Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 137

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 137
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 for the six months ended June 30, 2024. 

During the six months ended June 30, 2025, catastrophe and weather-related losses, net of reinsurance, were $2 million, or 0.2 points, attributable to California Wildfires. Comparatively, during the six months ended June 30, 2024, catastrophe and weather-related losses, were $2 million, or 0.3 points, attributable to weather-related events. 

Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 68.2% for the six months ended June 30, 2025, from 66.0% for the six months ended June 30, 2024, principally due to higher loss ratios in liability, and accident and health lines of business, together with the impact of loss trends over pricing in all lines of business, partially offset by the change in business mix attributable to the increase in credit and surety business written in the recent periods which is associated with a relatively lower loss ratio in the six months ended June 30, 2025. In addition, the current accident year loss ratio in the six months ended June 30, 2024 was impacted by elevated loss experience in marine and aviation, and engineering lines.

Prior Year Reserve Development 

Refer to Item 1, Note 6 to the Consolidated Financial Statements 'Reserve for losses and loss expenses' for details on prior year reserve development by segment, reserve class and accident year.

Acquisition Cost Ratio

The acquisition cost ratio of 22.5% for the three months ended June 30, 2025, was comparable to 22.3% for the three months ended June 30, 2024, primarily related to an increase in gross acquisition costs associated with changes in business mix due to increases in credit and surety, and professional lines business written in the recent periods which is associated with relatively higher gross acquisition cost ratios, largely offset by adjustments attributable to loss-sensitive features mainly in accident and health, and credit and surety lines, together with the impact of changes in business mix on retrocessional contracts driven by increases in credit and surety, and professional lines business written in recent periods.

70

The acquisition cost ratio decreased to 21.9% for the six months ended June 30, 2025, from 22.6% for the six months ended June 30, 2024, primarily related to elevated adjustments attributable to