AXIS Capital Reports Q1 2025 Financial Results with $187 Million Net Income

AXIS Capital Holdings Limited reported its financial results for the first quarter of 2025, revealing a net income of $187 million, or $2.30 per common share, compared to $395 million in the same period last year. The company's operating income was $261 million, translating to $3.17 per diluted common share. Gross premiums written reached $2.8 billion, while net premiums earned totaled $1.3 billion. The company also noted pre-tax catastrophe and weather-related losses of $49 million, which included significant losses from California wildfires. The combined ratio for the quarter was 90.2%, indicating a slight improvement in underwriting performance.

In comparison to the previous fiscal period, AXIS Capital experienced a decrease in net income, primarily attributed to higher catastrophe losses and foreign exchange losses of $57 million. The company reported net investment losses of $30 million, contrasting with net investment income of $208 million. Despite these challenges, AXIS Capital achieved net favorable prior year reserve development of $18 million, with $14 million from the insurance segment and $4 million from reinsurance.

Strategically, AXIS Capital has focused on expanding its presence in specialty insurance and reinsurance markets, particularly in U.S. excess and surplus lines. The company has also initiated a loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, which retrocedes a portfolio of reinsurance business predominantly related to prior underwriting years. This agreement is expected to mitigate prior year reserve development risks.

Operationally, AXIS Capital's total cash and investments amounted to $17.8 billion, with fixed maturities, short-term investments, and cash comprising 88% of this total. The company reported a total asset value of $33.2 billion and a reserve for losses and loss expenses of $17.5 billion. The debt-to-total capital ratio stood at 18.2%, reflecting a stable capital structure. During the quarter, AXIS repurchased 5 million common shares for $465 million, as part of its ongoing share repurchase program.

Looking ahead, AXIS Capital remains optimistic about its growth prospects, despite uncertainties in the current trade and geopolitical environment. The company plans to continue leveraging its diversified portfolio and specialty underwriting capabilities to pursue profitable growth opportunities. The outlook for the property and casualty market remains favorable, with expectations of continued pricing momentum in certain sectors, although some areas are experiencing softening rates. AXIS Capital aims to maintain disciplined underwriting practices while exploring new market opportunities to enhance its competitive position.