AXIS Capital's 2023 net income soars 79.2% to $346m

Its book value per diluted common share witnessed an uptick to $54.06.

AXIS Capital Holdings’ net income available to common shareholders reached $346m in 2023, a 79.2% leap from the $193m reported for the same period in 2022.

On top of that, operating income for the entirety of 2023 amounted to $486m, or $5.65 per diluted common share. Though this represents a slight decrease from the $498m and $5.81 per diluted common share reported in 2022, the figures remained robust.

Underlying operating income stood at $847m. Also, the company's book value per diluted common share witnessed an uptick to $54.06 as of 31 December 2023, reflecting a 5.6% increase from 30 September 2023.

This surge was attributed to net unrealised investment gains reported in accumulated other comprehensive income (loss), partially offset by a net loss for the period and common share dividends declared.

Over the course of the last twelve months, the book value per diluted common share exhibited a substantial rise of $7.11, marking a 15.1% increase. 

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This surge was driven by net income and net unrealized investment gains reported in accumulated other comprehensive income (loss), despite the offsetting effect of common share dividends declared.

When adjusted for dividends declared, the book value per diluted common share skyrocketed by $8.87, reflecting an 18.9% increase over the past twelve months.

Shifting focus to investment portfolios, the book yield of fixed maturities registered a notable increase, reaching 4.2% as of 31 December 2023, compared to the 3.5% reported on 31 December 2022. Concurrently, the market yield hit 5.4% at the close of 2023.

The net investment income for the fourth quarter of 2023 demonstrated substantial growth, reaching $187m, compared to the $147m reported for the same quarter in 2022. This uptick was primarily attributed to an increase in income from the fixed maturities portfolio, fueled by heightened yields.