AXIS Capital reports strong underwriting result for Q3’25

Core Insights - AXIS Capital Holdings Limited reported a significant increase in underwriting income for Q3 and the nine-month period ending September 30, 2025, driven by strong performance in both insurance and reinsurance segments [1][3] Underwriting Income - For Q3 2025, underwriting income reached $188 million, a 39% increase year-on-year, with insurance underwriting results up 55.2% to $153.3 million, while reinsurance results decreased by 3.7% to $35 million [3] - For the nine-month period, underwriting income rose 22% year-on-year to $541 million, supported by a 30% growth in insurance results to $439.5 million, and a 2.9% decrease in reinsurance underwriting results to $101.5 million [3] Catastrophe and Weather-related Losses - Pre-tax catastrophe and weather-related losses, net of reinsurance, amounted to $44 million in Q3, primarily from the insurance segment ($43 million), with $20 million attributed to the Middle East conflict [4] - For the nine-month period, total pre-tax losses were $129 million, with $126.7 million from insurance and $2.7 million from reinsurance, including $32 million related to the January California wildfires and the Middle East conflict [5] Combined Ratio - The combined ratio improved by 3.7 percentage points to 89.4% for Q3 and by 2.1 percentage points to 89.5% for the nine-month period [6] - The insurance segment's combined ratio improved by 4.5 percentage points to 85.9% for Q3 and by 2.4 percentage points to 86% for the nine-month period, while the reinsurance combined ratio rose by 0.8 percentage points to 92.2% for Q3 [6] Gross Premiums Written - Gross premiums written (GWP) increased by 10% to $2.1 billion in Q3 2025, with insurance GWP growing by 11% to $1.7 billion, and reinsurance GWP rising by 6% to $432.3 million [7] - For the nine-month period, GWP increased by 6% to $7.4 billion, with insurance GWP up 7% to $5.3 billion and reinsurance GWP increasing by 2% to $2.2 billion [8] Net Premiums Written - Net premiums written (NPW) for Q3 rose 9% to $1.4 billion, with an 11% increase in the insurance segment to $1.1 billion and a 3% increase in the reinsurance segment to $268 million [9] - For the nine-month period, NPW increased by 5% year-on-year to $4.7 billion, with a 7% increase in the insurance segment to $3.4 billion, partially offset by a 2% decrease in reinsurance NPW to $1.3 billion [10] Investment Income - Net investment income decreased to $185 million in Q3 2025 from $205 million a year earlier, while for the nine-month period, it increased to $578 million from $563 million [11] Net Income - AXIS reported net income of $294 million for Q3 2025, a 70% increase from the previous year, while net income for the nine-month period totaled $679 million, down 9% from 9M'24 [12] - Operating income increased by 11% to $255 million for Q3 2025 and rose by 11% to $775 million for the nine-month period [12] Management Commentary - The President and CEO highlighted a 14% year-over-year increase in diluted book value per common share and an annualized operating return on equity of 18%, attributing these results to enhancements in product portfolio and operational model [13] - The insurance business achieved record third-quarter gross premiums written of $1.7 billion, with an 85.9% combined ratio, while AXIS Re maintained a solid performance with a 92.2% combined ratio [14] - The ongoing "How We Work" program is driving operational improvements through investments in data, technology, and AI, with a focus on becoming the industry's leading specialty underwriter [15]