AXIS Capital Holdings Limited posted a 16% year-on-year rise in second-quarter net income, with underwriting results under pressure from elevated catastrophe losses.
Net income available to common shareholders was US$251 million, or US$3.38 per diluted common share, for the quarter ended June 30. That compares with US$216 million, or US$2.72 per diluted common share, in the same period of 2025.
The consolidated combined ratio came in at 93.1%, up 4.2 percentage points from 88.9% from the prior-year period. Pre-tax catastrophe and weather-related losses totalled US$80 million, which accounted for 5.3 percentage points of the combined ratio. Natural catastrophes contributed US$49 million and the Middle East conflict US$31 million, in line with losses disclosed by other specialty writers.
Underwriting income fell 24% year-on-year to US$143 million. The insurance segment posted a combined ratio of 90.0%, or 84.5% on an ex-catastrophe basis. The reinsurance segment experienced higher loss activity over the period.
Gross premiums written rose 6% to US$2.7 billion, with the insurance segment delivering a 15% increase. Part of that growth came through AXIS Capacity Solutions, the company's multi-line portfolio unit. The unit uses Lloyd's licences to place structured, multi-class facilities with distribution partners.
Reinsurance gross premiums written fell 25%, as AXIS continued to reduce exposure in casualty lines. The move is part of a wider market retreat.
As of mid-year, only four or five traditional reinsurers were still actively writing US casualty facultative business. US casualty rates rose 7% in the second quarter while rates in international and UK markets fell by up to 25% over the same period.
President and chief executive Vince Tizzio said the company continued to "generate consistent, profitable growth in the second quarter, amidst an evolving risk landscape." Tizzio cited enhancements across the product portfolio and data practices as contributing factors.
For the quarter, operating income was US$211 million, or US$2.84 per diluted common share. Total revenues reached US$1.75 billion. Year-to-date net income available to common shareholders was US$498 million, or US$6.67 per diluted common share.
Book value per diluted common share rose to US$80.67 at June 30. The figure was up 3.2% from the prior quarter and 14.7% higher than a year earlier. Annualised return on average common equity stood at 17.0%, while annualised operating return on average common equity was 14.3%.
Net investment income has run below prior-year levels in 2026. The primary driver was lower cash balances following the loss portfolio transfer reinsurance agreement with Enstar, completed in the second quarter of 2025.
AXIS Capital carries financial strength ratings of "A+" from Standard & Poor's and "A" from AM Best. Its operating subsidiaries are active across Bermuda, the US, Europe, Singapore, and Canada.
