Bermuda-based insurer and reinsurer AXIS Capital Holdings has reported an improved combined ratio of 90.2% for the first quarter of 2025, up 0.9 points on the prior year, with stronger underwriting income in both its insurance and reinsurance segments.
AXIS has reported a strong set of results for the opening quarter of 2025, although Group net income did fall from $388 million in Q1 2024 to $187 million in Q1 2025, while operating income rose from $220 million to $261 million.
Group-wide, gross premiums written (GPW) increased by 5.2% to $2.8 billion, with 5% growth in insurance to $1.7 billion and 5.4% growth in reinsurance to $1.1 billion.
In the insurance arm, AXIS highlights growth in all lines of business with the exception of cyber lines which decreased in the quarter, principally due to a lower level of premium associated with program business.
In reinsurance, premium growth is primarily attributable to new business in professional lines and credit and surety lines, as well as the timing of renewals in professional lines and liability lines, and also the restructuring of a significant contract in liability lines, partially offset by decreased line sizes in accident and health lines, and decreased line sizes and non-renewals in motor lines.
Across the group, net premiums written (NPW) increased by 2% to $1.8 billion in Q1 2025, with growth again occurring in both insurance and reinsurance. Insurance NPW rose 2.2% to $1.04 billion, while reinsurance NPW rose 0.8% to $706 million.
Taking a deeper look at the reinsurance segment performance in the quarter, and underwriting income increased by 28% to $28.9 million in Q1 2025, with a combined ratio of 92.3%, an improvement on Q1 2024’s 95.8%. The reinsurance net loss and loss expenses ratio fell by 0.5 points to 67.7%.
Across the group, pre-tax catastrophe and weather-related losses, net of reinsurance, were $49 million in Q1 2025, and just $1.5 million of this comes from the reinsurance business. Of the $49 million, AXIS reveals that $32 million is attributable to the wildfires in California.
Further, net favorable prior year reserve development was $18 million across the Group, with $4 million of this attributable to the reinsurance business.
In the company’s insurance segment, underwriting income increased by 9.4% to $134.5 million in Q1 2025, with a relatively flat combined ratio of 86.7%.
The insurance arm assumed more of the cat losses in the quarter at $47.5 million, but also benefited from more favourable prior year reserve development, which amounted to $14 million in the quarter.
On the asset side of the balance sheet, AXIS generated net investment income of $207.7 million, up on the prior year’s $167.4 million, with a total investment result of $315.6 million in Q1 2025, compared with $107.4 million in Q1 2024.
Commenting on the results, Vince Tizzio, President and CEO of AXIS Capital, said: “AXIS delivered another strong quarter of consistent, profitable performance as we continued to lean into our specialty underwriting value proposition, while helping our customers navigate a rapidly changing risk landscape.
“We remain focused on driving bottom-line results. In the quarter, we produced annualized operating return-on-equity of 19.2% and achieved record-level book value per diluted common share of $66.48 at March 31st. We’re shaping a resilient portfolio that generates strong performance throughout the cycle, as reflected by our 90.2% combined ratio during an active quarter for natural catastrophes including wildfires. In the quarter, AXIS’ share of industry catastrophe losses was 0.09%.
“Within our business segments, we’re continuing to drive targeted growth in attractive specialty markets. For Insurance, we delivered an 86.7% combined ratio and our highest ever first quarter production with $1.7 billion in gross premiums. A key driver was our Excess & Surplus lines, including growing contributions from our expanded product offerings in North America. In addition, our Reinsurance business continued to generate steady, profitable results with a 92.3% combined ratio and $1.1 billion in premiums.
“Underpinning our progress, we’re further enhancing our operations backbone including how we leverage data, technology and AI, reflecting a broader commitment to continuous improvement. Our disciplined efforts across all areas of our business has AXIS on the front foot, and we are excited for what the future holds.”
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