Company: AXS-PE
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001214816-25-000181
Chunk: 142

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 142
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 increase in underwriting income and a decrease in corporate expenses, partially offset by increases in income tax expense and average common shareholders' equity and a decrease in net investment income.

ROACE for the nine months ended September 30, 2025 and 2024 was 18.2%, primarily driven by increases in underwriting income and net investments income, offset by income tax expense and an increase in average common shareholders' equity.

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Book Value per Diluted Common Share

We consider book value per diluted common share to be an appropriate measure of returns to common shareholders, as we believe growth in book value on a diluted basis will ultimately translate into appreciation of our stock price. 

During the three and nine months ended September 30, 2025, book value per diluted common share increased by 4.9% and 13.1%, respectively due to net income for the period, and net unrealized investment gains recognized in accumulated other comprehensive income (loss), partially offset by common share repurchases and common share dividends declared.

Cash Dividends Declared per Common Share and Common Share Repurchases

We believe in returning excess capital to shareholders by way of dividends. Accordingly, dividend policy is an integral part of the value we create for shareholders. Our Board of Directors has approved quarterly common share dividends for twenty-two consecutive years.

Book Value per Diluted Common Share Adjusted for Dividends

Taken together, we believe that growth in book value per diluted common share and common share dividends declared represent the total value created for common shareholders. As companies in the insurance industry have differing dividend payout policies, we believe that investors use the book value per diluted common share adjusted for dividends metric to measure comparable performance across the industry. 

During the three and nine months ended September 30, 2025, total value created for common shareholders increased by $3.92, or 5.6% and $9.87, or 15.1%, respectively.

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NON-GAAP FINANCIAL MEASURES RECONCILIATION

Three months ended September 30,Nine months ended September 30,2025202420252024Net income available to common shareholders$294,301$173,165$696,601$765,465Net investment (gains) losses(30,905)(32,182)(44,365)30,503Foreign exchange losses (gains)(13,492)92,204138,42861,268Reorganization expenses———26,312Interest in income of equity method investments