AXIS Capital reported net income available to common shareholders of US$979 million for the year ended December 31, 2025, a decrease of US$73 million, or 7%, compared to the prior year.
The decline came despite strong operating results, reflecting the impact of Bermuda's new 15% corporate income tax, which took effect on January 1, 2025.
The lower net income was due to higher tax expense following the tax regime's introduction, as well as other non-operating items.
Operating performance told a different story. The Bermuda-based specialty insurer and reinsurer posted operating income of US$1.0 billion for the full year, an 8% increase from 2024. Underwriting income rose 27% year over year to US$725 million.
Read more: AXIS sees combined ratio drop below 90%
The company reported an 18.1% operating return on equity and an 89.8% combined ratio for the year. The insurance segment posted an 86.1% combined ratio, while the reinsurance segment recorded 92.6%.
Gross premiums written reached a record US$9.6 billion for the year, a 7% increase. The insurance segment accounted for the bulk of the growth, rising 9% to US$7.2 billion, while the reinsurance segment increased 3%.
For the fourth quarter, gross premiums written increased 12% to US$2.2 billion. Net premiums written rose 13% to US$1.4 billion for the period.
CEO Vince Tizzio (pictured above) said the fourth quarter "capped an outstanding year for AXIS," citing 13 consecutive quarters of diluted book value per share growth and 77% growth over that period.
The company recorded pre-tax catastrophe and weather-related losses of US$159 million for the year, or 2.8 combined ratio points. Natural catastrophe losses of US$137 million were primarily tied to the California wildfires, Hurricane Melissa, and other weather events. An additional US$22 million stemmed from the Middle East conflict.
The California wildfires in January proved the costliest wildfire event on record for the global insurance industry. According to Swiss Re, insured losses from the Palisades and Eaton fires reached US$40 billion. According to Aon, the fires accounted for roughly 71% of global insured disaster losses in the first quarter.
Meanwhile, net favourable prior year reserve development for AXIS was US$87 million for the year, compared to US$24 million in 2024. Net investment income reached US$767 million, up 1% from the prior year.
AXIS returned US$1.0 billion to common shareholders during the year through US$888 million in share repurchases and US$139 million in dividends.
"We are now operating consistently as One AXIS, capitalising on the best opportunities across our chosen markets," Tizzio said.
