AXIS Capital Holdings Ltd. Q4 FY2024 earnings call

• 2024 was a great year for AXIS with strong results across key indices, culminating in one of the best years. Strategic accomplishments included expanding underwriting and product capabilities, enhancing operating model, and recruiting talent.
• How We Work transformation program continued progress, building foundation for long-term growth. Steps taken in 2024 included strengthening operating model, building skills, investing in technology and workplace programming. AXIS recognized as Best Companies to Work For in 2025.
• 2024 financial results: Operating return on equity 18.6%, year-end book value $65.27 (20.7% growth), record operating earnings per share $11.18 (98% increase over prior year), combined ratio 92.3% (7.6-point improvement), net investment income $759 million (record).

Insurance

• Full-year 2024: Gross premiums written $6.6 billion, up 7.7% over prior year. Combined ratio 89.1%, accident year ex-CAT 84%.
• Fourth quarter: Gross premiums written $1.7 billion, up 7.4%, combined ratio 91.2%.

Reinsurance

• Full-year 2024: Gross premiums $2.4 billion, up nearly 8%. Combined ratio 91.8%.
• Fourth quarter: Gross premiums up 37%, combined ratio 90.9%.

• Anticipate profitable growth in 2025 continuing through price increases and leveraging diversified portfolio.
• Continue to repurchase shares as an attractive capital use, with $200 million remaining on repurchase authorization.
• Execution of LPT with Enstar in first-half of 2025, with investment income from LPT to impact after transaction close.

• Wildfires in Los Angeles: Impact on AXIS is immaterial, with exposure estimated at 10-12 basis points and market share.
• Bermuda tax adjustments: Need to adjust deferred tax asset related to prior transactions, which will impact cash.
• Regulatory approvals: For LPT, waiting on regulator approvals which will impact timing of deal execution.
• Market competition: Continued competition in global markets, particularly in property, marine, aviation, and cyber, posing challenges.

Q: Andrew Kligerman asked about US casualty rates (29% increase in fourth quarter primary casualty) and outlook for 2025, and softness in Reinsurance casualty pricing.

A: Vince Tizzio said double-digit rates expected to persist in 2025 for liability, and Reinsurance liability pricing is cautious with selective underwriting.

Q: Yaron Kinar asked about loss experience in US casualty, consistency with assumptions, and wildfires exposure in London specie book.

A: Pete Vogt confirmed loss experience consistent with expectations, and Vince Tizzio said wildfires exposure in London specie book is within tolerance.

Q: Brian Meredith asked about Bermuda DTA adjustment, ceded reinsurance at 1/1, and reshaping impact on Insurance premium.

A: Pete Vogt explained Bermuda DTA adjustment, Vince Tizzio discussed ceded reinsurance placements and ongoing reshaping in Insurance.

Q: Josh Shanker asked about aviation claims liability and goodwill adjustment.

A: Vince Tizzio stated lack of info on aviation claims, Pete Vogt explained goodwill adjustment related to 2017 Novae transaction.

Q: Charlie Lederer asked about investment income from LPT and fee income sustainability.

A: Pete Vogt said investment income from LPT starts after transaction close, and fee income from ILS partnerships expected to be consistent in 2025.