AXIS CAPITAL HOLDINGS LTD
For the period ended Dec 31, 2024. Filed Feb 26, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 26, 2025
AXS$105.97-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-02-27.
0001214816-24-000024
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-26.
0001214816-25-000056
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 494 previous paragraphs and 526 current paragraphs.
289 unchanged; 148 reworded; 84 added; 56 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 38 previous and 38 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (84)
Current report
•Operating income(1) of $952 million, or $11.18 per diluted common share(1)
Current report
•Gross premiums written of$9.0 billion
Current report
•Net premiums written of$5.8 billion
Current report
•Net premiums earned of$5.3 billion
Current report
•Pre-tax catastrophe and weather-related losses, net of reinsurance, of $226 million ($182 million, after-tax), (Insurance: $216 million; Reinsurance: $10 million), or 4.3 points including $111 million or 2.1 points attributable to Hurricanes Milton, Helene and Beryl, together with $13 million, or 0.3 points attributable to the Red Sea Conflict.
Current report
•Net favorable prior year reserve development of $24 million
Current report
•Net investment income of $759 million
Current report
•Net investment losses of $139 million
Current report
•Reorganization expenses of $26 million
Current report
•Income tax benefit of $56 million, inclusive of a net deferred tax benefit of $177 million attributable to Bermuda's Corporate Income Tax Act 2023. Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments – Bermuda Corporate Income Tax Act 2023 for further details.
Current report
•Total assets of $32.5 billion
Current report
We are executing on our commitment to advance AXIS as a specialty underwriting leader that delivers consistent, profitable growth. Our market positioning, diversified book of business, specialty underwriting acumen, global platform, claims management capabilities, and deep distribution relationships, supported by a conservative and well performing investment portfolio, provide the foundation for additional profitable growth in select specialty markets.
Current report
The overall outlook for the property and casualty market continues to be largely favorable for specialty insurance and reinsurance carriers. Looking at the trends impacting our business:
Current report
•Following multiple years of rate increases outpacing loss cost trends across the specialty sector, pricing is now more moderate, with the exception of casualty lines, due to the emergence of new capital in areas where the market has performed particularly well. We will continue to lean into sectors, and sub sectors, where premium adequacy metrics remain strong and where we see market dislocations creating opportunity for profitable growth.
Current report
•The wholesale channel continues to experience submission growth due to continued dislocations in the standard lines markets. This dynamic enables specialty carriers to target growth opportunities with a disciplined underwriting appetite and strategy.
Current report
Share Repurchase program
Current report
On February 6, 2025, authorization under the Company's share repurchase program approved in May 2024 (refer to Item 8, Note 15 to the Consolidated Financial Statements'Shareholders' Equity')was exhausted.
Current report
On February 19, 2025, the Company's Board of Directors approved a new share repurchase program for up to $400 million of the Company's common shares. The new share repurchase program is open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions.
Current report
Loss Portfolio Transfer Reinsurance Agreement with Enstar
Current report
On December 13, 2024, we entered into a loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years (refer to Item 8, Note 18 to the Consolidated Financial Statements 'Related Party Transactions' for further details). The transaction is subject to regulatory approvals and other customary conditions and is expected to close during the first half of 2025.
Current report
The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $3.1 billion at September 30, 2024 and provides cover up to a policy limit of approximately $940 million. The transaction is deemed to have met the established criteria for retroactive reinsurance accounting (refer to Item 8, Note 9 to the Consolidated Financial Statements'Reinsurance'for further details).
Current report
Under the terms of the loss portfolio transfer reinsurance agreement, we will retain responsibility for the management of claims.
Current report
Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the loss portfolio transfer reinsurance agreement will protect us from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreements.
Current report
AXIS Syndicate 2050
Current report
On April 1, 2024, AXIS Energy Transition Syndicate 2050 ("Syndicate 2050") which is dedicated to providing capacity for new energy projects with a critical role in supporting the transition to net zero, commenced underwriting. AXIS Corporate Capital UK II Limited is the sole corporate member of Syndicate 2050. AXIS Managing Agency operates as managing agent for Syndicate 2050.
Current report
Reorganization expenses of$26 million incurred in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure.
Current report
On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which will apply a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment ("Bermuda ETA"), which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, we recorded a net deferred tax asset of $177 million during the year ended December 31, 2024. Initially, we expected to utilize mainly over a ten-year period. We expect to incur increased taxes in Bermuda beginning in 2025. The Bermuda net deferred tax benefit is excluded from operating income (loss).
Current report
Organization for Economic Cooperation and Development ("OECD") Update
Current report
On January 15, 2025, the OECD issued guidelines that limit the use of the Bermuda ETA and similar assets in other jurisdictions in which we operate under GLoBE rules. The guidelines clarify the use of deferred tax assets under transition rules and limits the benefit of deferred tax assets relating to transactions that occurred after November 30, 2021. The guidelines seek to restrict the benefit of the Bermuda ETA to 20% of the balance at January 1, 2025 to be utilized in 2025 and 2026, thereafter GLoBE rules will ensure the balance of the asset is subject to the global minimum tax of 15%.
Current report
(1)Current accident year loss ratio, catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measure, net losses and loss expenses ratio is provided above and a discussion of the rationale for the presentation of these items are provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.
Current report
Gross premiums written in 2024 increased by $475 million, or 8% ($457 million, or 7%, on a constant currency basis(1)), compared to 2023. The increase was primarily attributable to property, accident and health, credit and political risk, marine and aviation, and professional lines, partially offset by decreases in cyber and liability lines.
Current report
The increase in property lines was due to new business, a higher level of premiumsand increased rate associated with renewed business and increased lines sizes on several programs.
Current report
The increase in accident and health lineswas primarily driven by new pet insurance business, a higher level of premiums andincreased rate associated with renewed pet insurance business and premium adjustments related to several contracts at Lloyds, partially offset by non-renewals.
Current report
The increase in credit and political risk lines was attributable to new surety program business and new credit business at Lloyds, partially offset by non-renewals associated with the exit from Singapore in January 2024 and non-renewals of political risk business at Lloyds.
Current report
The increase in marine and aviation lines was related to new marine liability business, premium adjustments principally associated with marine war business written on a line slip basis, new business and the timing of renewals of marine offshore energy business and favorable rate changes in marine business as well as aviation business, partially offset by fewer business opportunities and the timing of renewals of marine offshore renewable energy business.
Current report
The decrease in cyber lines was due to lower levels of premiums associated with the cancellation of two significant programs, and premium adjustments related to business written on a line slip basis, partially offset by a higher level of premiums associated with renewed business.
Current report
The decrease in liability lines was driven by underwriting actions taken to reposition the U.S. primary casualty portfolio, and a lower level of premiums associated with the cancellation of a significant program, partially offset by favorable rate change and new business associated with U.S. excess casualty business.
Current report
The increase in accident and health lines was driven by a new quota share treaty and reflected the increase in gross premiums written for 2024, compared to 2023.
Current report
The increase in credit and political risk lines reflected the increase in gross premiums written for 2024, compared to 2023.
Current report
The increase in marine and aviation lines was attributable to reinstatement premiums associated with losses and loss expenses in 2024.
Showing the first 40 of 84 passages. Open the source sections for the rest.
Removed paragraphs (56)
Previous report
•Operating income(1) of $486 million, or $5.65 per diluted common share(1)
Previous report
•Gross premiums written of$8.4 billion
Previous report
•Net premiums written of$5.1 billion
Previous report
•Net premiums earned of$5.1 billion
Previous report
•Pre-tax catastrophe and weather-related losses, net of reinsurance, of $138 million ($116 million, after-tax), (Insurance: $111 million; Reinsurance: $27 million), or 2.7 points primarily attributable to Cyclone Gabrielle and other weather-related events.
Previous report
•Net adverse prior year reserve development of $412 million
Previous report
•Net investment income of $612 million
Previous report
•Foreign exchange losses of $58 million
Previous report
•Total assets of $30.3 billion
Previous report
We are committed to leadership in specialty insurance and reinsurance. We believe our market positioning, specialty underwriting acumen, global platform, claims management capabilities and deep relationships with our distributors and clients, supported by a conservative and well performing investment portfolio, will provide opportunities for increased profitability, with differences among our lines of business driven by our tactical response to market conditions.
Previous report
We anticipate overall rate movement to remain positive, in excess of loss cost trends, in the traditional property and casualty insurance classes but to continue to be challenged across the professional lines sector. Following multiple years of rate increases outpacing loss cost trends, pricing across most lines remains above loss cost trends as we continue to pursue selective profitable growth areas.
Previous report
Market dislocations in the admitted market continue to drive additional risk types into the Wholesale channel. We anticipate this continuing throughout 2024 with strong market opportunities arising predominantly in the Specialty and E&S lines. We continue to pursue targeted growth opportunities by employing a disciplined underwriting appetite and strategy.
Previous report
Retrocession Agreement with Monarch Point Re
Previous report
On September 22, 2023 (the "closing date"), we entered into an agreement, with an effective date of January 1, 2023, to retrocede a diversified portfolio of casualty reinsurance business to Monarch Point Re. The agreement covers losses both on a prospective basis and on a retroactive basis. Therefore, we have bifurcated the prospective and retroactive elements of the agreement and are accounting for each element separately. Refer to Item 8, Note 8 to the Consolidated Financial Statements'Reserve for Losses and Loss Expenses' and Note 18 to the Consolidated Financial Statements 'Related Party Transactions'for further details.
Previous report
Loan to Monarch Point Re
Previous report
During 2023, we advanced an amount of $297 million to Monarch Point Re. This loan will be repaid in a manner consistent with the timing of amounts due to Monarch Point Re under the retrocession agreement. At December 31, 2023, the Company had committed to advance a further $16 million to Monarch Point Re.
Previous report
Reorganization expenses of $29 million include impairments of computer software assets and severance costs mainly attributable to our "How We Work" program which is focused on simplifying our operating structure.
Previous report
The Bermuda Minister of Finance, under the Exempted Undertakings Tax Protection Act 1966 of Bermuda, as amended, has given each of our Bermuda resident companies an assurance that if any legislation is enacted in Bermuda that would impose tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax will not be applicable to our Bermuda resident companies or any of their respective operations, shares, debentures or other obligations until March 31, 2035.
Previous report
Notwithstanding the above, on December 27, 2023, the Bermuda government enacted a corporate income tax which will apply for accounting periods starting on or after January 1, 2025. Importantly, under the Corporate Income Tax Act 2023 of Bermuda, any liability to the tax will apply regardless of any assurances previously provided under the Exempted Undertakings Tax Protection Act 1966 of Bermuda. This tax will likely have a material impact on our effective tax rate.
Previous report
Gross premiums written in 2023 increased by $555 million, or 10%, compared to 2022. The increase was primarily attributable to property, marine and aviation, liability, accident and health, and credit and political risk lines, partially offset by a decrease in professional lines.
Previous report
The increases in property, marine and aviation, liability, and credit and political risk lines were due to favorable rate changes and new business. The increase in accident and health lines was due to new business.
Previous report
Current Accident Year Loss Ratio
Previous report
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 51.8% in 2023 from 51.0% in 2022. The increase in the current accident year loss ratio, after adjusting for the impact of the catastrophe and weather-related losses was principally due to elevated loss experience in property, and marine and aviation lines, and heightened loss trends in liability lines consistent with changes in loss assumptions reflected in recent periods, partially offset by the changes in business mix associated with the increase in property business and the decrease in professional lines business written in recent periods.
Previous report
Refer to Item 8, Note 8 to the Consolidated Financial Statements'Reserve for Losses and Loss Expenses' for details on the lines of business and prior year development.
Previous report
Gross premiums written in 2023 decreased by$413 million, or 16% ($365 million, or 14%, on a constant currency basis), compared to 2022. The decrease was primarily attributable to catastrophe, property, liability, motor, marine and aviation, professional lines, accident and health, and engineering lines, partially offset by an increase in credit and surety lines.
Previous report
The decrease in liability lines was related to non-renewals of U.S. regional multi-line business that included a high proportion of property exposures and a decreased line size on a significant contract following the exit from catastrophe and property lines of business, together with non-renewals and decreased line sizes associated with repositioning the portfolio, partially offset by new business.
Previous report
The decrease in marine and aviation lines was driven by non-renewals of marine business and the exit from aviation business effective January 1, 2023.
Previous report
The decrease in accident and health lines was related to lower premium adjustments in 2023, compared to 2022, together with the timing of renewals of two significant contracts, partially offset by the increased line size of a significant contract.
Previous report
The increase in credit and surety lines was driven by new business, including mortgage business, partially offset by the timing of the renewal of a significant contract and premium adjustments related to several surety contracts.
Previous report
The increases in liability, professional lines, accident and health, credit and surety, and motor lines were primarily attributable to premiums ceded to a quota share retrocession agreement entered into with Monarch Point Re on September 22, 2023 with an effective date of January 1, 2023. Refer to Item 7 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments – Retrocession Agreement with Monarch Point Re'for further information.
Previous report
The increase in liability lines was partially offset by the decrease in gross premiums written in 2023, compared to 2022, the non-renewal of a significant retrocessional treaty with a strategic capital partner and the restructuring of a significant quota share retrocessional treaty.
Previous report
The increase in professional lines was partially offset by the non-renewal of a significant retrocessional treaty with a strategic capital partner.
Previous report
The increase in accident and health lines was also attributable to the restructuring of a significant quota share retrocessional treaty with a strategic capital partner.
Previous report
The increase in credit and surety lines was partially offset by the restructuring of a significant quota share retrocessional treaty and the non-renewal of a fronting arrangement.
Previous report
Current Accident Year Loss Ratio
Previous report
The current accident year loss ratio decreased to 66.4% in 2023 from 72.3% in 2022. The decrease in the current accident year loss ratio was impacted by a lower level of catastrophe and weather-related losses.
Previous report
Comparatively, in 2022, catastrophe and weather-related losses, net of reinstatement premiums, were $196 million, or 9.7 points, including natural catastrophe and weather-related losses of $160 million, or 8.0 points, primarily attributable to Hurricane Ian, June European Convective Storms, Eastern Australia floods, South Africa floods, Winter Storm Elliot, and other weather-related events. The remaining losses included$23 million, or 1.1 points, attributable to the COVID-19 pandemic, and$13 million, or 0.6 points, attributable to the Russia-Ukraine war.
Previous report
Refer to Item 8, Note 8 to the Consolidated Financial Statements'Reserve for Losses and Loss Expenses' for details on the lines of business and prior year development.
Previous report
The acquisition cost ratio decreased to 21.7% in 2023 from 21.9% in 2022, principally related to an increase in ceding commissions from retrocessional agreements due to changes in business mix driven by increases in credit and surety, professional lines, liability, accident and health, and motor business written in recent periods, together with decreases in catastrophe and property business written in recent periods.
Previous report
Some of our business iswritten in currencies other than the U.S. dollar.
Showing the first 40 of 56 passages. Open the source sections for the rest.
Reworded paragraphs (148)
Previous wording
•Net income available to common shareholders of$346 million, or$4.06 per common share, and $4.02 per diluted common share
Current wording
•Net income available to common shareholders of$1.1 billion, or$12.49 per common share, and $12.35 per diluted common share
Previous wording
•Underwriting income(2) of $161 million and combined ratio of 99.9%
Current wording
•Underwriting income(2) of $571 million and combined ratio of 92.3%
Previous wording
•Total cash and investments of $16.7 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 86% of total cash and investments and have an average credit rating of AA-
Current wording
•Total cash and investments of $18.0 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 88% of total cash and investments and have an average credit rating of AA-
Previous wording
•Reserve for losses and loss expenses of $16.4 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $6.9 billion.
Current wording
•Reserve for losses and loss expenses of $17.2 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $7.4 billion.
Previous wording
•Debt of $1.3 billion and a debt to total capital ratio(3) of 20.0%
Current wording
•Debt of $1.3 billion and a debt to total capital ratio(3) of 17.8%
Previous wording
•Common shares repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units were 398,000 common shares for a total of $24 million
Current wording
•Total common shares repurchased were 3.1 million shares for a total of $216 million, including $200 million repurchased pursuant to our Board-authorized share repurchase program, and $16 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units
Previous wording
•Common shareholders’ equity of $4.7 billion; book value per diluted common share of $54.06
Current wording
•Common shareholders’ equity of $5.5 billion; book value per diluted common share of $65.27
Previous wording
We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, corporate citizenship and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global leader in specialty risks. The execution of our business strategy in 2023 included the following:
Current wording
We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, corporate citizenship and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy in 2024 included the following:
Previous wording
•growing in a number of attractive specialty lines insurance and treaty reinsurance markets including U.S. excess and surplus lines, North America professional lines and Lloyd's specialty insurance business;
Current wording
•growing in a number of attractive specialty lines insurance and treaty reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business;
Previous wording
•re-balancing our portfolio towards less volatile lines of business, that carry attractive returns while deploying capital within risk limits, diversification and risk management;
Current wording
•re-balancing our portfolio towards less volatile lines of business, that carry attractive returns while deploying capital within risk limit tolerance, diversification criteria and risk management strategy;
Previous wording
•leveraging our global platform to introduce our products and services to new regions including the expansion of our London specialty lines to North America markets;
Current wording
•leveraging our global platform to introduce our products and services to new regions including the continued expansion of our North America product capabilities;
Previous wording
•improving the effectiveness and efficiency of our operating platforms and processes;
Current wording
•improving the effectiveness and efficiency of our operating platforms and processes through our "How We Work" program;
Previous wording
•investing in data and technology capabilities, and tools to empower our underwriters and enhance the service that we provide to our customers;
Current wording
•investing in data and technology, and exploring AI capabilities and tools, to empower our underwriters and enhance the service that we provide to our customers;
Previous wording
•growing our corporate citizenship program to give back to our communities and help contribute to a more sustainable future.
Current wording
•growing our corporate citizenship program to support our communities and help contribute to a more sustainable future.
Previous wording
Pricing momentum in non-proportional reinsurance continues to be strong while our proportional reinsurance business is benefiting from rate increases in the underlying business. We expect these market conditions to persist in the near term. We continue to focus on underwriting discipline to drive targeted profitable growth among the specialty and casualty reinsurance lines that we offer.
Current wording
•Pricing momentum in non-proportional reinsurance continues while our proportional reinsurance business is benefiting from rate increases in the underlying business. While we expect these market conditions to persist, we are seeing nuances by line of business with motor and marine lines under the most pressure. We continue to focus on underwriting discipline and targeted profitable growth.
Previous wording
We are encouraged by the pricing improvements we are seeing across most markets, which we expect will carry through 2024, and that rate will continue to keep pace with loss cost trends in the majority of our lines. Where prices continue to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strengthened book of business, and a growing footprint in specialty markets that are seeing the most favorable conditions, we believe AXIS is well positioned to drive profitable growth within the current environment.
Current wording
Across the business, we will continue to pursue attractive opportunities by employing a focused underwriting strategy and selective appetite. Where price continues to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strengthened book of business, and an expanding footprint in attractive specialty markets, we believe AXIS remains positioned to drive profitable growth in 2025 and beyond.
Previous wording
(1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliationto general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $133 million, $130 million, and $126 million for 2023, 2022, and 2021, respectively. Refer to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net'' for further details on corporate expenses. Refer also to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
Current wording
(1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliationto general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $130 million, $133 million, and $130 million for 2024, 2023, and 2022, respectively. Refer to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
Previous wording
(1)The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.6%, 2.5% and 2.7% for 2023, 2022 and 2021, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details.
Current wording
(2)The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.4%, 2.6% and 2.5% for 2024, 2023 and 2022, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net'for further details.
Previous wording
Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations– Results by Segment' for further details on underwriting expenses.
Current wording
Refer to'Management's Discussion and Analysis of Financial Condition and Results of Operations– Results by Segment' for further details on underwriting expenses.
Previous wording
The decrease in professional lines reflected the unattractive pricing environment for U.S. public D&O business, together with a lower level of activity in transactional liability business.
Current wording
The increase in professi onal lines was attributable to higher level of activity in transactional liability business, partially offset by a decrease in U.S. public D&O business reflecting weaker pricing in that market.
Previous wording
Ceded premiums written in 2023 were $2,382 million, or 39% of gross premiums written, compared to$2,208 million, or 40% in 2022. The increase in ceded premiums written of $174 million, or 8%was primarily driven by increases in property, liability, and marine and aviation lines, partially offset by a decrease in professional lines.
Current wording
Ceded premiums written in 2024 were $2,365 million, or 36% of gross premiums written, compared to$2,382 million, or 39% in 2023. The decrease in ceded premiums written of $17 million, or 1% was primarily driven by decreases in cyber and professional lines, partially offset by increases in accident and health, property, credit and political risk, marine and aviation and liability lines.
Previous wording
The decrease in professional lines reflected the decrease in gross premiums written for 2023, compared to 2022. The decrease in professional lines was also due to the restructuring of a significant existing quota share treaty.
Current wording
The decreases in cyber, and professional lines were due to the restructuring of significant existing quota share treaties. The decrease in cyber lines also reflected the decrease in gross premiums written for 2024, compared to 2023.
Previous wording
The increases in property, liability, and marine and aviation lines reflected the increase in gross premiums written in 2023, compared to 2022. The increase inproperty lineswas also attributable tothe restructuring of a significant existing quota share treaty.
Current wording
The increase in property lines reflected the increase in gross premiums written for 2024, compared to 2023, partially offset by the restructuring of a significant existing quota share treaty.
Previous wording
Net premiums earned in 2023 increased by $328 million, or 10% ($365 million, or 12%, on a constant currency basis(1)), compared to 2022. The increase was primarily driven by increases in gross premiums earned in property, liability, marine and aviation, accident and health, credit and political risk, and cyber lines, together with a decrease in ceded premiums earned in professional lines. These amounts were partially offset by increases in ceded premiums earned in property, liability, and marine and aviation lines together with a decrease in gross premiums earned in professional lines.
Current wording
Net premiums earned in 2024 increased by $464 million, or 13%, compared to 2023. The increase was primarily driven by increases in gross premiums earned in property, accident and health, marine and aviation, and credit and political risk lines, together with decreases in ceded premiums earned in professional lines and cyber lines. These amounts were partially offset by increases in ceded premiums earned in property, credit and political risk, accident and health, and marine and aviation lines together with decreases in gross premiums earned in professional lines and cyber lines.
Previous wording
The current accident year loss ratio decreased to 55.0% in 2023 from 57.5% in 2022. The decrease in the current accident year loss ratio was impacted by a lower level of catastrophe and weather-related losses.
Current wording
The current accident year loss ratio increased to 57.6% in 2024 from 55.0% in 2023. The increase in the current accident year loss ratio was impacted by a higher level of catastrophe and weather-related losses.
Previous wording
Comparatively, in 2022, catastrophe and weather-related losses, net of reinstatement premiums, were $207 million, or 6.5 points, including natural catastrophe and weather-related losses of $177 million, or 5.6 points, primarily attributable to Hurricane Ian, Winter Storm Elliot, Eastern Australia floods, South Africa floods, and other weather-related events. The remaining losses of $29 million, or 0.9 points, were attributable to the Russia-Ukraine war.
Current wording
During 2024, catastrophe and weather-related losses, net of reinsurance, were $216 million, or 5.5 points, including natural catastrophe and weather-related losses of $203 million, or 5.2 points, primarily attributable to Hurricanes Milton, Helene, and Beryl, and other weather-related events. The remaining losses of $13 million, or 0.3 points were attributable to the Red Sea Conflict.
Previous wording
During 2023, catastrophe and weather-related losses, net of reinsurance, were $111 million, or 3.2 points, primarily attributable to the Israel-Hamas conflict, the Earthquake in Turkey, Maui wildfires, Cyclone Gabrielle, Typhoon Mawar and other weather-related events.
Current wording
Comparatively, in 2023, catastrophe and weather-related losses, net of reinsurance, were $111 million, or 3.2 points, primarily attributable to the conflict in the Middle East, the Earthquake in Turkey, Maui wildfires, Cyclone Gabrielle, Typhoon Mawar and other weather-related events.
Previous wording
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 64.8% in 2023 from 62.6% in 2022, principally due to changes in business mix associated with the exit from catastrophe lines, partially offset by changes in business mix due to the increase in credit and surety business written in the recent periods which are associated with a relatively lower loss ratio.
Current wording
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 52.1% in 2024 from 51.8% in 2023. The increase was principally due to higher loss ratios in liability and cyber lines, partially offset by the change in business mix attributable to the increase in property business written in recent periods which is associated with a relatively lower loss ratio.
Previous wording
The acquisition cost ratio increased to 18.7% in 2023 from 18.4% in 2022, principally related to a decrease in ceding commissions largely associated with changes in business mix driven by an increase in property business which is associated with relatively lower ceding commissions and a decrease in professional lines business written in recent periods which is associated with relatively higher ceding commissions.
Current wording
The acquisition cost ratio increased to 19.5% in 2024 from 18.7% in 2023, primarily related to an increase in profit commission expense driven by improved loss performance mainly in accident and health lines, and a decrease in ceding commissions due to changes in business mix driven by the decrease in professional lines business written in recent periods which is associated with relatively higher ceding commissions and the increase in property business written in recent periods which is associated with relatively lower ceding commissions.
Previous wording
The underwriting-related general and administrative expense ratio decreased to 13.7% in 2023 from 14.2% in 2022, mainly driven by an increase in net premiums earned, partially offset by increases in personnel costs and performance-related compensation costs.
Current wording
The underwriting-related general and administrative expense ratio decreased to 12.4% in 2024 from 13.7% in 2023, mainly driven by increases in net premiums earned, partially offset by an increase in performance-related compensation costs.
Previous wording
The decrease in professional lines was attributable to lower premium adjustments associated with favorable market conditions in 2023, compared to 2022, together with the non-renewals of several under-performing contracts, partially offset by new business and increased line sizes.
Current wording
The increase in professional lines was attributable to new cyber business and increased line sizes on a several cyber contracts, partially offset by negative premium adjustments associated with challenging market conditions in 2024, compared to positive premium adjustments associated with favorable market conditions in 2023, non-renewals of several under-performing contracts and the timing of renewals of two significant contracts.
Previous wording
The decrease in motor lines was due to non-renewals and decreased line sizes associated with repositioning the portfolio and the timing of the renewal of a significant contract, partially offset by premium adjustments attributable to significant contracts associated with favorable market conditions, and new business.
Current wording
The increase in motor lines was attributable to the timing of the renewal of a significant proportional contract and new non-proportional business associated with favorable market conditions, a higher level of positive premium adjustments related to non-proportional business associated with favorable market conditions in 2024, compared to 2023, together with the impact of foreign exchange movements, partially offset by non-renewals and decreased line sizes on several proportional contracts associated with repositioning the portfolio.
Previous wording
The decrease in engineering lines was attributable to premium adjustments related to a significant contract in 2022.
Current wording
The increase in engineering lines was due to a higher level of positive prior year premium adjustments in 2024, compared to 2023.
Previous wording
The decreases in catastrophe and property lines were associated with the exit from these lines of business in June 2022.
Current wording
The decreases in catastrophe and property lines were attributable to the exit from these lines of business in June 2022.
Previous wording
Ceded premiums written in 2023 were $872 million, or 39%, of gross premiums written, compared to $744 million, or 28%, in 2022. The increase in ceded premiums written of $128 million, or 17%, was primarily driven by increases in liability, professional lines, accident and health, credit and surety, motor, and agriculture lines, partially offset by a decrease in catastrophe lines.
Current wording
Ceded premiums written in 2024 were $883 million, or 37%, of gross premiums written, compared to $872 million, or 39%, in 2023. The increase in ceded premiums written of $11 million, or 1%, was primarily driven by increases in credit and surety, accident and health, motor and agriculture lines, partially offset by decreases in liability, professional lines and catastrophe lines.
Previous wording
The increase in motor lines was partially offset by the decrease in gross premiums written in 2023, compared to 2022.
Current wording
The increase in motor lines reflected the increase in gross premiums written for 2024, compared to 2023, partially offset by the restructuring of a significant quota share retrocession treaty with a strategic capital partner.
Previous wording
The increase in agriculture lines was attributable to premiums ceded to a new quota share retrocessional treaty.
Current wording
The increase in agriculture lines was related to premiums ceded to a new whole account quota share retrocessional treaty.
Previous wording
The decrease in catastrophe lines was due to lower costs associated with catastrophe bond protection, together with the decrease in gross premiums written in 2023, compared to 2022 following the exit from this line of business in June 2022.
Current wording
The decrease in catastrophe lines reflected the decrease in gross premiums written for 2024, compared to 2023 following the exit from this line of business in June 2022.
Previous wording
Net premiums earned in 2023 decreased by $404 million, or 20%, ($337 million, or 17%, on a constant currency basis), compared to 2022. The decrease was primarily driven by decreases in gross premiums earned in cata strophe, property, liability, motor, professional lines, engineering, marine and aviation, and accident and health lines, together with increases in ceded premiums earned in motor, accident and health, credit and surety, professional lines and liability lines. These amounts were partially offset by decreases in ceded premiums earned in catastrophe lines and increases in gross premiums earned in credit and surety lines.
Current wording
Net premiums earned in 2024 decreased by $242 million, or 15%, ($225 million, or 14%, on a constant currency basis), compared to 2023. The decrease was primarily driven by increases in ceded premiums earned in liability, professional lines, accident and health, and motor lines, together with decreases in gross premiums earned inproperty, catastrophe and liability lines. These amounts were partially offset by a decrease in ceded premiums earned in catastrophe lines, together with increases in gross premiums earned in professional lines, and accident and health lines.
Previous wording
Other insurance related income of $23 million in 2023, compared to other insurance related income of $13 million in 2022, an increase of$10 million, primarily associated with an increase in fees related to arrangements with strategic capital partners.
Current wording
Other insurance related income of $31 million in 2024, compared to other insurance related income of $23 million in 2023, an increase of $8 million, primarily driven by interest on loan advances to Monarch Point Re.
Showing the first 40 of 148 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
•Foreign exchange gains of $51 million
Current report — wording carried from elsewhere
Net investment losses reported in 2023 mainly reflected net realized losses on the sale of corporate debt, U.S. government and Non-Agency CMBS, partially offset by net unrealized gains on equity securities.
Current report — wording carried from elsewhere
(Increase) Decrease in Allowance for Expected Credit Losses, Fixed Maturities, Available for Sale
Current report — wording carried from elsewhere
On January 29, 2024, Standard and Poor's removed AXIS Capital Holdings Limited and related securities from Negative CreditWatch and affirmed the Issuer Credit Rating of AXIS Capital Holding Company at A- (Stable). In addition, Standard & Poor's also reaffirmed the A+ Financial Strength and issuer credit ratings on all core operating subsidiaries (Stable).
Current report — wording carried from elsewhere
The stable outlook reflects Standard and Poor's expectation that AXIS will sustain its strong competitive position supported by solid, less-volatile underwriting performance, and will maintain capital adequacy at the 99.99% (or extreme stress) level in 2023-2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Net investment losses of $75 million