AXIS Capital reported solid operating gains for 2025 despite a drop in overall net income, largely due to new tax changes in Bermuda. The specialty insurer and reinsurer posted a net income of $979 million for the year ending December 31, 2025, which is $73 million, or 7%, less than the previous year.
The decline in net income came after Bermuda introduced a 15% corporate income tax at the start of 2025. This new tax, along with some non-operating factors, increased AXIS’s tax expenses and weighed on the bottom line.
Still, the company’s day-to-day business showed strength. Operating income rose 8% from 2024, reaching $1 billion. Underwriting income saw an even bigger boost, climbing 27% to $725 million. AXIS also achieved an 18.1% operating return on equity and maintained a combined ratio of 89.8% for the year, signaling effective cost management.
Gross premiums written hit a record $9.6 billion, up 7% overall. Most of that growth came from the insurance side, which grew 9% to $7.2 billion. The reinsurance segment also grew, but more modestly, by 3%. For the fourth quarter, premiums jumped 12% to $2.2 billion, while net premiums written increased 13% to $1.4 billion.
CEO Vince Tizzio highlighted the company’s consistent performance, noting that AXIS has seen 13 straight quarters of growth in diluted book value per share, adding up to 77% growth over that time.
The year wasn’t without challenges. AXIS faced $159 million in pre-tax catastrophe losses linked to weather events and geopolitical conflicts, including major California wildfires and the Middle East conflict. The wildfires were especially costly, with insured losses reaching $40 billion, marking the largest wildfire-related insurance loss to date.
On a positive note, AXIS benefited from $87 million in favorable prior year reserve development. Investment income grew slightly to $767 million, a 1% increase from the year before.
Returning value to shareholders remained a priority. The company gave back $1 billion through share buybacks and dividends.
Tizzio summed up the year by saying AXIS is now operating as a single, unified company, focused on seizing opportunities across its markets. Despite the tax headwinds and natural disasters, the insurer’s core business continued to grow steadily, setting a strong foundation moving forward.