Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 82

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 82
---
 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 loss-sensitive features mainly in liability lines in 2024, partially offset by 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 acquisition cost ratios.

Underwriting-Related General and Administrative Expense Ratio

The underwriting-related general and administrative expense increased to 2.9% for the three months ended June 30, 2025, from 2.5% for the three months ended June 30, 2024, mainly driven a decrease in fees related to arrangements with strategic capital partners of $13.6 million for the three months ended June 30, 2025, compared to $14.4 million for the three months ended June 30, 2024, partially offset by an increase in net premiums earned.

The underwriting-related general and administrative expense decreased to 3.1% for the six months ended June 30, 2025, from 3.6% for the six