AXIS Capital (AXS) Q1 2025 earnings summary

Executive summary

• Achieved record operating EPS of $3.17 and record diluted book value per share of $66.48 in Q1 2025, up 16.4% year-over-year.

• Net income available to common shareholders was $187 million ($2.26 per diluted share), with operating income of $261 million ($3.17 per share).

• Gross premiums written rose 5% year-over-year to $2.8 billion, with both Insurance and Reinsurance segments contributing.

• Annualized operating return on average common equity (ROACE) reached 19.2%.

• Completed a major loss portfolio transfer with Enstar affiliate in April 2025.

Financial highlights

• Book value per diluted common share was $66.48, up 16.4% year-over-year and 1.9% from year-end 2024.

• Net investment income increased 24% year-over-year to $208 million, with a market yield of 5.2% on fixed maturities.

• Combined ratio improved to 90.2% from 91.1% year-over-year.

• Debt to total capital ratio stood at 18.2% as of March 31, 2025.

• 5 million common shares were repurchased for $440 million; $160 million remained under the current program.

Outlook and guidance

• Expecting mid to high single-digit net written premium growth for the remainder of 2025.

• Targeting a G&A ratio below 11% by 2026 through operational efficiency initiatives.

• Full-year effective tax rate anticipated to be in the high teens, impacted by Bermuda's 15% corporate tax.

• Strategic focus remains on specialty products, disciplined underwriting, and leveraging market dislocations.

• Favorable outlook for investment income, with market yield above book yield.