Axis posts improved combined ratio as premiums climb

Bermuda-based specialty re/insurer Axis Capital reported an improved combined ratio of 90.4% in the fourth quarter of 2025, alongside a 12% increase in gross written premiums to $2.2 billion.

However, the Q4 reinsurance combined ratio worsened to 93.9%, which was still better than analyst expectations of around 103%. Fourth-quarter reinsurance GWP rose by 13% to $310.7 million driven by new business in motor, credit and surety lines. 

Pre-tax catastrophe and weather-related losses, net of reinsurance, were $30 million, including a $17 million hit from Hurricane Melissa, which decimated Jamaica in October. 

Q4 underwriting income rose by 42% compared with the prior year quarter to $184 million, while net income was $289.6 million. 

Full-year results

The Axis Capital combined ratio for full-year 2025 was 89.8%, an improvement on 2024’s 92.3%. 

Full-year reinsurance combined ratio was flat at 92.6% compared with 91.8% in 2024.  

Full-year reinsurance GWP was $2.47 billion, an uplift of 9% across all lines of business except for cyber lines.

Last year’s pre-tax catastrophe and weather-related losses, net of reinsurance, were $159 million, split between primary insurer losses of $156 million and $3 million for reinsurance. Losses of $137 million were primarily attributable to California wildfires, Hurricane Melissa and other weather-related events. Remaining losses of $22 million were attributable to the Middle East conflict.

Full-year underwriting income rose by 27% to $725 million compared with year-end 2024. Net income dropped by 7% to $979 million for the year. 

Vince Tizzio (pictured), president and CEO of Axis Capital, said: “The fourth quarter capped an outstanding year for Axis as we continued to drive sustained profitable growth while executing on our specialty strategy.

“Our insurance business generated excellent results, highlighted by a 9% year-over-year increase in gross premiums written at $7.2 billion and an 86.1% combined ratio. A key driver was our new and expanded business lines, which we believe have significant upside potential.”

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