AXIS Capital(US:AXS)2025-07-29 20:19Financial Performance - Net income available to common shareholders was $216 million, or $2.75 per common share, with operating income of $261 million, or $3.29 per diluted common share[235]. - The effective tax rates for the three and six months ended June 30, 2025, were 20.1% and 19.4% respectively, with a corporate income tax of 15% applied to Bermuda pre-tax income effective January 1, 2025[249]. - Net income available to common shareholders for the three months ended June 30, 2025, was $215.8 million, compared to $204.4 million for the same period in 2024[378]. - Operating income for the three months ended June 30, 2025, was $261.3 million, an increase from $250.0 million in the same period of 2024[378]. - The annualized return on average common equity for the three months ended June 30, 2025, was 15.7%, down from 16.2% in the same period of 2024[378]. Premiums and Underwriting - Gross premiums written reached $2.5 billion, with net premiums written at $1.6 billion and net premiums earned at $1.4 billion, reflecting a 3% and 4% increase respectively compared to the previous year[250]. - Underwriting income was reported at $189 million, with a combined ratio of 88.9%[235]. - The insurance segment reported net premiums earned of $1,032,961 for the three months ended June 30, 2025, reflecting an 8% increase from $958,212 in 2024[256]. - The combined ratio for the insurance segment improved to 85.3% for the three months ended June 30, 2025, down from 87.9% in 2024, indicating better underwriting performance[256]. - Net premiums written for the insurance segment increased by 8% to $1,290,510 for the three months ended June 30, 2025, up from $1,194,197 in 2024[256]. Investment Performance - Net investment income for the three months ended June 30, 2025, was $187 million, a decrease of 2% compared to $191 million for the same period in 2024[335]. - Net investment income from other investments increased to $18 million for the three months ended June 30, 2025, compared to $14 million for the same period in 2024, driven by higher returns from privately held investments[338]. - Net investment gains for the three months ended June 30, 2025, were $43 million, compared to net investment losses of $53 million for the same period in 2024[341]. - For the six months ended June 30, 2025, net investment gains were $13 million, compared to losses of $63 million in 2024[341]. - The total return on cash and investments for the three months ended June 30, 2025, was $372.3 million, significantly higher than $166.6 million in 2024[346]. Shareholder Returns - Total common shares repurchased were 0.5 million shares for a total of $51 million, including $50 million under the share repurchase program[235]. - The company has declared quarterly common share dividends for twenty-two consecutive years, emphasizing its commitment to returning excess capital to shareholders[372]. - Common equity increased by $85 million during the six months ended June 30, 2025, reaching $5.6 billion, driven by net income of $417 million and changes in unrealized gains[427]. - The average common shareholders' equity for the six months ended June 30, 2025, was $5.58 billion, compared to $4.91 billion for the same period in 2024[378]. - The company repurchased 5.6 million common shares for a total of $516 million during the six months ended June 30, 2025[427]. Market Outlook and Strategy - The company aims to grow in specialty lines insurance and treaty reinsurance markets, focusing on less volatile lines of business with attractive returns[239]. - The outlook for the property and casualty market remains favorable, with a focus on disciplined underwriting and selective growth opportunities[242]. - The increase in accident and health lines was attributed to a higher level of premiums and increased rates associated with renewed pet insurance business[259]. - The increase in professional lines was due to new U.S. design professional, Allied Health, and environmental business, along with higher premiums from renewed program business[259]. - The decrease in cyber lines was due to the cancellation of two significant programs, partially offset by negative premium adjustments in the previous year[263]. Capital Structure - The debt to total capital ratio as of June 30, 2025, was 17.6%, slightly down from 17.8% at December 31, 2024, indicating a stable capital structure[421]. - At June 30, 2025, the company had borrowings under the Federal Home Loan Bank program of $66 million, with interest rates between 4.5% and 4.6%[423]. - The fair value of fixed maturities at June 30, 2025, was $12.5 billion, with a weighted average credit rating of A+ and a book yield of 4.6%[414]. - As of June 30, 2025, total investments decreased by $233 million to $14.8 billion, primarily due to premium paid for the LPT transaction and share repurchase activity[411]. - At June 30, 2025, net unrealized gains on fixed maturities available for sale improved by $277 million to $10 million compared to net unrealized losses of $267 million at December 31, 2024[415].