AXIS Capital(US:AXS) ZACKSยท2025-07-30 14:51Core Insights - AXIS Capital Holdings Limited (AXS) reported second-quarter 2025 operating income of $3.29 per share, exceeding the Zacks Consensus Estimate by 14.2% and reflecting a year-over-year increase of 12.2% [1][8] - The company's total operating revenues reached $1.6 billion, which was 3.2% below the Zacks Consensus Estimate but showed a year-over-year growth of 5.6% [2] - The underwriting income for AXIS Capital increased by 17.4% year over year to $189.2 million, with an improved combined ratio of 88.9% [5][8] Quarterly Operational Update - Total operating revenues were $1.6 billion, missing estimates by 3.2% but rising 5.6% year over year due to higher other insurance-related income and net premiums earned [2] - Net premiums written increased by 4% to $1.6 billion, driven by an 8.1% rise in the Insurance segment, while the Reinsurance segment saw a 9.1% decline [2] Investment Income - Net investment income decreased by 2% year over year to $187 million, primarily due to lower income from fixed maturities, partially offset by higher returns on alternative investments [3] Expense Analysis - Total expenses rose by 12.2% year over year to $1.3 billion, attributed to higher net losses, acquisition costs, and general administrative expenses [4] - Pre-tax catastrophe and weather-related losses amounted to $86 million, up from $47 million in the previous year, mainly due to California Wildfires [4] Segment Results - In the Insurance segment, gross premiums written improved by 6.5% year over year to $1.9 billion, with net premiums written increasing by 8.1% to $1.3 billion and underwriting income rising by 31.1% to $151.6 million [6] - The Reinsurance segment experienced a 6.8% decline in gross premiums written to $583.5 million, with underwriting income increasing by 17.5% to $37.5 million despite a deterioration in the combined ratio by 270 basis points to 92 [7][9] Financial Update - AXIS Capital ended the second quarter with cash and cash equivalents of $852 million, a 60% decrease from the end of 2024 [10] - Debts stood at $1.3 billion, reflecting a slight increase of 0.05% from the previous year [10] - Book value per share increased by 18.6% year over year to $70.34 as of June 30, 2025 [10] Capital Deployment - As of June 30, 2025, AXIS Capital had $110 million remaining under the board-authorized share repurchase program for common share repurchases [11]