AXIS Capital Earnings Insights: Growth and 2026 Forecasts
In their latest earnings calls, executives from six public property/casualty insurers provided crucial insights into their 2025 financial performance and forecasts for market conditions through 2026. Among these, AXIS Capital stood out with a nearly 13% increase in net written premiums for the fourth quarter and a 6% rise over the entire year. This growth stemmed from new ventures and expanded business segments, according to CEO Vincent Tizzio.
Strategic Growth and Financial Performance
AXIS Capital, headquartered in Bermuda, emphasized its strategic growth in insurance operations, which form approximately 75% of its portfolio. Tizzio attributed around $150 million of the fourth quarter's premium growth to emerging business areas, while broader insurance premiums increased by nearly $200 million. The company achieved an 18% operating return on equity for 2025, accompanied by a combined ratio of 89.8, marking the lowest since 2010.
Forecasting Market Conditions for 2026
Retiring CFO Peter Vogt forecasted mid- to high-single-digit growth in insurance segments for 2026. However, he anticipated potential declines in reinsurance gross premiums, possibly decreasing by double digits, especially in liability and specialty lines due to market competition. AXIS's cautious reinsurance strategy highlights risk management, particularly in professional and liability sectors, focusing on aligning risk and reward effectively.
Operational Advancements and Technological Integration
The growth trajectory for AXIS Capital is supported by its U.S. and U.K. lower middle market divisions, where property insurance saw a significant uptick. Also noteworthy is the launch of AXIS Capacity Solutions, which aims to structure multi-line portfolio capacity deals, further enhancing their strategy. Technology plays a pivotal role, with digital transformation investments, like the "How We Work" program and the integration of AI in operations, expected to improve expense ratios and facilitate growth. Vogt noted these innovations contributed to a one-point increase in the company's expense ratio, now at 33.4.
Focus on Strategic Talent and Market Adaptation
As part of its 2026 planning, AXIS is prioritizing strategic talent acquisition. Tizzio mentioned that while hiring plans are confidential, the company is committed to tactically expanding its workforce to fuel future growth. This strategic focus underscores AXIS Capital's dedication to strengthening business capabilities in key areas of interest, preparing the company to adapt to evolving market conditions.