AXIS Capital Holdings Limited Q3 FY2025 earnings call

• In the third quarter, AXIS delivered a 14% year-over-year increase in diluted book value per common share at $73.82, 18% annualized operating return on equity, and 20% increase in operating earnings per share over the prior year quarter at $3.25. Premiums of $2.1 billion, the highest third quarter ever, up nearly 10% over the prior year, including $670 million in new business. - The transformation has demonstrated sustained profitable growth with an enhanced operating platform, new capabilities, products, and a focused team. - Launched AXIS Capacity Solutions, implemented a modern application platform across all business units, applied AI solutions, and deployed the next-generation underwriting platform. - Deepened relationships with distribution partners, with customers recognizing AXIS with top quartile Net Promoter Scores. - Added talent to underwriting teams globally and announced Matt Kirk as future CFO.

Insurance: Gross premiums written were $1.7 billion, a record third quarter for insurance and an increase of 11% compared to the prior year quarter. Net written premiums were up 11%. The insurance combined ratio was an outstanding 85.9%. The quarter included 3.9 points of cat and weather-related losses and 1.3 points of reserve releases from short-tail lines. Reinsurance: Grew 6% as we found opportunities to grow in credit surety lines as well as the agriculture business. The reinsurance combined ratio was 92.2% with an ex-cat accident year loss ratio of 67.9%.

• Insurance segment expects mid- to high single-digit growth excluding RAC Re, but with RAC Re could be double digits next year. - Confident in getting G&A ratio below 11% in 2026, though impact from RAC Re fees will ramp up slowly. - Expect continued profitable growth leveraging capital position, talent, and distribution partners, and investing in infrastructure and technology.

• Changing risk landscape and competitive dynamics pose challenges. - Cyber market has downward pressure on pricing from MGAs and surplus capacity. - Uncertainty in market conditions affecting premium adequacy and combined ratio.

Q: About property growth and combined ratio trend.

A: Vince and Pete discussed premium adequacy, portfolio mix, and underwriting discipline.

Q: On third-party capital and RAC Re.

A: Vince and Pete talked about potential for more deals, RAC Re's impact on growth.

Q: On G&A ratio and RAC Re fees.

A: Pete explained the ramp-up of fees from RAC Re and its impact on G&A.

Q: On paid to incurred ratios.

A: Vince and Pete discussed factors affecting paid to incurred, reserves, and claims organization improvements.