AXIS CAPITAL HOLDINGS LTD
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
AXS$105.97-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001214816-24-000106
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001214816-25-000115
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 326 previous paragraphs and 288 current paragraphs.
150 unchanged; 90 reworded; 48 added; 82 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS
Current report
•Operating income(1) of $261 million, or $3.17 per diluted common share(1)
Current report
•Gross premiums written of $2.8 billion
Current report
•Net premiums written of $1.8 billion
Current report
•Net premiums earned of $1.3 billion
Current report
•Pre-tax, catastrophe and weather-related losses, net of reinsurance, of $49 million ($38 million, after-tax), (Insurance: $47.5 million; Reinsurance: $1.5 million), or 3.7 points, including $32 million, 2.4 points attributable to California Wildfires. The remaining losses were primarily attributable to other weather-related events.
Current report
•Net investment income of $208 million
Current report
•Net investment losses of $30 million
Current report
•Foreign exchange losses of $57 million
Current report
•Income tax expense of $44 million
Current report
•Total assets of $33.2 billion
Current report
The current trade and geopolitical environment introduces uncertainty across several dimensions including potential impacts on economic growth, loss costs, and the threat of a recessionary environment. At AXIS, on an ongoing basis we assess all forms of uncertainty presented, and through our normal underwriting practices we take steps and measures that guard against adverse outcomes.
Current report
Nonetheless, the overall outlook for the property and casualty market remains favorable for specialty insurance and reinsurance carriers. Looking at the trends impacting our business:
Current report
•Following multiple years of rate increases outpacing loss cost trends across the specialty sector, overall pricing has moderated and in some sectors is softening. Casualty lines continue to see positive rate achievement while property rates are deteriorating due to the influx of capital being deployed in the space. We continue to lean into sectors, where premium adequacy metrics are strong, where market dislocations arise and where organic profitable growth opportunities exist.
Current report
•The wholesale channel continues to experience substantial submission growth due to dislocations in the standard lines markets. This dynamic enables specialty carriers to deploy a disciplined underwriting strategy to market opportunities.
Current report
Loss Portfolio Transfer Reinsurance Agreement with Enstar
Current report
On April 24, 2025, we completed a loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years (refer to Item 1, Note 14 to the Consolidated Financial Statements 'Related Party Transactions' for further details).
Current report
The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $3.1 billion at September 30, 2024 and provides cover up to a policy limit of approximately $940 million. The transaction is deemed to have met the established criteria for retroactive reinsurance accounting.
Current report
Under the terms of the loss portfolio transfer reinsurance agreement, we will retain responsibility for the management of claims.
Current report
Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the loss portfolio transfer reinsurance agreement will protect us from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreement.
Current report
Corporate income tax of 15% applied to Bermuda pre-tax income effective January 1, 2025, resulting in an effective tax rate of 18.6% due to pre-tax income in our Bermuda, U.K., U.S., and European operations.
Current report
The increases in credit and political risk, professional lines, accident and health, property, and marine and aviation lines were driven by new business.
Current report
The increase in property lines was also due to the timing of renewals of offshore energy business, partially offset by a lower level of premiums related to business written on a line slip basis associated with competitive market conditions.
Current report
The decrease in cyber lines was related to the cancellation of two significant programs, partially offset by negative premium adjustments inthe three months ended March 31, 2024 related to business written on a line slip basis.
Current report
The increase in cyber lines was due to higher costs associated with an excess of loss treaty for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, partially offset by the decrease in gross premiums written for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Current report
The increases in liability, and credit and political risk lines reflected the increase in gross premiums written for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Current report
The decrease in property lines was due to the restructuring of a significant existing quota share treaty, partially offset by the increase in gross premiums written for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Current report
Net premiums earned for the three months ended March 31, 2025 increased by$92 million, or 10%, compared to the three months ended March 31, 2024.
Current report
The current accident year loss ratio increased to 57.0% for the three months ended March 31, 2025, from 54.1% for the three months ended March 31, 2024.
Current report
The acquisition cost ratio of 19.2% for the three months ended March 31, 2025, was consistent with the acquisition cost ratio of 19.2% for the three months ended March 31, 2024.
Current report
The underwriting-related general and administrative expense ratio decreased to 11.9% for the three months ended March 31, 2025, from 13.3% for the three months ended March 31, 2024, mainly driven an increase in net premiums earned.
Current report
Gross premiums written for the three months ended March 31, 2025, increased by $59 million, or 5%($60 million, or 6%, on a constant currency basis), compared to the three months ended March 31, 2024. The increase was primarily attributable to professional lines, credit and surety, liability, and agriculture lines, partially offset by decreases in accident and health, motor, and marine and aviation lines.
Current report
The increase in professional lines was attributable to new cyber business, and the timing of renewals of two significant contracts, partially offset by decreased line sizes and non-renewals.
Current report
The increase in credit and surety lines was driven by new business, including whole account turnover credit business, structured credit and political risk business, mortgage business, and new proportional surety business together with increased line sizes on credit business.
Current report
The increase in liability lines was due to the timing of renewals, the restructuring of a significant contract at Lloyds, and new business, partially offset by non-renewals.
Current report
The decrease in marine and aviation lines was related to non-renewals and decreased line sizes attributable to client retentions and increased competition for marine business.
Current report
Ceded premiums written for the three months ended March 31, 2025, was $433 million, or 38%, of gross premiums written, compared to $380 million, or 35%, of gross premiums written for the three months ended March 31, 2024. The increase in ceded premiums written of $53 million, or 14%, was primarily driven by increases in liability, professional lines, credit and surety, and agriculture lines, partially offset by decreases in motor, and accident and health lines.
Current report
The increase in liability, professional lines, credit and surety, and agriculture lines reflected the increase in gross premiums written in the three months ended March 31, 2025, compared to the three months ended March 31, 2024, and the restructuring of significant quota share retrocession treaties with strategic capital partners.
Current report
Net premiums earned for the three months ended March 31, 2025, decreased by $9 million, or 3%, ($3 million, or 1%, on a constant currency basis), compared to the three months ended March 31, 2024.
Current report
The decrease was primarily driven by decreases in gross premiums earned in accident and health, and liability lines, together with increases in ceded premiums earned in professional lines and credit and surety lines. These amounts were partially offset by increases in gross premiums earned in credit and surety, agriculture, and professional lines.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (82)
Previous report
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
Previous report
•Operating income(1) of $230 million, or $2.71 per diluted common share(1)
Previous report
•Gross premiums written of $1.9 billion
Previous report
•Net premiums written of $1.2 billion
Previous report
•Net premiums earned of $1.4 billion
Previous report
•Pre-tax catastrophe and weather-related losses, net of reinsurance, of $78 million ($64 million, after-tax), (Insurance: $71 million; Reinsurance: $7 million), or 5.8 points, including $43 million, 3.2 points attributable to Hurricane Helene and Hurricane Beryl, and $2 million, or 0.2 points attributable to the Red Sea Conflict
Previous report
•Net investment income of $205 million
Previous report
•Net investment gains of $32 million
Previous report
•Foreign exchange losses of $92 million
Previous report
•Total assets of $32.7 billion
Previous report
Overall, the current property and casualty market trends continue to be favorable for specialty insurance and reinsurance carriers. We anticipate market rate change to continue to exceed loss cost trends across the casualty classes but do expect to experience moderate rate erosion in the first party as well as financial lines sectors. Following multiple years of rate increases outpacing loss cost trends across the specialty sector, pricing has moderated in these distinct areas due to the emergence of new capital creating an increase in available capacity. We will continue to lean into sectors, and sub sectors, where premium adequacy metrics remain strong and where we see market dislocations creating opportunity for additional profitable growth.
Previous report
The wholesale channel continues to experience growth due to market dislocations in the admitted market. We anticipate this continuing throughout 2024 with market opportunities arising predominantly in Specialty and Excess and Surplus lines. We continue to pursue targeted growth opportunities by employing a disciplined underwriting appetite and strategy.
Previous report
AXIS Syndicate 2050
Previous report
On February 15, 2024, Lloyd's granted AXIS Energy Transition Syndicate 2050 ("AXIS Syndicate 2050") permission to underwrite and on April 1, 2024, AXIS Syndicate 2050, which is dedicated to providing capacity for new energy projects with a critical role in supporting the transition to net zero, commenced underwriting. AXIS Corporate Capital UK II Limited is the sole corporate member of AXIS Syndicate 2050. AXIS Managing Agency operates as managing agent for AXIS Syndicate 2050.
Previous report
How We Work Program
Previous report
Reorganization expenses of $nil and $26 million for the three and nine months ended September 30, 2024, respectively, primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying the operating structure.
Previous report
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (the "Act") which will apply a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, we recorded a net deferred tax asset of $163 million in the three months ended March 31, 2024, which we expect to utilize mainly over a 10-year period. We expect to incur increased taxes in Bermuda beginning in 2025. The Bermuda net deferred tax benefit is excluded from operating income (loss).
Previous report
Gross premiums written for the three months ended September 30, 2024 increased by $69 million, or 5%, compared to the three months ended September 30, 2023. The increase was primarily attributable to property, accident and health, credit and political risk, and liability lines, partially offset by decreases in cyber, and marine and aviation lines.
Previous report
The decrease in cyber lines was due to a lower level of premiums associated with the cancellation of a significant program, and premium adjustments related to business written on a line slip basis. The decrease in marine and aviation lines was related to lower level of premiums attributable to program business and reduced business opportunities associated with renewable energy projects.
Previous report
Gross premiums written for the nine months ended September 30, 2024 increased by $358 million, or 8%, compared to the nine months ended September 30, 2023. The increase was primarily attributable to property, accident and health, credit and political risk, marine and aviation, and professional lines, partially offset by decreases in cyber, and liability lines.
Previous report
The increase in property lines was due to new business, a higher level of premiums associated with renewed business and increased lines sizes on several programs. The increase in accident and health lines was driven by new pet insurance business, partially offset by non-renewals. The increase in credit and political risk lines was attributable to new business, partially offset by non-renewals. The increase in marine and aviation lines was related to premium adjustments associated with marine war business written on a line slip basis, new marine business, and favorable rate changes in marine business as well as aviation business. The increase in professional lines was attributable to higher level of activity in transactional liability business, partially offset by a decrease in U.S. public D&O business reflecting the unattractive pricing environment.
Previous report
Ceded premiums written for the three months ended September 30, 2024 was $551 million, or 36%, of gross premiums written, compared to $572 million, or 39%, of gross premiums written for the three months ended September 30, 2023. The decrease in ceded premiums written of $22 million, or 4%, was primarily driven by decreases in cyber, professional lines, and marine and aviation lines, partially offset by an increase in accident and health lines.
Previous report
The decreases in cyber, and professional lines were due to the restructuring of significant existing quota share treaties. The decrease in cyber lines also reflected the decrease in gross premiums written for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The decrease in marine and aviation lines was attributable to the decrease in gross premiums written for the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Previous report
The decreases in cyber, and professional lines were due to the restructuring of significant existing quota share treaties. The decrease in cyber lines also reflected the decrease in gross premiums written for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.
Previous report
Net premiums earned for the three months ended September 30, 2024 increased by $138 million, or 16%($132 million, or 15%, on a constant currency basis(1)), compared to the three months ended September 30, 2023.
Previous report
Net premiums earned for thenine months ended September 30, 2024 increased by $355 million, or 14%, compared to thenine months ended September 30, 2023.
Previous report
The increase was primarily driven by increases in gross premiums earned in property, marine and aviation, accident and health, and credit and political risk lines, together with decreases in ceded premiums earned in professional lines and cyber lines. These amounts were partially offset by increases in ceded premiums earned in property, marine and aviation, and credit and political risk lines, together with decreases in gross premiums earned in professional lines and cyber lines.
Previous report
The current accident year loss ratio increased to 59.3% for the three months ended September 30, 2024, from 55.7% for the three months ended September 30, 2023.
Previous report
The increase in the current accident year loss ratio for the three months ended September 30, 2024, compared to the same period in 2023, was impacted by a higher level of catastrophe and weather-related losses. During the three months ended September 30, 2024, catastrophe and weather-related losses, were $71 million, or 7.0 points, including natural catastrophe and weather-related losses of $69 million or 6.8 points, primarily attributable to Hurricane Helene, Hurricane Beryl, and other weather-related events. The remaining losses of $2 million, or 0.3 points were attributable to the Red Sea Conflict. Comparatively, during the three months ended September 30, 2023, catastrophe and weather-related losses, were $37 million, or 4.2 points, primarily attributable to Maui wildfires, Hurricane Idalia, and other weather-related events.
Previous report
The current accident year loss ratio increased to 56.8% for the nine months ended September 30, 2024, from 55.2% for the nine months ended September 30, 2023.
Previous report
The increase in the current accident year loss ratio for the nine months ended September 30, 2024, compared to the same period in 2023, was impacted by a higher level of catastrophe and weather-related losses. During the nine months ended September 30, 2024, catastrophe and weather-related losses, were $136 million, or 4.7 points, including natural catastrophe and weather-related losses of $123 million, or 4.3 points, primarily attributable to Hurricane Helene, Hurricane Beryl, and other weather-related events. The remaining losses of $13 million, or 0.5 points were attributable to the Red Sea Conflict. Comparatively, during the nine months ended September 30, 2023, catastrophe and weather-related losses, were $88 million, or 3.5 points, primarily attributable to the Earthquake in Turkey, Maui wildfires, Cyclone Gabrielle, New Zealand floods, Hurricane Idalia, and other weather-related events.
Previous report
The underwriting-related general and administrative expense ratio decreased to 11.6% for the three months ended September 30, 2024, from 13.6% for the three months ended September 30, 2023, mainly driven by an increase in net premiums earned.
Previous report
The underwriting-related general and administrative expense ratio decreased to 12.2% for the nine months ended September 30, 2024, from 13.7% for the nine months ended September 30, 2023, mainly driven by an increase in net premiums earned and a decrease in information technology costs, partially offset by an increase in professional fees.
Previous report
Gross premiums written for the three months ended September 30, 2024, decreased by $39 million, or 9% ($36 million, or 8%, on a constant currency basis), compared to the three months ended September 30, 2023. The decrease was primarily attributable to liability, accident and health, catastrophe, agriculture, and property lines, partially offset by increases in credit and surety, motor, and marine and aviation lines.
Previous report
The decrease in liability lines was related to the restructuring of two significant contracts, negative premium adjustments largely associated with one significant contract in the three months ended September 30, 2024, compared to positive premium adjustments associated with favorable market conditions in three months ended September 30, 2023, together with the timing of renewals of several contracts, partially offset by new business.
Previous report
The decreases in catastrophe and property lines were attributable to the exit from this line of business in June 2022.
Previous report
The decrease in agriculture lines was due to the timing of renewals of several contracts, partially offset by new business.
Previous report
The increase in credit and surety lines was driven by new business and premium adjustments associated with mortgage business.
Previous report
The increase in motor lines was due to the timing of the renewal of two significant contracts and a higher level of positive premium adjustments associated with favorable market conditions in the three months ended September 30, 2024, compared to a lower level of positive premium adjustments attributable to several contracts in the three months ended September 30, 2023.
Previous report
The increase in marine and aviation lines was driven by new marine multi-line business.
Showing the first 40 of 82 passages. Open the source sections for the rest.
Reworded paragraphs (90)
Previous wording
The following is a discussion and analysis of our results of operations for the three and nine months ended September 30, 2024 and 2023 and our financial condition at September 30, 2024 and December 31, 2023. This should be read in conjunction with Item 1 'Consolidated Financial Statements' of this report and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts in tables may not reconcile due to rounding differences.
Current wording
The following is a discussion and analysis of our results of operations for the three months ended March 31, 2025 and 2024 and our financial condition at March 31, 2025 and December 31, 2024. This should be read in conjunction with Item 1 'Consolidated Financial Statements' of this report and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts in tables may not reconcile due to rounding differences.
Previous wording
Third Quarter 2024 Consolidated Results of Operations
Current wording
First Quarter 2025 Consolidated Results of Operations
Previous wording
•Net income available to common shareholders of $173 million, or $2.06 per common share, and $2.04 per diluted common share
Current wording
•Net income available to common shareholders of $187 million, or $2.30 per common share, and $2.26 per diluted common share
Previous wording
•Net favorable prior year reserve development of $8 million (Insurance: $4 million; Reinsurance: $4 million)
Current wording
•Net favorable prior year reserve development of $18 million (Insurance: $14 million; Reinsurance: $4 million)
Previous wording
•Underwriting income(2) of $135 million and combined ratio of 93.1%
Current wording
•Underwriting income(2) of $163 million and combined ratio of 90.2%
Previous wording
Third Quarter 2024 Consolidated Financial Condition
Current wording
First Quarter 2025 Consolidated Financial Condition
Previous wording
•Total cash and investments of $18.1 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 88% of total cash and investments and have an average credit rating of AA-
Current wording
•Total cash and investments of $17.8 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 88% of total cash and investments and have an average credit rating of AA-
Previous wording
•Reserve for losses and loss expenses of $17.3 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $7.3 billion
Current wording
•Reserve for losses and loss expenses of $17.5 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $7.5 billion
Previous wording
•Debt of $1.3 billion and debt to total capital ratio(3) of 17.8%
Current wording
•Debt of $1.3 billion and debt to total capital ratio(3) of 18.2%
Previous wording
•Total common shares repurchased were 542,000 shares for a total of $40 million, including$40 million repurchased pursuant to our Board-authorized share repurchase program and$0.4 million from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units
Current wording
•Total common shares repurchased were 5.0 million shares for a total of $465 million, including$440 million repurchased pursuant to our Board-authorized share repurchase program, and$25 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units
Previous wording
•Common shareholders’ equity of $5.5 billion; book value per diluted common share of $64.65
Current wording
•Common shareholders’ equity of $5.4 billion; book value per diluted common share of $66.48
Previous wording
We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, corporate citizenship and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global leader in specialty risks. The execution of our business strategy for the first nine months of 2024 included the following:
Current wording
We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, corporate citizenship and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy for the first three months of 2025 included the following:
Previous wording
•growing in a number of attractive specialty insurance and reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business;
Current wording
•growing in a number of attractive specialty lines insurance and treaty reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business;
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•leveraging our global platform to introduce our products and services to new regions including the expansion of our London specialty lines to North America markets;
Current wording
•leveraging our global platform to introduce our products and services to new regions including the continued expansion of our North America product capabilities;
Previous wording
•investing in data and technology capabilities, and tools to empower our underwriters and enhance the service that we provide to our customers;
Current wording
•investing in data and technology, and exploring AI capabilities and tools, to empower our underwriters and enhance the service that we provide to our customers;
Previous wording
•growing our corporate citizenship program to give back to our communities and help contribute to a more sustainable future.
Current wording
•growing our corporate citizenship program to support our communities and help contribute to a more sustainable future.
Previous wording
We are committed to advancing AXIS as a specialty underwriting leader that delivers consistent, profitable growth. We believe our market positioning, diversified book of business, specialty underwriting acumen, global platform, claims management capabilities, and deep distribution relationships, supported by a conservative and well performing investment portfolio, provides opportunity for continued and increased profitability.
Current wording
We are executing on our commitment to advance AXIS as a specialty underwriting leader that delivers consistent, profitable growth. Our market positioning, diversified book of business, specialty underwriting acumen, global platform, claims management capabilities, and deep distribution relationships, supported by a conservative and well performing investment portfolio, provide the foundation for additional profitable growth in our targeted specialty markets.
Previous wording
Pricing momentum in non-proportional reinsurance continues to be strong while our proportional reinsurance business is benefiting from rate increases in the underlying business. We expect these market conditions to persist in the near term. We continue to focus on underwriting discipline to drive targeted profitable growth among the specialty and casualty reinsurance lines that we offer.
Current wording
•Pricing momentum in non-proportional reinsurance continues while our proportional reinsurance business is benefiting from rate increases in the underlying business. While we expect these market conditions to persist, we are seeing nuances by line of business. We continue to focus on underwriting discipline and targeted profitable growth.
Previous wording
Across the business, we will continue to pursue targeted growth opportunities by employing a disciplined underwriting strategy and appetite. Where prices continue to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strengthened book of business, and an expanding footprint in specialty markets experiencing favorable conditions, we believe AXIS is well positioned to drive profitable growth within the current environment.
Current wording
Across the business, we will pursue attractive opportunities by employing a focused underwriting strategy and selective appetite. Where price continues to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strengthened book of business, and an expanding footprint in attractive specialty markets, we believe AXIS remains positioned to drive profitable growth in 2025 and beyond.
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Bermuda Corporate Income Tax Act 2023
Current wording
Bermuda Corporate Income Tax
Previous wording
(1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $33,621 and $40,682 for thethree months ended September 30, 2024 and 2023, respectively, and$86,873 and $102,345 for the nine months ended September 30, 2024 and 2023, respectively. Refer to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
Current wording
(1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $29 million and $26 million for thethree months ended March 31, 2025 and 2024, respectively. Refer to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
Previous wording
(2) The general and administrative expense ratio included corporate expenses not allocated to underwriting segmentsof 2.5% and 3.1% for the three months ended September 30, 2024 and 2023, respectively, and 2.2% and 2.7% for the nine months ended September 30, 2024 and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net'for further details.
Current wording
(2) The general and administrative expense ratio included corporate expenses not allocated to underwriting segmentsof 2.1% and 2.0% for the three months ended March 31, 2025 and 2024, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net'for further details.
Previous wording
Gross premiums written for the nine months ended September 30, 2024, increased by $100 million, or 5%, compared to the nine months ended September 30, 2023. The increase was primarily attributable to credit and surety, professional lines, marine and aviation, agriculture, motor, and accident and health lines, partially offset by decreases in catastrophe, liability and property lines.
Current wording
Gross premiums written for the three months ended March 31, 2025 increased by $81 million, or 5% ($89 million, or 6%, on a constant currency basis(1)), compared to the three months ended March 31, 2024. The increase was primarily attributable to credit and political risk, professional lines, accident and health, property, liability, and marine and aviation lines, partially offset by a decrease in cyber lines.
Previous wording
The increases in property lines, and credit and political risk lines were due to new business. The increase in property lines was also due to a higher level of premiums associated with renewed business and increased lines sizes on several programs. The increase in credit and political risk lines was also attributable to the timing of the renewal of a significant program, partially offset by a decrease in business opportunities. The increase in accident and health lines was driven by new pet insurance business and a higher level of premiums associated with renewed pet insurance business. The increase in liability lines was driven by favorable rate change associated with excess casualty business, partially offset by a decrease in primary casualty business attributable to underwriting actions taken to reposition the portfolio.
Current wording
The increase in accident and health lines was also due to a higher level of premiums associated with renewed pet insurance business.
Previous wording
The decrease in credit and surety lines was partially offset by the increase in gross premiums written in the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Current wording
The increase in marine and aviation lines was partially offset by the timing of a renewal in aviation war business.
Previous wording
The decrease in cyber lines was due to lower levels of premiums associated with two significant programs, and premium adjustments related to business written on a line slip basis, partially offset by new business. The decrease in liability lines was driven by a decrease in primary casualty business attributable to underwriting actions taken to reposition the portfolio, partially offset by favorable rate change associated with excess casualty business.
Current wording
The increase in liability lines was driven by favorable rate change associated with U.S. excess casualty business, partially offset by a decrease in U.S. primary casualty business attributable to underwriting actions taken to reposition the portfolio.
Previous wording
Ceded premiums written for the nine months ended September 30, 2024 was $1,723 million, or 35%, of gross premiums written, compared to $1,769 million, or 39%, of gross premiums written for the nine months ended September 30, 2023. The decrease in ceded premiums written of $46 million, or 3%, was primarily driven by decreases in cyber, and professional lines, partially offset by increases in property, accident and health, credit and political risk, and marine and aviation lines.
Current wording
Ceded premiums written for the three months ended March 31, 2025 was $611 million, or 37%, of gross premiums written, compared to $552 million, or 35%, of gross premiums written for the three months ended March 31, 2024. The increase in ceded premiums written of $59 million, or 11%, was primarily driven by increases in accident and health, cyber, liability, and credit and political risk lines, partially offset by decreases in property, and marine and aviation lines.
Previous wording
The increase in accident and health lines was driven by a new quota share treaty and the increase in gross premiums written for the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Current wording
The increase in accident and health lines was attributable to a new quota share treaty and the increase in gross premiums written for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Previous wording
(1) Amounts presented on a constant currency basis are non-GAAP financial measures as defined in Item 10 (e) of SEC Regulation S-K. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to the prior year balance.
Current wording
(1) Amounts presented on a constant currency basis are non-GAAP financial measures as defined in Item 10 (e) of SEC Regulation S-K. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to the prior year balance. Variances that are unchanged on a constant currency basis are omitted from the narrative.
Previous wording
The increase in property lines reflected the increase in gross premiums written for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, and the restructuring of a significant existing quota share treaty. The increase in accident and health lines was driven by a new quota share treaty and the increase in gross premiums written for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase in credit and political risk lines was due to the increase in gross premiums written for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase in marine and aviation lines was attributable to reinstatement premiums associated with losses and loss expenses for the nine months ended September 30, 2024.
Current wording
The decrease in marine and aviation lines was attributable to reinstatement premiums associated with losses and loss expenses for the three months ended March 31, 2024.
Previous wording
The increase was primarily driven by increases in gross premiums earned in property, credit and political risk, and accident and health lines, together with decreases in ceded premiums earned in professional lines and cyber lines. These amounts were partially offset by increases in ceded premiums earned in property, and credit and political risk lines.
Current wording
The increase was primarily driven by increases in gross premiums earned in property, and credit and political risk lines, together with decreases in ceded premiums earned in marine and aviation, and professional lines. These amounts were partially offset by increases in ceded premiums earned in liability, and credit and political risk lines.
Previous wording
The current accident year loss ratio for three months ended September 30, 2024, compared to the same period in 2023, was impacted by a higher level of catastrophe and weather-related losses. During the three months ended September 30, 2024, catastrophe and weather-related losses, were $7 million, or 2.0 points, primarily attributable to weather-related events. Comparatively, during the three months ended September 30, 2023, catastrophe and weather-related losses, were $5 million, or 1.0 point, primarily attributable to weather-related events.
Current wording
The increase in the current accident year loss ratio for three months ended March 31, 2025, compared to the same period in 2024, was impacted by a higher level of catastrophe and weather-related losses. During the three months ended March 31, 2025, catastrophe and weather-related losses, net of reinsurance, were $47.5 million, or 4.7 points, including $30.5 million, or 3.0 points attributable to California Wildfires. The remaining losses were primarily attributable to other weather-related events. Comparatively, during the three months ended March 31, 2024, catastrophe and weather-related losses, were $19 million, or 2.1 points, attributable to weather-related events.
Previous wording
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 52.3% for the three months ended September 30, 2024, from 51.5% for the three months ended September 30, 2023. The increase was principally due to higher loss ratios in cyber and liability lines consistent with changes in loss assumptions, partially offset by the change in business mix attributable to the increase in property business written in recent periods which is associated with a relatively lower loss ratio, and improved loss experience in property lines.
Current wording
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 52.3% for the three months ended March 31, 2025, from 52.0% for the three months ended March 31, 2024, principally due to the adverse impact of loss trends over pricing in property, and the specialty other reserve classes, partially offset by the change in business mix attributable to the increase in property business written in recent periods that is associated with a relatively lower loss ratio.
Previous wording
Refer to Item 1, Note 7 to the Consolidated Financial Statements'Reserve for losses and loss expenses' for details on prior year reserve development by the lines of business.
Current wording
Refer to Item 1, Note 6 to the Consolidated Financial Statements'Reserve for losses and loss expenses' for details on prior year reserve development by segment, reserve class and accident year.
Previous wording
The acquisition cost ratio increased to 19.9% for the three months ended September 30, 2024, from 19.1% for the three months ended September 30, 2023, primarily related to changes in business mix driven by an increase in credit and political risk, and accident and health business written in recent periods which is associated with relatively higher gross variable acquisition costs and a decrease in professional lines business written in recent periods which is associated with relatively lower gross variable acquisition costs.
Current wording
Gross variable acquisition costs increased for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, related to changes in business mix attributable to increases in accident and health, and credit and political risk lines business written in recent periods that are associated with relatively higher gross variable acquisition costs, together with a decrease in professional lines business written in the recent periods that is associated with relatively lower gross variable acquisition costs.
Previous wording
The acquisition cost ratio increased to 19.6% for the nine months ended September 30, 2024, from 18.6% for the nine months ended September 30, 2023, primarily related to a decrease in ceding commission in professional lines.
Current wording
The acquisition cost ratio for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, also benefited from an increase in ceding commission in accident and health, and property lines, partially offset by a decrease in ceding commission in professional lines.
Previous wording
The increase in agriculture lines was due to new business, partially offset by negative premium adjustments associated with challenging market conditions in the nine months ended September 30, 2024, compared to positive premium adjustments in the nine months ended September 30, 2023.
Current wording
The increase in agriculture lines was due to new business.
Previous wording
Thedecrease in liability lines was related to non-renewals, the restructuring of several significant contracts, and a lower level of positive premium adjus tments in the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, partially offset by new business.
Current wording
The decrease in accident and health lines was driven by decreased line sizes attributable to increased competition and negative premium adjustments in the three months ended March 31, 2025, compared to positive premium adjustments in the three months ended March 31, 2024, partially offset by the timing of renewals of several significant contracts.
Previous wording
The increase in motor lines was due to the timing of the renewal of a significant proportional contract and new non-proportional business associated with favorable market conditions, together with the impact of foreign exchange movements, partially offset by non-renewals and decreased line sizes on several proportional contracts associated with repositioning the portfolio.
Current wording
The decrease in motor lines was attributable to decreased line sizes and non-renewals due to increased competition for non-proportional U.K. business, the timing of renewals of two significant proportional contracts and a decrease line size on a significant proportional contract, partially offset by positive premium adjustments related to a large quota share contract, and non-proportional business associated with favorable market conditions.
Previous wording
The decrease in liability lines was attributable to the restructuring of two significant quota share retrocession treaties with strategic capital partners. The decrease in liability lines also reflected the decrease in gross premiums written in the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.
Current wording
The decrease in motor lines reflected the decrease in gross premiums written in the three months ended March 31, 2025, compared to the three months ended March 31, 2024 and the restructuring of two significant quota share retrocession treaties with strategic capital partners.
Showing the first 40 of 90 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Other insurance related income of $24 million for thenine months ended September 30, 2024, compared to other insurance related income of $16 million for thenine months ended September 30, 2023, was primarily associated with fees related to arrangements with strategic capital partners.
Previous report — wording carried elsewhere
For the three months ended September 30, 2024, the net investment gains were primarily due to net unrealized gains on equity securities, partially offset by net realized losses on the sale of bond mutual funds and mortgage loans. For the three months ended September 30, 2023, the net investment losses were primarily due to net realized losses on the sale of U.S. government and corporate debt securities, and net unrealized losses on equity securities.
Previous report — wording carried elsewhere
The income tax expense of $48 million for the three months ended September 30, 2024 was principally due to pre-tax income in our U.S. and U.K. operations.
Previous report — wording carried elsewhere
Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movements