Axis Capital Q2 Revenue Surges to $1.632 Billion, Record Profitability and Growth

Axis Capital reported Q2 revenue of $1.632 billion, a 7.9% increase YoY, and record profitability with a combined ratio of 88.9%. The company achieved an 18.6% rise in diluted book value per share and set new records for first-half underwriting income and production. Axis Capital operates globally and focuses on premium business that aligns with risk-adjusted return targets.

Title: Axis Capital Reports Strong Q2 2025 Financial Performance

Axis Capital Holdings Limited (NYSE: AXS), a global specialty insurer and reinsurer, has released its second-quarter (Q2) 2025 financial results, showcasing robust performance across various metrics. The company reported a revenue of $1.63 billion, marking a 12.6% year-on-year (YoY) increase, which met Wall Street's estimates [1]. This growth was driven by a 7.9% YoY increase in premiums earned, totaling $1.39 billion, although this figure fell short of analysts' expectations by 6.8% [1].

Key highlights of the quarter include:

- Revenue Growth: The company's revenue of $1.63 billion was in line with analysts' expectations of $1.64 billion, reflecting a 12.6% YoY growth rate [1].
- Combined Ratio: Axis Capital's combined ratio of 88.9% was 2.3 percentage points below analysts' estimates of 91.2%, indicating improved underwriting performance [1].
- EPS (GAAP): The company reported earnings per share (EPS) of $2.72, which was 8.1% below the consensus estimate of $2.96 [1].
- Book Value Per Share (BVPS): Axis Capital's BVPS grew by 15.8% annually over the past two years, from $52.47 to $70.34 per share [1]. For the second quarter of 2025, BVPS increased by 5.8% to $70.34 per share, driven by net income and net unrealized investment gains, partially offset by share repurchases and dividends [2].
- Operating Performance: The company achieved an annualized operating return-on-equity (ROACE) of 19.0% and an 88.9% combined ratio, setting new records for first-half underwriting income and production [2].

The company's CEO, Vince Tizzio, commented on the results, stating, "AXIS delivered an excellent second quarter highlighted by record profitability and we continued our trend of strong performance, with 18.6% diluted book value per share growth over the prior year. In the quarter, we produced an annualized operating return-on-equity of 19% and an 88.9% combined ratio" [2].

While the quarter's results show promising signs of recovery, the company's EPS and net premiums earned missed analysts' expectations. This suggests that while Axis Capital is performing well, there is still room for improvement in meeting market expectations.

References
[1] https://finance.yahoo.com/news/axis-capital-nyse-axs-reports-220859305.html
[2] https://www.morningstar.com/news/business-wire/20250729044039/axis-capital-reports-second-quarter-net-income-available-to-common-shareholders-of-216-million-or-272-per-diluted-common-share-and-operating-income-of-261-million-or-329-per-diluted-common-share