Q2 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$421.38Last close (Jul 26, 2024)
Post-Earnings Price$421.38Last close (Jul 26, 2024)
Price Change
$0.00(0.00%)
- Exceptional Growth in Direct Written Premiums: Direct written premium grew 20% in Q2 2024 compared to Q2 2023, driven by steady new policy growth and solid retention, with year-to-date growth also at 20%.
- Significant Increase in Net Income and Operating Income: Net income increased to $164 million or $3.13 per diluted share in Q2 2024 from $118 million or $2.25 per diluted share in Q2 2023. Operating income increased nearly 42% to over $190 million.
- Improved Profitability Trends: The Exchange's combined ratio improved to 115.9% in Q2 2024 from 118.9% in Q2 2023, with a more significant improvement in the year-to-date combined ratio of 111.1% in 2024 compared to 120.8% in the same period of 2023, indicating better underwriting results.
- Despite improvements, the Exchange's combined ratio remained high at 115.9% in Q2 2024, indicating continued underwriting losses.
- Non-commission expenses increased by 6% or $18 million in the first half of 2024 compared to the same period in 2023, driven by higher underwriting, policy processing, administrative, sales, and advertising expenses.
- Commission expenses surged by nearly 21% in the first half of 2024 compared to the same period in 2023 due to substantial growth in direct written premiums, potentially impacting profitability margins.