AXIS Capital(US:AXS)2025-10-29 20:37Financial Performance - Net income available to common shareholders was $294 million, or $3.79 per common share, with operating income of $255 million, or $3.25 per diluted common share[229]. - Net investment income decreased by 10% to $185 million, while net investment gains were $31 million[229]. - Net investment income for the nine months ended September 30, 2025, was $579.9 million, a 3% increase from $563.5 million in the same period of 2024[309]. - Net investment gains for the nine months ended September 30, 2025, were $44.4 million, compared to a net investment loss of $30.5 million in the same period of 2024[315]. - Total return on cash and investments for the nine months ended September 30, 2025, was $952.2 million, compared to $898.1 million in the same period of 2024[320]. - Annualized return on average common equity (ROACE) increased to 20.6% for the three months ended September 30, 2025, up from 13.0% in 2024[332]. - Net income available to common shareholders was $294.3 million for the three months ended September 30, 2025, compared to $173.2 million in 2024[348]. - Operating income per diluted common share increased to $3.25 for the three months ended September 30, 2025, from $2.71 in 2024[348]. Premiums and Underwriting - Gross premiums written increased by 10% to $2.1 billion, while net premiums written rose by 9% to $1.4 billion[244]. - Underwriting income was reported at $188 million, with a combined ratio of 89.4%[229]. - Gross premiums written for Q3 2025 increased by $165 million, or 11%, compared to Q3 2024, totaling $1,691,882 million[252]. - Net premiums written for Q3 2025 reached $1,084,947 million, an 11% increase from $975,911 million in Q3 2024[250]. - Total net premiums earned for the nine months ended September 30, 2025, were $4,186,133 million, a 7% increase from $3,929,221 million in the same period of 2024[250]. - The combined ratio for Q3 2025 improved to 89.4%, down from 93.1% in Q3 2024, reflecting a 3.7 percentage point decrease[247]. - Professional lines gross premiums written increased by 18% in Q3 2025 compared to Q3 2024, reaching $337,888 million[251]. - Accident and health gross premiums written surged by 35% in Q3 2025, totaling $161,470 million, compared to $119,686 million in Q3 2024[251]. Loss Ratios and Expenses - The current accident year loss ratio, excluding catastrophe and weather-related losses, was 56.3% for Q3 2025, a 0.6 percentage point increase from 55.7% in Q3 2024[247]. - The net losses and loss expenses ratio for Q3 2025 was 58.0%, a decrease of 2.9 percentage points from 60.9% in Q3 2024[247]. - The acquisition cost ratio for Q3 2025 was 19.7%, down from 20.1% in Q3 2024, indicating improved cost efficiency[247]. - The underwriting-related general and administrative expense ratio increased to 12.1% for Q3 2025 from 11.6% in Q3 2024, driven by investments in underwriting teams and IT[275]. - The current accident year loss ratio decreased to 56.2% for Q3 2025 from 59.3% in Q3 2024, influenced by lower catastrophe and weather-related losses[267]. Investments and Capital Structure - Total cash and invested assets amounted to $16.8 billion, with fixed maturities and cash comprising 87% of this total[229]. - Total investments increased by $518 million to $15.55 billion as of September 30, 2025, driven by reinvestment of interest income and cash flows from operations[380]. - Fixed maturities, available for sale, rose to $12.88 billion from $12.15 billion, with a weighted average credit rating of A+ and a book yield of 4.6%[380][386]. - Common equity rose by $278 million during the nine months ended September 30, 2025, reaching $5.82 billion compared to $5.54 billion at the beginning of the period[401]. - The debt to total capital ratio improved to 17.1% as of September 30, 2025, down from 17.8% at December 31, 2024, indicating a stronger capital structure[393]. Tax and Corporate Expenses - The effective tax rates for the three and nine months ended September 30, 2025, were 18.9% and 19.2%, respectively[243]. - Corporate expenses decreased to $28.5 million for the three months ended September 30, 2025, a 15% decline from $33.6 million in 2024[323]. - Income tax expense increased by 47% to $70 million for the three months ended September 30, 2025, compared to $48 million in 2024[330]. Shareholder Returns and Repurchases - Cash dividends declared per common share remained steady at $0.44 for both the three months ended September 30, 2025, and 2024[332]. - The company repurchased 6.7 million common shares for a total of $626 million during the nine months ended September 30, 2025[401]. - The company has a remaining authorization of $400 million under its open-ended share repurchase program as of September 30, 2025[404].