AXIS Capital(AXS) - 2025 Q4 - Annual Results

Premiums and Revenues - Gross premiums written for Q4 2025 reached $2,209,707, an increase of 11.9% from $1,975,324 in Q4 2024[18] - Net premiums written increased by 12.9% to $1,383,193 in Q4 2025, compared to $1,225,549 in Q4 2024[18] - Total revenues for the year ended December 31, 2025, were $6,563,678, up from $5,957,651 in 2024, representing an increase of about 10.2%[26] - Gross premiums written for Q4 2025 reached $2,209,707, an increase from $2,124,184 in Q3 2025, contributing to total gross premiums of $9,644,514 for the year 2025, up from $9,005,888 in 2024[28] - Net premiums earned for Q4 2025 reached $1,528,475, an increase from $1,451,883 in Q3 2025, reflecting a growth of approximately 5.5%[23] - Total underwriting revenues for Q4 2025 amounted to $1,532,858, up from $1,458,476 in Q3 2025, leading to total underwriting revenues of $5,737,825 for 2025, compared to $5,336,956 in 2024[28] Income and Expenses - Net income available to common shareholders for the year ended December 31, 2025, was $978,648, down 6.9% from $1,051,536 in 2024[18] - Operating income for Q4 2025 was $249,544, a slight decrease of 0.9% from $251,816 in Q4 2024[18] - Total expenses for the year ended December 31, 2025, amounted to $5,347,500, compared to $4,949,413 in 2024, indicating an increase of about 8.1%[26] - Net income available to common shareholders for Q4 2025 was $282,044, compared to $294,301 in Q3 2025, a decrease of approximately 4.3%[23] - The company reported net investment losses of $14,584,000 in Q4 2025, contrasting with gains of $108,030,000 in Q4 2024[59] Investment Performance - Net investment income for Q4 2025 was $186,992, a decrease of 4.5% from $195,773 in Q4 2024[18] - Net investment income for Q4 2025 was $186,992, slightly up from $184,903 in Q3 2025[23] - Total net investment income for 2025 at $766,903, compared to $759,229 in 2024[28] - The fair value of fixed maturities available for sale increased to $13.02 billion, up from $12.15 billion, a growth of 7.1%[43] - Equity securities at fair value rose to $707.57 million, compared to $579.27 million, reflecting a 22.1% increase[43] Ratios and Returns - Annualized return on average common equity for Q4 2025 was 19.4%, down from 20.7% in Q4 2024[18] - The combined ratio improved to 90.4% in Q4 2025, down from 94.2% in Q4 2024[18] - The combined ratio for Q4 2025 was 90.4%, an increase from 89.4% in Q3 2025, with an annual combined ratio of 89.8% for 2025, down from 92.3% in 2024[28] - The current accident year loss ratio, excluding catastrophe and weather-related losses, was 56.2% in Q4 2025, compared to 55.7% in Q4 2024[18] - The net reserve for losses and loss expenses included $12.3 billion in IBNR, representing 68% of the total reserve[51] Assets and Equity - Total assets increased by 5.4% to $34,461,926 as of December 31, 2025, compared to $32,681,309 in 2024[18] - Shareholders' equity totaled $6.36 billion, slightly down from $6.09 billion, indicating a decrease of 0.4%[41] - Cash and cash equivalents decreased to $1.32 billion from $3.06 billion, a decline of 56.9%[41] - Total investments reached $15.76 billion, up from $15.04 billion, marking a 4.7% increase year-over-year[41] Shareholder Metrics - Book value per diluted common share increased to $77.20 in Q4 2025 from $65.27 in Q4 2024, reflecting a growth of 18.3% year-over-year[56] - Tangible book value per diluted common share rose to $74.71 in Q4 2025, up from $62.97 in Q4 2024, representing a year-over-year increase of 18.8%[57] - Earnings per diluted common share for Q4 2025 increased to $3.67, compared to $3.38 in Q4 2024, marking a growth of 8.6%[59] - The diluted common shares outstanding increased to 75,209 in Q4 2025 from 84,870 in Q4 2024, indicating a reduction in share dilution[57] Losses and Claims - The company reported net losses and loss expenses of $859,427 for Q4 2025, compared to $841,435 in Q3 2025, an increase of approximately 1.1%[23] - Catastrophe and weather-related losses for Q4 2025 were $29,855, compared to $43,659 in Q3 2025, with total losses for 2025 at $159,210, down from $225,996 in 2024[28] - Net losses and loss expenses for the quarter were $859,427 million, compared to $951,314 million in Q4 2024, indicating a reduction in claims[31] Foreign Exchange and Tax - Foreign exchange gains for the year 2025 amounted to $141,983,000, compared to losses of $50,822,000 in 2024, showing a significant turnaround[59] - Bermuda deferred tax benefit in 2025 is due to the derecognition of deferred tax liabilities related to Bermuda corporate income tax, effective December 11, 2025[83] - Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities, effective for fiscal years beginning on or after January 1, 2025[83]