AXIS Capital Q3 Net Income Soars 67% Amidst Increased Share Buybacks

TL;DR

**AXIS Capital's Q3 comeback is strong, but the nine-month dip and cash burn mean investors should watch for sustained profitability and better cash management.**

AI Summary

AXIS Capital Holdings Limited reported a significant increase in net income for the three months ended September 30, 2025, reaching $301.86 million, up from $180.73 million in the prior year, representing a 67% increase. However, net income for the nine months ended September 30, 2025, decreased to $719.29 million from $788.15 million in 2024, a 8.7% decline. Total revenues for the three months increased to $1.67 billion from $1.61 billion, driven by net premiums earned rising to $1.45 billion from $1.37 billion. For the nine-month period, total revenues grew to $4.83 billion from $4.49 billion. The company experienced a substantial foreign exchange loss of $138.43 million for the nine months ended September 30, 2025, compared to a $61.27 million loss in the same period of 2024. Share repurchases significantly increased, with $599.96 million spent in the nine months of 2025, up from $139.89 million in 2024. Cash and cash equivalents decreased sharply to $825.90 million at September 30, 2025, from $2.14 billion at December 31, 2024.

Why It Matters

AXIS Capital's strong Q3 net income growth, despite a nine-month decline, signals potential operational improvements and effective capital deployment, which could attract investors seeking value in the insurance sector. The aggressive share repurchase program, totaling nearly $600 million, demonstrates management's confidence and commitment to returning capital to shareholders, potentially boosting EPS and stock price. However, the significant decrease in cash and cash equivalents, coupled with substantial foreign exchange losses, could raise concerns about liquidity and currency risk management, impacting the company's competitive standing against peers with stronger cash positions. Employees and customers might see this as a stable, albeit cautious, outlook for the company's core insurance and reinsurance operations.

Risk Assessment

Risk Level: medium — The company faces medium risk due to a significant decrease in cash and cash equivalents from $2.14 billion to $825.90 million, alongside a substantial increase in foreign exchange losses to $138.43 million for the nine months ended September 30, 2025. While Q3 net income surged, the nine-month net income declined by 8.7%, indicating potential volatility in earnings.

Analyst Insight

Investors should closely monitor AXIS Capital's upcoming earnings reports for sustained profitability and improved cash flow generation. Consider holding existing positions but defer new investments until there's clear evidence of stabilized cash reserves and reduced foreign exchange volatility, especially given the aggressive share repurchases.

Financial Highlights

debt To Equity

N/A

revenue

$4.83B

operating Margin

N/A

total Assets

$34.34B

total Debt

$1.32B

net Income

$719.29M

eps

$3.79

gross Margin

N/A

cash Position

$825.90M

revenue Growth

+7.6%

Revenue Breakdown

Key Numbers

• $301.86M — Net Income (Q3 2025) (Increased 67% from $180.73M in Q3 2024)
• $719.29M — Net Income (9M 2025) (Decreased 8.7% from $788.15M in 9M 2024)
• $1.45B — Net Premiums Earned (Q3 2025) (Increased from $1.37B in Q3 2024)
• $599.96M — Common Shares Repurchased (9M 2025) (Significantly increased from $139.89M in 9M 2024)
• $138.43M — Foreign Exchange Losses (9M 2025) (Increased from $61.27M in 9M 2024)
• $825.90M — Cash & Cash Equivalents (Sep 30, 2025) (Decreased from $2.14B at Dec 31, 2024)
• $17.99B — Reserve for Losses and Loss Expenses (Sep 30, 2025) (Increased from $17.22B at Dec 31, 2024)
• $3.79 — Earnings per common share (Q3 2025) (Increased from $2.06 in Q3 2024)

Key Players & Entities

• AXIS Capital Holdings Limited (company) — Registrant for 10-Q filing
• SEC (regulator) — Securities and Exchange Commission
• $301.86 million (dollar_amount) — Net income for three months ended September 30, 2025
• $180.73 million (dollar_amount) — Net income for three months ended September 30, 2024
• $719.29 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $788.15 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $1.45 billion (dollar_amount) — Net premiums earned for three months ended September 30, 2025
• $599.96 million (dollar_amount) — Common shares repurchased for nine months ended September 30, 2025
• $138.43 million (dollar_amount) — Foreign exchange losses for nine months ended September 30, 2025
• $825.90 million (dollar_amount) — Cash and cash equivalents at September 30, 2025

FAQ

Risk Factors

• Catastrophe and Emerging Risks [high — insurance]: The cyclical nature of insurance and reinsurance business, frequency and severity of natural and man-made catastrophes, emerging claims, systemic risks, and geopolitical conflicts pose significant risks. The company relies on industry models to manage these risks.
• Economic and Market Volatility [high — market]: General economic, capital, and credit market conditions, including market illiquidity, fluctuations in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates, can adversely impact the company. Evolving impacts of tariffs, sanctions, and international trade tensions are also noted.
• Competition and Technological Adaptation [medium — strategic]: Industry competition and consolidation, alongside the ability to increase the use of data, analytics, and technology, and adapt to new technologies, are critical strategic risks. Changes in the political environment also present challenges.
• Foreign Exchange Fluctuations [medium — financial]: The company experienced a substantial foreign exchange loss of $138.43 million for the nine months ended September 30, 2025, compared to $61.27 million in the prior year, indicating increased exposure and impact from currency movements.
• Reserve Adequacy [high — operational]: The adequacy of reserves for losses and loss expenses is a critical component of the insurance business. The reserve for losses and loss expenses increased to $17.99 billion at September 30, 2025, from $17.22 billion at December 31, 2024, reflecting ongoing claims management.
• Regulatory and Coverage Issues [medium — regulatory]: Coverage and regulatory issues, alongside the effects of emerging claims and systemic risks, can impact financial performance. Compliance with evolving regulatory landscapes is a constant operational challenge.
• Inflationary Pressures [medium — financial]: The adverse impact of social and economic inflation on claims and operational costs is a significant concern, potentially affecting profitability and reserve adequacy.

Industry Context

The insurance and reinsurance industry is characterized by its cyclical nature, with periods of intense competition and fluctuating premium rates. Companies like AXIS Capital operate in a global market, facing risks from natural and man-made catastrophes, economic volatility, and evolving geopolitical landscapes. The increasing use of data analytics and technology is a key trend, driving efficiency and risk assessment capabilities.

Regulatory Implications

AXIS Capital operates under various regulatory frameworks globally, requiring adherence to capital requirements, solvency standards, and reporting obligations. Emerging risks such as cyber threats and climate change are also drawing increased regulatory scrutiny, necessitating robust compliance and risk management strategies.

What Investors Should Do

1. Monitor reserve adequacy closely.
2. Analyze the impact of foreign exchange losses.
3. Evaluate the strategy behind increased share repurchases.
4. Assess the drivers of Q3 net income growth versus YTD decline.
5. Observe the significant decrease in cash and cash equivalents.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net income of $301.86 million for the quarter, a 67% increase year-over-year. Total revenues increased to $1.67 billion.
• 2025-09-30: Nine Months Ended Q3 2025 — Net income decreased by 8.7% to $719.29 million. Total revenues grew to $4.83 billion. Significant increase in share repurchases to $599.96 million.
• 2024-12-31: End of Fiscal Year 2024 — Cash and cash equivalents stood at $2.14 billion, providing a strong liquidity position prior to the reported decrease.
• 2025-09-30: Consolidated Balance Sheet Date — Total assets reached $34.34 billion, with reserves for losses and loss expenses at $17.99 billion.

Glossary

Net premiums earned

The portion of insurance premiums that relates to the coverage provided during a specific period. It represents the revenue earned by the insurer for the risk it has assumed. (A key indicator of revenue generation from core underwriting activities.)

Reserve for losses and loss expenses

An estimate of the amount the company expects to pay for claims that have occurred but have not yet been settled, including adjustment expenses. (Crucial for assessing the company's liabilities and the adequacy of its provisions for future payouts.)

Deferred acquisition costs

Costs incurred in acquiring new insurance contracts that are capitalized and amortized over the period in which the related premiums are earned. (Impacts the timing of expense recognition and affects profitability in the short term.)

Gross premiums written

The total amount of premiums on all policies written and renewed during a period, before deductions for reinsurance. (Indicates the total volume of business written by the company.)

Net premiums written

Gross premiums written less premiums ceded to reinsurers. (Represents the premiums retained by the company after accounting for reinsurance arrangements.)

Amortized cost

The cost of a financial asset or liability, adjusted for amortization of any premium or discount, transaction costs, and direct issue costs. (Used for valuing certain investments, particularly fixed maturities, reflecting their carrying value over time.)

Equity securities

Investments in the stock of other companies. (Represents a portion of the company's investment portfolio, subject to market fluctuations.)

Year-Over-Year Comparison

Compared to the prior year, AXIS Capital Holdings Limited has demonstrated strong revenue growth, with total revenues increasing to $4.83 billion for the nine months ended September 30, 2025, up from $4.49 billion in the same period of 2024. While Q3 net income saw a significant 67% increase, the nine-month net income experienced an 8.7% decline, indicating mixed profitability trends. A notable shift is the substantial increase in share repurchases, from $139.89 million to $599.96 million, alongside a significant increase in foreign exchange losses from $61.27 million to $138.43 million, impacting overall financial performance.

Key Financial Figures

• $0.0125 — ch registered Common shares, par value $0.0125 per share AXS New York Stock Exchange

Filing Documents

• axs-20250930.htm (10-Q) — 3945KB
• axs-2025930xexx311.htm (EX-31.1) — 11KB
• axs-2025930xexx312.htm (EX-31.2) — 10KB
• axs-2025930xexx321.htm (EX-32.1) — 6KB
• axs-2025930xexx322.htm (EX-32.2) — 6KB
• axs-2025x930xexx101.htm (EX-10.1) — 35KB
• 0001214816-25-000181.txt ( ) — 18082KB
• axs-20250930.xsd (EX-101.SCH) — 65KB
• axs-20250930_cal.xml (EX-101.CAL) — 141KB
• axs-20250930_def.xml (EX-101.DEF) — 419KB
• axs-20250930_lab.xml (EX-101.LAB) — 946KB
• axs-20250930_pre.xml (EX-101.PRE) — 683KB
• axs-20250930_htm.xml (XML) — 4446KB

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 79

Controls and Procedures

Item 4. Controls and Procedures 81 PART II Other Information 81

Legal Proceedings

Item 1. Legal Proceedings 81

Risk Factors

Item 1A. Risk Factors 81

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 82

Other Information

Item 5. Other Information 82

Exhibits

Item 6. Exhibits 83

Signatures

Signatures 84 2 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION In this Form 10-Q, references to "AXIS Capital" refer to AXIS Capital Holdings Limited and references to "we", "us", "our", "AXIS", the "Group" or the "Company" refer to AXIS Capital Holdings Limited and its direct and indirect subsidiaries and branches. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This Quarterly Report on Form 10-Q or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company's current views with respect to future events and financial performance. All statements, other than statements of historical fact included in or incorporated by reference in this report are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar statements of a future or forward-looking nature or their negative or similar terminology. Forward-looking statements made in this report, such as those related to our performance, pricing, growth prospects, the outcome of our strategic initiatives, our expectations relating to our ability to successfully implement and manage technology initiatives – including artificial intelligence, our expectations about the current trade and geopolitical environment on our business, economic and market conditions, and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation: Insurance Risk : the cyclical nature of insurance and reinsu

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS Page Consolidated Balance Sheets at September 30, 2025 (Unaudited) and December 31, 2024 6 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 7 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 8 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 9 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited) 12

Notes to Consolidated Financial Statements (Unaudited) 12 Note 1 - Basis of Presentation and Significant Accounting Policies 12 Note 2 - Segment Information 13 Note 3 - Investments 16 Note 4 - Fair Value Measurements 26 Note 5 - Derivative Instruments 35 Note 6 - Reserve for Losses and Loss Expenses 37 Note 7 - Earnings Per Common Share 40 Note 8 - Share-Based Compensation 41 Note 9 - Shareholders' Equity 43 Note 10 - Debt and Financing Arrangements 45 Note 11 - Federal Home Loan Bank Advances 45 Note 12 - Commitments and Contingencies 45 Note 13 - Other Comprehensive Income (Loss) 46 Note 14 - Related Party Transactions 47 Note 15 - Income Taxes 47 5 Table of Contents AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2025 (UNAUDITED) AND DECEMBER 31, 2024 2025 2024 (in thousands) Assets Investments: Fixed maturities, available for sale, at fair value (Amortized cost 2025: $ 12,822,803 ; 2024: $ 12,419,905 Allowance for expected credit losses 2025: $ 4,696 ; 2024: $ 3,938 ) $ 12,879,372 $ 12,152,753 Fixed maturities, held to maturity, at amortized cost (Fair value 2025: $ 404,106 ; 2024: $ 436,751 Allowance for expected credit losses 2025: $ nil ; 2024: $ nil ) 406,658 443,400 Equity securities, at fair value (Cost 2025: $ 534,096 ; 2024: $ 520,743 ) 649,970 579,274 Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2025: $ 33,158 ; 2024: $ 23,378 ) 409,699 505,697 Other investments, at fair value 972,867 930,278 Equity method investments 220,022 206,994 Short-term investments, at fair value 17,185 223,666 Total investments 15,555,773 15,042,062 Cash and cash equivalents 825,898 2,143,471 Restricted cash and cash equivalents 532,180 920,150 Accrued interest receivable 117,720 114,012 Insurance and reinsurance premium balances receivable (Allowance for expected credit losses 2025: $ 17,929 ; 2024: $ 17,339 ) 3,684,736 3,169,355

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited consolidated financial statements (the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the U.S. Securities and Exchange Commission's ("SEC") instructions to Form 10-Q and Article 10 of Regulation S-X and include AXIS Capital Holdings Limited ("AXIS Capital") and its subsidiaries (the "Company"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and related notes included in AXIS Capital's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. Significant Accounting Policies There were no notable changes to the Company's significant accounting policies subsequent to its Annual Report on Form 10-K for the year ended December 31, 2024. Recently Issued Accounting Standards Not Yet Adopted Targeted Improvements to the Accounting for Int

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2. SEGMENT INFORMATION The Company's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance. Insurance The Company's insurance segment offers specialty insurance products to a variety of markets on a worldwide basis. The product lines in this segment are property, professional lines, liability, cyber, marine and aviation, accident and health, and credit and political risk. Reinsurance The Company's reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are liability, professional lines, motor, accident and health, credit and surety, agriculture, marine and aviation, and run-off lines which include catastrophe and property lines of business that the Company placed into run-off in 2022 and engineering lines of business that the Company placed into run-off in 2020. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets. The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: 13 Table of Contents AXIS CAPITAL HOLDINGS LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2. SEGMENT INFORMATION (CONTINUED) 2025 2024 Three months ended and at September 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 1,691,882 $ 432,302 $ 2,124,184 $ 1,526,676 $ 409,226 $ 1,935,902 Net premiums written 1,084,947 268,042 1,352,989 975,911 260,074 1,235,985 Net premiums earned 1,085,612 366,271 1,451,883 1,023,851 342,850 1,366,701 Other insurance related income 261 6,332 6,593 93 6,745 6,838 Current accident year net losses and loss expen

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