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Sep 30, 2022
AXIS Capital Q3 2022 Earnings Report
Reported a net loss due to catastrophe losses, but benefited from strategic shift towards specialty insurance.
Key Takeaways
AXIS Capital reported a net loss attributable to common shareholders of $17 million for Q3 2022, driven by pre-tax catastrophe and weather-related losses of $212 million, primarily from Hurricane Ian. However, the company's strategic shift towards specialty insurance and reduced exposure to catastrophes has led to growth in underwriting income and operating income for the year to date.
Net loss attributable to common shareholders of $(17) million, or $(0.20) per diluted common share, and operating income of $3 million, or $0.03 per diluted common share.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $212 million, or 16.6 points, primarily attributable to Hurricane Ian, and other weather-related events.
Annualized return on average common equity ("ROACE") of (1.7%) and annualized operating ROACE of 0.3%.
Grew underwriting income by 75% and operating income by 30% year to date.
AXIS Capital
AXIS Capital
AXIS Capital Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comReinsurance Revenue
CapyFin.com Forward Guidance
Conditions and uncertainties in the market are likely to result in a favorable pricing environment into 2023 and beyond, as well as heightened demand for specialty coverages, where AXIS is well-positioned.
Positive Outlook
- Favorable pricing environment expected into 2023 and beyond.
- Heightened demand for specialty coverages.
- Business has great momentum.
- Improving profitability.
- Reducing volatility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income