | | |
Acquisition cost ratio | 19.9 | % | | 20.0 | % | | 18.7 | % | | 20.6 | % | | 18.7 | % | | | | | | | | 19.1 | % | | | | | | | | | | | | 19.8 | % | | | | | | |
General and administrative expense ratio [a] | 13.5 | % | | 13.3 | % | | 13.6 | % | | 13.9 | % | | 12.3 | % | | | | | | | | 13.1 | % | | | | | | | | | | | | 13.2 | % | | | | | | |
Combined ratio | 92.7 | % | | 91.5 | % | | 90.9 | % | | 94.1 | % | | 104.3 | % | | | | | | | | 107.4 | % | | | | | | | | | | | | 95.8 | % | | | | | | |
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Weighted average common shares outstanding | 85,223 | | 85,207 | | 84,864 | | 84,667 | | 84,660 | | | | | | | | 84,771 | | | | | | | | | | | | 84,864 | | | | | | |
Weighted average diluted common shares outstanding [b] | 86,108 | | 85,812 | | 85,853 | | 85,655 | | 84,660 | | | | | | | | 85,336 | | | | | | | | | | | | 85,669 | | | | | | |
Earnings (loss) per common share | $2.12 | | $1.68 | | $2.03 | | $0.48 | | ($0.20) | | | | | | | | $0.56 | | | | | | | | | | | | $2.27 | | | | | | |
Earnings (loss) per diluted common share | $2.10 | | $1.67 | | $2.01 | | $0.48 | | ($0.20) | | | | | | | | $0.56 | | | | | | | | | | | | $2.25 | | | | | | |
Annualized ROACE | 16.1 | % | | 12.9 | % | | 16.2 | % | | 4.2 | % | | (1.7 | %) | | | | | | | | 3.9 | % | | | | | | | | | | | | 4.3 | % | | | | | | |
Annualized operating ROACE | 18.0 | % | | 17.2 | % | | 18.8 | % | | 16.9 | % | | 0.3 | % | | | | | | | | 0.1 | % | | | | | | | | | | | | 11.1 | % | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[b] Due to the net loss attributable to common shareholders recognized for the three months ended September 30, 2022, the share equivalents were anti-dilutive.
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine months ended September 30, | | Year ended December 31, |
| 2023 | | 2022 | | 2021 | | 2022 | | 2021 |
UNDERWRITING REVENUES | | | | | | | | | |
Gross premiums written | $ | 6,572,232 | | | $ | 6,455,899 | | | $ | 6,123,156 | | | $ | 8,214,595 | | | $ | 7,685,984 | |
Ceded premiums written | (2,542,162) | | | (2,289,397) | | | (2,143,941) | | | (2,951,539) | | | (2,759,360) | |
Net premiums written | 4,030,070 | | | 4,166,502 | | | 3,979,215 | | | 5,263,056 | | | 4,926,624 | |
| | | | | | | | | |
Gross premiums earned | 5,937,651 | | | 5,886,143 | | | 5,345,188 | | | 7,936,382 | | | 7,281,709 | |
Ceded premiums earned | (2,119,143) | | | (2,065,980) | | | (1,873,098) | | | (2,776,056) | | | (2,571,859) | |
Net premiums earned | 3,818,508 | | | 3,820,163 | | | 3,472,090 | | | 5,160,326 | | | 4,709,850 | |
Other insurance related income | 16,444 | | | 9,998 | | | 16,262 | | | 13,073 | | | 23,295 | |
Total underwriting revenues | 3,834,952 | | | 3,830,161 | | | 3,488,352 | | | 5,173,399 | | | 4,733,145 | |
| | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | |
Net losses and loss expenses | 2,240,840 | | | 2,444,196 | | | 2,292,559 | | | 3,242,410 | | | 3,008,783 | |
Acquisition costs | 747,027 | | | 746,443 | | | 669,654 | | | 1,022,017 | | | 921,834 | |
Underwriting-related general and administrative expenses [a] | 412,251 | | | 413,069 | | | 396,455 | | | 550,289 | | | 536,834 | |
Total underwriting expenses | 3,400,118 | | | 3,603,708 | | | 3,358,668 | | | 4,814,716 | | | 4,467,451 | |
| | | | | | | | | |
UNDERWRITING INCOME [b] | 434,834 | | | 226,453 | | | 129,684 | | | 358,683 | | | 265,694 | |
| | | | | | | | | |
OTHER (EXPENSES) REVENUES | | | | | | | | | |
Net investment income | 424,802 | | | 271,744 | | | 326,174 | | | 418,829 | | | 454,301 | |
Net investment gains (losses) | (97,671) | | | (414,231) | | | 113,868 | | | (456,789) | | | 134,279 | |
Corporate expenses [a] | (102,345) | | | (79,803) | | | (82,365) | | | (130,054) | | | (126,470) | |
Foreign exchange (losses) gains | 11,755 | | | 236,934 | | | 4,316 | | | 157,945 | | | (315) | |
Interest expense and financing costs | (50,077) | | | (46,720) | | | (46,759) | | | (63,146) | | | (62,302) | |
Reorganization expenses | (28,997) | | | (21,941) | | | — | | | (31,426) | | | — | |
Amortization of value of business acquired | — | | | — | | | (3,083) | | | — | | | (3,854) | |
Amortization of intangible assets | (8,188) | | | (8,188) | | | (9,163) | | | (10,917) | | | (12,424) | |
Total other (expenses) revenues | 149,279 | | | (62,205) | | | 302,988 | | | (115,558) | | | 383,215 | |
| | | | | | | | | |
INCOME BEFORE INCOME TAXES AND INTEREST IN INCOME OF EQUITY METHOD INVESTMENTS | 584,113 | | | 164,248 | | | 432,672 | | | 243,125 | | | 648,909 | |
Income tax (expense) benefit | (68,078) | | | 5,304 | | | (49,827) | | | (22,037) | | | (62,384) | |
Interest in income of equity method investments | 2,835 | | | 5,040 | | | 30,871 | | | 1,995 | | | 32,084 | |
| | | | | | | | | |
NET INCOME | 518,870 | | | 174,592 | | | 413,716 | | | 223,083 | | | 618,609 | |
Preferred share dividends | (22,688) | | | (22,688) | | | (22,688) | | | (30,250) | | | (30,250) | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 496,182 | | | $ | 151,904 | | | $ | 391,028 | | | $ | 192,833 | | | $ | 588,359 | |
| | | | | | | | | |
[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to total general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.
[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine months ended September 30, | | Year ended December 31, |
| 2023 | | 2022 | | 2021 | | 2022 | | 2021 |
KEY RATIOS/PER SHARE DATA | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.1 | % | | 55.5 | % | | 55.4 | % | | 55.5 | % | | 55.1 | % |
Catastrophe and weather-related losses ratio | 2.9 | % | | 8.9 | % | | 11.3 | % | | 7.8 | % | | 9.5 | % |
Current accident year loss ratio | 59.0 | % | | 64.4 | % | | 66.7 | % | | 63.3 | % | | 64.6 | % |
Prior year reserve development ratio | (0.3 | %) | | (0.4 | %) | | (0.7 | %) | | (0.5 | %) | | (0.7 | %) |
Net losses and loss expenses ratio | 58.7 | % | | 64.0 | % | | 66.0 | % | | 62.8 | % | | 63.9 | % |
Acquisition cost ratio | 19.6 | % | | 19.5 | % | | 19.3 | % | | 19.8 | % | | 19.6 | % |
General and administrative expense ratio [a] | 13.4 | % | | 12.9 | % | | 13.8 | % | | 13.2 | % | | 14.0 | % |
Combined ratio | 91.7 | % | | 96.4 | % | | 99.1 | % | | 95.8 | % | | 97.5 | % |
| | | | | | | | | |
Weighted average common shares outstanding | 85,099 | | | 84,930 | | | 84,684 | | | 84,864 | | | 84,707 | |
Weighted average diluted common shares outstanding | 85,927 | | | 85,674 | | | 85,191 | | | 85,669 | | | 85,291 | |
Earnings per common share | $5.83 | | | $1.79 | | | $4.62 | | | $2.27 | | | $6.95 | |
Earnings per diluted common share | $5.77 | | | $1.77 | | | $4.59 | | | $2.25 | | | $6.90 | |
Annualized ROACE | 15.4 | % | | 4.7 | % | | 10.9 | % | | 4.3 | % | | 12.2 | % |
Annualized operating ROACE | 18.4 | % | | 10.2 | % | | 7.1 | % | | 11.1 | % | | 9.1 | % |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, 2023 | | Nine months ended September 30, 2023 | | |
| | Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total | | | | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 1,457,624 | | | $ | 448,254 | | | $ | 1,905,878 | | | $ | 4,557,386 | | | $ | 2,014,846 | | | $ | 6,572,232 | | | | | | | |
Ceded premiums written | | (572,372) | | | (358,149) | | | (930,521) | | | (1,768,537) | | | (773,625) | | | (2,542,162) | | | | | | | |
Net premiums written | | 885,252 | | | 90,105 | | | 975,357 | | | 2,788,849 | | | 1,241,221 | | | 4,030,070 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Gross premiums earned | | 1,463,578 | | | 582,644 | | | 2,046,222 | | | 4,227,711 | | | 1,709,940 | | | 5,937,651 | | | | | | | |
Ceded premiums earned | | (577,864) | | | (145,794) | | | (723,658) | | | (1,682,791) | | | (436,352) | | | (2,119,143) | | | | | | | |
Net premiums earned | | 885,714 | | | 436,850 | | | 1,322,564 | | | 2,544,920 | | | 1,273,588 | | | 3,818,508 | | | | | | | |
Other insurance related income (loss) | | (22) | | | 10,366 | | | 10,344 | | | 90 | | | 16,354 | | | 16,444 | | | | | | | |
Total underwriting revenues | | 885,692 | | | 447,216 | | | 1,332,908 | | | 2,545,010 | | | 1,289,942 | | | 3,834,952 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | 491,368 | | | 292,572 | | | 783,940 | | | 1,398,486 | | | 842,354 | | | 2,240,840 | | | | | | | |
Acquisition costs | | 169,384 | | | 94,005 | | | 263,389 | | | 473,413 | | | 273,614 | | | 747,027 | | | | | | | |
Underwriting-related general and administrative expenses | | 120,330 | | | 18,271 | | | 138,601 | | | 350,494 | | | 61,757 | | | 412,251 | | | | | | | |
Total underwriting expenses | | 781,082 | | | 404,848 | | | 1,185,930 | | | 2,222,393 | | | 1,177,725 | | | 3,400,118 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME | | $ | 104,610 | | | $ | 42,368 | | | $ | 146,978 | | | $ | 322,617 | | | $ | 112,217 | | | $ | 434,834 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | $ | 37,145 | | | $ | 4,518 | | | $ | 41,663 | | | $ | 87,968 | | | $ | 23,871 | | | $ | 111,839 | | | | | | | |
Net favorable prior year reserve development | | $ | 1,609 | | | $ | 1,153 | | | $ | 2,762 | | | $ | 5,433 | | | $ | 7,685 | | | $ | 13,118 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | 51.5 | % | | 66.2 | % | | 56.3 | % | | 51.7 | % | | 64.9 | % | | 56.1 | % | | | | | | |
Catastrophe and weather-related losses ratio | | 4.2 | % | | 1.0 | % | | 3.2 | % | | 3.5 | % | | 1.8 | % | | 2.9 | % | | | | | | |
Current accident year loss ratio | | 55.7 | % | | 67.2 | % | | 59.5 | % | | 55.2 | % | | 66.7 | % | | 59.0 | % | | | | | | |
Prior year reserve development ratio | | (0.2 | %) | | (0.2 | %) | | (0.2 | %) | | (0.2 | %) | | (0.6 | %) | | (0.3 | %) | | | | | | |
Net losses and loss expenses ratio | | 55.5 | % | | 67.0 | % | | 59.3 | % | | 55.0 | % | | 66.1 | % | | 58.7 | % | | | | | | |
Acquisition cost ratio | | 19.1 | % | | 21.5 | % | | 19.9 | % | | 18.6 | % | | 21.5 | % | | 19.6 | % | | | | | | |
Underwriting-related general and administrative expense ratio | | 13.6 | % | | 4.2 | % | | 10.4 | % | | 13.7 | % | | 4.9 | % | | 10.7 | % | | | | | | |
Corporate expense ratio | | | | | | 3.1 | % | | | | | | 2.7 | % | | | | | | |
Combined ratio | | 88.2 | % | | 92.7 | % | | 92.7 | % | | 87.3 | % | | 92.5 | % | | 91.7 | % | | | | | | |
| | | | | | | | | | | | | | | | | | |
AXIS CAPITAL HOLDINGS LIMITED
GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, | | | | | | | Year ended December 31, |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | 2023 | | 2022 | | | | | | | 2022 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INSURANCE SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Professional Lines | | $ | 285,739 | | | $ | 294,403 | | | $ | 221,615 | | | $ | 378,336 | | | $ | 317,074 | | | | | | | | | | | $ | 317,210 | | | | | | | $ | 801,757 | | | $ | 944,629 | | | | | | | | $ | 1,322,966 | |
Property | | 395,269 | | | 533,479 | | | 381,339 | | | 351,503 | | | 297,537 | | | | | | | | | | | 287,715 | | | | | | | 1,310,086 | | | 1,005,986 | | | | | | | | 1,357,489 | |
Liability | | 316,433 | | | 328,768 | | | 284,026 | | | 312,327 | | | 266,615 | | | | | | | | | | | 228,497 | | | | | | | 929,228 | | | 826,318 | | | | | | | | 1,138,645 | |
Cyber | | 148,011 | | | 182,049 | | | 152,788 | | | 157,794 | | | 182,367 | | | | | | | | | | | 148,366 | | | | | | | 482,847 | | | 486,952 | | | | | | | | 644,746 | |
Marine and Aviation | | 169,819 | | | 205,153 | | | 233,424 | | | 133,712 | | | 140,661 | | | | | | | | | | | 120,417 | | | | | | | 608,396 | | | 518,974 | | | | | | | | 652,687 | |
Accident and Health | | 88,742 | | | 85,836 | | | 79,384 | | | 68,551 | | | 66,153 | | | | | | | | | | | 46,644 | | | | | | | 253,963 | | | 189,849 | | | | | | | | 258,399 | |
Credit and Political Risk | | 53,611 | | | 54,462 | | | 63,036 | | | 68,582 | | | 47,483 | | | | | | | | | | | 27,651 | | | | | | | 171,109 | | | 142,068 | | | | | | | | 210,649 | |
TOTAL INSURANCE SEGMENT | | $ | 1,457,624 | | | $ | 1,684,150 | | | $ | 1,415,612 | | | $ | 1,470,805 | | | $ | 1,317,890 | | | | | | | | | | | $ | 1,176,500 | | | | | | | $ | 4,557,386 | | | $ | 4,114,776 | | | | | | | | $ | 5,585,581 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REINSURANCE SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liability | | $ | 184,665 | | | $ | 159,234 | | | $ | 198,861 | | | $ | 88,911 | | | $ | 156,500 | | | | | | | | | | | $ | 166,085 | | | | | | | $ | 542,760 | | | $ | 630,921 | | | | | | | | $ | 719,831 | |
Accident and Health | | 64,463 | | | 20,696 | | | 295,985 | | | 11,875 | | | 59,313 | | | | | | | | | | | 60,927 | | | | | | | 381,144 | | | 400,016 | | | | | | | | 411,891 | |
Professional Lines | | 42,950 | | | 186,233 | | | 136,201 | | | 66,597 | | | 27,575 | | | | | | | | | | | 24,279 | | | | | | | 365,384 | | | 334,210 | | | | | | | | 400,807 | |
Credit and Surety | | 70,486 | | | 103,430 | | | 115,237 | | | 63,873 | | | 53,944 | | | | | | | | | | | 55,807 | | | | | | | 289,153 | | | 234,692 | | | | | | | | 298,565 | |
Motor | | 27,113 | | | 26,966 | | | 140,115 | | | 30,231 | | | 22,035 | | | | | | | | | | | 12,151 | | | | | | | 194,194 | | | 209,563 | | | | | | | | 239,794 | |
Agriculture | | 37,846 | | | 66,985 | | | 22,399 | | | 10,904 | | | 39,312 | | | | | | | | | | | 11,992 | | | | | | | 127,231 | | | 117,108 | | | | | | | | 128,012 | |
Marine and Aviation | | 6,954 | | | 22,034 | | | 30,531 | | | 8,863 | | | 8,823 | | | | | | | | | | | 12,428 | | | | | | | 59,518 | | | 84,506 | | | | | | | | 93,371 | |
Total | | 434,477 | | | 585,578 | | | 939,329 | | | 281,254 | | | 367,502 | | | | | | | | | | | 343,669 | | | | | | | 1,959,384 | | | 2,011,016 | | | | | | | | 2,292,271 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Run-off lines | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Catastrophe | | 6,415 | | | 10,874 | | | 16,301 | | | 1,110 | | | 21,227 | | | | | | | | | | | 88,396 | | | | | | | 33,590 | | | 221,700 | | | | | | | | 222,810 | |
Property | | 5,271 | | | 3,842 | | | 9,605 | | | 4,611 | | | 2,173 | | | | | | | | | | | 38,584 | | | | | | | 18,718 | | | 98,882 | | | | | | | | 103,492 | |
Engineering | | 2,091 | | | (66) | | | 1,129 | | | 916 | | | (984) | | | | | | | | | | | (660) | | | | | | | 3,154 | | | 9,525 | | | | | | | | 10,441 | |
Total run-off lines | | 13,777 | | | 14,650 | | | 27,035 | | | 6,637 | | | 22,416 | | | | | | | | | | | 126,320 | | | | | | | 55,462 | | | 330,107 | | | | | | | | 336,743 | |
TOTAL REINSURANCE SEGMENT | | $ | 448,254 | | | $ | 600,228 | | | $ | 966,364 | | | $ | 287,891 | | | $ | 389,918 | | | | | | | | | | | $ | 469,989 | | | | | | | $ | 2,014,846 | | | $ | 2,341,123 | | | | | | | | $ | 2,629,014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED TOTAL | | $ | 1,905,878 | | | $ | 2,284,378 | | | $ | 2,381,976 | | | $ | 1,758,696 | | | $ | 1,707,808 | | | | | | | | | | | $ | 1,646,489 | | | | | | | $ | 6,572,232 | | | $ | 6,455,899 | | | | | | | | $ | 8,214,595 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | | | | | | | | 2022 |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 1,905,878 | | | $ | 2,284,378 | | | $ | 2,381,976 | | | $ | 1,758,696 | | | $ | 1,707,808 | | | | | | | | | | | $ | 1,646,489 | | | | | | | | | | | | | | $ | 8,214,595 | |
Ceded premiums written | | (930,521) | | | (838,021) | | | (773,620) | | | (662,142) | | | (671,024) | | | | | | | | | | | (650,018) | | | | | | | | | | | | | | (2,951,539) | |
Net premiums written | | 975,357 | | | 1,446,357 | | | 1,608,356 | | | 1,096,554 | | | 1,036,784 | | | | | | | | | | | 996,471 | | | | | | | | | | | | | | 5,263,056 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | | 2,046,222 | | | 1,969,662 | | | 1,921,768 | | | 2,050,239 | | | 2,012,426 | | | | | | | | | | | 1,879,280 | | | | | | | | | | | | | | 7,936,382 | |
Ceded premiums earned | | (723,658) | | | (703,917) | | | (691,569) | | | (710,077) | | | (727,560) | | | | | | | | | | | (667,853) | | | | | | | | | | | | | | (2,776,056) | |
Net premiums earned | | 1,322,564 | | | 1,265,745 | | | 1,230,199 | | | 1,340,162 | | | 1,284,866 | | | | | | | | | | | 1,211,427 | | | | | | | | | | | | | | 5,160,326 | |
Other insurance related income | | 10,344 | | | 5,524 | | | 577 | | | 3,076 | | | 1,092 | | | | | | | | | | | 7,665 | | | | | | | | | | | | | | 13,073 | |
Total underwriting revenues | | 1,332,908 | | | 1,271,269 | | | 1,230,776 | | | 1,343,238 | | | 1,285,958 | | | | | | | | | | | 1,219,092 | | | | | | | | | | | | | | 5,173,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | 783,940 | | | 736,257 | | | 720,642 | | | 798,214 | | | 941,911 | | | | | | | | | | | 911,369 | | | | | | | | | | | | | | 3,242,410 | |
Acquisition costs | | 263,389 | | | 253,265 | | | 230,373 | | | 275,573 | | | 240,511 | | | | | | | | | | | 231,712 | | | | | | | | | | | | | | 1,022,017 | |
Underwriting-related general and administrative expenses | | 138,601 | | | 133,255 | | | 140,395 | | | 137,220 | | | 132,570 | | | | | | | | | | | 134,826 | | | | | | | | | | | | | | 550,289 | |
Total underwriting expenses | | 1,185,930 | | | 1,122,777 | | | 1,091,410 | | | 1,211,007 | | | 1,314,992 | | | | | | | | | | | 1,277,907 | | | | | | | | | | | | | | 4,814,716 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | | $ | 146,978 | | | $ | 148,492 | | | $ | 139,366 | | | $ | 132,231 | | | $ | (29,034) | | | | | | | | | | | $ | (58,815) | | | | | | | | | | | | | | $ | 358,683 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | $ | 41,663 | | | $ | 32,228 | | | $ | 37,723 | | | $ | 63,610 | | | $ | 211,969 | | | | | | | | | | | $ | 249,830 | | | | | | | | | | | | | | $ | 402,803 | |
Net favorable prior year reserve development | | $ | 2,762 | | | $ | 6,319 | | | $ | 4,038 | | | $ | 7,901 | | | $ | 4,735 | | | | | | | | | | | $ | 11,012 | | | | | | | | | | | | | | $ | 25,533 | |
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KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | 56.3 | % | | 56.1 | % | | 55.8 | % | | 55.5 | % | | 57.1 | % | | | | | | | | | | 55.4 | % | | | | | | | | | | | | | 55.5 | % |
Catastrophe and weather-related losses ratio | | 3.2 | % | | 2.6 | % | | 3.1 | % | | 4.7 | % | | 16.6 | % | | | | | | | | | | 20.7 | % | | | | | | | | | | | | | 7.8 | % |
Current accident year loss ratio | | 59.5 | % | | 58.7 | % | | 58.9 | % | | 60.2 | % | | 73.7 | % | | | | | | | | | | 76.1 | % | | | | | | | | | | | | | 63.3 | % |
Prior year reserve development ratio | | (0.2 | %) | | (0.5 | %) | | (0.3 | %) | | (0.6 | %) | | (0.4 | %) | | | | | | | | | | (0.9 | %) | | | | | | | | | | | | | (0.5 | %) |
Net losses and loss expenses ratio | | 59.3 | % | | 58.2 | % | | 58.6 | % | | 59.6 | % | | 73.3 | % | | | | | | | | | | 75.2 | % | | | | | | | | | | | | | 62.8 | % |
Acquisition cost ratio | | 19.9 | % | | 20.0 | % | | 18.7 | % | | 20.6 | % | | 18.7 | % | | | | | | | | | | 19.1 | % | | | | | | | | | | | | | 19.8 | % |
General and administrative expenses ratio [a] | | 13.5 | % | | 13.3 | % | | 13.6 | % | | 13.9 | % | | 12.3 | % | | | | | | | | | | 13.1 | % | | | | | | | | | | | | | 13.2 | % |
Combined ratio | | 92.7 | % | | 91.5 | % | | 90.9 | % | | 94.1 | % | | 104.3 | % | | | | | | | | | | 107.4 | % | | | | | | | | | | | | | 95.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
AXIS CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | Q3 2021 | | | | | | | | | | | | | | | 2022 |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 1,457,624 | | | $ | 1,684,150 | | | $ | 1,415,612 | | | $ | 1,470,805 | | | $ | 1,317,890 | | | | | | | | | | $ | 1,176,500 | | | | | | | | | | | | | | | | $ | 5,585,581 | |
Ceded premiums written | | (572,372) | | | (663,129) | | | (533,036) | | | (584,019) | | | (540,101) | | | | | | | | | | (469,008) | | | | | | | | | | | | | | | | (2,207,675) | |
Net premiums written | | 885,252 | | | 1,021,021 | | | 882,576 | | | 886,786 | | | 777,789 | | | | | | | | | | 707,492 | | | | | | | | | | | | | | | | 3,377,906 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | | 1,463,578 | | | 1,393,438 | | | 1,370,696 | | | 1,368,859 | | | 1,331,887 | | | | | | | | | | 1,142,550 | | | | | | | | | | | | | | | | 5,219,303 | |
Ceded premiums earned | | (577,864) | | | (550,687) | | | (554,240) | | | (538,345) | | | (549,786) | | | | | | | | | | (461,542) | | | | | | | | | | | | | | | | (2,085,148) | |
Net premiums earned | | 885,714 | | | 842,751 | | | 816,456 | | | 830,514 | | | 782,101 | | | | | | | | | | 681,008 | | | | | | | | | | | | | | | | 3,134,155 | |
Other insurance related income (loss) | | (22) | | | 58 | | | 54 | | | 89 | | | 151 | | | | | | | | | | 468 | | | | | | | | | | | | | | | | 559 | |
Total underwriting revenues | | 885,692 | | | 842,809 | | | 816,510 | | | 830,603 | | | 782,252 | | | | | | | | | | 681,476 | | | | | | | | | | | | | | | | 3,134,714 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | 491,368 | | | 457,650 | | | 449,467 | | | 439,268 | | | 519,006 | | | | | | | | | | 442,681 | | | | | | | | | | | | | | | | 1,785,854 | |
Acquisition costs | | 169,384 | | | 156,972 | | | 147,058 | | | 154,859 | | | 139,436 | | | | | | | | | | 123,529 | | | | | | | | | | | | | | | | 577,838 | |
Underwriting-related general and administrative expenses | | 120,330 | | | 113,534 | | | 116,630 | | | 113,106 | | | 108,072 | | | | | | | | | | 104,905 | | | | | | | | | | | | | | | | 443,704 | |
Total underwriting expenses | | 781,082 | | | 728,156 | | | 713,155 | | | 707,233 | | | 766,514 | | | | | | | | | | 671,115 | | | | | | | | | | | | | | | | 2,807,396 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME | | $ | 104,610 | | | $ | 114,653 | | | $ | 103,355 | | | $ | 123,370 | | | $ | 15,738 | | | | | | | | | | $ | 10,361 | | | | | | | | | | | | | | | | $ | 327,318 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | $ | 37,145 | | | $ | 26,440 | | | $ | 24,333 | | | $ | 33,218 | | | $ | 112,799 | | | | | | | | | | $ | 104,873 | | | | | | | | | | | | | | | | $ | 206,735 | |
Net favorable prior year reserve development | | $ | 1,609 | | | $ | 2,784 | | | $ | 1,041 | | | $ | 3,955 | | | $ | 2,558 | | | | | | | | | | $ | 5,418 | | | | | | | | | | | | | | | | $ | 16,350 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | 51.5 | % | | 51.5 | % | | 52.2 | % | | 49.3 | % | | 52.6 | % | | | | | | | | | 50.8 | % | | | | | | | | | | | | | | | 51.0 | % |
Catastrophe and weather-related losses ratio | | 4.2 | % | | 3.1 | % | | 3.0 | % | | 4.1 | % | | 14.1 | % | | | | | | | | | 15.0 | % | | | | | | | | | | | | | | | 6.5 | % |
Current accident year loss ratio | | 55.7 | % | | 54.6 | % | | 55.2 | % | | 53.4 | % | | 66.7 | % | | | | | | | | | 65.8 | % | | | | | | | | | | | | | | | 57.5 | % |
Prior year reserve development ratio | | (0.2 | %) | | (0.3 | %) | | (0.1 | %) | | (0.5 | %) | | (0.3 | %) | | | | | | | | | (0.8 | %) | | | | | | | | | | | | | | | (0.5 | %) |
Net losses and loss expenses ratio | | 55.5 | % | | 54.3 | % | | 55.1 | % | | 52.9 | % | | 66.4 | % | | | | | | | | | 65.0 | % | | | | | | | | | | | | | | | 57.0 | % |
Acquisition cost ratio | | 19.1 | % | | 18.6 | % | | 18.0 | % | | 18.6 | % | | 17.8 | % | | | | | | | | | 18.1 | % | | | | | | | | | | | | | | | 18.4 | % |
Underwriting-related general and administrative expenses ratio | | 13.6 | % | | 13.5 | % | | 14.2 | % | | 13.7 | % | | 13.8 | % | | | | | | | | | 15.4 | % | | | | | | | | | | | | | | | 14.2 | % |
Combined ratio | | 88.2 | % | | 86.4 | % | | 87.3 | % | | 85.2 | % | | 98.0 | % | | | | | | | | | 98.5 | % | | | | | | | | | | | | | | | 89.6 | % |
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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE SEGMENT DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | Q3 2021 | | | | | | | | | | | | | | | 2022 |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 448,254 | | | $ | 600,228 | | | $ | 966,364 | | | $ | 287,891 | | | $ | 389,918 | | | | | | | | | | $ | 469,989 | | | | | | | | | | | | | | | | $ | 2,629,014 | |
Ceded premiums written | | (358,149) | | | (174,892) | | | (240,584) | | | (78,123) | | | (130,923) | | | | | | | | | | (181,010) | | | | | | | | | | | | | | | | (743,864) | |
Net premiums written | | 90,105 | | | 425,336 | | | 725,780 | | | 209,768 | | | 258,995 | | | | | | | | | | 288,979 | | | | | | | | | | | | | | | | 1,885,150 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | | 582,644 | | | 576,224 | | | 551,072 | | | 681,380 | | | 680,539 | | | | | | | | | | 736,730 | | | | | | | | | | | | | | | | 2,717,079 | |
Ceded premiums earned | | (145,794) | | | (153,230) | | | (137,329) | | | (171,732) | | | (177,774) | | | | | | | | | | (206,311) | | | | | | | | | | | | | | | | (690,908) | |
Net premiums earned | | 436,850 | | | 422,994 | | | 413,743 | | | 509,648 | | | 502,765 | | | | | | | | | | 530,419 | | | | | | | | | | | | | | | | 2,026,171 | |
Other insurance related income | | 10,366 | | | 5,466 | | | 523 | | | 2,987 | | | 941 | | | | | | | | | | 7,197 | | | | | | | | | | | | | | | | 12,514 | |
Total underwriting revenues | | 447,216 | | | 428,460 | | | 414,266 | | | 512,635 | | | 503,706 | | | | | | | | | | 537,616 | | | | | | | | | | | | | | | | 2,038,685 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | 292,572 | | | 278,607 | | | 271,175 | | | 358,946 | | | 422,905 | | | | | | | | | | 468,688 | | | | | | | | | | | | | | | | 1,456,556 | |
Acquisition costs | | 94,005 | | | 96,293 | | | 83,315 | | | 120,714 | | | 101,075 | | | | | | | | | | 108,183 | | | | | | | | | | | | | | | | 444,179 | |
Underwriting-related general and administrative expenses | | 18,271 | | | 19,721 | | | 23,765 | | | 24,114 | | | 24,498 | | | | | | | | | | 29,921 | | | | | | | | | | | | | | | | 106,585 | |
Total underwriting expenses | | 404,848 | | | 394,621 | | | 378,255 | | | 503,774 | | | 548,478 | | | | | | | | | | 606,792 | | | | | | | | | | | | | | | | 2,007,320 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | | $ | 42,368 | | | $ | 33,839 | | | $ | 36,011 | | | $ | 8,861 | | | $ | (44,772) | | | | | | | | | | $ | (69,176) | | | | | | | | | | | | | | | | $ | 31,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | $ | 4,518 | | | $ | 5,788 | | | $ | 13,390 | | | $ | 30,392 | | | $ | 99,170 | | | | | | | | | | $ | 144,957 | | | | | | | | | | | | | | | | $ | 196,068 | |
Net favorable prior year reserve development | | $ | 1,153 | | | $ | 3,535 | | | $ | 2,997 | | | $ | 3,946 | | | $ | 2,177 | | | | | | | | | | $ | 5,594 | | | | | | | | | | | | | | | | $ | 9,183 | |
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KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | 66.2 | % | | 65.3 | % | | 63.0 | % | | 65.5 | % | | 64.2 | % | | | | | | | | | 61.4 | % | | | | | | | | | | | | | | | 62.6 | % |
Catastrophe and weather-related losses ratio | | 1.0 | % | | 1.4 | % | | 3.3 | % | | 5.7 | % | | 20.3 | % | | | | | | | | | 28.0 | % | | | | | | | | | | | | | | | 9.7 | % |
Current accident year loss ratio | | 67.2 | % | | 66.7 | % | | 66.3 | % | | 71.2 | % | | 84.5 | % | | | | | | | | | 89.4 | % | | | | | | | | | | | | | | | 72.3 | % |
Prior year reserve development ratio | | (0.2 | %) | | (0.8 | %) | | (0.8 | %) | | (0.8 | %) | | (0.4 | %) | | | | | | | | | (1.0 | %) | | | | | | | | | | | | | | | (0.4 | %) |
Net losses and loss expenses ratio | | 67.0 | % | | 65.9 | % | | 65.5 | % | | 70.4 | % | | 84.1 | % | | | | | | | | | 88.4 | % | | | | | | | | | | | | | | | 71.9 | % |
Acquisition cost ratio | | 21.5 | % | | 22.8 | % | | 20.1 | % | | 23.7 | % | | 20.1 | % | | | | | | | | | 20.4 | % | | | | | | | | | | | | | | | 21.9 | % |
Underwriting-related general and administrative expense ratio | | 4.2 | % | | 4.6 | % | | 5.8 | % | | 4.7 | % | | 4.9 | % | | | | | | | | | 5.6 | % | | | | | | | | | | | | | | | 5.3 | % |
Combined ratio | | 92.7 | % | | 93.3 | % | | 91.4 | % | | 98.8 | % | | 109.1 | % | | | | | | | | | 114.4 | % | | | | | | | | | | | | | | | 99.1 | % |
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AXIS CAPITAL HOLDINGS LIMITED
STRATEGIC CAPITAL PARTNERS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
TOTAL MANAGED PREMIUMS [a] | | Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total | | Insurance | | Reinsurance | | Total |
Total Managed Premiums | | $ | 1,457,624 | | | $ | 448,254 | | | $ | 1,905,878 | | | $ | 1,317,890 | | | $ | 389,918 | | | $ | 1,707,808 | | | $ | 4,557,386 | | | $ | 2,014,846 | | | $ | 6,572,232 | | | $ | 4,114,776 | | | $ | 2,341,123 | | | $ | 6,455,899 | |
Premiums ceded to Harrington Re | | 233 | | | 53,834 | | | 54,067 | | | 4,279 | | | 44,867 | | | 49,146 | | | 5,458 | | | 264,797 | | | 270,255 | | | 14,704 | | | 263,803 | | | 278,507 | |
Premiums ceded to Other Strategic Capital Partners | | — | | | 304,315 | | | 304,315 | | | — | | | 86,056 | | | 86,056 | | | — | | | 508,828 | | | 508,828 | | | — | | | 401,938 | | | 401,938 | |
Premiums ceded to Other Reinsurers | | 572,139 | | | — | | | 572,139 | | | 535,822 | | | — | | | 535,822 | | | 1,763,079 | | | — | | | 1,763,079 | | | 1,608,952 | | | — | | | 1,608,952 | |
Net premiums written | | $ | 885,252 | | | $ | 90,105 | | | $ | 975,357 | | | $ | 777,789 | | | $ | 258,995 | | | $ | 1,036,784 | | | $ | 2,788,849 | | | $ | 1,241,221 | | | $ | 4,030,070 | | | $ | 2,491,120 | | | $ | 1,675,382 | | | $ | 4,166,502 | |
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FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b] | | | | | | | | | | | | | | | | | | | | | | | | |
Other insurance related income | | $ | — | | | $ | 10,366 | | | $ | 10,366 | | | $ | — | | | $ | 519 | | | $ | 519 | | | $ | — | | | $ | 16,354 | | | $ | 16,354 | | | $ | — | | | $ | 8,184 | | | $ | 8,184 | |
Offset to general and administrative expenses | | — | | | 9,610 | | | 9,610 | | | — | | | 10,583 | | | 10,583 | | | — | | | 26,160 | | | 26,160 | | | — | | | 32,365 | | | 32,365 | |
Total Fee income | | $ | — | | | $ | 19,976 | | | $ | 19,976 | | | $ | — | | | $ | 11,102 | | | $ | 11,102 | | | $ | — | | | $ | 42,514 | | | $ | 42,514 | | | $ | — | | | $ | 40,549 | | | $ | 40,549 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
[a] Total managed premiums represents gross premiums written of $1.9 billion and $1.7 billion for the three months ended September 30, 2023 and 2022, respectively, and $6.6 billion and $6.5 billion for the nine months ended September 30, 2023 and 2022, respectively, and includes premiums written by the insurance and reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.
[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners.
AXIS CAPITAL HOLDINGS LIMITED
NET INVESTMENT INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, | | Year ended December 31, |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | | | | | | | | | | 2023 | | 2022 | | 2022 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities | | $ | 133,006 | | | $ | 124,390 | | | $ | 118,262 | | | $ | 105,077 | | | $ | 87,364 | | | | | | | | | | | $ | 63,712 | | | | | | | | | | | | | | | | $ | 375,659 | | | $ | 224,780 | | | $ | 329,858 | |
Other investments | | 312 | | | (5,341) | | | 486 | | | 24,242 | | | (7,576) | | | | | | | | | | | 41,695 | | | | | | | | | | | | | | | | (4,543) | | | 32,801 | | | 57,043 | |
Equity securities | | 3,050 | | | 2,990 | | | 2,455 | | | 3,041 | | | 2,490 | | | | | | | | | | | 2,724 | | | | | | | | | | | | | | | | 8,495 | | | 7,349 | | | 10,390 | |
Mortgage loans | | 8,892 | | | 8,880 | | | 8,386 | | | 8,084 | | | 6,256 | | | | | | | | | | | 4,426 | | | | | | | | | | | | | | | | 26,158 | | | 15,323 | | | 23,407 | |
Cash and cash equivalents | | 14,465 | | | 11,161 | | | 10,012 | | | 10,127 | | | 5,350 | | | | | | | | | | | 692 | | | | | | | | | | | | | | | | 35,638 | | | 10,147 | | | 20,273 | |
Short-term investments | | 2,195 | | | 2,129 | | | 1,660 | | | 1,964 | | | 1,004 | | | | | | | | | | | 391 | | | | | | | | | | | | | | | | 5,984 | | | 1,571 | | | 3,535 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross investment income | | 161,920 | | | 144,209 | | | 141,261 | | | 152,535 | | | 94,888 | | | | | | | | | | | 113,640 | | | | | | | | | | | | | | | | 447,391 | | | 291,971 | | | 444,506 | |
Investment expenses | | (7,719) | | | (7,380) | | | (7,490) | | | (5,450) | | | (6,711) | | | | | | | | | | | (6,301) | | | | | | | | | | | | | | | | (22,589) | | | (20,227) | | | (25,677) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 154,201 | | | $ | 136,829 | | | $ | 133,771 | | | $ | 147,085 | | | $ | 88,177 | | | | | | | | | | | $ | 107,339 | | | | | | | | | | | | | | | | $ | 424,802 | | | $ | 271,744 | | | $ | 418,829 | |
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, | | | | | | | | | | | | | | | | | | | | | |
| | 2023 | | 2023 | | 2023 | | 2022 | | 2022 | | 2021 | | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available for sale, at fair value | | $ | 11,723,368 | | | $ | 11,564,397 | | | $ | 11,627,555 | | | $ | 11,326,894 | | | $ | 10,784,353 | | | $ | 12,380,959 | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, held to maturity, at amortized cost | | 712,840 | | | 717,310 | | | 716,768 | | | 698,351 | | | 690,380 | | | 416,879 | | | | | | | | | | | | | | | | | | | | | | |
Equity securities, at fair value | | 556,262 | | | 596,692 | | | 573,916 | | | 485,253 | | | 469,839 | | | 618,822 | | | | | | | | | | | | | | | | | | | | | | |
Mortgage loans, held for investment, at fair value | | 610,277 | | | 609,274 | | | 634,470 | | | 627,437 | | | 653,700 | | | 623,487 | | | | | | | | | | | | | | | | | | | | | | |
Other investments, at fair value | | 954,571 | | | 970,079 | | | 1,008,887 | | | 996,751 | | | 970,310 | | | 892,664 | | | | | | | | | | | | | | | | | | | | | | |
Equity method investments | | 162,412 | | | 148,183 | | | 146,083 | | | 148,288 | | | 151,333 | | | 145,080 | | | | | | | | | | | | | | | | | | | | | | |
Short-term investments, at fair value | | 115,959 | | | 46,282 | | | 70,416 | | | 70,310 | | | 80,260 | | | 68,267 | | | | | | | | | | | | | | | | | | | | | | |
Total investments | | 14,835,689 | | | 14,652,217 | | | 14,778,095 | | | 14,353,284 | | | 13,800,175 | | | 15,146,158 | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | 1,267,315 | | | 1,518,270 | | | 1,179,295 | | | 1,174,653 | | | 1,835,262 | | | 1,499,204 | | | | | | | | | | | | | | | | | | | | | | |
Accrued interest receivable | | 99,978 | | | 100,915 | | | 97,983 | | | 94,418 | | | 77,771 | | | 62,423 | | | | | | | | | | | | | | | | | | | | | | |
Insurance and reinsurance premium balances receivable | | 3,207,444 | | | 3,371,439 | | | 3,119,158 | | | 2,733,464 | | | 2,788,484 | | | 2,978,996 | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverable on unpaid losses and loss expenses | | 6,031,527 | | | 5,865,609 | | | 5,823,417 | | | 5,831,172 | | | 5,244,263 | | | 4,989,645 | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverable on paid losses and loss expenses | | 594,375 | | | 572,757 | | | 593,013 | | | 539,676 | | | 438,497 | | | 506,503 | | | | | | | | | | | | | | | | | | | | | | |
Deferred acquisition costs | | 503,617 | | | 586,085 | | | 560,173 | | | 473,569 | | | 541,544 | | | 544,384 | | | | | | | | | | | | | | | | | | | | | | |
Prepaid reinsurance premiums | | 1,973,378 | | | 1,767,474 | | | 1,632,513 | | | 1,550,370 | | | 1,597,586 | | | 1,460,723 | | | | | | | | | | | | | | | | | | | | | | |
Receivable for investments sold | | 17,306 | | | 22,102 | | | 7,079 | | | 16,052 | | | 6,452 | | | 2,028 | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | 100,801 | | | 100,801 | | | 100,801 | | | 100,801 | | | 100,801 | | | 100,801 | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets | | 189,612 | | | 192,342 | | | 195,071 | | | 197,800 | | | 200,529 | | | 211,557 | | | | | | | | | | | | | | | | | | | | | | |
Value of business acquired | | — | | | — | | | — | | | — | | | — | | | 770 | | | | | | | | | | | | | | | | | | | | | | |
Operating lease right-of-use assets | | 104,240 | | | 108,511 | | | 88,155 | | | 92,214 | | | 96,631 | | | 107,791 | | | | | | | | | | | | | | | | | | | | | | |
Other assets | | 547,242 | | | 457,171 | | | 390,224 | | | 438,338 | | | 391,758 | | | 324,154 | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 29,472,524 | | | $ | 29,315,693 | | | $ | 28,564,977 | | | $ | 27,595,811 | | | $ | 27,119,753 | | | $ | 27,935,137 | | | | | | | | | | | | | | | | | | | | | | |
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LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reserve for losses and loss expenses | | $ | 15,555,256 | | | $ | 15,419,498 | | | $ | 15,314,644 | | | $ | 15,168,863 | | | $ | 14,652,196 | | | $ | 14,658,996 | | | | | | | | | | | | | | | | | | | | | | |
Unearned premiums | | 4,995,785 | | | 5,139,177 | | | 4,821,775 | | | 4,361,447 | | | 4,650,934 | | | 4,464,282 | | | | | | | | | | | | | | | | | | | | | | |
Insurance and reinsurance balances payable | | 1,900,188 | | | 1,783,610 | | | 1,574,608 | | | 1,522,764 | | | 1,569,946 | | | 1,442,729 | | | | | | | | | | | | | | | | | | | | | | |
Debt | | 1,313,358 | | | 1,313,006 | | | 1,312,658 | | | 1,312,314 | | | 1,312,633 | | | 1,310,650 | | | | | | | | | | | | | | | | | | | | | | |
Federal Home Loan Bank advances | | 85,790 | | | 85,790 | | | 85,790 | | | 81,388 | | | 80,540 | | | — | | | | | | | | | | | | | | | | | | | | | | |
Payable for investments purchased | | 87,992 | | | 81,835 | | | 78,711 | | | 19,693 | | | 78,956 | | | 239,073 | | | | | | | | | | | | | | | | | | | | | | |
Operating lease liabilities | | 116,547 | | | 121,922 | | | 99,130 | | | 102,577 | | | 103,345 | | | 123,874 | | | | | | | | | | | | | | | | | | | | | | |
Other liabilities | | 384,400 | | | 349,894 | | | 317,432 | | | 386,855 | | | 327,780 | | | 360,478 | | | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES | | 24,439,316 | | | 24,294,732 | | | 23,604,748 | | | 22,955,901 | | | 22,776,330 | | | 22,600,082 | | | | | | | | | | | | | | | | | | | | | | |
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SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred shares | | 550,000 | | | 550,000 | | | 550,000 | | | 550,000 | | | 550,000 | | | 550,000 | | | | | | | | | | | | | | | | | | | | | | |
Common shares | | 2,206 | | | 2,206 | | | 2,206 | | | 2,206 | | | 2,206 | | | 2,206 | | | | | | | | | | | | | | | | | | | | | | |
Additional paid-in capital | | 2,375,678 | | | 2,361,185 | | | 2,347,637 | | | 2,366,253 | | | 2,354,895 | | | 2,336,895 | | | | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (loss) | | (775,439) | | | (630,509) | | | (571,896) | | | (760,300) | | | (1,042,650) | | | 150,122 | | | | | | | | | | | | | | | | | | | | | | |
Retained earnings | | 6,628,179 | | | 6,485,901 | | | 6,381,201 | | | 6,247,022 | | | 6,244,268 | | | 6,044,843 | | | | | | | | | | | | | | | | | | | | | | |
Treasury shares, at cost | | (3,747,416) | | | (3,747,822) | | | (3,748,919) | | | (3,765,271) | | | (3,765,296) | | | (3,749,011) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL SHAREHOLDERS' EQUITY | | 5,033,208 | | | 5,020,961 | | | 4,960,229 | | | 4,639,910 | | | 4,343,423 | | | 5,335,055 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 29,472,524 | | | $ | 29,315,693 | | | $ | 28,564,977 | | | $ | 27,595,811 | | | $ | 27,119,753 | | | $ | 27,935,137 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares outstanding | | 85,228 | | | 85,216 | | | 85,183 | | | 84,668 | | | 84,666 | | | 84,773 | | | | | | | | | | | | | | | | | | | | | | |
Diluted common shares outstanding [a] | | 87,617 | | | 87,706 | | | 87,660 | | | 87,113 | | | 87,205 | | | 87,216 | | | | | | | | | | | | | | | | | | | | | | |
Book value per common share | | $52.60 | | | $52.47 | | | $51.77 | | | $48.31 | | | $44.80 | | | $56.45 | | | | | | | | | | | | | | | | | | | | | | |
Book value per diluted common share | | $51.17 | | | $50.98 | | | $50.31 | | | $46.95 | | | $43.50 | | | $54.86 | | | | | | | | | | | | | | | | | | | | | | |
Tangible book value per diluted common share | | $48.44 | | | $48.22 | | | $47.53 | | | $44.13 | | | $40.64 | | | $51.89 | | | | | | | | | | | | | | | | | | | | | | |
Debt to total capital [b] | | 20.7 | % | | 20.7 | % | | 20.9 | % | | 22.0 | % | | 23.2 | % | | 19.7 | % | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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[a] Treasury stock method was applied. Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b] The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt.
AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS PORTFOLIO
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At September 30, 2023 | | At December 31, 2022 |
| | Cost or Amortized Cost | | Allowance for Expected Credit Losses | | Unrealized Gains | | Unrealized Losses | | | Fair Value or Net Carrying Value | | Percentage | | Fair Value or Net Carrying Value | | Percentage |
Fixed Maturities, available for sale, at fair value | | | | | | | | | | | | | | | | | |
U.S. government and agency | | $ | 2,976,548 | | | $ | — | | | $ | 117 | | | $ | (116,032) | | | | $ | 2,860,633 | | | 17.6 | % | | $ | 2,639,330 | | | 16.8 | % |
Non-U.S. government | | 718,298 | | | (17) | | | 854 | | | (48,880) | | | | 670,255 | | | 4.2 | % | | 562,029 | | | 3.6 | % |
Corporate debt | | 4,610,179 | | | (8,684) | | | 5,737 | | | (377,369) | | | | 4,229,863 | | | 26.2 | % | | 4,255,556 | | | 27.2 | % |
Agency RMBS | | 1,707,603 | | | — | | | 44 | | | (166,142) | | | | 1,541,505 | | | 9.6 | % | | 1,202,785 | | | 7.7 | % |
CMBS | | 947,370 | | | — | | | 36 | | | (82,355) | | | | 865,051 | | | 5.4 | % | | 947,778 | | | 6.1 | % |
Non-Agency RMBS | | 155,437 | | | (133) | | | 123 | | | (17,623) | | | | 137,804 | | | 0.9 | % | | 133,534 | | | 0.9 | % |
ABS | | 1,304,644 | | | (38) | | | 711 | | | (38,449) | | | | 1,266,868 | | | 7.9 | % | | 1,429,527 | | | 9.2 | % |
Municipals | | 167,248 | | | (61) | | | 42 | | | (15,840) | | | | 151,389 | | | 0.9 | % | | 156,355 | | | 1.0 | % |
Total fixed maturities, available for sale, at fair value | | 12,587,327 | | | (8,933) | | | 7,664 | | | (862,690) | | | | 11,723,368 | | | 72.7 | % | | 11,326,894 | | | 72.5 | % |
| | | | | | | | | | | | | | | | | |
Fixed maturities, held to maturity, at amortized cost | | | | | | | | | | | | | | | | | |
Corporate debt | | 90,200 | | | — | | | — | | | — | | | | 90,200 | | | 0.6 | % | | 85,200 | | | 0.5 | % |
ABS | | 622,640 | | | — | | | — | | | — | | | | 622,640 | | | 3.8 | % | | 613,151 | | | 4.0 | % |
Total fixed maturities, held to maturity, at amortized cost | | 712,840 | | | — | | | — | | | — | | | | 712,840 | | | 4.4 | % | | 698,351 | | | 4.5 | % |
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Equity securities, at fair value | | | | | | | | | | | | | | | | | |
Common stocks | | 3,130 | | | — | | | 327 | | | (407) | | | | 3,050 | | | — | % | | 7,473 | | | — | % |
Preferred Stocks | | 5,339 | | | — | | | — | | | (253) | | | | 5,086 | | | — | % | | 72 | | | — | % |
Exchange-traded funds | | 191,711 | | | — | | | 85,115 | | | (3,032) | | | | 273,794 | | | 1.7 | % | | 269,806 | | | 1.7 | % |
Bond mutual funds | | 361,378 | | | — | | | — | | | (87,046) | | | | 274,332 | | | 1.7 | % | | 207,902 | | | 1.4 | % |
Total equity securities, at fair value | | 561,558 | | | — | | | 85,442 | | | (90,738) | | | | 556,262 | | | 3.4 | % | | 485,253 | | | 3.1 | % |
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Total fixed maturities and equity securities | | $ | 13,861,725 | | | $ | (8,933) | | | $ | 93,106 | | | $ | (953,428) | | | | 12,992,470 | | | 80.5 | % | | 12,510,498 | | | 80.1 | % |
Mortgage loans, held for investment | | | | | | | | | | | 610,277 | | | 3.8 | % | | 627,437 | | | 4.0 | % |
Other investments | | | | | | | | | | | 954,571 | | | 5.9 | % | | 996,751 | | | 6.4 | % |
Equity method investments | | | | | | | | | | | 162,412 | | | 1.0 | % | | 148,288 | | | 0.9 | % |
Short-term investments | | | | | | | | | | | 115,959 | | | 0.8 | % | | 70,310 | | | 0.5 | % |
Total investments | | | | | | | | | | | 14,835,689 | | | 92.0 | % | | 14,353,284 | | | 91.9 | % |
Cash and cash equivalents [a] | | | | | | | | | | | 1,267,315 | | | 7.9 | % | | 1,174,653 | | | 7.5 | % |
Accrued interest receivable | | | | | | | | | | | 99,978 | | | 0.6 | % | | 94,418 | | | 0.6 | % |
Net receivable/(payable) for investments sold (purchased) | | | | | | | | | (70,686) | | | (0.5 | %) | | (3,641) | | | — | % |
Total cash and invested assets | | | | | | | | | | | $ | 16,132,296 | | | 100.0 | % | | $ | 15,618,714 | | | 100.0 | % |
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[a] Includes $378 million and $423 million of restricted cash and cash equivalents at September 30, 2023 and December 31, 2022, respectively.
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| | | | | | At September 30, 2023 | | At December 31, 2022 |
| | | | | | Fair Value | | Percentage | | Fair Value | | Percentage |
Other Investments: | | | | | | | | | | | | |
| | | | | | | | | | | | |
Multi-strategy funds | | | | | | 25,465 | | | 2.7 | % | | 32,616 | | | 3.3 | % |
| | | | | | | | | | | | |
Direct lending funds | | | | | | 229,235 | | | 24.0 | % | | 258,626 | | | 25.9 | % |
Real estate funds | | | | | | 307,177 | | | 32.2 | % | | 298,499 | | | 29.9 | % |
Private equity funds | | | | | | 283,838 | | | 29.7 | % | | 265,836 | | | 26.7 | % |
Other privately held investments | | | | | | 104,172 | | | 10.9 | % | | 136,158 | | | 13.7 | % |
Collateralized loan obligations - equity tranches | | | | | | 4,684 | | | 0.5 | % | | 5,016 | | | 0.5 | % |
Total | | | | | | $ | 954,571 | | | 100.0 | % | | $ | 996,751 | | | 100.0 | % |
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AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | | | Q3 2021 | | | | | | | | | | | |
| | Fair Value % | | | | | | | | | | | |
CASH AND INVESTED ASSETS PORTFOLIO | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Maturities, available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency | | 17.6 | % | | 17.2 | % | | 18.1 | % | | 16.8 | % | | 15.3 | % | | | | | | | | | | | | 16.3 | % | | | | | | | | | | | |
Non-U.S. government | | 4.2 | % | | 3.6 | % | | 3.5 | % | | 3.6 | % | | 3.3 | % | | | | | | | | | | | | 4.4 | % | | | | | | | | | | | |
Corporate debt | | 26.2 | % | | 26.7 | % | | 26.9 | % | | 27.2 | % | | 26.5 | % | | | | | | | | | | | | 27.6 | % | | | | | | | | | | | |
MBS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agency RMBS | | 9.6 | % | | 8.7 | % | | 8.0 | % | | 7.7 | % | | 6.5 | % | | | | | | | | | | | | 7.1 | % | | | | | | | | | | | |
CMBS | | 5.4 | % | | 5.4 | % | | 5.8 | % | | 6.1 | % | | 6.4 | % | | | | | | | | | | | | 7.4 | % | | | | | | | | | | | |
Non-agency RMBS | | 0.9 | % | | 0.8 | % | | 0.8 | % | | 0.9 | % | | 0.9 | % | | | | | | | | | | | | 1.2 | % | | | | | | | | | | | |
ABS | | 7.9 | % | | 8.0 | % | | 8.7 | % | | 9.2 | % | | 9.2 | % | | | | | | | | | | | | 10.0 | % | | | | | | | | | | | |
Municipals | | 0.9 | % | | 0.9 | % | | 0.9 | % | | 1.0 | % | | 0.9 | % | | | | | | | | | | | | 1.2 | % | | | | | | | | | | | |
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Total Fixed Maturities, available for sale | | 72.7 | % | | 71.3 | % | | 72.7 | % | | 72.5 | % | | 69.0 | % | | | | | | | | | | | | 75.2 | % | | | | | | | | | | | |
Fixed Maturities, held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt | | 0.6 | % | | 0.6 | % | | 0.5 | % | | 0.5 | % | | 0.5 | % | | | | | | | | | | | | 0.1 | % | | | | | | | | | | | |
ABS | | 3.8 | % | | 3.8 | % | | 4.0 | % | | 4.0 | % | | 3.9 | % | | | | | | | | | | | | 2.4 | % | | | | | | | | | | | |
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Total Fixed Maturities, held to maturity | | 4.4 | % | | 4.4 | % | | 4.5 | % | | 4.5 | % | | 4.4 | % | | | | | | | | | | | | 2.5 | % | | | | | | | | | | | |
Equity securities | | 3.4 | % | | 3.7 | % | | 3.6 | % | | 3.1 | % | | 3.0 | % | | | | | | | | | | | | 3.8 | % | | | | | | | | | | | |
Mortgage loans | | 3.8 | % | | 3.8 | % | | 4.0 | % | | 4.0 | % | | 4.2 | % | | | | | | | | | | | | 3.8 | % | | | | | | | | | | | |
Other investments | | 5.9 | % | | 6.0 | % | | 6.3 | % | | 6.4 | % | | 6.2 | % | | | | | | | | | | | | 5.4 | % | | | | | | | | | | | |
Equity method investments | | 1.0 | % | | 0.9 | % | | 0.9 | % | | 0.9 | % | | 1.0 | % | | | | | | | | | | | | 0.9 | % | | | | | | | | | | | |
Short-term investments | | 0.8 | % | | 0.3 | % | | 0.5 | % | | 0.5 | % | | 0.4 | % | | | | | | | | | | | | 0.4 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | 92.0 | % | | 90.4 | % | | 92.5 | % | | 91.9 | % | | 88.2 | % | | | | | | | | | | | | 92.0 | % | | | | | | | | | | | |
Cash and cash equivalents | | 7.9 | % | | 9.4 | % | | 7.4 | % | | 7.5 | % | | 11.7 | % | | | | | | | | | | | | 9.1 | % | | | | | | | | | | | |
Accrued interest receivable | | 0.6 | % | | 0.6 | % | | 0.6 | % | | 0.6 | % | | 0.5 | % | | | | | | | | | | | | 0.4 | % | | | | | | | | | | | |
Net receivable/(payable) for investments sold (purchased) | | (0.5 | %) | | (0.4 | %) | | (0.5 | %) | | — | % | | (0.4 | %) | | | | | | | | | | | | (1.5 | %) | | | | | | | | | | | |
Total Cash and Invested Assets | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | | | | | | | | | | | 100.0 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY OF FIXED MATURITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency | | 23.0 | % | | 22.7 | % | | 23.5 | % | | 21.9 | % | | 20.8 | % | | | | | | | | | | | | 21.0 | % | | | | | | | | | | | |
AAA [a] | | 22.4 | % | | 34.8 | % | | 34.3 | % | | 34.9 | % | | 35.2 | % | | | | | | | | | | | | 36.1 | % | | | | | | | | | | | |
AA [a] | | 20.4 | % | | 7.0 | % | | 7.1 | % | | 7.3 | % | | 7.5 | % | | | | | | | | | | | | 7.1 | % | | | | | | | | | | | |
A | | 15.1 | % | | 15.6 | % | | 14.9 | % | | 15.3 | % | | 15.7 | % | | | | | | | | | | | | 14.5 | % | | | | | | | | | | | |
BBB | | 10.7 | % | | 11.2 | % | | 11.3 | % | | 11.5 | % | | 11.6 | % | | | | | | | | | | | | 12.4 | % | | | | | | | | | | | |
Below BBB | | 8.4 | % | | 8.7 | % | | 8.9 | % | | 9.1 | % | | 9.2 | % | | | | | | | | | | | | 8.9 | % | | | | | | | | | | | |
Total | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | | | | | | | | | | | 100.0 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MATURITY PROFILE OF FIXED MATURITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Within one year | | 4.4 | % | | 4.9 | % | | 4.5 | % | | 3.4 | % | | 5.4 | % | | | | | | | | | | | | 4.0 | % | | | | | | | | | | | |
From one to five years | | 43.1 | % | | 42.3 | % | | 42.4 | % | | 42.5 | % | | 39.0 | % | | | | | | | | | | | | 38.3 | % | | | | | | | | | | | |
From five to ten years | | 15.7 | % | | 16.2 | % | | 16.4 | % | | 16.4 | % | | 17.1 | % | | | | | | | | | | | | 19.3 | % | | | | | | | | | | | |
Above ten years | | 1.1 | % | | 1.3 | % | | 1.4 | % | | 1.7 | % | | 1.8 | % | | | | | | | | | | | | 2.2 | % | | | | | | | | | | | |
Asset-backed and mortgage-backed securities | | 35.7 | % | | 35.3 | % | | 35.3 | % | | 36.0 | % | | 36.7 | % | | | | | | | | | | | | 36.2 | % | | | | | | | | | | | |
Total | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | | | | | | | | | | | 100.0 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book yield of fixed maturities | | 4.1 | % | | 3.9 | % | | 3.7 | % | | 3.5 | % | | 2.9 | % | | | | | | | | | | | | 1.9 | % | | | | | | | | | | | |
Yield to maturity of fixed maturities | | 6.2 | % | | 5.9 | % | | 5.4 | % | | 5.6 | % | | 5.5 | % | | | | | | | | | | | | 1.4 | % | | | | | | | | | | | |
Average duration of fixed maturities (inclusive of duration hedges) | | 3.0 yrs | | 2.9 yrs | | 3.0 yrs | | 3.0 yrs | | 2.9 yrs | | | | | | | | | | | | 3.1 yrs | | | | | | | | | | | |
Average credit quality | | AA- | | AA- | | AA- | | AA- | | AA- | | | | | | | | | | | | AA- | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[a] Includes U.S. government-sponsored agencies, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS") and reflect the downgrade of the U.S. government on August 1, 2023.
AXIS CAPITAL HOLDINGS LIMITED
CORPORATE DEBT INVESTED ASSETS COMPOSITION
At September 30, 2023 | | | | | | | | | | | | | | | | | | | | |
| | Fair Value or Net Carrying Value | | % of Total Corporate Debt | | % of Total Cash and Invested Assets |
Composition by sector - Investment grade | | | | | | |
Financial institutions: | | | | | | |
U.S. banks | | $ | 704,289 | | | 16.7 | % | | 4.4 | % |
Non-U.S. banks | | 364,273 | | | 8.6 | % | | 2.3 | % |
Corporate/commercial finance | | 295,758 | | | 7.0 | % | | 1.8 | % |
Insurance | | 134,204 | | | 3.2 | % | | 0.8 | % |
Investment brokerage | | 69,120 | | | 1.6 | % | | 0.4 | % |
Total financial institutions | | 1,567,644 | | | 37.1 | % | | 9.7 | % |
Consumer non-cyclicals | | 354,199 | | | 8.4 | % | | 2.2 | % |
Communications | | 244,533 | | | 5.8 | % | | 1.5 | % |
Consumer cyclical | | 202,010 | | | 4.8 | % | | 1.3 | % |
Utilities | | 182,568 | | | 4.3 | % | | 1.1 | % |
Industrials | | 167,677 | | | 4.0 | % | | 1.0 | % |
Technology | | 158,613 | | | 3.7 | % | | 1.0 | % |
Energy | | 128,949 | | | 3.0 | % | | 0.8 | % |
Non-U.S. government guaranteed | | 132,347 | | | 3.1 | % | | 0.8 | % |
Transportation | | 87,158 | | | 2.1 | % | | 0.5 | % |
Total investment grade | | 3,225,698 | | | 76.3 | % | | 19.9 | % |
| | | | | | |
Total non-investment grade | | 1,004,165 | | | 23.7 | % | | 6.3 | % |
| | | | | | |
Total corporate debt, available for sale, at fair value | | $ | 4,229,863 | | | 100.0 | % | | 26.2 | % |
| | | | | | |
Total corporate debt, held to maturity, at amortized cost | | $ | 90,200 | | | 100.0 | % | | 0.6 | % |
| | | | | | |
| | | | | | |
AXIS CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO
TEN LARGEST CORPORATE DEBT HOLDINGS
At September 30, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Amortized Cost | | Net Unrealized Gain (Loss) | | Fair Value | | % of Total Fixed Maturities |
ISSUER [a] | | | | | | | | |
BANK OF AMERICA CORP | | $ | 115,396 | | | $ | (13,839) | | | $ | 101,557 | | | 0.8 | % |
MORGAN STANLEY | | 109,807 | | | (12,918) | | | 96,889 | | | 0.8 | % |
GOLDMAN SACHS GROUP | | 107,285 | | | (10,604) | | | 96,681 | | | 0.8 | % |
WELLS FARGO & COMPANY | | 101,841 | | | (10,023) | | | 91,818 | | | 0.7 | % |
JP MORGAN CHASE & CO | | 97,220 | | | (13,089) | | | 84,131 | | | 0.7 | % |
CITIGROUP INC | | 92,738 | | | (10,639) | | | 82,099 | | | 0.7 | % |
AT&T INC | | 44,787 | | | (7,121) | | | 37,666 | | | 0.3 | % |
COMCAST CORPORATION | | 40,461 | | | (3,553) | | | 36,908 | | | 0.3 | % |
UBS GROUP AG | | 40,038 | | | (5,897) | | | 34,141 | | | 0.3 | % |
TORONTO DOMINION BANK | | 35,640 | | | (1,759) | | | 33,881 | | | 0.3 | % |
Total ten largest corporate debt holdings | | $ | 785,213 | | | $ | (89,442) | | | $ | 695,771 | | | 5.7 | % |
| | | | | | | | |
Total corporate debt, available for sale | | $ | 4,610,179 | | | $ | (380,316) | | | $ | 4,229,863 | | | 34.0 | % |
| | | | | | | | |
[a] These holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage-backed securities that were issued, sponsored or serviced by the parent.
AXIS CAPITAL HOLDINGS LIMITED
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION
At September 30, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale, at fair value | | Agencies | | AAA | | AA | | A | | BBB | | Non-Investment Grade | | Total |
| | | | | | | | | | | | | | |
Residential MBS | | $ | 1,541,505 | | | $ | 126,621 | | | $ | 5,582 | | | $ | 1,408 | | | $ | 102 | | | $ | 4,091 | | | $ | 1,679,309 | |
Commercial MBS | | 74,787 | | | 734,430 | | | 49,263 | | | 5,889 | | | 682 | | | — | | | 865,051 | |
ABS | | — | | | 1,016,883 | | | 123,241 | | | 91,540 | | | 34,848 | | | 356 | | | 1,266,868 | |
| | | | | | | | | | | | | | |
Total mortgage-backed and asset-backed securities, available for sale, at fair value | | $ | 1,616,292 | | | $ | 1,877,934 | | | $ | 178,086 | | | $ | 98,837 | | | $ | 35,632 | | | $ | 4,447 | | | $ | 3,811,228 | |
| | | | | | | | | | | | | | |
Percentage of total | | 42.4 | % | | 49.3 | % | | 4.7 | % | | 2.6 | % | | 0.9 | % | | 0.1 | % | | 100.0 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Held to maturity, at amortized cost | | Agencies | | AAA | | AA | | A | | BBB | | Non-Investment Grade | | Total |
| | | | | | | | | | | | | | |
ABS | | $ | — | | | $ | 388,599 | | | $ | 234,041 | | | $ | — | | | $ | — | | | $ | — | | | $ | 622,640 | |
| | | | | | | | | | | | | | |
Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost | | $ | — | | | $ | 388,599 | | | $ | 234,041 | | | $ | — | | | $ | — | | | $ | — | | | $ | 622,640 | |
| | | | | | | | | | | | | | |
Percentage of total | | — | % | | 62.4 | % | | 37.6 | % | | — | % | | — | % | | — | % | | 100.0 | % |
| | | | | | | | | | | | | | |
AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | Q3 2021 | | | | | | | | | | | | | |
Reinsurance recoverable on paid losses and loss expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance | | $ | 471,675 | | | $ | 435,052 | | | $ | 438,780 | | | $ | 394,817 | | | $ | 294,560 | | | | | | | | | | $ | 338,908 | | | | | | | | | | | | | | |
Reinsurance | | 122,700 | | | 137,705 | | | 154,233 | | | 144,859 | | | 143,937 | | | | | | | | | | 167,595 | | | | | | | | | | | | | | |
Total | | $ | 594,375 | | | $ | 572,757 | | | $ | 593,013 | | | $ | 539,676 | | | $ | 438,497 | | | | | | | | | | $ | 506,503 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverable on unpaid losses and loss expenses: Case reserves | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance | | $ | 1,121,359 | | | $ | 1,122,667 | | | $ | 1,152,901 | | | $ | 1,152,659 | | | $ | 877,360 | | | | | | | | | | $ | 908,182 | | | | | | | | | | | | | | |
Reinsurance | | 657,627 | | | 680,184 | | | 695,196 | | | 677,591 | | | 658,797 | | | | | | | | | | 575,628 | | | | | | | | | | | | | | |
Total | | $ | 1,778,986 | | | $ | 1,802,851 | | | $ | 1,848,097 | | | $ | 1,830,250 | | | $ | 1,536,157 | | | | | | | | | | $ | 1,483,810 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverable on unpaid losses and loss expenses: IBNR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance | | $ | 3,213,455 | | | $ | 3,105,627 | | | $ | 3,034,739 | | | $ | 3,008,010 | | | $ | 2,744,920 | | | | | | | | | | $ | 2,569,194 | | | | | | | | | | | | | | |
Reinsurance | | 1,073,810 | | | 990,279 | | | 972,928 | | | 1,023,627 | | | 992,208 | | | | | | | | | | 963,728 | | | | | | | | | | | | | | |
Total | | $ | 4,287,265 | | | $ | 4,095,906 | | | $ | 4,007,667 | | | $ | 4,031,637 | | | $ | 3,737,128 | | | | | | | | | | $ | 3,532,922 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for expected credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance | | $ | (31,554) | | | $ | (29,985) | | | $ | (29,335) | | | $ | (27,463) | | | $ | (26,234) | | | | | | | | | | $ | (23,664) | | | | | | | | | | | | | | |
Reinsurance | | (3,170) | | | (3,163) | | | (3,012) | | | (3,252) | | | (2,788) | | | | | | | | | | (3,423) | | | | | | | | | | | | | | |
Total | | $ | (34,724) | | | $ | (33,148) | | | $ | (32,347) | | | $ | (30,715) | | | $ | (29,022) | | | | | | | | | | $ | (27,087) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverables on unpaid and paid losses and loss expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance | | $ | 4,774,935 | | | $ | 4,633,361 | | | $ | 4,597,085 | | | $ | 4,528,023 | | | $ | 3,890,606 | | | | | | | | | | $ | 3,792,620 | | | | | | | | | | | | | | |
Reinsurance | | 1,850,967 | | | 1,805,005 | | | 1,819,345 | | | 1,842,825 | | | 1,792,154 | | | | | | | | | | 1,703,528 | | | | | | | | | | | | | | |
Total | | $ | 6,625,902 | | | $ | 6,438,366 | | | $ | 6,416,430 | | | $ | 6,370,848 | | | $ | 5,682,760 | | | | | | | | | | $ | 5,496,148 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
At September 30, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Categories | | Reinsurance Recoverable, Gross of Collateral | | Collateral | | Reinsurance Recoverable, Net of Collateral | | % of Total Reinsurance Recoverable, Net of Collateral | | % of Total Shareholders’ Equity | | Allowance for expected credit losses | | Allowance for expected credit losses as % of Reinsurance Recoverable, Gross of Collateral | | Reinsurance recoverable on unpaid and paid losses and loss expenses |
Top 10 reinsurers based on gross recoverables | | $ | 3,531,920 | | | $ | (1,512,657) | | | $ | 2,019,263 | | | 44.0% | | 40.1% | | $ | (12,618) | | | 0.4% | | $ | 3,519,302 | |
Other reinsurers balances > $20 million | | 2,636,498 | | | (438,318) | | | 2,198,180 | | | 47.9% | | 43.7% | | (17,601) | | | 0.7% | | 2,618,897 | |
Other reinsurers balances < $20 million | | 492,208 | | | (116,043) | | | 376,165 | | | 8.1% | | 7.5% | | (4,505) | | | 0.9% | | 487,703 | |
Total | | $ | 6,660,626 | | | $ | (2,067,018) | | | $ | 4,593,608 | | | 100.0% | | 91.3% | | $ | (34,724) | | | 0.5% | | $ | 6,625,902 | |
| | | | | | | | | | | | | | | | |
At September 30, 2023, reinsurance recoverable balances, gross of collateral, of 83.4% (December 31, 2022: 81.8%) were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.
| | | | | | | | | | | | | | | | | |
| | | Reinsurance Recoverable, Net of Collateral |
Top 10 Reinsurers | | As a % of Total | | As a % of Total Shareholders’ Equity |
1 | Swiss Reinsurance America Corporation | | 12.6% | | 11.5% |
2 | Lloyds of London | | 6.9% | | 6.3% |
3 | Hannover Ruck SE | | 5.9% | | 5.4% |
4 | Transatlantic Reinsurance Co | | 5.8% | | 5.3% |
5 | Harrington Re Ltd. | | 4.6% | | 4.2% |
6 | SCOR Reinsurance Company | | 4.4% | | 4.0% |
7 | Partner Reinsurance Co of the US | | 4.2% | | 3.8% |
8 | Swiss Reinsurance Company Ltd. | | 3.8% | | 3.4% |
9 | Everest Reinsurance Company | | 3.5% | | 3.2% |
10 | Munich Reinsurance America, Inc | | 3.2% | | 3.0% |
| | | 54.9% | | 50.1% |
| | | | | |
At September 30, 2023, reinsurance recoverable balances, net of collateral, of 98.5% (December 31, 2022: 99.0%) were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, 2023 | | Nine months ended September 30, 2023 | | |
| | Reserve for losses and loss expenses | | Reinsurance recoverable on unpaid losses and loss expenses | | Net reserve for losses and loss expenses | | Reserve for losses and loss expenses | | Reinsurance recoverable on unpaid losses and loss expenses | | Net reserve for losses and loss expenses | | | | | | | | | | |
Reserve for losses and loss expenses | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | $ | 15,419,498 | | | $ | (5,865,609) | | | $ | 9,553,889 | | | $ | 15,168,863 | | | $ | (5,831,172) | | | $ | 9,337,691 | | | | | | | | | | | |
Incurred losses and loss expenses | | 1,205,262 | | | (421,322) | | | 783,940 | | | 3,390,657 | | | (1,149,817) | | | 2,240,840 | | | | | | | | | | | |
Paid losses and loss expenses | | (966,061) | | | 302,677 | | | (663,384) | | | (3,043,454) | | | 1,040,554 | | | (2,002,900) | | | | | | | | | | | |
Foreign exchange and other | | (103,443) | | | (47,273) | | | (150,716) | | | 39,190 | | | (91,092) | | | (51,902) | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
End of period [a] | | $ | 15,555,256 | | | $ | (6,031,527) | | | $ | 9,523,729 | | | $ | 15,555,256 | | | $ | (6,031,527) | | | $ | 9,523,729 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
[a] At September 30, 2023, reserve for losses and loss expenses included IBNR of $10.1 billion, or 65% (December 31, 2022: $9.6 billion, or 63%).
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, 2023 | | | Nine months ended September 30, 2023 |
| | Insurance | | Reinsurance | | Total | | | | | | | Insurance | | Reinsurance | | Total |
| | | | | | | | | | | | | | | | | |
Gross paid losses and loss expenses | | $ | 539,511 | | | $ | 426,550 | | | $ | 966,061 | | | | | | | | $ | 1,769,943 | | | $ | 1,273,511 | | | $ | 3,043,454 | |
Reinsurance recoverable on paid losses and loss expenses | | (225,925) | | | (76,752) | | | (302,677) | | | | | | | | (798,120) | | | (242,434) | | | (1,040,554) | |
Net paid losses and loss expenses | | 313,586 | | | 349,798 | | | 663,384 | | | | | | | | 971,823 | | | 1,031,077 | | | 2,002,900 | |
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Gross case reserves | | 38,571 | | | (105,361) | | | (66,790) | | | | | | | | 35,029 | | | (161,499) | | | (126,470) | |
Gross IBNR | | 261,313 | | | 44,678 | | | 305,991 | | | | | | | | 545,067 | | | (71,394) | | | 473,673 | |
Reinsurance recoverable on unpaid losses and loss expenses | | (122,102) | | | 3,457 | | | (118,645) | | | | | | | | (153,433) | | | 44,170 | | | (109,263) | |
Net unpaid losses and loss expenses | | 177,782 | | | (57,226) | | | 120,556 | | | | | | | | 426,663 | | | (188,723) | | | 237,940 | |
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Total net incurred losses and loss expenses | | $ | 491,368 | | | $ | 292,572 | | | $ | 783,940 | | | | | | | | $ | 1,398,486 | | | $ | 842,354 | | | $ | 2,240,840 | |
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Gross reserve for losses and loss expenses | | $ | 8,979,860 | | | $ | 6,575,396 | | | $ | 15,555,256 | | | | | | | | $ | 8,979,860 | | | $ | 6,575,396 | | | $ | 15,555,256 | |
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Net favorable prior year reserve development | | $ | 1,609 | | | $ | 1,153 | | | $ | 2,762 | | | | | | | | $ | 5,433 | | | $ | 7,685 | | | $ | 13,118 | |
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Key Ratios | | | | | | | | | | | | | | | | | |
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Net paid losses and loss expenses / Net incurred losses and loss expenses | | 63.8 | % | | 119.6 | % | | 84.6 | % | | | | | | | 69.5 | % | | 122.4 | % | | 89.4 | % |
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Net paid losses and loss expenses / Net premiums earned | | 35.4 | % | | 80.1 | % | | 50.2 | % | | | | | | | 38.2 | % | | 81.0 | % | | 52.5 | % |
Net unpaid losses and loss expenses / Net premiums earned | | 20.1 | % | | (13.1 | %) | | 9.1 | % | | | | | | | 16.8 | % | | (14.9 | %) | | 6.2 | % |
Net losses and loss expenses ratio | | 55.5 | % | | 67.0 | % | | 59.3 | % | | | | | | | 55.0 | % | | 66.1 | % | | 58.7 | % |
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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
INSURANCE
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | | |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | | | | | | 2022 | | | |
INSURANCE SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross paid losses and loss expenses | | $ | 539,511 | | | $ | 672,765 | | | $ | 557,669 | | | $ | 605,505 | | | $ | 474,475 | | | | | | | | | | | $ | 441,854 | | | | | | | | | | | | $ | 2,329,161 | | | | |
Reinsurance recoverable on paid losses and loss expenses | | (225,925) | | | (286,768) | | | (285,428) | | | (274,278) | | | (172,617) | | | | | | | | | | | (154,584) | | | | | | | | | | | | (953,438) | | | | |
Net paid losses and loss expenses | | 313,586 | | | 385,997 | | | 272,241 | | | 331,227 | | | 301,858 | | | | | | | | | | | 287,270 | | | | | | | | | | | | 1,375,723 | | | | |
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Gross case reserves | | 38,571 | | | (59,310) | | | 55,769 | | | 131,714 | | | 162,750 | | | | | | | | | | | 47,583 | | | | | | | | | | | | 96,140 | | | | |
Gross IBNR | | 261,313 | | | 152,830 | | | 130,922 | | | 68,639 | | | 276,075 | | | | | | | | | | | 326,336 | | | | | | | | | | | | 613,866 | | | | |
Reinsurance recoverable on unpaid losses and loss expenses | | (122,102) | | | (21,867) | | | (9,465) | | | (92,312) | | | (221,677) | | | | | | | | | | | (218,508) | | | | | | | | | | | | (299,875) | | | | |
Net unpaid losses and loss expenses | | 177,782 | | | 71,653 | | | 177,226 | | | 108,041 | | | 217,148 | | | | | | | | | | | 155,411 | | | | | | | | | | | | 410,131 | | | | |
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Total net incurred losses and loss expenses | | $ | 491,368 | | | $ | 457,650 | | | $ | 449,467 | | | $ | 439,268 | | | $ | 519,006 | | | | | | | | | | | $ | 442,681 | | | | | | | | | | | | $ | 1,785,854 | | | | |
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Gross reserve for losses and loss expenses | | $ | 8,979,860 | | | $ | 8,733,273 | | | $ | 8,599,025 | | | $ | 8,381,593 | | | $ | 8,092,090 | | | | | | | | | | | $ | 7,797,533 | | | | | | | | | | | | $ | 8,381,593 | | | | |
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Net favorable prior year reserve development | | $ | 1,609 | | | $ | 2,784 | | | $ | 1,041 | | | $ | 3,955 | | | $ | 2,558 | | | | | | | | | | | $ | 5,418 | | | | | | | | | | | | $ | 16,350 | | | | |
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Key Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Net paid losses and loss expenses / Net incurred losses and loss expenses | | 63.8 | % | | 84.3 | % | | 60.6 | % | | 75.4 | % | | 58.2 | % | | | | | | | | | | 64.9 | % | | | | | | | | | | | 77.0 | % | | | |
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Net paid losses and loss expenses / Net premiums earned | | 35.4 | % | | 45.8 | % | | 33.3 | % | | 39.9 | % | | 38.6 | % | | | | | | | | | | 42.2 | % | | | | | | | | | | | 43.9 | % | | | |
Net unpaid losses and loss expenses / Net premiums earned | | 20.1 | % | | 8.5 | % | | 21.8 | % | | 13.0 | % | | 27.8 | % | | | | | | | | | | 22.8 | % | | | | | | | | | | | 13.1 | % | | | |
Net losses and loss expenses ratio | | 55.5 | % | | 54.3 | % | | 55.1 | % | | 52.9 | % | | 66.4 | % | | | | | | | | | | 65.0 | % | | | | | | | | | | | 57.0 | % | | | |
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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
REINSURANCE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | | | |
| | Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | | | | | | 2022 | | | |
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REINSURANCE SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross paid losses and loss expenses | | $ | 426,550 | | | $ | 425,129 | | | $ | 421,831 | | | $ | 439,623 | | | $ | 492,973 | | | | | | | | | | | $ | 484,553 | | | | | | | | | | | | $ | 1,832,894 | | | | |
Reinsurance recoverable on paid losses and loss expenses | | (76,752) | | | (84,810) | | | (80,872) | | | (85,613) | | | (100,316) | | | | | | | | | | | (78,672) | | | | | | | | | | | | (353,547) | | | | |
Net paid losses and loss expenses | | 349,798 | | | 340,319 | | | 340,959 | | | 354,010 | | | 392,657 | | | | | | | | | | | 405,881 | | | | | | | | | | | | 1,479,347 | | | | |
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Gross case reserves | | (105,361) | | | (83,887) | | | 27,748 | | | 22,597 | | | (36,789) | | | | | | | | | | | 81,030 | | | | | | | | | | | | 107,158 | | | | |
Gross IBNR | | 44,678 | | | 16,932 | | | (133,002) | | | 17,823 | | | 127,731 | | | | | | | | | | | 142,067 | | | | | | | | | | | | 17,334 | | | | |
Reinsurance recoverable on unpaid losses and loss expenses | | 3,457 | | | 5,243 | | | 35,470 | | | (35,484) | | | (60,694) | | | | | | | | | | | (160,290) | | | | | | | | | | | | (147,283) | | | | |
Net unpaid losses and loss expenses | | (57,226) | | | (61,712) | | | (69,784) | | | 4,936 | | | 30,248 | | | | | | | | | | | 62,807 | | | | | | | | | | | | (22,791) | | | | |
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Total net incurred losses and loss expenses | | $ | 292,572 | | | $ | 278,607 | | | $ | 271,175 | | | $ | 358,946 | | | $ | 422,905 | | | | | | | | | | | $ | 468,688 | | | | | | | | | | | | $ | 1,456,556 | | | | |
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Gross reserve for losses and loss expenses | | $ | 6,575,396 | | | $ | 6,686,225 | | | $ | 6,715,619 | | | $ | 6,787,270 | | | $ | 6,560,106 | | | | | | | | | | | $ | 6,861,463 | | | | | | | | | | | | $ | 6,787,270 | | | | |
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Net favorable prior year reserve development | | $ | 1,153 | | | $ | 3,535 | | | $ | 2,997 | | | $ | 3,946 | | | $ | 2,177 | | | | | | | | | | | $ | 5,594 | | | | | | | | | | | | $ | 9,183 | | | | |
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Key Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Net paid losses and loss expenses / Net incurred losses and loss expenses | | 119.6 | % | | 122.2 | % | | 125.7 | % | | 98.6 | % | | 92.8 | % | | | | | | | | | | 86.6 | % | | | | | | | | | | | 101.6 | % | | | |
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Net paid losses and loss expenses / Net premiums earned | | 80.1 | % | | 80.5 | % | | 82.4 | % | | 69.5 | % | | 78.1 | % | | | | | | | | | | 76.5 | % | | | | | | | | | | | 73.0 | % | | | |
Net unpaid losses and loss expenses / Net premiums earned | | (13.1 | %) | | (14.6 | %) | | (16.9 | %) | | 0.9 | % | | 6.0 | % | | | | | | | | | | 11.9 | % | | | | | | | | | | | (1.1 | %) | | | |
Net losses and loss expenses ratio | | 67.0 | % | | 65.9 | % | | 65.5 | % | | 70.4 | % | | 84.1 | % | | | | | | | | | | 88.4 | % | | | | | | | | | | | 71.9 | % | | | |
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AXIS CAPITAL HOLDINGS LIMITED
NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF OCTOBER 1, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Estimated Net Exposures (millions of U.S. dollars) |
Territory | | Peril | | 50 Year Return Period | % of Common Shareholders' Equity | | 100 Year Return Period | % of Common Shareholders' Equity | | 250 Year Return Period | % of Common Shareholders' Equity |
Single zone, single event | | | | | | | | | | | |
Southeast | | U.S. Hurricane | | $ | 122 | | 2.7 | % | | $ | 147 | | 3.3 | % | | $ | 167 | | 3.7 | % |
Northeast | | U.S. Hurricane | | 10 | | 0.2 | % | | 30 | | 0.7 | % | | 63 | | 1.4 | % |
Mid-Atlantic | | U.S. Hurricane | | 42 | | 0.9 | % | | 91 | | 2.0 | % | | 132 | | 2.9 | % |
Gulf of Mexico | | U.S. Hurricane | | 103 | | 2.3 | % | | 125 | | 2.8 | % | | 153 | | 3.4 | % |
Europe | | Windstorm | | 56 | | 1.2 | % | | 79 | | 1.8 | % | | 99 | | 2.2 | % |
Japan | | Windstorm | | 9 | | 0.2 | % | | 10 | | 0.2 | % | | 18 | | 0.4 | % |
Japan | | Earthquake | | 40 | | 0.9 | % | | 62 | | 1.4 | % | | 102 | | 2.3 | % |
California | | Earthquake | | 103 | | 2.3 | % | | 137 | | 3.1 | % | | 166 | | 3.7 | % |
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The table above shows our net Probable Maximum Loss ("PML") to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at October 1, 2023. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.
As indicated in the table above, our modeled single occurrence 1-in-100 year return period PML for a Southeast U.S. hurricane, net of reinsurance, is approximately $147 million. According to our modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast U.S. hurricane event could be in excess of $147 million. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast U.S. hurricane will fall below $147 million.
PMLs are based on results of stochastic models that consider a wide range of possible events, their losses and probabilities. It is important to consider that an actual event does not necessarily resemble one of the stochastic events and the specific characteristics of an actual event can lead to substantial differences between actual and modeled loss.
We have developed our PML estimates by combining judgment and experience with the outputs from the catastrophe model, commercially available from Verisk Analytics, Inc. Additionally, we have included our estimate of non-modeled perils and other factors, which we believe provides us with a more complete view of catastrophe risk.
Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, the most important of which is by ensuring that management’s judgment supplements the model outputs. Models are continuously validated at the line of business and at a group level by our catastrophe model validation team. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.
Estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, which include but are not limited to, updates to vendor catastrophe models, changes to internal modeling, underwriting portfolios, reinsurance purchasing strategy and foreign currency exchange rates.
AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, U.S. GAAP | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
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Net income (loss) available (attributable) to common shareholders | | $ | 180,535 | | | $ | (16,947) | | | $ | 496,182 | | | $ | 151,904 | |
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | |
Weighted average common shares outstanding | | 85,223 | | | 84,660 | | | 85,099 | | | 84,930 | |
Dilutive share equivalents: | | | | | | | | |
Share-based compensation plans [a] | | 885 | | | — | | | 828 | | | 744 | |
Weighted average diluted common shares outstanding | | 86,108 | | | 84,660 | | | 85,927 | | | 85,674 | |
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EARNINGS (LOSS) PER COMMON SHARE | | | | | | | | |
Earnings (loss) per common share | | $2.12 | | | ($0.20) | | | $5.83 | | | $1.79 | |
Earnings (loss) per diluted common share | | $2.10 | | | ($0.20) | | | $5.77 | | | $1.77 | |
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[a] Due to the net loss attributable to common shareholders recognized for the three months ended September 30, 2022, the share equivalents were anti-dilutive.
EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLL FORWARD
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| | Q3 2023 | | | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | | Q3 2021 | | | | | | | | |
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Net income (loss) available (attributable) to common shareholders | | $ | 180,535 | | | | | $ | 143,111 | | | $ | 172,534 | | | $ | 40,928 | | | $ | (16,947) | | | | | | | | | | | $ | 47,385 | | | | | | | | | |
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COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares - at beginning of period | | 85,216 | | | | | 85,183 | | | 84,668 | | | 84,666 | | | 84,655 | | | | | | | | | | | 84,767 | | | | | | | | | |
Shares issued and treasury shares reissued | | 19 | | | | | 53 | | | 777 | | | 8 | | | 17 | | | | | | | | | | | 10 | | | | | | | | | |
Shares repurchased for treasury | | (7) | | | | | (20) | | | (262) | | | (6) | | | (6) | | | | | | | | | | | (4) | | | | | | | | | |
Common shares - at end of period | | 85,228 | | | | | 85,216 | | | 85,183 | | | 84,668 | | | 84,666 | | | | | | | | | | | 84,773 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | 85,223 | | | | | 85,207 | | | 84,864 | | | 84,667 | | | 84,660 | | | | | | | | | | | 84,771 | | | | | | | | | |
Dilutive share equivalents: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share-based compensation plans [a] | | 885 | | | | | 605 | | | 989 | | | 988 | | | — | | | | | | | | | | | 565 | | | | | | | | | |
Weighted average diluted common shares outstanding | | 86,108 | | | | | 85,812 | | | 85,853 | | | 85,655 | | | 84,660 | | | | | | | | | | | 85,336 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EARNINGS (LOSS) PER COMMON SHARE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per common share | | $2.12 | | | | | $1.68 | | | $2.03 | | | $0.48 | | | ($0.20) | | | | | | | | | | | $0.56 | | | | | | | | | |
Earnings (loss) per diluted common share | | $2.10 | | | | | $1.67 | | | $2.01 | | | $0.48 | | | ($0.20) | | | | | | | | | | | $0.56 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[a] Due to the net loss attributable to common shareholders recognized for the three months ended September 30, 2022, the share equivalents were anti-dilutive.
AXIS CAPITAL HOLDINGS LIMITED
BOOK VALUE PER DILUTED COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a] | | | | | | | | | | | | | | | | | | | | | | | | |
| | | At September 30, 2023 |
| | | | | | | | |
| | | | Common Shareholders’ Equity | | Common Shares Outstanding, net of Treasury Shares | | Per share |
| | | | | | | | |
Closing stock price | | | | | | | | $56.37 | |
| | | | | | | | |
Book value per common share | | | | $ | 4,483,208 | | | 85,228 | | | $52.60 | |
| | | | | | | | |
Dilutive securities: | | | | | | | | |
| | | | | | | | |
Restricted stock units | | | | | | 2,389 | | | (1.43) | |
Book value per diluted common share | | | | $ | 4,483,208 | | | 87,617 | | | $51.17 | |
| | | | | | | | |
| | | At December 31, 2022 |
| | | | | | | | |
| | | | Common Shareholders’ Equity | | Common Shares Outstanding, net of Treasury Shares | | Per share |
| | | | | | | | |
Closing stock price | | | | | | | | $54.17 | |
| | | | | | | | |
Book value per common share | | | | $ | 4,089,910 | | | 84,668 | | | $48.31 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Dilutive securities: [b] | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Restricted stock units | | | | | | 2,445 | | | (1.36) | |
Book value per diluted common share | | | | $ | 4,089,910 | | | 87,113 | | | $46.95 | |
| | | | | | | | |
[a] Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b] Cash-settled restricted stock units are excluded.
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Q3 2023 | | Q2 2023 | | Q1 2023 | | Q4 2022 | | Q3 2022 | | | | | | | | | Q3 2021 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shareholders' equity | $ | 4,483,208 | | | $ | 4,470,961 | | | $ | 4,410,229 | | | $ | 4,089,910 | | | $ | 3,793,423 | | | | | | | | | | $ | 4,785,055 | | | | | | | | | | | | | | |
Less: goodwill | (100,801) | | | (100,801) | | | (100,801) | | | (100,801) | | | (100,801) | | | | | | | | | | (100,801) | | | | | | | | | | | | | | |
Less: intangible assets | (189,612) | | | (192,342) | | | (195,071) | | | (197,800) | | | (200,529) | | | | | | | | | | (211,557) | | | | | | | | | | | | | | |
Associated tax impact | 50,992 | | | 51,613 | | | 52,235 | | | 52,856 | | | 52,086 | | | | | | | | | | 53,175 | | | | | | | | | | | | | | |
Tangible common shareholders' equity | $ | 4,243,787 | | | $ | 4,229,431 | | | $ | 4,166,592 | | | $ | 3,844,165 | | | $ | 3,544,179 | | | | | | | | | | $ | 4,525,872 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted common shares outstanding, net of treasury shares [a] | 87,617 | | | 87,706 | | | 87,660 | | | 87,113 | | | 87,205 | | | | | | | | | | 87,216 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per diluted common share | $ | 51.17 | | | $ | 50.98 | | | $ | 50.31 | | | $ | 46.95 | | | $ | 43.50 | | | | | | | | | | $ | 54.86 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible book value per diluted common share | $ | 48.44 | | | $ | 48.22 | | | $ | 47.53 | | | $ | 44.13 | | | $ | 40.64 | | | | | | | | | | $ | 51.89 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[a] Diluted common shares outstanding, net of treasury shares is calculated in the table above.
AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Net income (loss) available (attributable) to common shareholders | | $ | 180,535 | | | $ | (16,947) | | | $ | 496,182 | | | $ | 151,904 | |
Net investment (gains) losses [a] | | 53,114 | | | 146,458 | | | 97,671 | | | 414,231 | |
Foreign exchange gains [b] | | (50,570) | | | (135,660) | | | (11,755) | | | (236,934) | |
Reorganization expenses [c] | | 28,997 | | | 6,213 | | | 28,997 | | | 21,941 | |
Interest in (income) loss of equity method investments [d] | | (2,940) | | | 7,560 | | | (2,835) | | | (5,040) | |
Income tax benefit | | (7,245) | | | (5,117) | | | (15,138) | | | (14,779) | |
Operating income | | $ | 201,891 | | | $ | 2,507 | | | $ | 593,122 | | | $ | 331,323 | |
| | | | | | | | |
Earnings (loss) per diluted common share | | $ | 2.10 | | | $ | (0.20) | | | $ | 5.77 | | | $ | 1.77 | |
Net investment (gains) losses | | 0.62 | | | 1.72 | | | 1.14 | | | 4.83 | |
Foreign exchange gains | | (0.59) | | | (1.59) | | | (0.14) | | | (2.77) | |
Reorganization expenses | | 0.34 | | | 0.07 | | | 0.34 | | | 0.26 | |
Interest in (income) loss of equity method investments | | (0.03) | | | 0.09 | | | (0.03) | | | (0.06) | |
Income tax benefit | | (0.10) | | | (0.06) | | | (0.18) | | | (0.17) | |
Operating income per diluted common share | | $ | 2.34 | | | $ | 0.03 | | | $ | 6.90 | | | $ | 3.86 | |
| | | | | | | | |
Weighted average diluted common shares outstanding | | 86,108 | | | 85,376 | | | 85,927 | | | 85,674 | |
| | | | | | | | |
Average common shareholders' equity | | $ | 4,477,086 | | | $ | 3,973,027 | | | $ | 4,286,559 | | | $ | 4,327,040 | |
| | | | | | | | |
Annualized return on average common equity | | 16.1 | % | | (1.7 | %) | | 15.4 | % | | 4.7 | % |
| | | | | | | | |
Annualized operating return on average common equity | | 18.0 | % | | 0.3 | % | | 18.4 | % | | 10.2 | % |
| | | | | | | | |
[a] Tax expense (benefit) of $(4,318) and $(608) for the three months ended September 30, 2023 and 2022, respectively, and $(8,198) and $(33,519) for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
[b] Tax expense (benefit) of $2,318 and $(3,757) for the three months ended September 30, 2023 and 2022, respectively, and $(1,695) and $21,191 for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
[c] Tax expense (benefit) of $(5,245) and $(752) for the three months ended September 30, 2023 and 2022, respectively, and $(5,245) and $(2,451) for the nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
[d] Tax expense (benefit) of $nil for the three and nine months ended September 30, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
AXIS CAPITAL HOLDINGS LIMITED
RATIONALE FOR THE USE OF NON-GAAP FINANCIAL MEASURES
We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), tangible book value per diluted common share which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Underwriting-Related General and Administrative Expenses
Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.
Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.
The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations' section of this document.
Consolidated Underwriting Income (Loss)
Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.
We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.
Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of
the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).
Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income (loss).
Reorganization expenses in 2023 include impairments of computer software assets and severance costs associated with the departures of certain employees mainly attributable to our "How We Work" program which focuses on simplifying our operating structure. Reorganization expenses in 2022 included severance costs and impairments of computer software assets mainly attributable to our exit from catastrophe and property reinsurance lines of business which was part of an overall approach to reduce our exposure to volatile catastrophe risk. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).
Amortization of intangible assets including value of business acquired ("VOBA") arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).
We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations' section of this document.
Operating Income (Loss)
Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments.
Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.
Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result,
we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).
Reorganization expenses in 2023 include impairments of computer software assets and severance costs associated with the departures of certain employees mainly attributable to our "How We Work" program which focuses on simplifying our operating structure. Reorganization expenses in 2022 included severance costs and impairments of computer software assets mainly attributable to our exit from catastrophe and property reinsurance lines of business which was part of an overall approach to reduce our exposure to volatile catastrophe risk. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated operating income (loss).
Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).
Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments in order to understand the profitability of recurring sources of income.
We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this document.
We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this document.
Tangible Book Value per Diluted Common Share
Tangible book value represents common shareholders' equity exclusive of after-tax goodwill and intangible assets. We present tangible book value per diluted common share calculated under the treasury stock method. We believe that this measure, in combination with book value per diluted common share, is useful in assessing value generated for our common shareholders. A reconciliation of tangible book value per diluted common share to book value per diluted common share, the most comparable GAAP financial measure, is presented in the 'Tangible Book Value per Diluted Common Share' section of this document.
ADDITIONAL INFORMATION REGARDING THE COMPANY'S EXIT FROM CATASTROPHE AND PROPERTY LINES OF BUSINESS
AXIS CAPITAL HOLDINGS LIMITED
Reinsurance Segment Data - Catastrophe and Property [a] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Quarter-to-date | | |
| Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | | | | | | | | | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | |
Gross written premiums | $ | 11,685 | | $ | 14,716 | | $ | 25,906 | | $ | 5,720 | | $ | 23,400 | | $ | 82,463 | | $ | 214,719 | | $ | 23,999 | | $ | 126,980 | | | | | | | | | | | | |
Ceded premiums written | (2,616) | | (3,259) | | (5,130) | | 526 | | (35,425) | | (26,892) | | (82,975) | | (5,650) | | (99,619) | | | | | | | | | | | | |
Net premiums written | 9,069 | | 11,457 | | 20,776 | | 6,246 | | (12,025) | | 55,571 | | 131,744 | | 18,348 | | 27,362 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | 21,337 | | 25,945 | | 42,803 | | 84,745 | | 100,360 | | 124,503 | | 136,273 | | 184,236 | | 198,263 | | | | | | | | | | | | |
Ceded premiums earned | (2,395) | | (8,293) | | (10,834) | | (28,886) | | (40,327) | | (43,697) | | (41,258) | | (89,389) | | (83,351) | | | | | | | | | | | | |
Net premiums earned | 18,942 | | 17,652 | | 31,969 | | 55,859 | | 60,033 | | 80,806 | | 95,014 | | 94,847 | | 114,912 | | | | | | | | | | | | |
Other insurance related income (loss) | 532 | | (248) | | 91 | | 13 | | 126 | | 36 | | 44 | | (1,419) | | 1,543 | | | | | | | | | | | | |
Total underwriting revenues | 19,474 | | 17,404 | | 32,059 | | 55,872 | | 60,159 | | 80,842 | | 95,058 | | 93,427 | | 116,455 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | 6,373 | | 2,019 | | (13,992) | | 20,097 | | 104,330 | | 63,548 | | 15,981 | | 63,085 | | 181,543 | | | | | | | | | | | | |
Acquisition costs | 3,958 | | 4,625 | | 7,137 | | 11,601 | | 10,347 | | 14,208 | | 15,689 | | 17,747 | | 19,224 | | | | | | | | | | | | |
Underwriting-related general and administrative expenses [b] | 775 | | 1,075 | | 1,566 | | 2,128 | | 2,596 | | 2,850 | | 5,739 | | 1,119 | | 2,659 | | | | | | | | | | | | |
Total underwriting expenses | 11,106 | | 7,719 | | (5,289) | | 33,826 | | 117,272 | | 80,606 | | 37,410 | | 81,951 | | 203,425 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | $ | 8,368 | | $ | 9,685 | | $ | 37,348 | | $ | 22,046 | | $ | (57,113) | | $ | 237 | | $ | 57,649 | | $ | 11,476 | | $ | (86,970) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 3,534 | | $ | 5,361 | | $ | 12,252 | | $ | 8,930 | | $ | 83,157 | | $ | 38,020 | | $ | 12,999 | | $ | 29,609 | | $ | 139,714 | | | | | | | | | | | | |
Net favorable (adverse) prior year reserve development | $ | 4,858 | | $ | 9,752 | | $ | 37,941 | | $ | 10,673 | | $ | 7,694 | | $ | 1,360 | | $ | 22,293 | | $ | (151) | | $ | 5,937 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 40.6 | % | 36.3 | % | 36.6 | % | 43.5 | % | 39.3 | % | 32.8 | % | 26.6 | % | 34.0 | % | 36.3 | % | | | | | | | | | | | |
Catastrophe and weather-related losses ratio | 18.7 | % | 30.4 | % | 38.3 | % | 11.6 | % | 147.3 | % | 47.5 | % | 13.7 | % | 32.4 | % | 126.8 | % | | | | | | | | | | | |
Current accident year loss ratio | 59.3 | % | 66.7 | % | 74.9 | % | 55.1 | % | 186.6 | % | 80.3 | % | 40.3 | % | 66.4 | % | 163.2 | % | | | | | | | | | | | |
Prior year reserve development ratio | (25.7 | %) | (55.3 | %) | (118.7 | %) | (19.1 | %) | (12.8 | %) | (1.7 | %) | (23.5 | %) | 0.2 | % | (5.2 | %) | | | | | | | | | | | |
Net losses and loss expenses ratio | 33.6 | % | 11.4 | % | (43.8 | %) | 36.0 | % | 173.8 | % | 78.6 | % | 16.8 | % | 66.5 | % | 158.0 | % | | | | | | | | | | | |
Acquisition cost ratio | 20.9 | % | 26.2 | % | 22.3 | % | 20.8 | % | 17.2 | % | 17.6 | % | 16.5 | % | 18.7 | % | 16.7 | % | | | | | | | | | | | |
Underwriting-related general and administrative expense ratio | 4.1 | % | 6.1 | % | 4.9 | % | 3.8 | % | 4.3 | % | 3.5 | % | 6.0 | % | 1.2 | % | 2.3 | % | | | | | | | | | | | |
Combined ratio | 58.6 | % | 43.7 | % | (16.5 | %) | 60.6 | % | 195.3 | % | 99.8 | % | 39.4 | % | 86.4 | % | 177.0 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
[a] Catastrophe and Property refers to business written by the AXIS Re as defined on page iv.
[b] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
AXIS CAPITAL HOLDINGS LIMITED
Reinsurance Segment Data - Specialty Reinsurance [a] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Quarter-to-date |
| | | | | | | | | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | |
Gross written premiums | | | | | | | | | $ | 436,569 | | $ | 585,512 | | $ | 940,458 | | $ | 282,171 | | $ | 366,518 | | $ | 561,398 | | $ | 1,092,625 | | $ | 223,767 | | $ | 343,009 | | | | |
Ceded premiums written | | | | | | | | | (355,533) | | (171,633) | | (235,454) | | (78,649) | | (95,498) | | (169,541) | | (255,410) | | (61,400) | | (81,391) | | | | |
Net premiums written | | | | | | | | | 81,036 | | 413,879 | | 705,004 | | 203,522 | | 271,020 | | 391,857 | | 837,215 | | 162,366 | | 261,618 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | | | | | | | | | 561,307 | | 550,279 | | 508,269 | | 596,635 | | 580,179 | | 561,430 | | 532,953 | | 539,641 | | 538,467 | | | | |
Ceded premiums earned | | | | | | | | | (143,399) | | (144,937) | | (126,494) | | (142,846) | | (137,447) | | (133,908) | | (122,538) | | (119,096) | | (122,961) | | | | |
Net premiums earned | | | | | | | | | 417,908 | | 405,342 | | 381,775 | | 453,789 | | 442,732 | | 427,522 | | 410,415 | | 420,545 | | 415,507 | | | | |
Other insurance related income | | | | | | | | | 9,834 | | 5,714 | | 432 | | 2,974 | | 815 | | 1,940 | | 6,567 | | 8,225 | | 5,654 | | | | |
Total underwriting revenues | | | | | | | | | 427,742 | | 411,056 | | 382,207 | | 456,763 | | 443,547 | | 429,462 | | 416,983 | | 428,770 | | 421,160 | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | | | | | | | | 286,199 | | 276,588 | | 285,167 | | 338,849 | | 318,575 | | 284,203 | | 310,973 | | 269,895 | | 287,146 | | | | |
Acquisition costs | | | | | | | | | 90,047 | | 91,668 | | 76,178 | | 109,113 | | 90,728 | | 98,642 | | 93,850 | | 98,261 | | 88,959 | | | | |
Underwriting-related general and administrative expenses [b] | | | | | | | | | 17,496 | | 18,646 | | 22,199 | | 21,986 | | 21,903 | | 23,977 | | 25,407 | | 17,755 | | 27,262 | | | | |
Total underwriting expenses | | | | | | | | | 393,742 | | 386,902 | | 383,544 | | 469,948 | | 431,206 | | 406,821 | | 430,230 | | 385,910 | | 403,367 | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | | | | | | | | | $ | 34,000 | | $ | 24,154 | | $ | (1,337) | | $ | (13,185) | | $ | 12,340 | | $ | 22,641 | | $ | (13,248) | | $ | 42,860 | | $ | 17,793 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | | | | | | | | $ | 984 | | $ | 427 | | $ | 1,138 | | $ | 21,463 | | $ | 16,013 | | $ | 1,110 | | $ | 14,347 | | $ | 1,946 | | $ | 5,243 | | | | |
Net favorable (adverse) prior year reserve development | | | | | | | | | $ | (3,705) | | $ | (6,217) | | $ | (34,945) | | $ | (6,726) | | $ | (5,517) | | $ | (193) | | $ | (20,400) | | $ | 4,413 | | $ | (344) | | | | |
| | | | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | | | | | | | | 67.4 | % | 66.6 | % | 65.2 | % | 68.4 | % | 67.1 | % | 66.2 | % | 67.3 | % | 64.7 | % | 67.8 | % | | | |
Catastrophe and weather-related losses ratio | | | | | | | | | 0.2 | % | 0.1 | % | 0.3 | % | 4.8 | % | 3.6 | % | 0.3 | % | 3.5 | % | 0.5 | % | 1.3 | % | | | |
Current accident year loss ratio | | | | | | | | | 67.6 | % | 66.7 | % | 65.5 | % | 73.2 | % | 70.7 | % | 66.4 | % | 70.8 | % | 65.2 | % | 69.0 | % | | | |
Prior year reserve development ratio | | | | | | | | | 0.9 | % | 1.5 | % | 9.2 | % | 1.5 | % | 1.2 | % | — | % | 5.0 | % | (1.0 | %) | 0.1 | % | | | |
Net losses and loss expenses ratio | | | | | | | | | 68.5 | % | 68.2 | % | 74.7 | % | 74.7 | % | 72.0 | % | 66.5 | % | 75.8 | % | 64.2 | % | 69.1 | % | | | |
Acquisition cost ratio | | | | | | | | | 21.5 | % | 22.6 | % | 20.0 | % | 24.0 | % | 20.5 | % | 23.1 | % | 22.9 | % | 23.4 | % | 21.4 | % | | | |
Underwriting-related general and administrative expense ratio | | | | | | | | | 4.2 | % | 4.6 | % | 5.8 | % | 4.8 | % | 4.9 | % | 5.6 | % | 6.2 | % | 4.2 | % | 6.6 | % | | | |
Combined ratio | | | | | | | | | 94.2 | % | 95.4 | % | 100.5 | % | 103.6 | % | 97.4 | % | 95.2 | % | 104.8 | % | 91.8 | % | 97.1 | % | | | |
| | | | | | | | | | | | | | | | | | | | |
[a] Specialty Reinsurance refers to business written by the AXIS Re including liability, accident and health, professional lines, credit and surety, motor, agriculture, marine and aviation, and engineering as defined on page iv.
[b] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
AXIS CAPITAL HOLDINGS LIMITED
Reinsurance Segment Data - Reinsurance Total [a] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Quarter-to-date |
| Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | |
Gross written premiums | $ | 448,254 | | $ | 600,228 | | $ | 966,364 | | $ | 287,891 | | $ | 389,918 | | $ | 643,861 | | $ | 1,307,344 | | $ | 247,765 | | $ | 469,989 | | | | |
Ceded premiums written | (358,149) | | (174,892) | | (240,584) | | (78,123) | | (130,923) | | (196,433) | | (338,384) | | (67,051) | | (181,010) | | | | |
Net premiums written | 90,105 | | 425,336 | | 725,780 | | 209,768 | | 258,995 | | 447,428 | | 968,960 | | 180,714 | | 288,979 | | | | |
| | | | | | | | | | | | |
Gross premiums earned | 582,644 | | 576,224 | | 551,072 | | 681,380 | | 680,539 | | 685,933 | | 669,227 | | 723,877 | | 736,730 | | | | |
Ceded premiums earned | (145,794) | | (153,230) | | (137,329) | | (171,732) | | (177,774) | | (177,605) | | (163,797) | | (208,486) | | (206,311) | | | | |
Net premiums earned | 436,850 | | 422,994 | | 413,743 | | 509,648 | | 502,765 | | 508,328 | | 505,430 | | 515,391 | | 530,419 | | | | |
Other insurance related income | 10,366 | | 5,466 | | 523 | | 2,987 | | 941 | | 1,976 | | 6,611 | | 6,806 | | 7,197 | | | | |
Total underwriting revenues | 447,216 | | 428,460 | | 414,266 | | 512,635 | | 503,706 | | 510,304 | | 512,041 | | 522,197 | | 537,616 | | | | |
| | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | |
Net losses and loss expenses | 292,572 | | 278,607 | | 271,175 | | 358,946 | | 422,905 | | 347,751 | | 326,954 | | 332,979 | | 468,688 | | | | |
Acquisition costs | 94,005 | | 96,293 | | 83,315 | | 120,714 | | 101,075 | | 112,850 | | 109,540 | | 116,008 | | 108,183 | | | | |
Underwriting-related general and administrative expenses | 18,271 | | 19,721 | | 23,765 | | 24,114 | | 24,498 | | 26,826 | | 31,146 | | 18,874 | | 29,921 | | | | |
Total underwriting expenses | 404,848 | | 394,621 | | 378,255 | | 503,774 | | 548,478 | | 487,427 | | 467,640 | | 467,861 | | 606,792 | | | | |
| | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | $ | 42,368 | | $ | 33,839 | | $ | 36,011 | | $ | 8,861 | | $ | (44,772) | | $ | 22,877 | | $ | 44,401 | | $ | 54,336 | | $ | (69,176) | | | | |
| | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 4,518 | | $ | 5,788 | | $ | 13,390 | | $ | 30,392 | | $ | 99,170 | | $ | 39,130 | | $ | 27,346 | | $ | 31,555 | | $ | 144,957 | | | | |
Net favorable prior year reserve development | $ | 1,153 | | $ | 3,535 | | $ | 2,997 | | $ | 3,946 | | $ | 2,177 | | $ | 1,167 | | $ | 1,894 | | $ | 4,262 | | $ | 5,594 | | | | |
| | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 66.2 | % | 65.3 | % | 63.0 | % | 65.5 | % | 64.2 | % | 60.9 | % | 59.7 | % | 59.2 | % | 61.4 | % | | | |
Catastrophe and weather-related losses ratio | 1.0 | % | 1.4 | % | 3.3 | % | 5.7 | % | 20.3 | % | 7.7 | % | 5.4 | % | 6.2 | % | 28.0 | % | | | |
Current accident year loss ratio | 67.2 | % | 66.7 | % | 66.3 | % | 71.2 | % | 84.5 | % | 68.6 | % | 65.1 | % | 65.4 | % | 89.4 | % | | | |
Prior year reserve development ratio | (0.2 | %) | (0.8 | %) | (0.8 | %) | (0.8 | %) | (0.4 | %) | (0.2 | %) | (0.4 | %) | (0.8 | %) | (1.0 | %) | | | |
Net losses and loss expenses ratio | 67.0 | % | 65.9 | % | 65.5 | % | 70.4 | % | 84.1 | % | 68.4 | % | 64.7 | % | 64.6 | % | 88.4 | % | | | |
Acquisition cost ratio | 21.5 | % | 22.8 | % | 20.1 | % | 23.7 | % | 20.1 | % | 22.2 | % | 21.7 | % | 22.5 | % | 20.4 | % | | | |
Underwriting-related general and administrative expense ratio | 4.2 | % | 4.6 | % | 5.8 | % | 4.7 | % | 4.9 | % | 5.3 | % | 6.1 | % | 3.7 | % | 5.6 | % | | | |
Combined ratio | 92.7 | % | 93.3 | % | 91.4 | % | 98.8 | % | 109.1 | % | 95.9 | % | 92.5 | % | 90.8 | % | 114.4 | % | | | |
| | | | | | | | | | | | |
[a] Reinsurance Total refers to business written by the AXIS Re including Catastrophe and Property, and Specialty Reinsurance.
AXIS CAPITAL HOLDINGS LIMITED
Reinsurance Segment Data - Reinsurance Total, Catastrophe and Property and Specialty Reinsurance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Reinsurance | | Reinsurance Catastrophe and Property [a] | | Specialty Reinsurance [a] |
| Year-to-date | | Year-to-date | | Year-to-date |
| Q3 2023 | Q3 2022 | Q3 2021 | | Q3 2023 | Q3 2022 | Q3 2021 | | Q3 2023 | Q3 2022 | Q3 2021 |
UNDERWRITING REVENUES | | | | | | | | | | | |
Gross written premiums | $ | 2,014,846 | | $ | 2,341,123 | | $ | 2,574,987 | | | $ | 52,307 | | $ | 320,582 | | $ | 681,805 | | | $ | 1,962,539 | | $ | 2,020,540 | | $ | 1,893,182 | |
Ceded premiums written | (773,625) | | (665,741) | | (723,962) | | | (11,006) | | (145,292) | | (289,415) | | | (762,619) | | (520,449) | | (434,547) | |
Net premiums written | 1,241,221 | | 1,675,382 | | 1,851,025 | | | 41,301 | | 175,290 | | 392,390 | | | 1,199,920 | | 1,500,092 | | 1,458,635 | |
| | | | | | | | | | | |
Gross premiums earned | 1,709,940 | | 2,035,699 | | 2,112,797 | | | 90,085 | | 361,136 | | 588,169 | | | 1,619,855 | | 1,674,563 | | 1,524,628 | |
Ceded premiums earned | (436,352) | | (519,176) | | (569,677) | | | (21,523) | | (125,282) | | (213,148) | | | (414,829) | | (393,893) | | (356,529) | |
Net premiums earned | 1,273,588 | | 1,516,523 | | 1,543,120 | | | 68,562 | | 235,854 | | 375,021 | | | 1,205,026 | | 1,280,669 | | 1,168,099 | |
Other insurance related income | 16,354 | | 9,528 | | 14,827 | | | 375 | | 206 | | 1,231 | | | 15,979 | | 9,322 | | 13,596 | |
Total underwriting revenues | 1,289,942 | | 1,526,051 | | 1,557,947 | | | 68,937 | | 236,059 | | 376,252 | | | 1,221,005 | | 1,289,991 | | 1,181,695 | |
| | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | |
Net losses and loss expenses | 842,354 | | 1,097,611 | | 1,160,806 | | | (5,600) | | 183,859 | | 348,411 | | | 847,954 | | 913,752 | | 812,395 | |
Acquisition costs | 273,614 | | 323,464 | | 321,482 | | | 15,720 | | 40,245 | | 64,144 | | | 257,894 | | 283,220 | | 257,338 | |
Underwriting-related general and administrative expenses | 61,757 | | 82,471 | | 88,678 | | | 3,416 | | 11,184 | | 11,553 | | | 58,341 | | 71,286 | | 77,125 | |
Total underwriting expenses | 1,177,725 | | 1,503,546 | | 1,570,966 | | | 13,536 | | 235,288 | | 424,107 | | | 1,164,189 | | 1,268,258 | | 1,146,859 | |
| | | | | | | | | | | |
UNDERWRITING INCOME [LOSS] | $ | 112,217 | | $ | 22,505 | | $ | (13,019) | | | $ | 55,401 | | $ | 772 | | $ | (47,855) | | | $ | 56,816 | | $ | 21,733 | | $ | 34,837 | |
| | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 23,871 | | $ | 165,646 | | $ | 236,655 | | | $ | 21,146 | | $ | 134,206 | | $ | 230,326 | | | $ | 2,725 | | $ | 31,440 | | $ | 6,329 | |
Net favorable (adverse) prior year reserve development | $ | 7,685 | | $ | 5,236 | | $ | 9,787 | | | $ | 52,550 | | $ | 31,346 | | $ | 17,765 | | | $ | (44,865) | | $ | (26,111) | | $ | (7,978) | |
| | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 64.9 | % | 61.6 | % | 60.2 | % | | 37.6 | % | 31.7 | % | 33.8 | % | | 66.4 | % | 66.9 | % | 68.3 | % |
Catastrophe and weather-related losses ratio | 1.8 | % | 11.1 | % | 15.7 | % | | 30.8 | % | 59.6 | % | 63.9 | % | | 0.2 | % | 2.5 | % | 0.5 | % |
Current accident year loss ratio | 66.7 | % | 72.7 | % | 75.9 | % | | 68.4 | % | 91.2 | % | 97.6 | % | | 66.6 | % | 69.3 | % | 68.9 | % |
Prior year reserve development ratio | (0.6 | %) | (0.3 | %) | (0.7 | %) | | (76.6 | %) | (13.3 | %) | (4.7 | %) | | 3.8 | % | 2.0 | % | 0.7 | % |
Net losses and loss expenses ratio | 66.1 | % | 72.4 | % | 75.2 | % | | (8.2 | %) | 78.0 | % | 92.9 | % | | 70.4 | % | 71.3 | % | 69.5 | % |
Acquisition cost ratio | 21.5 | % | 21.3 | % | 20.8 | % | | 22.9 | % | 17.1 | % | 17.1 | % | | 21.4 | % | 22.1 | % | 22.0 | % |
Underwriting-related general and administrative expense ratio | 4.9 | % | 5.4 | % | 5.8 | % | | 5.0 | % | 4.7 | % | 3.1 | % | | 4.8 | % | 5.6 | % | 6.6 | % |
Combined ratio | 92.5 | % | 99.1 | % | 101.8 | % | | 19.7 | % | 99.8 | % | 113.1 | % | | 96.6 | % | 99.0 | % | 98.2 | % |
| | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
AXIS CAPITAL HOLDINGS LIMITED
Group Consolidated Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Quarter-to-date | | |
| Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | | | | | | | | | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | |
Gross written premiums | $ | 1,905,878 | | $ | 2,284,378 | | $ | 2,381,976 | | $ | 1,758,696 | | $ | 1,707,808 | | $ | 2,113,483 | | $ | 2,634,608 | | $ | 1,562,828 | | $ | 1,646,489 | | | | | | | | | | | | |
Ceded premiums written | (930,521) | | (838,021) | | (773,620) | | (662,142) | | (671,024) | | (796,636) | | (821,736) | | (615,420) | | (650,018) | | | | | | | | | | | | |
Net premiums written | 975,357 | | 1,446,357 | | 1,608,356 | | 1,096,554 | | 1,036,784 | | 1,316,847 | | 1,812,872 | | 947,408 | | 996,471 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | 2,046,222 | | 1,969,662 | | 1,921,768 | | 2,050,239 | | 2,012,426 | | 1,971,208 | | 1,902,508 | | 1,936,521 | | 1,879,280 | | | | | | | | | | | | |
Ceded premiums earned | (723,658) | | (703,917) | | (691,569) | | (710,077) | | (727,560) | | (694,156) | | (644,262) | | (698,761) | | (667,853) | | | | | | | | | | | | |
Net premiums earned | 1,322,564 | | 1,265,745 | | 1,230,199 | | 1,340,162 | | 1,284,866 | | 1,277,052 | | 1,258,246 | | 1,237,760 | | 1,211,427 | | | | | | | | | | | | |
Other insurance related income | 10,344 | | 5,524 | | 577 | | 3,076 | | 1,092 | | 2,213 | | 6,693 | | 7,033 | | 7,665 | | | | | | | | | | | | |
Total underwriting revenues | 1,332,908 | | 1,271,269 | | 1,230,776 | | 1,343,238 | | 1,285,958 | | 1,279,265 | | 1,264,939 | | 1,244,793 | | 1,219,092 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | 783,940 | | 736,257 | | 720,642 | | 798,214 | | 941,911 | | 769,587 | | 732,699 | | 716,225 | | 911,369 | | | | | | | | | | | | |
Acquisition costs | 263,389 | | 253,265 | | 230,373 | | 275,573 | | 240,511 | | 257,582 | | 248,352 | | 252,180 | | 231,712 | | | | | | | | | | | | |
Underwriting-related general and administrative expenses | 138,601 | | 133,255 | | 140,395 | | 137,220 | | 132,570 | | 135,403 | | 145,096 | | 140,379 | | 134,826 | | | | | | | | | | | | |
Total underwriting expenses | 1,185,930 | | 1,122,777 | | 1,091,410 | | 1,211,007 | | 1,314,992 | | 1,162,572 | | 1,126,147 | | 1,108,784 | | 1,277,907 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | $ | 146,978 | | $ | 148,492 | | $ | 139,366 | | $ | 132,231 | | $ | (29,034) | | $ | 116,693 | | $ | 138,792 | | $ | 136,009 | | $ | (58,815) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 41,663 | | $ | 32,228 | | $ | 37,723 | | $ | 63,610 | | $ | 211,969 | | $ | 67,119 | | $ | 60,076 | | $ | 54,209 | | $ | 249,830 | | | | | | | | | | | | |
Net favorable prior year reserve development | $ | 2,762 | | $ | 6,319 | | $ | 4,038 | | $ | 7,901 | | $ | 4,735 | | $ | 3,940 | | $ | 8,956 | | $ | 9,270 | | $ | 11,012 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.3 | % | 56.1 | % | 55.8 | % | 55.5 | % | 57.1 | % | 55.3 | % | 54.2 | % | 54.3 | % | 55.4 | % | | | | | | | | | | | |
Catastrophe and weather-related losses ratio | 3.2 | % | 2.6 | % | 3.1 | % | 4.7 | % | 16.6 | % | 5.3 | % | 4.7 | % | 4.3 | % | 20.7 | % | | | | | | | | | | | |
Current accident year loss ratio | 59.5 | % | 58.7 | % | 58.9 | % | 60.2 | % | 73.7 | % | 60.6 | % | 58.9 | % | 58.6 | % | 76.1 | % | | | | | | | | | | | |
Prior year reserve development ratio | (0.2 | %) | (0.5 | %) | (0.3 | %) | (0.6 | %) | (0.4 | %) | (0.3 | %) | (0.7 | %) | (0.7 | %) | (0.9 | %) | | | | | | | | | | | |
Net losses and loss expenses ratio | 59.3 | % | 58.2 | % | 58.6 | % | 59.6 | % | 73.3 | % | 60.3 | % | 58.2 | % | 57.9 | % | 75.2 | % | | | | | | | | | | | |
Acquisition cost ratio | 19.9 | % | 20.0 | % | 18.7 | % | 20.6 | % | 18.7 | % | 20.2 | % | 19.7 | % | 20.4 | % | 19.1 | % | | | | | | | | | | | |
General and administrative expense ratio [a] | 13.5 | % | 13.3 | % | 13.6 | % | 13.9 | % | 12.3 | % | 12.9 | % | 13.5 | % | 14.8 | % | 13.1 | % | | | | | | | | | | | |
Combined ratio | 92.7 | % | 91.5 | % | 90.9 | % | 94.1 | % | 104.3 | % | 93.4 | % | 91.4 | % | 93.1 | % | 107.4 | % | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
AXIS CAPITAL HOLDINGS LIMITED
Group Consolidated Data - Excluding Reinsurance Catastrophe and Property | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Quarter-to-date | |
| | | | | | | | | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | | | |
UNDERWRITING REVENUES | | | | | | | | | | | | | | | | | | | | |
Gross written premiums | | | | | | | | | $ | 1,894,193 | | $ | 2,269,662 | | $ | 2,356,070 | | $ | 1,752,976 | | $ | 1,684,408 | | $ | 2,031,020 | | $ | 2,419,889 | | $ | 1,538,830 | | $ | 1,519,509 | | | | |
Ceded premiums written | | | | | | | | | (927,905) | | (834,761) | | (768,490) | | (662,668) | | (635,599) | | (769,744) | | (738,761) | | (609,769) | | (550,399) | | | | |
Net premiums written | | | | | | | | | 966,288 | | 1,434,901 | | 1,587,580 | | 1,090,307 | | 1,048,809 | | 1,261,275 | | 1,681,128 | | 929,060 | | 969,109 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Gross premiums earned | | | | | | | | | 2,024,885 | | 1,943,717 | | 1,878,964 | | 1,965,494 | | 1,912,066 | | 1,846,705 | | 1,766,236 | | 1,752,285 | | 1,681,017 | | | | |
Ceded premiums earned | | | | | | | | | (721,263) | | (695,624) | | (680,734) | | (681,190) | | (687,233) | | (650,460) | | (603,004) | | (609,372) | | (584,502) | | | | |
Net premiums earned | | | | | | | | | 1,303,622 | | 1,248,093 | | 1,198,230 | | 1,284,303 | | 1,224,833 | | 1,196,245 | | 1,163,231 | | 1,142,914 | | 1,096,515 | | | | |
Other insurance related income | | | | | | | | | 9,812 | | 5,772 | | 486 | | 3,063 | | 965 | | 2,177 | | 6,650 | | 8,452 | | 6,122 | | | | |
Total underwriting revenues | | | | | | | | | 1,313,434 | | 1,253,865 | | 1,198,716 | | 1,287,366 | | 1,225,798 | | 1,198,422 | | 1,169,881 | | 1,151,366 | | 1,102,637 | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | | | | | | | | | |
Net losses and loss expenses | | | | | | | | | 777,567 | | 734,239 | | 734,634 | | 778,117 | | 837,581 | | 706,039 | | 716,718 | | 653,140 | | 729,826 | | | | |
Acquisition costs | | | | | | | | | 259,431 | | 248,640 | | 223,236 | | 263,972 | | 230,164 | | 243,373 | | 232,662 | | 234,433 | | 212,488 | | | | |
Underwriting-related general and administrative expenses [a] | | | | | | | | | 137,826 | | 132,180 | | 138,829 | | 135,091 | | 129,975 | | 132,553 | | 139,357 | | 139,259 | | 132,168 | | | | |
Total underwriting expenses | | | | | | | | | 1,174,824 | | 1,115,059 | | 1,096,699 | | 1,177,181 | | 1,197,720 | | 1,081,965 | | 1,088,736 | | 1,026,832 | | 1,074,482 | | | | |
| | | | | | | | | | | | | | | | | | | | |
UNDERWRITING INCOME | | | | | | | | | $ | 138,610 | | $ | 138,806 | | $ | 102,018 | | $ | 110,186 | | $ | 28,078 | | $ | 116,457 | | $ | 81,145 | | $ | 124,534 | | $ | 28,155 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | | | | | | | | | $ | 38,129 | | $ | 26,867 | | $ | 25,471 | | $ | 54,680 | | $ | 128,812 | | $ | 29,099 | | $ | 47,077 | | $ | 24,600 | | $ | 110,116 | | | | |
Net favorable (adverse) prior year reserve development | | | | | | | | | $ | (2,096) | | $ | (3,433) | | $ | (33,904) | | $ | (2,772) | | $ | (2,958) | | $ | 2,580 | | $ | (13,337) | | $ | 9,422 | | $ | 5,075 | | | | |
| | | | | | | | | | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | | | | | | | | | 56.6 | % | 56.4 | % | 56.4 | % | 56.1 | % | 57.8 | % | 56.8 | % | 56.4 | % | 55.9 | % | 57.2 | % | | | |
Catastrophe and weather-related losses ratio | | | | | | | | | 2.9 | % | 2.2 | % | 2.1 | % | 4.3 | % | 10.3 | % | 2.4 | % | 4.0 | % | 2.1 | % | 9.8 | % | | | |
Current accident year loss ratio | | | | | | | | | 59.5 | % | 58.6 | % | 58.5 | % | 60.4 | % | 68.1 | % | 59.2 | % | 60.5 | % | 58.0 | % | 67.0 | % | | | |
Prior year reserve development ratio | | | | | | | | | 0.1 | % | 0.2 | % | 2.8 | % | 0.2 | % | 0.2 | % | (0.2 | %) | 1.1 | % | (0.8 | %) | (0.5 | %) | | | |
Net losses and loss expenses ratio | | | | | | | | | 59.6 | % | 58.8 | % | 61.3 | % | 60.6 | % | 68.4 | % | 59.0 | % | 61.6 | % | 57.1 | % | 66.6 | % | | | |
Acquisition cost ratio | | | | | | | | | 19.9 | % | 19.9 | % | 18.6 | % | 20.6 | % | 18.8 | % | 20.3 | % | 20.0 | % | 20.5 | % | 19.4 | % | | | |
General and administrative expense ratio [b] | | | | | | | | | 13.7 | % | 13.4 | % | 13.8 | % | 14.4 | % | 12.7 | % | 13.6 | % | 14.0 | % | 16.0 | % | 14.2 | % | | | |
Combined ratio | | | | | | | | | 93.2 | % | 92.1 | % | 93.7 | % | 95.6 | % | 99.9 | % | 93.0 | % | 95.7 | % | 93.7 | % | 100.1 | % | | | |
| | | | | | | | | | | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
[b] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
AXIS CAPITAL HOLDINGS LIMITED
Group Consolidated Data - Excluding Reinsurance Catastrophe and Property | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Group Total [a] | | Reinsurance Catastrophe and Property [b] | | Group Total excluding Reinsurance Catastrophe and Property [b] |
| Year-to-date | | Year-to-date | | Year-to-date |
| Q3 2023 | Q3 2022 | Q3 2021 | | Q3 2023 | Q3 2022 | Q3 2021 | | Q3 2023 | Q3 2022 | Q3 2021 |
UNDERWRITING REVENUES | | | | | | | | | | | |
Gross written premiums | $ | 6,572,232 | | $ | 6,455,899 | | $ | 6,123,156 | | | $ | 52,307 | | $ | 320,582 | | $ | 681,805 | | | $ | 6,519,925 | | $ | 6,135,317 | | $ | 5,441,351 | |
Ceded premiums written | (2,542,162) | | (2,289,397) | | (2,143,941) | | | (11,006) | | (145,292) | | (289,415) | | | (2,531,156) | | (2,144,105) | | (1,854,526) | |
Net premiums written | 4,030,070 | | 4,166,502 | | 3,979,215 | | | 41,301 | | 175,290 | | 392,390 | | | 3,988,769 | | 3,991,212 | | 3,586,825 | |
| | | | | | | | | | | |
Gross premiums earned | 5,937,651 | | 5,886,143 | | 5,345,188 | | | 90,085 | | 361,136 | | 588,169 | | | 5,847,566 | | 5,525,007 | | 4,757,019 | |
Ceded premiums earned | (2,119,143) | | (2,065,980) | | (1,873,098) | | | (21,523) | | (125,282) | | (213,148) | | | (2,097,620) | | (1,940,698) | | (1,659,950) | |
Net premiums earned | 3,818,508 | | 3,820,163 | | 3,472,090 | | | 68,562 | | 235,854 | | 375,021 | | | 3,749,946 | | 3,584,309 | | 3,097,069 | |
Other insurance related income | 16,444 | | 9,998 | | 16,262 | | | 375 | | 206 | | 1,231 | | | 16,069 | | 9,792 | | 15,031 | |
Total underwriting revenues | 3,834,952 | | 3,830,161 | | 3,488,352 | | | 68,937 | | 236,059 | | 376,252 | | | 3,766,015 | | 3,594,102 | | 3,112,100 | |
| | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | |
Net losses and loss expenses | 2,240,840 | | 2,444,196 | | 2,292,559 | | | (5,600) | | 183,859 | | 348,411 | | | 2,246,440 | | 2,260,337 | | 1,944,148 | |
Acquisition costs | 747,027 | | 746,443 | | 669,654 | | | 15,720 | | 40,245 | | 64,144 | | | 731,307 | | 706,198 | | 605,510 | |
Underwriting-related general and administrative expenses | 412,251 | | 413,069 | | 396,455 | | | 3,416 | | 11,184 | | 11,553 | | | 408,835 | | 401,885 | | 384,902 | |
Total underwriting expenses | 3,400,118 | | 3,603,708 | | 3,358,668 | | | 13,536 | | 235,288 | | 424,107 | | | 3,386,582 | | 3,368,420 | | 2,934,561 | |
| | | | | | | | | | | |
UNDERWRITING INCOME [LOSS] | $ | 434,834 | | $ | 226,453 | | $ | 129,684 | | | $ | 55,401 | | $ | 772 | | $ | (47,855) | | | $ | 379,433 | | $ | 225,681 | | $ | 177,539 | |
| | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 111,839 | | $ | 339,164 | | $ | 388,642 | | | $ | 21,146 | | $ | 134,206 | | $ | 230,326 | | | $ | 90,693 | | $ | 204,958 | | $ | 158,316 | |
Net favorable (adverse) prior year reserve development | $ | 13,118 | | $ | 17,632 | | $ | 23,138 | | | $ | 52,550 | | $ | 31,346 | | $ | 17,765 | | | $ | (39,432) | | $ | (13,714) | | $ | 5,373 | |
| | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 56.1 | % | 55.5 | % | 55.4 | % | | 37.6 | % | 31.7 | % | 33.8 | % | | 56.4 | % | 57.0 | % | 57.9 | % |
Catastrophe and weather-related losses ratio | 2.9 | % | 8.9 | % | 11.3 | % | | 30.8 | % | 59.6 | % | 63.9 | % | | 2.4 | % | 5.7 | % | 5.0 | % |
Current accident year loss ratio | 59.0 | % | 64.4 | % | 66.7 | % | | 68.4 | % | 91.2 | % | 97.6 | % | | 58.8 | % | 62.7 | % | 62.9 | % |
Prior year reserve development ratio | (0.3 | %) | (0.4 | %) | (0.7 | %) | | (76.6 | %) | (13.3 | %) | (4.7 | %) | | 1.1 | % | 0.4 | % | (0.2 | %) |
Net losses and loss expenses ratio | 58.7 | % | 64.0 | % | 66.0 | % | | (8.2 | %) | 78.0 | % | 92.9 | % | | 59.9 | % | 63.1 | % | 62.8 | % |
Acquisition cost ratio | 19.6 | % | 19.5 | % | 19.3 | % | | 22.9 | % | 17.1 | % | 17.1 | % | | 19.5 | % | 19.7 | % | 19.6 | % |
Underwriting-related general and administrative expense ratio | 13.4 | % | 12.9 | % | 13.8 | % | | 5.0 | % | 4.7 | % | 3.1 | % | | 13.6 | % | 13.4 | % | 15.1 | % |
Combined ratio | 91.7 | % | 96.4 | % | 99.1 | % | | 19.7 | % | 99.8 | % | 113.1 | % | | 93.0 | % | 96.2 | % | 97.4 | % |
| | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[b] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
AXIS CAPITAL HOLDINGS LIMITED
Reinsurance Segment Data - Reinsurance Total, Catastrophe and Property, and Specialty Reinsurance - Prior Years
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Reinsurance | | Reinsurance Catastrophe and Property [a] | | Specialty Reinsurance [a] |
| Year-to-date | | Year-to-date | | Year-to-date |
| Q4 2022 | Q4 2021 | Q4 2020 | | Q4 2022 | Q4 2021 | Q4 2020 | | Q4 2022 | Q4 2021 | Q4 2020 |
UNDERWRITING REVENUES | | | | | | | | | | | |
Gross written premiums | $ | 2,629,014 | | $ | 2,822,752 | | $ | 2,808,539 | | | $ | 326,303 | | $ | 705,804 | | $ | 796,988 | | | $ | 2,302,712 | | $ | 2,116,948 | | $ | 2,011,550 | |
Ceded premiums written | (743,864) | | (791,013) | | (829,631) | | | (144,766) | | (295,065) | | (353,459) | | | (599,098) | | (495,947) | | (476,173) | |
Net premiums written | 1,885,150 | | 2,031,739 | | 1,978,908 | | | 181,537 | | 410,738 | | 443,530 | | | 1,703,614 | | 1,621,001 | | 1,535,378 | |
| | | | | | | | | | | |
Gross premiums earned | 2,717,079 | | 2,836,674 | | 2,929,006 | | | 445,881 | | 772,405 | | 865,770 | | | 2,271,198 | | 2,064,269 | | 2,063,237 | |
Ceded premiums earned | (690,908) | | (778,163) | | (856,735) | | | (154,168) | | (302,537) | | (364,513) | | | (536,739) | | (475,625) | | (492,224) | |
Net premiums earned | 2,026,171 | | 2,058,511 | | 2,072,271 | | | 291,713 | | 469,868 | | 501,258 | | | 1,734,459 | | 1,588,644 | | 1,571,013 | |
Other insurance related income (loss) | 12,514 | | 21,633 | | (10,736) | | | 218 | | (188) | | (1,877) | | | 12,296 | | 21,821 | | (8,859) | |
Total underwriting revenues | 2,038,685 | | 2,080,144 | | 2,061,535 | | | 291,931 | | 469,679 | | 499,381 | | | 1,746,754 | | 1,610,465 | | 1,562,154 | |
| | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | |
Net losses and loss expenses | 1,456,556 | | 1,493,785 | | 1,584,238 | | | 203,955 | | 411,495 | | 482,598 | | | 1,252,601 | | 1,082,290 | | 1,101,641 | |
Acquisition costs | 444,179 | | 437,490 | | 467,984 | | | 51,846 | | 81,891 | | 99,954 | | | 392,333 | | 355,599 | | 368,029 | |
Underwriting-related general and administrative expenses | 106,585 | | 107,552 | | 99,129 | | | 13,312 | | 12,672 | | 7,057 | | | 93,272 | | 94,880 | | 92,072 | |
Total underwriting expenses | 2,007,320 | | 2,038,827 | | 2,151,351 | | | 269,113 | | 506,059 | | 589,609 | | | 1,738,207 | | 1,532,768 | | 1,561,742 | |
| | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | $ | 31,365 | | $ | 41,317 | | $ | (89,816) | | | $ | 22,818 | | $ | (36,379) | | $ | (90,229) | | | $ | 8,548 | | $ | 77,697 | | $ | 412 | |
| | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 196,068 | | $ | 268,300 | | $ | 330,479 | | | $ | 143,120 | | $ | 259,936 | | $ | 297,304 | | | $ | 52,949 | | $ | 8,364 | | $ | 33,175 | |
Net favorable (adverse) prior year reserve development | $ | 9,183 | | $ | 14,050 | | $ | 6,972 | | | $ | 42,019 | | $ | 17,614 | | $ | 3,272 | | | $ | (32,837) | | $ | (3,565) | | $ | 3,700 | |
| | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 62.6 | % | 59.9 | % | 60.6 | % | | 34.2 | % | 33.8 | % | 36.2 | % | | 67.3 | % | 67.4 | % | 68.2 | % |
Catastrophe and weather-related losses ratio | 9.7 | % | 13.3 | % | 16.2 | % | | 50.2 | % | 57.5 | % | 60.8 | % | | 3.1 | % | 0.5 | % | 2.1 | % |
Current accident year loss ratio | 72.3 | % | 73.2 | % | 76.8 | % | | 84.3 | % | 91.3 | % | 96.9 | % | | 70.3 | % | 67.9 | % | 70.4 | % |
Prior year reserve development ratio | (0.4 | %) | (0.6 | %) | (0.4 | %) | | (14.4 | %) | (3.7 | %) | (0.7 | %) | | 1.9 | % | 0.2 | % | (0.2 | %) |
Net losses and loss expenses ratio | 71.9 | % | 72.6 | % | 76.4 | % | | 69.9 | % | 87.6 | % | 96.3 | % | | 72.2 | % | 68.1 | % | 70.1 | % |
Acquisition cost ratio | 21.9 | % | 21.3 | % | 22.6 | % | | 17.8 | % | 17.4 | % | 19.9 | % | | 22.6 | % | 22.4 | % | 23.4 | % |
Underwriting-related general and administrative expense ratio | 5.3 | % | 5.1 | % | 4.8 | % | | 4.6 | % | 2.7 | % | 1.4 | % | | 5.4 | % | 6.0 | % | 5.9 | % |
Combined ratio | 99.1 | % | 99.0 | % | 103.8 | % | | 92.3 | % | 107.7 | % | 117.6 | % | | 100.2 | % | 96.5 | % | 99.4 | % |
| | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
AXIS CAPITAL HOLDINGS LIMITED
Group Consolidated Data - Excluding Reinsurance Catastrophe and Property - Prior Years
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Group Total [a] | | Reinsurance Catastrophe and Property [b] | | Group Total excluding Reinsurance Catastrophe and Property [b] | |
| Year-to-date | | Year-to-date | | Year-to-date | |
| Q4 2022 | Q4 2021 | Q4 2020 | | Q4 2022 | Q4 2021 | Q4 2020 | | Q4 2022 | Q4 2021 | Q4 2020 | |
UNDERWRITING REVENUES | | | | | | | | | | | | |
Gross written premiums | $ | 8,214,595 | | $ | 7,685,984 | | $ | 6,826,938 | | | $ | 326,303 | | $ | 705,804 | | $ | 796,988 | | | $ | 7,888,292 | | $ | 6,980,181 | | $ | 6,029,950 | | |
Ceded premiums written | (2,951,539) | | (2,759,360) | | (2,490,529) | | | (144,766) | | (295,065) | | (353,459) | | | (2,806,773) | | (2,464,295) | | (2,137,070) | | |
Net premiums written | 5,263,056 | | 4,926,624 | | 4,336,409 | | | 181,537 | | 410,738 | | 443,530 | | | 5,081,519 | | 4,515,886 | | 3,892,880 | | |
| | | | | | | | | | | | |
Gross premiums earned | 7,936,382 | | 7,281,709 | | 6,768,733 | | | 445,881 | | 772,405 | | 865,770 | | | 7,490,501 | | 6,509,304 | | 5,902,963 | | |
Ceded premiums earned | (2,776,056) | | (2,571,859) | | (2,397,424) | | | (154,168) | | (302,537) | | (364,513) | | | (2,621,888) | | (2,269,321) | | (2,032,912) | | |
Net premiums earned | 5,160,326 | | 4,709,850 | | 4,371,309 | | | 291,713 | | 469,868 | | 501,258 | | | 4,868,613 | | 4,239,983 | | 3,870,051 | | |
Other insurance related income (loss) | 13,073 | | 23,295 | | (8,089) | | | 218 | | (188) | | (1,877) | | | 12,855 | | 23,484 | | (6,213) | | |
Total underwriting revenues | 5,173,399 | | 4,733,145 | | 4,363,220 | | | 291,931 | | 469,679 | | 499,381 | | | 4,881,468 | | 4,263,466 | | 3,863,839 | | |
| | | | | | | | | | | | |
UNDERWRITING EXPENSES | | | | | | | | | | | | |
Net losses and loss expenses | 3,242,410 | | 3,008,783 | | 3,281,252 | | | 203,955 | | 411,495 | | 482,598 | | | 3,038,455 | | 2,597,288 | | 2,798,654 | | |
Acquisition costs | 1,022,017 | | 921,834 | | 929,517 | | | 51,846 | | 81,891 | | 99,954 | | | 970,171 | | 839,943 | | 829,563 | | |
Underwriting-related general and administrative expenses | 550,289 | | 536,834 | | 477,968 | | | 13,312 | | 12,672 | | 7,057 | | | 536,977 | | 524,162 | | 470,910 | | |
Total underwriting expenses | 4,814,716 | | 4,467,451 | | 4,688,737 | | | 269,113 | | 506,059 | | 589,609 | | | 4,545,602 | | 3,961,392 | | 4,099,127 | | |
| | | | | | | | | | | | |
UNDERWRITING INCOME (LOSS) | $ | 358,683 | | $ | 265,694 | | $ | (325,517) | | | $ | 22,818 | | $ | (36,379) | | $ | (90,229) | | | $ | 335,866 | | $ | 302,074 | | $ | (235,288) | | |
| | | | | | | | | | | | |
Catastrophe and weather-related losses, net of reinstatement premiums | $ | 402,803 | | $ | 442,859 | | $ | 773,919 | | | $ | 143,120 | | $ | 259,936 | | $ | 297,304 | | | $ | 259,683 | | $ | 182,923 | | $ | 476,615 | | |
Net favorable (adverse) prior year reserve development | $ | 25,533 | | $ | 32,410 | | $ | 15,909 | | | $ | 42,019 | | $ | 17,614 | | $ | 3,272 | | | $ | (16,487) | | $ | 14,795 | | $ | 12,638 | | |
| | | | | | | | | | | | |
KEY RATIOS | | | | | | | | | | | | |
Current accident year loss ratio, excluding catastrophe and weather-related losses | 55.5 | % | 55.1 | % | 57.7 | % | | 34.2 | % | 33.8 | % | 36.2 | % | | 56.8 | % | 57.4 | % | 60.5 | % | |
Catastrophe and weather-related losses ratio | 7.8 | % | 9.5 | % | 17.7 | % | | 50.2 | % | 57.5 | % | 60.8 | % | | 5.3 | % | 4.2 | % | 12.2 | % | |
Current accident year loss ratio | 63.3 | % | 64.6 | % | 75.4 | % | | 84.3 | % | 91.3 | % | 96.9 | % | | 62.1 | % | 61.6 | % | 72.6 | % | |
Prior year reserve development ratio | (0.5 | %) | (0.7 | %) | (0.3 | %) | | (14.4 | %) | (3.7 | %) | (0.7 | %) | | 0.3 | % | (0.3 | %) | (0.3 | %) | |
Net losses and loss expenses ratio | 62.8 | % | 63.9 | % | 75.1 | % | | 69.9 | % | 87.6 | % | 96.3 | % | | 62.4 | % | 61.3 | % | 72.3 | % | |
Acquisition cost ratio | 19.8 | % | 19.6 | % | 21.3 | % | | 17.8 | % | 17.4 | % | 19.9 | % | | 19.9 | % | 19.8 | % | 21.4 | % | |
Underwriting-related general and administrative expense ratio | 13.2 | % | 14.0 | % | 13.2 | % | | 4.6 | % | 2.7 | % | 1.4 | % | | 13.7 | % | 15.3 | % | 14.8 | % | |
Combined ratio | 95.8 | % | 97.5 | % | 109.6 | % | | 92.3 | % | 107.7 | % | 117.6 | % | | 96.0 | % | 96.4 | % | 108.6 | % | |
| | | | | | | | | | | | |
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[b] Underwriting-related general and administrative expenses reflect the expected allocation of corporate costs necessary to support ongoing Specialty Reinsurance operations.
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