Axis Capital's Q4 2024: Discrepancies in U.S. Casualty Rates, Bermuda DTA Impact, and Financial Outlook

These are the key contradictions discussed in AXIS Capital Holdings Limited's latest 2024Q4 earnings call, specifically including: U.S. casualty rates and reinsurance pricing trends, the impact of Bermuda DTA on 2025 financials, and risk margin adjustments:



Record Financial Performance:
- AXIS reported an operating return on equity of 18.6% for the year, with a year-end book value of $65.27, representing 20.7% growth compared to the prior year.
- The company generated record operating earnings per share of $11.18, a 98% increase over the prior year and 75% higher than its previous best in 2007.
- The strong financial performance was driven by enhancements in underwriting capabilities, strategic investments, and reduced underwriting volatility.

Premium and Growth Expansion:
- The company achieved full-year premiums of $9 billion, marking a 7.8% increase over the prior year, with $2.6 billion in new business.
- Gross premiums in insurance reached $6.6 billion, up 7.7%, and reinsurance premiums grew nearly 8% to $2.4 billion.
- Growth was driven by expansion of underwriting and product capabilities, new customer segments, and strategic investments in talent and technology.

Operating Efficiency and Expense Improvement:
- AXIS saw a 90 basis point year-over-year improvement in the GA ratio, achieving 12.6% for the full year, with a target of 11% by 2026.
- The improvement in expense management was supported by operational enhancements and investments in technology, AI, and workplace programming.

Innovation and Product Advancement:
- AXIS expanded its underwriting capabilities with new products and dedicated energy transition syndicate, producing more than $30 million of business in 2024.
- The company continued to leverage AI and technology to enhance efficiency, productivity, and decision-making, contributing to strong operating results.