AXS

AXIS Capital's Investor Day Highlights Top-Quartile Growth

AXIS Capital Holdings Limited, a global provider of specialty lines insurance and treaty reinsurance, recently held its Investor Day on May 30, 2024, to provide an update on its financial performance and strategic initiatives.

The company's President and CEO, Vincent C. Tizzio, outlined their aspiration to be the leading specialty underwriter, generating consistent top-quartile diluted book value per common share (DBVPS) growth for shareholders.

In Q1 2024, AXIS reported an annualized operating return on average common equity (ROACE) of 18.2%, with total capital amounting to $6.8 billion and a financial strength rating of A/A+ from AM Best/S&P.

The breakdown of AXIS's global specialty underwriting franchise revealed that insurance accounted for 27% of the business, while reinsurance and global markets constituted 32% and 41%, respectively. The company is represented in 20 offices worldwide and has over 2000 employees.

AXIS's strategic focus is on specialty products, with total gross premiums written (GPW) amounting to $8.6 billion in the last twelve months ended 3/31/2024. The company was ranked 8th out of 41 insurance companies in 2023 and received recognition as one of Forbes's "Best Mid-Size Employers" in 2022 and 2023.

The company's portfolio is broad and diverse, with professional lines, property, and cyber accounting for the largest proportions of total GPW in the last 12 months. AXIS is committed to enhancing its specialty underwriting capabilities to deliver differentiated distribution channels and customer profiles.

AXIS has pursued a strategic rebalancing of its portfolio, with a focus on core strengths in specialty underwriting. This has resulted in a shift in the composition of total GPW, with insurance now accounting for 45% and reinsurance for 27%.

AXIS has also made significant improvements in its underwriting performance, as evidenced by the reduction in the combined ratio from 92% to 87% for insurance, and from 100% to 96% for reinsurance, in Q1 2024.

The industry is experiencing substantial shifts, with rising demand for complex, non-traditional risk coverage and increasing globalization of risk placement. AXIS is ideally positioned to seize these opportunities and has a global hybrid platform that provides reach and flexibility to attract talent and scale up rapidly.

Looking ahead, AXIS has identified major growth prospects in the US specialty commercial, US E&S, London market, and global P&C reinsurance segments. The company aims to capitalize on favorable environments in core markets, accelerate growth initiatives in North America, and expand its global franchise into new markets and segments.

To support its strategic initiatives, AXIS has made major investments in talent, adding key executives to its leadership team. This includes the appointment of Ann Haugh as CEO of AXIS Re and Michael McKenna as Head of North America, among others.

Today the company's shares have moved 0.6% to a price of $71.19. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS