Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 57

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 57
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 trends over pricing in property, and the specialty other reserve classes, 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 of 19.2% for the three months ended March 31, 2025, was consistent with the acquisition cost ratio of 19.2% for the three months ended March 31, 2024.

Gross variable acquisition costs increased for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, related to changes in business mix attributable to increases in accident and health, and credit and political risk lines business written in recent periods that are associated with relatively higher gross variable acquisition costs, together with a decrease in professional lines business written in the recent periods that is associated with relatively lower gross variable acquisition costs. 

The acquisition cost ratio for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, also benefited from an increase in ceding commission in accident and health, and property lines, partially offset by a decrease in ceding commission in professional lines.

Underwriting-Related General and Administrative Expense Ratio

The underwriting-related general and administrative expense ratio decreased to 11.9% for the three months ended March 31, 2025, from 13.3% for the three months ended March 31, 2024, mainly driven an increase in net premiums earned.

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Reinsurance Segment

Results from the reinsurance segment were as follows:

  Three months ended March 31,  2025% Change2024Revenues:Gross premiums written$1,138,7495%$1,079,922Net premiums written705,4591%699,719Net premiums earned330,734(3%)340,095Other insurance related income3,422(59%)8,319Expenses:Current accident year net losses and loss expenses(227,796)(231,807)Prior year reserve development3,959—Acquisition costs(70,560)(78,225)Underwriting-related general and administrative expenses(10,846)(15,706)Under