Bermuda-based insurer and reinsurer, AXIS Capital Holdings Limited, produced an improved combined ratio of 90.4% and 89.8% for the fourth quarter and full year 2025, respectively, supported by lower catastrophe losses and higher net favourable prior year reserve development (PYD) for both periods when compared with the prior year.
AXIS Capital ended 2025 strongly with fourth quarter Group net income of $282 million, down slightly on Q4 2024’s $286.1 million, as total revenues increased to $1.7 billion for the period.
For Q4’25, gross premiums written (GPW) rose by 12% to $2.2 billion, with growth of 12% in the insurance segment to $1.9 billion, and 13% growth in the reinsurance segment to $311 million. Net premiums written (NPW) increased by 13% year-on-year to $1.4 billion, driven by 14% growth in insurance to $1.2 billion and 5% growth in reinsurance to $176 million.
Within the insurance arm, AXIS attributes the premium growth to most lines of business, while in reinsurance, the quarterly expansion was driven by new business in motor lines, and credit and surety lines, as well as premium adjustments in credit and surety lines, partially offset by premium adjustments in professional lines.
Across the business, pre-tax catastrophe and weather-related losses, net of reinsurance, totalled $30 million in Q4’25 related to the insurance segment, of which $17 million relates to Hurricane Melissa, with the remaining losses primarily attributable to other weather-related events.
During the quarter, AXIS benefitted from net favorable prior year reserve development of $30 million, $23 million in insurance and $7 million in reinsurance, compared with just $16 million in Q4’24.
The re/insurer’s underwriting result improved by 42% to $184 million in Q4’25 with a combined ratio of 90.4%, compared with underwriting income of $130 million and a combined ratio of 94.2% a year earlier.
On the asset side of the balance sheet, net investment income fell to $187 million for Q4’25 from $196 million in Q4’24.
The Bermuda-based carrier’s full year performance was also strong, with top-line growth of 7% to $9.6 billion. Insurance segment GPW rose 9% in 2025 to $7.2 billion, and 3% growth in the reinsurance segment to $2.5 billion. Group-wide NPW for full year 2025 increased by 6% to $6.1 billion, with 9% growth in insurance to $4.6 billion, partially offset by a 1% decrease in the reinsurance segment to $1.5 billion.
Again, AXIS attributes the insurance segment premium growth for the year to most lines of business with the exception of cyber lines. In reinsurance, premium growth reflects new business and premium adjustments, while the decrease in NPW reflects increased cession rates to the firm’s strategic capital partners consistent with recent periods.
For the full year, pre-tax catastrophe and weather-related losses, net of reinsurance, hit $159 million, of which $156 million hit the insurance segment and just $3 million the reinsurance segment. This includes natural catastrophe and weather-related losses of $137 million, primarily attributable to the California Wildfires, Hurricane Melissa, and other weather-related events. $22 million of full year losses were attributable to the Middle East Conflict.
During the year, AXIS recorded net favorable prior year reserve development of $87 million, split $67 million insurance and $20 million reinsurance, compared with $24 million of favourable prior year development in 2024.
Group-wide, AXIS has reported 2025 underwriting income of $725 million, an increase of 27% year-on-year, with a combined ratio of 89.8%. This compares with underwriting income of $571 million and combined ratio of 92.3% in 2024.
The full year 2025 investment result improved slightly year on year, with net investment income of $767 million, compared with 759 million in 2024.
All in all, AXIS generated net income of $979 million in 2025, down 7%, or $73 million, on the prior year. Operating income for the year increased by 8% year on year to $1 billion in 2025.
Vince Tizzio, President and CEO of AXIS Capital, said: “The fourth quarter capped an outstanding year for AXIS as we continued to drive sustained profitable growth while executing on our specialty strategy. In 2025, we delivered on our stated goals, producing an 18% year-over-year increase in diluted book value per common share, 18.1% operating ROE, 89.8% combined ratio, and record gross premiums written of $9.6 billion, up 7% over the prior year.
“Our insurance business generated excellent results, highlighted by a 9% year-over-year increase in gross premiums written at $7.2 billion and an 86.1% combined ratio. A key driver was our new and expanded business lines, which we believe have significant upside potential. We also saw steady bottom-line performance from our targeted reinsurance business, which produced a 92.6% combined ratio for the year.
“We are now operating consistently as One AXIS, capitalizing on the best opportunities across our chosen markets, generating efficiency gains through our How We Work program, and sharpening our market position as a differentiated specialty leader.”
