AXIS Capital Holdings has reported its second-quarter 2025 financial results, showing higher net income and operating income compared to the same period in 2024.
The company posted net income available to common shareholders of US$216 million, or US$2.72 per diluted share, up from US$204 million, or US$2.40 per diluted share, in the second quarter of last year.
Operating income for the quarter reached US$261 million, or US$3.29 per diluted share, compared with US$250 million, or US$2.93 per diluted share, in the prior-year period.
Gross premiums written increased 3% to US$2.5 billion in the second quarter, with a 7% rise in the insurance segment offsetting a 7% decline in reinsurance. Net premiums written were up 4% to US$1.6 billion, reflecting an 8% gain in insurance, partially offset by a 9% drop in reinsurance.
For the first half of 2025, gross premiums written reached US$5.3 billion, a 4% increase from the same period in 2024, or 5% on a constant currency basis. This included a 6% increase in insurance and a 1% gain in reinsurance. Net premiums written rose 3% to US$3.4 billion, or 4% on a constant currency basis, with growth in insurance partially offset by a decline in reinsurance.
During the quarter, AXIS completed a loss portfolio transfer reinsurance agreement with Enstar, retroceding net reserves for losses and loss expenses of about US$2 billion. Net investment income came in at US$187 million, down slightly from US$191 million in the second quarter of 2024.
The decrease was attributed to lower fixed maturity income following the LPT transaction, partially offset by stronger returns from alternative investments.
The book yield on fixed maturities was 4.6% as of June 30, 2025, compared with 4.4% a year earlier, while the market yield stood at 5.0%. The effective tax rate for the quarter was 20.1%, reflecting taxable income across the company’s Bermuda, UK, US, and European operations, with Bermuda’s 15% corporate income tax rate applying as of January 1, 2025.
“Our sustained profitable growth is supported by the ongoing enhancement of our operations through our ‘How We Work’ program, which is enabled by investments in technology and AI. While we acknowledge the progress achieved, we remain steadfast in advancing our strategy and providing value to our customers and the broader market,” president and CEO Vince Tizzio (pictured above) said.
In the first quarter of 2025, the company reported a 1.1-point reduction in its general and administrative expense ratio, attributed to changes in resource allocation and process automation.
Catastrophe and weather-related losses have been a factor for AXIS in 2025, with the first quarter seeing US$49 million in pre-tax losses, including US$32 million linked to California wildfires.
While these losses were largely accounted for in prior quarters, they provide context to the company's underwriting approach and reinsurance strategy heading into the second quarter, particularly with the recent LPT transaction transferring older-year liabilities to Enstar.
The company also announced leadership changes in May within its global markets division, promoting several executives to new roles designed to strengthen underwriting capabilities and enhance client engagement
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