Axis Capital Caps 'Outstanding Year' with Record Premiums, Eyes 2026 Growth Amid Market Uncertainty
HAMILTON, Bermuda – Specialty insurer Axis Capital Holdings Limited (NYSE: AXS) concluded a transformative 2025 with record-breaking premiums and its strongest underwriting result in 15 years, setting a solid foundation for its 2026 targets even as it navigates a fragmented market landscape.
On the company's fourth-quarter earnings call, CEO Vince Tizzio framed the year as a validation of Axis's multi-year strategic overhaul. "2025 capped an outstanding year for AXIS," Tizzio stated, pointing to 13 consecutive quarters of diluted book value per share growth, culminating in an 18% year-over-year increase to $77.20. The full-year combined ratio—a key profitability metric where lower is better—came in at 89.8, which Tizzio noted was the company's best since 2010.
The insurance segment was a particular bright spot, delivering several all-time highs. It recorded gross written premiums of $7.2 billion (up 9%) and an exceptionally strong combined ratio of 86.0. "Our disciplined underwriting and portfolio actions are yielding clear results," Tizzio added.
However, the outlook was nuanced. CFO Pete Vogt indicated that reinsurance premiums "could be down in 2026, even up to double digits," due to challenging market conditions and the non-recurrence of a large 2025 transaction. Management emphasized a bottom-line focus for the reinsurance unit, maintaining confidence in its profitability.
A significant area of caution is cyber insurance. Tizzio explicitly stated the company maintains a "cautious and selective posture" due to escalating ransomware risks—amplified by the potential weaponization of AI—and intense pricing competition. "We do not view cyber as a growth area for the foreseeable future," he said, unless the risk-reward equation improves materially.
The call also highlighted early progress for AXIS Capacity Solutions (ACS), a new venture leveraging third-party capital. While its initial premium volume was modest at around $20 million, it represents a strategic avenue for future fee-based income. On expenses, executives reaffirmed their "glide path" to an 11% G&A ratio in 2026, expecting efficiency gains from prior technology investments.
The quarter saw a smooth leadership transition in finance, with incoming CFO Matt Kirk participating. Outgoing CFO Vogt reported full-year net income of $978 million and a 17% return on common equity, underscoring a year of robust financial health.
Market Voices: Analysts and Observers Weigh In
Eleanor Vance, Senior Insurance Analyst at Clearwater Advisors: "Axis's 86 combined ratio in insurance is genuinely impressive. It shows underwriting discipline is now core to their culture, not just a cyclical focus. Their selective stance on cyber is prudent; the market remains volatile. The 2026 reinsurance guidance is conservative, but that's wise in this environment."
David Chen, Portfolio Manager at Horizon Capital: "The record premiums and book value growth tell a compelling story of a turnaround. ACS is an interesting long-term play on their underwriting expertise. My main question is sustainability: can they maintain this underwriting rigor if market competition heats up further?"
Marcus Thorne, Editor at 'The Risk Report' Blog: "Another quarter of reserve releases from 'short-tail' lines? It helps the numbers now, but I'd like more transparency on the long-tail book. And the cyber retreat is telling—it sounds like they're admitting defeat in a key modern risk arena. Is this discipline, or a lack of innovative capability? The double-digit drop projected in reinsurance premiums also raises eyebrows about true growth momentum."
Rebecca Shaw, Independent Underwriting Consultant: "The delegated underwriting channel, now 32% of volume, is a silent engine here. It provides scalable, diversified growth. Their 'Smart Follow' approach in London is a clever way to gain share without excessive risk. The expense ratio target is aggressive but achievable if their tech investments pay off as planned."