Axis Capital Books 18% Book Value per Share Gain to $77.20 and 89.8% Combined Ratio
Axis Capital reported full-year 2025 diluted book value per share of $77.20, up 18%, and record gross written premiums of $9.6 billion (up 7%). The insurer achieved its lowest combined ratio since 2010 at 89.8% and posted 40% higher insurance underwriting income of $597 million.
1. Record Premiums and Book Value Growth
Axis Capital capped 2025 with record gross written premiums of $9.6 billion, a 7% increase year over year, and achieved its lowest full-year combined ratio since 2010 at 89.8. CEO Vince Tizzio noted the company delivered 13 consecutive quarters of diluted book value per share growth, up 77% over that period, finishing 2025 with diluted book value per common share of $77.20, an 18% increase versus 2024. The insurer also generated an 18% operating return on equity for the full year, underscoring strength across its underwriting and investment operations.
2. Insurance Segment Performance
The insurance division produced record gross written premiums of $7.2 billion, up 9%, and record new premiums written of $2.4 billion in 2025. Underwriting income climbed by 40% to $597 million, while the combined ratio improved by three points to 86. For the fourth quarter alone, insurance premiums rose 12% to $1.9 billion and the combined ratio tightened to 86.5%. CFO Pete Vogt highlighted that growth was broad-based across all classes except cyber, which remains under a cautious posture due to elevated ransomware risk and pricing pressure.
3. Reinsurance Segment and ACS Progress
AXIS Re delivered a full-year combined ratio of 92.6% and underwriting income of $128 million on $2.5 billion of gross written premiums, reflecting a low single-digit premium increase. Fourth-quarter reinsurance volume was bolstered by a large UK motor quota share transaction that will not recur in Q4 2026. Meanwhile, AXIS Capacity Solutions (ACS) booked its first premiums in Q4, totaling approximately $20 million of gross written premiums for structured portfolios backed by third-party capital, positioning the firm to earn future underwriting fees.
4. Expense Management, Reserves and Capital Return
Consolidated G&A expenses improved to 12.4% of premiums for 2025 from 12.6% in 2024, with a normalized 11.6% ratio excluding variable compensation. The company reaffirmed its target of 11% in 2026. Catastrophe losses totaled $30 million in Q4, driven by Hurricane Melissa, and produced a 2.8% full-year cat ratio, with expectations of a normalized 4%–5% range. AXIS released $30 million of reserves in the quarter following favorable short-tail trends and an independent actuarial review. Investment income rose 1% to $767 million for the year, and the effective tax rate is expected to settle at 19%–20%. Capital return included $139 million in dividends and $888 million in share repurchases, with $112 million remaining under authorization, while prioritizing funding for organic growth.