Bermudian-based Axis Capital Holdings strengthened its prior year reserves in the fourth quarter by $425 million, pre-tax, and $361 million, post-tax, the company said.

The announcement came as Axis released preliminary financial results for the year ended December 31, 2023 and the conclusion of its previously announced review of prior year reserves.

The company said the strengthening was attributable to both its insurance and reinsurance segments in liability lines and professional lines predominantly related to 2019 and older accident years.

The amount is equal to 4.5 per cent of net loss reserves at September 30, 2023, Axis said.

For the year ended December 31, the company anticipates reporting net income available to common shareholders of $346 million, or $4.02 per diluted common share, and operating income of $486 million, or $5.65 per diluted common share.

It also anticipates reporting an increase in gross premiums written of $142 million, or 2 per cent; current accident year combined ratio of 91.8 per cent, compared with 96.3 per cent for the prior year; and book value per diluted common share of $54.06, an increase of 15.1 per cent over the past 12 months.

Vince Tizzio, the president and chief executive of Axis Capital, said: "Axis delivered strong underlying performance in 2023 and we believe the company is on a clear trajectory to becoming a specialty underwriting leader.

“This was a year where we drove consistent premium growth with double-digit increases across the vast majority of our specialty insurance lines;, continued to cultivate a diversified and resilient portfolio; further improved and streamlined our operating model; and grew the tailored products and capabilities that we provide to our customers.

"The decisive actions we are taking this quarter address reserve development that is predominantly related to 2019 and older accident years as current economic and social inflation trends impact the overall US casualty market.

“We undertook a rigorous review that included an examination of trend assumptions, emerging development patterns, new industry data and current legal trends.

"Axis concludes the year with a portfolio that is well-positioned in the market, underpinned by our strong capital position. We approach the future with confidence and our team is relentlessly committed to achieving our specialty leadership ambition."

Axis expects to release financial results for the year ended December 31, 2023 on January 31, after the close of the financial markets, as previously announced.