Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 293

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 293
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The acquisition cost ratio increased to 22.0% in 2024 from 21.7% in 2023, primarily related to adjustments attributable to loss-sensitive features driven by improved loss performance mainly in motor and liability lines. 

In addition, an increase in costs associated with changes in business mix due to increases in credit and surety, and professional lines business written in the recent periods which is associated with relatively higher acquisition cost ratios together with decreases in property and catastrophe business written in the recent periods which is associated with relatively lower acquisition cost ratios, contributed to the increase in the acquisition cost ratio to 22.0% in 2024 from 21.7% in 2023. 

The acquisition cost ratio in 2024 benefited from the impact of changes in business mix on retrocessional contracts driven by increases in credit and surety, and accident and health business written in recent periods together with the decrease in catastrophe business written in recent periods. In addition, the acquisition cost ratio in 2024 benefited from a decrease in costs associated with changes in business mix within motor lines.

Underwriting-Related General and Administrative Expense Ratio

The underwriting-related general and administrative expense ratio decreased to 3.6% in 2024 from 4.9% in 2023, mainly driven by an increase in fees related to arrangements with strategic capital partners to $54 million in 2024, from $38 million in 2023, and a decrease in information technology costs, partially offset by a decrease in net premiums earned.

72

NET INVESTMENT INCOME AND NET INVESTMENT GAINS (LOSSES)

Net Investment Income

Net investment income from our cash and investment portfolio by major asset class was as follows:Year ended December 31,2024% Change2023% Change2022Fixed maturities$620,704 21%$514,842 56%$329,858 Other investments48,666 nm20,411 (64%)57,043 Equity securities12,922 7%12,088 16%10,390 Mortgage loans34,028 (4%)35,312 51%23,407 Cash and cash equivalents59,600 19%50,261 nm20,273 Short-term investments12,569 41%8,924 nm3,535 Gross investment income788,489 23%641,838 44%444,506 Invest