Bermuda-based insurer and reinsurer AXIS Capital Holdings Limited’s combined ratio improved to 90.4% and 89.8% in the fourth quarter and full year of 2025, respectively, with catastrophe losses falling in both periods compared with the same period a year earlier and net favorable reserve development (PYD) higher in the prior year.
AXIS Capital ended 2025 strongly, with group net profit of $282 million in the fourth quarter, down slightly from $286.1 million in the fourth quarter of 2024, but total revenue increased to $1.7 billion in the period.
In 4Q25, gross written premiums (GPW) increased by 12% to US$2.2 billion, with the insurance segment increasing by 12% to US$1.9 billion and the reinsurance segment increasing by 13% to US$311 million. Net written premiums (NPW) increased by 13% year-on-year to US$1.4 billion, of which insurance business increased by 14% to US$1.2 billion and reinsurance increased by 5% to US$176 million.
In the Insurance segment, AXIS attributed premium growth to most business lines, while in Reinsurance, the quarterly expansion was driven by new business in motor lines, credit and guarantee lines, and premium adjustments in credit and guarantee lines, partially offset by premium adjustments in specialty lines.
Across the business, pre-tax catastrophe and weather-related losses (net of reinsurance) related to the Insurance segment totaled $30 million in Q4 2025, of which $17 million was related to Hurricane Melissa and the remaining losses were primarily attributable to other weather-related events.
During the quarter, AXIS benefited from net favorable reserve development of $30 million, $23 million of insurance and $7 million of reinsurance in the prior year, compared to just $16 million in 4Q24.
In the fourth quarter of 2025, the reinsurer’s underwriting performance improved 42% to $184 million, with a combined ratio of 90.4%, compared with underwriting revenue of $130 million and a combined ratio of 94.2% in the same period last year.
On the assets side of the balance sheet, net investment income fell to $187 million in 4Q25 from $196 million in 4Q24.
The Bermuda-based airline also had a strong full-year performance, with revenue up 7% to $9.6 billion. In 2025, the insurance segment’s total revenue will increase by 9% to $7.2 billion, and the reinsurance segment will increase by 3% to $2.5 billion. For the full year of 2025, the group’s net net income increased by 6% to US$6.1 billion, with insurance business increasing by 9% to US$4.6 billion, partially offset by a 1% decrease in reinsurance business to US$1.5 billion.
AXIS again attributed this year’s premium growth in the insurance division to most business lines except network lines. In reinsurance, premium growth reflected new business and premium adjustments, while the decline in net net income reflected cession rates from the company’s strategic capital partners consistent with recent times.
Pre-tax catastrophe and weather-related losses (excluding reinsurance) for the full year reached US$159 million, of which the insurance sector lost US$156 million and the reinsurance sector only suffered US$3 million. This includes $137 million in natural disaster and weather-related losses, primarily due to the California wildfires, Hurricane Melissa and other weather-related events. Conflict in the Middle East resulted in full-year losses of $22 million.
During the year, AXIS recorded a favorable net increase in reserves of $87 million in the prior year, amortizing $67 million in insurance and $20 million in reinsurance, compared with a favorable increase in prior year provisions of $24 million in 2024.
Group-wide, AXIS reported underwriting revenue of $725 million in 2025, up 27% year-on-year, with a combined ratio of 89.8%. This compares to underwriting revenue of $571 million in 2024 and a combined ratio of 92.3%.
Full-year investment performance improved slightly year-on-year in 2025, with net investment income of US$767 million compared with US$759 million in 2024.
All told, AXIS’s 2025 net profit was $979 million, down 7%, or $73 million, from the previous year. Full-year operating income in 2025 will increase by 8% year-on-year to US$1 billion.
Vince Tizzio, President and CEO of AXIS Capital, said: “The fourth quarter capped an outstanding year for AXIS as we continued to drive continued profitable growth while executing on our specialized strategy. In 2025, we achieved our stated goals with diluted book value per common share increasing 18% year-over-year, operating return on equity (ROE) of 18.1%, combined ratio of 89.8%, and record gross premiums of 96 billion, an increase of 7% from the same period last year.
“Our insurance business delivered excellent results, with gross premiums growing 9% year over year to $7.2 billion and a combined ratio of 86.1%. A key driver was our new and expanded business lines, which we believe have significant upside potential. We also saw solid bottom-line performance from our Target Reinsurance business, which posted a combined ratio of 92.6% for the year.
“We now continue to operate as One AXIS, taking advantage of the best opportunities in our chosen markets, driving efficiencies through our way of working initiatives and strengthening our market position as a differentiated specialist leader.”
