Monday, insurance and reinsurance provider Axis Capital Holdings Ltd. (AXS), said its profit doubled in the fourth quarter from a year-ago on higher premium earned and higher investment income.
Axis Capital's fourth quarter profit jumped to $282.06 million or $1.87 per share from $130.85 million or $0.88 per share in the year-ago period.
On an average, 11 analysts polled by Thomson Reuters expected earnings of $1.31 per share for the quarter. Analysts' estimates typically exclude one-time items.
In comparison, property-casualty insurer Ace, Ltd. (ACE) reported a fourth-quarter profit that beat analysts' expectations and increased to $953 million or $2.81 per share from $20 million or $0.06 per share in the year-earlier quarter.
Axis Capital's total revenue increased to $867.55 million from $579.25 million in the prior-year period.
Analysts expected revenue of $341.10 million for the fourth-quarter.
The company's net premiums earned increased 8% to $713.61 million from $658.28 million a year ago. Net investment income for the quarter was $118.17 million, compared to a net investment loss of $26.01 million in the prior-year quarter due to improved investment market conditions for the company's alternative investment portfolio.
The return on other investments was 4.5% this quarter, reflecting a strong performance from holdings in hedge and credit funds. Net realized investment gains during the quarter were $6 million, compared to $33 million net realized investment losses in the prior year quarter.
Axis Capital's operating income was $276 million or $1.83 per share, up from $163 million or $1.09 per share for the year-earlier period.
Segment-wise, the insurance wing reported an underwriting income of $85.93 million, down 11% from $96.61 million in the year-ago period. Underwriting results for the quarter includes other insurance related income of $28 million relating to cancellation and settlement of an insurance derivative contract with longevity risk. Combined ratio for the quarter 81.6%, compared to 60.2% in the prior year quarter. The segment's accident year loss ratio for the quarter increased 18.8 points to 76.9%, driven by an increase in credit and political risk loss ratio.
Gross premiums written increased 5% to $470.74 million from $448.94 million in the year-ago quarter due to growth in the company's property and marine lines of business. Gross premiums also reflects new business, pricing improvement on marine lines of business and a change in certain renewal dates.
The reinsurance segment underwriting income rose 9% to $128.58 million from $118.88 million in the year-earlier period due to a 12% growth in net premiums earned. The segment's combined ratio of 68.3% was largely unchanged from the year-ago quarter's. The current year loss ratio for the quarter decreased 5.8 points to 56.8%, driven by a lower level of loss activity on property and credit and bond reinsurance business compared to the prior year quarter.
For the full-year, net income increased to $461.01 million or $3.07 per share from $350.50 million or $2.26 per share for the prior year. Revenue increased to $2.814 billion from $2.810 billion in the previous year. Analysts expected full-year earnings of $4.58 per share on revenues of $2.80 billion.
Operating income for the full year was $766 million or $5.10 per share, compared with $436 million or $2.81 per share last year.
AXS closed Monday's regular trading at $28.69, up $0.13 or 0.46%, on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.