AXIS Capital Holdings Ltd. Q3 FY2024 earnings call

• Strong third quarter performance with 5.8% group-level catastrophe ratio, 17.3% annualized ROE, and $64.65 book value per share.
• Insurance segment had premium growth, with reshaping of primary casualty business near completion. Global markets drove 5% growth, and Energy Transition syndicate launched.
• Reinsurance focused on specialty lines, with disciplined underwriting. Portfolio is premium adequate, leveraging broad product set and distribution channels.
• Technology investments in AI, expanded partnerships, and talent additions. Reserves strong, balanced investment portfolio, and share repurchase activity.

Insurance

• Specialty insurance franchise had a 90.4% combined ratio, ex-CAT accident year combined ratio of 83.8%, and premium production of $1.5 billion, a 4.7% increase over the prior year period. Net written premium growth was 10% y-o-y. Excluding primary casualty, the overall insurance segment produced 6.4% growth y-o-y. Property lines grew 10% in the quarter, with US wholesale property unit up 18% y-o-y and 35% increase in submissions. US lower middle market units grew 17% y-o-y with 30% growth in policy count.

Reinsurance

• Produced a 91.4% combined ratio with $36 million in underwriting profit. Gross premiums were down 8.7% q-o-q, but year-to-date growth was 5%. Liability lines saw restructuring and non-renewal of significant contracts. A&H line sizes decreased as clients retained more business.

• Insurance full-year gross premiums growth outlook at low end of 7%-12% range.
• Reinsurance expects mid-single digit growth for full year, with year-to-date growth 5%.
• Confidence in generating profitable growth, focusing on premium adequate short tail lines.

• Uncertainties from hurricane impacts and industry losses.
• Competitive reinsurance market, particularly in casualty lines.
• Volatility in property market competition.
• Reserve review and potential changes based on independent actuarial opinions.

Q: Inquiry about reserving confidence and recent accident years A: Confidence from first nine months results and specific actions taken in 2023, with mention of year-end independent reserve review Q: Concern about property market competitiveness and insurance growth A: Confidence from portfolio construction, premium adequacy, and global business flexibility Q: Core loss ratio movement and cyber insurance growth A: Loss ratio due to prudence, cyber business reshaping with focus on large accounts and partnerships Q: Reserve review process and property pricing expectations A: Independent actuarial review, property market dynamic with receding rates but premium adequacy Q: Premium growth trend in 2025 A: Focus on profitable growth, new/expanded initiatives, and readiness to grow premium adequate portfolio