AXIS Capital Holdings has posted financial results for the first quarter ended March 31, 2025, with a year-over-year increase in operating income and investment returns, alongside a decline in net income available to common shareholders.
Net income available to common shareholders for the quarter was US$187 million, or US$2.26 per diluted common share, compared to US$388 million, or US$4.53 per diluted share, in the first quarter of 2024.
Operating income was US$261 million, or US$3.17 per diluted share, up from US$220 million, or US$2.57 per diluted share, in the prior-year quarter.
Pre-tax catastrophe and weather-related losses, net of reinsurance, totalled US$49 million, or 3.7 points on the combined ratio. Of that, US$32 million, or 2.4 points, was attributed to the California wildfires. The remaining losses were related to other weather-related events. After-tax, catastrophe and weather-related losses totalled US$38 million.
Comparatively, in the previous quarter, AXIS reported trebling its net income available to common shareholders to US$1.1 billion for the year ended December 31, 2024, up from US$346 million, in 2023. Operating income for the year was US$952 million, compared to US$486 million the previous year.
For Q1 2025, AXIS’ gross premiums written rose by US$140 million, or 5%, reaching US$2.8 billion. On a constant currency basis, this represented a 6% increase. The insurance segment contributed US$81 million to this growth, while the reinsurance segment added US$59 million.
Net premiums written were up 2% to US$1.8 billion, with a US$22 million increase in the insurance segment and a US$6 million increase in reinsurance.
The current accident year combined ratio, excluding catastrophe and weather-related losses, was 87.9%, an improvement of 1.7 points from the same period in 2024.
Net investment income reached US$208 million, up from US$167 million a year earlier. The US$40 million increase was driven by returns from cash and cash equivalents, higher performance in alternative investments, and income from fixed maturities resulting from increased yields in the portfolio.
The company reported net favourable prior year reserve development of US$18 million, with US$14 million from the insurance segment and US$4 million from reinsurance. No comparable development was recorded in the first quarter of 2024.
AXIS also reported a 1.1-point reduction in its general and administrative expense ratio, attributed to growth in net premiums earned and operational efficiencies under its “How We Work” initiative.
President and CEO Vince Tizzio stated that AXIS continued to focus on its specialty underwriting approach and operational improvements. He said the company is enhancing its use of data, technology, and AI, and emphasised a broader focus on ongoing development across the business.
What are your thoughts on this story? Please feel free to share your comments below.
