AXIS Capital Reports Q4 Earnings Growth Despite Higher Expenses

Core Insights - AXIS Capital Holdings Limited (AXS) reported a fourth-quarter 2025 operating income of $3.25 per share, exceeding the Zacks Consensus Estimate by 9.4% and reflecting a year-over-year increase of 9.4% [1][9] - The company's total operating revenues reached $1.7 billion, surpassing the Zacks Consensus Estimate by 5.2% and showing a nearly 9% year-over-year growth driven by higher premiums earned [2][10] Financial Performance - Net premiums written increased by 13% to $1.4 billion, with a 14% rise in the Insurance segment and a 5% growth in the Reinsurance segment [2] - Net investment income decreased by 4.5% year over year to $187 million, falling short of the Zacks Consensus Estimate of $198 million [3] - Total expenses rose by 16.6% year over year to $1.4 billion, attributed to higher net losses, acquisition costs, and general administrative expenses [3] Underwriting Results - Pre-tax catastrophe and weather-related losses net of reinsurance amounted to $30 million, including $17 million from Hurricane Melissa [4] - Underwriting income increased by 42% year over year to $184 million, with the combined ratio improving to 90.4 from 94.2 a year ago [4][9] Segment Analysis - In the Insurance segment, gross premiums written improved by 11.7% year over year to $1.9 billion, with net premiums earned rising by 13.3% to $1.2 billion [5] - The Reinsurance segment saw gross premiums written increase by 13% year over year to $310.7 million, while net premiums earned rose by 4.2% to $365.6 million [6] Full-Year Highlights - For the full year 2025, AXIS reported an operating income of $12.92 per share, exceeding the Zacks Consensus Estimate by 1.9% and reflecting a 15.6% year-over-year increase [8] Capital Management - AXIS repurchased $888 million of common shares in 2025 and declared a quarterly cash dividend of 44 cents per share, totaling $139 million in annual dividends [12] - The company ended the fourth quarter with cash and cash equivalents of $820.3 million, down 61.7% from the previous year [11]