AXIS Capital Reports Strong Q2 2025 Results with Higher Net Income and Insurance Growth

Hamilton, Bermuda – July 30, 2025 — AXIS Capital Holdings Limited (NYSE:AXS) has announced its financial results for the second quarter of 2025, showcasing robust growth in net income, driven by strong underwriting performance and significant gains in its insurance segment. The company reported a net income available to common shareholders of $216 million, or $2.72 per diluted share, up from $204 million, or $2.40 per diluted share, in Q2 2024. Operating income reached $261 million, or $3.29 per diluted share, compared to $250 million, or $2.93 per diluted share, in the prior-year period, reflecting a 12.29% year-over-year increase in adjusted earnings per share.

Gross premiums written rose by 3% to $2.5 billion, with the insurance segment leading the charge with a 7% increase, offset by a 7% decline in reinsurance. Net premiums written increased by 4% to $1.6 billion, driven by an 8% growth in insurance, though tempered by a 9% drop in reinsurance. For the first half of 2025, gross premiums written reached $5.3 billion, a 4% increase (5% on a constant currency basis), with insurance up 6% and reinsurance up 1%.

The company’s combined ratio improved to 88.9%, a 1.5-point drop from Q2 2024, signaling enhanced underwriting discipline. This was supported by favorable reserve development and a focus on specialty lines such as cyber insurance and niche property casualty, which helped AXIS avoid broader market pricing pressures. The insurance segment achieved a record-breaking premium volume of $1.9 billion and an impressive 85.3% combined ratio, while the reinsurance segment maintained steady profitability.

Net investment income slightly declined to $187 million from $191 million in Q2 2024, primarily due to lower fixed maturity income following a $2 billion loss portfolio transfer (LPT) agreement with Enstar, which streamlined reserves ahead of peak catastrophe season. However, this was partially offset by stronger returns from alternative investments. The book yield on fixed maturities rose to 4.6% as of June 30, 2025, up from 4.4% a year earlier, with a market yield of 5.0%.

AXIS Capital’s book value per share grew by 18.6% year-to-date to $70.34, reflecting net income and unrealized gains on fixed-income holdings. The company also executed $50 million in share repurchases and paid $35 million in dividends, maintaining a 22% payout ratio as part of its $400 million share repurchase program.

President and CEO Vince Tizzio attributed the results to the company’s “How We Work” program, which leverages investments in technology and AI to enhance operational efficiencies. “Our sustained profitable growth is supported by ongoing enhancements in our operations, enabling us to deliver record operating EPS of $3.29 and an annualized operating ROE of 19.0%,” Tizzio said. He emphasized AXIS’s focus on specialty underwriting and its ability to navigate a dynamic risk landscape.

Despite a revenue miss of $1.63 billion against Wall Street’s $1.64 billion estimate, AXIS’s strategic moves, including leadership promotions in its global markets division and the Enstar LPT deal, position it well for continued growth. The company faced $49 million in pre-tax catastrophe and weather-related losses in Q1 2025, including $32 million from California wildfires, but these were largely accounted for in prior quarters, minimizing Q2 impact.

Analysts noted AXIS’s resilience in a competitive property and casualty market, with its stock performance matching the S&P 500’s 8.6% year-to-date gain. However, a Zacks Rank #4 (Sell) rating and a +0.26% Earnings ESP suggest caution, despite historical outperformance, such as a 20.08% EPS surprise in Q1 2025. Investors are advised to monitor the upcoming earnings call for further guidance on 2025 outlook and capital return strategies.

Sources: Insurance Business America, StockTitan, AInvest, Reinsurance News, Zacks.com, X posts