Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 128

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 128
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 months ended June 30, 2025, from 55.4% for the six months ended June 30, 2024.

The increase in the current accident year loss ratio for the six months ended June 30, 2025, compared to the same period in 2024, was impacted by a higher level of catastrophe and weather-related losses. During the six months ended June 30, 2025, catastrophe and weather-related losses, net of reinsurance, were $84 million, or 4.1 points, including $30.5 million, or 1.5 points attributable to California Wildfires. The remaining losses were primarily attributable to other weather-related events. Comparatively, during the six months ended June 30, 2024, catastrophe and weather-related losses, were $65 million, or 3.5 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 52.3% for the six months ended June 30, 2025, from 51.9% for the six months ended June 30, 2024, principally due to the impact of loss trends over pricing in most lines of business, partially offset by the change in business mix attributable to the increase in property business written in recent periods that is associated with a relatively lower loss ratio.

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 decreased to 18.9% for the three months ended June 30, 2025, from 19.6% for the three months ended June 30, 2024, primarily related to an increase in ceding commission in accident and health, cyber and property lines.

Gross variable acquisition costs for the three months ended June 30, 2025, were consistent with gross variable acquisition costs for the three months ended June 30, 2024, related to changes in business mix attributable to increases in accident and health, property, and credit and political risk lines business written in recent periods, largely offset by a decrease in cyber lines business written in the recent periods. 

The acquisition cost ratio decreased to 19.0% for the six months ended June 30, 2025, from 19.4% for the