AXIS Capital’s GPW hit $2.5b in Q2’25, CoR strengthens to 88.9%

Global specialty underwriter and provider of insurance and reinsurance, AXIS Capital Holdings Limited, has reported an increase in gross premiums written (GPW) of $76 million, or 3% to $2.5 billion for the second quarter of 2025, driven by an increase of 7%, or $118 million in the insurance segment, partially offset by a decrease of $43 million, or 7% in the reinsurance segment.

The Bermuda-based re/insurer recorded solid top-line growth in Q2’25, with net premiums written (NPW) up by $62 million, or 4% to $1.6 billion, with a $96 million, or 8% increase in the insurance segment, partially offset by a decrease of $35 million, or 9% in the reinsurance segment.

Pre-tax, catastrophe and weather-related losses, net of reinsurance, were $37 million for Q2’25, with insurance contributing $36.4 million and reinsurance adding $0.2 million, or 2.6 points, driven by weather-related events.

Meanwhile, net favourable prior year reserve development was $20 million, which is $15 million in insurance and $5 million in reinsurance, compared to no favourable development in 2024.

For the second quarter of 2025, the company’s combined ratio improved to 88.9% compared to 90.4% in Q2’24, reflecting a lower loss ratio of 57.5%, a lower acquisition ratio of 19.8%, and a slightly higher expense ratio of 11.6%.

In the insurance segment, underwriting income grew by 31.1% to $151 million in the second quarter of 2025, compared to $115 million in Q2’24. The reinsurance segment saw aa 17.5% dip in underwriting income for Q2’25 to $37.5 million, compared to $45.5 million in Q2’24.

For Q2’25, net income available to AXIS common shareholders is $216 million, or $2.72 per diluted common share, compared to $204 million, or $2.40 per diluted common share in Q2’24. The operating income for Q2’25 is $261 million, or $3.29 per diluted common share, compared to operating income of $250 million, or $2.93 per diluted common share in Q2’24.

In this quarter, AXIS completed a loss portfolio transfer reinsurance agreement to retrocede net reserves for losses and loss expenses of approximately $2 billion to Enstar.

Net investment income for Q2’25 is $187 million, compared to $191 million in Q2’24, with lower income from fixed maturities resulting from lower fixed maturity assets due to the LPT transaction, partially offset by higher returns on alternative investments.

Segment-wise, as mentioned earlier, reinsurance saw GPW decrease by 7% due to the timing of renewals in multiple lines, together with a lower level of premiums associated with accident and health lines, partially offset by premium adjustments and new business in credit and surety lines, explained AXIS. This also drove the NPW decrease of 9%, combined with increased cession rates to the firm’s strategic capital partners.

In the segment, for H1’25, however, GPW increased by $16 million, or 1% driven by new business and premium adjustments in credit and surety lines, together with the timing of renewals in liability lines, partially offset by decreased line sizes and non-renewals in accident and health, marine and aviation, and motor lines. Albeit, NPW decreased by $29 million, or 3% reflecting the increased cession rates to the strategic capital partners in the period, partially offset by the increase in GPW in the period.

In the insurance segment, AXIS reported, as mentioned earlier, GPW increase of 7% driven by all lines of business with the exception of cyber lines, which decreased in the quarter primarily due to a lower level of premiums associated with program business.

For Q2’25, NPW increased by $96 million, or 8%, reflecting the increase in GPW, combined with decreased cession rates in property and liability lines, partially offset by an increased cession rate in accident and health lines.

For H1’25 in the segment, GPW grew by $200 million, or 6%, attributable to all lines of business except cyber lines. NPW grew by $119 million, or 5%, reflecting the GPW growth, together with a decreased cession rate in property lines, partially offset by increased cession rates in accident and health, and cyber lines.

Overall, for H1’25, Group-wide GPW increased by $216 million, or 4% to $5.3 billion, while NPW increased by $90 million, or 3% to $3.4 billion. The combined ratio for H1’25 improved to 89.5% from 90.8% in H1’24.

Pre-tax catastrophe and weather-related losses, net of reinsurance, were $86 million or $69 million after-tax, with the insurance segment contributing $84 million and reinsurance adding $2 million, or 3.2 points, including $32 million, or 1.2 points, due to the California wildfires. The remaining losses were primarily attributable to other weather-related events, explains the firm.

Further, net favourable prior year reserve development was $38 million, with $29 million in insurance and $9 million in reinsurance, compared to $0 in 2024.

In the insurance segment, underwriting income grew by 19.9% in H1’25 to $286 million compared to $238 million in H1’24. The reinsurance segment saw underwriting income fall to $66 million from $68 million in H1’24.

For the first six months of 2025, net income hit $402 million, or $4.98 per diluted common share, and operating income totalled $523 million, or $6.47 per diluted common share.

Vince Tizzio, President and Chief Executive Officer, AXIS Capital, commented, “AXIS delivered an excellent second quarter highlighted by record profitability and we continued our trend of strong performance, with 18.6% diluted book value per share growth over the prior year. In the quarter, we produced an annualised operating return-on-equity of 19% and an 88.9% combined ratio. In addition, we set new company records for first half underwriting income and production, while targeting premium adequate business that meets our risk-adjusted returns.

“Our Insurance segment continued to excel, generating an 85.3% combined ratio and all-time highs in premium volume at $1.9 billion and underwriting income at $152 million, with increasing contributions from our new and expanded products. Our reinsurance business again generated steady positive bottom-line results, with a 92% combined ratio.

“Our sustained profitable growth is supported by the ongoing enhancement of our operations through our “How We Work” program, which is enabled by investments in technology and AI. While we acknowledge the progress achieved, we remain steadfast in advancing our strategy and providing value to our customers and the broader market.”

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