AXIS Capital Holdings Q4 2025 AXIS Capital Holdings Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 AXIS Capital Holdings Ltd Earnings Call
Operator: Good morning, and welcome to the AXIS Capital Q4 2025 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Cliff Gallant, Head of Investor Relations and Corporate Development. Please go ahead.
Operator: Good morning, and welcome to the AXIS Capital Q4 2025 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Cliff Gallant, Head of Investor Relations and Corporate Development. Please go ahead.
Speaker #1: Good morning and welcome to the AXIS CAPITAL fourth quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad.
Speaker #1: To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Clifford Gallant, Head of Investor Relations and Corporate Development.
Speaker #1: Please go ahead.
Speaker #2: The conference is now being recorded. The conference is no longer being recorded.
Peter Vogt: The conference is now being recorded. The conference is no longer being recorded.
[Video Narrator 1]: The conference is now being recorded. The conference is no longer being recorded.
Speaker #3: Thank you. Good morning and welcome to our fourth quarter 2025 conference call. Our earnings press release and financial supplement were issued last night. If you would like copies, please visit the Investor Information section of our website at AXISCAPITAL.com.
Clifford Gallant: Thank you. Good morning, and welcome to our Fourth Quarter 2025 Conference Call. Our earnings press release and financial supplement were issued last night. If you would like copies, please visit the Investor Information section of our website at axiscapital.com. We set aside an hour for today's call, which is also available as an audio webcast on our website. Joining me on today's call are Vince Tizzio, our President and CEO, and Pete Vogt, our CFO. In addition, for the Q&A portion of our call, we'll be joined by Matt Kirk, our incoming CFO. I'd like to remind everyone that the statements made during this call, including the question-and-answer session, which are not historical facts, may be forward-looking statements. Forward-looking statements involve risks, uncertainties, and assumptions.
Cliff Gallant: Thank you. Good morning, and welcome to our Fourth Quarter 2025 Conference Call. Our earnings press release and financial supplement were issued last night. If you would like copies, please visit the Investor Information section of our website at axiscapital.com. We set aside an hour for today's call, which is also available as an audio webcast on our website. Joining me on today's call are Vince Tizzio, our President and CEO, and Peter Vogt, our CFO. In addition, for the Q&A portion of our call, we'll be joined by Matt Kirk, our incoming CFO. I'd like to remind everyone that the statements made during this call, including the question-and-answer session, which are not historical facts, may be forward-looking statements. Forward-looking statements involve risks, uncertainties, and assumptions.
Speaker #3: We set aside an hour for today's call, which is also available as an audio webcast on our website. Joining me on today's call are Vince Tizzio, our President and CEO, and Pete Vogt, our CFO.
Speaker #3: In addition, for the Q&A portion of our call, we will be joined by Matt Kirk, our Incoming CFO. I would like to remind everyone that the statements made during this call, including the question-and-answer session, which are not historical facts, may be forward-looking statements forward-looking statements involved risks, uncertainties, and assumptions.
Speaker #3: Actual events or results may differ materially from those projected in the forward-looking statements due to a variety of factors, including the risk factors set forth in the company's most recent report on the form 10-K or our quarterly report on form 10-Q, and other reports the company files with the SEC.
Clifford Gallant: Actual events or results may differ materially from those projected in the forward-looking statements due to a variety of factors, including the risk factors set forth in the company's most recent report on the Form 10-K or our quarterly report on Form 10-Q, and other reports the company files with the SEC. This includes the additional risks identified in the cautionary note regarding the forward-looking statements in our earnings press release issued last night. We undertake no obligation to publicly update or revise any forward-looking statements. In addition, our non-GAAP financial measures may be discussed during this conference call. Reconciliations are included in our earnings press release and financial supplement. With that, I'll turn the call over to Vince.
Cliff Gallant: Actual events or results may differ materially from those projected in the forward-looking statements due to a variety of factors, including the risk factors set forth in the company's most recent report on the Form 10-K or our quarterly report on Form 10-Q, and other reports the company files with the SEC. This includes the additional risks identified in the cautionary note regarding the forward-looking statements in our earnings press release issued last night. We undertake no obligation to publicly update or revise any forward-looking statements. In addition, our non-GAAP financial measures may be discussed during this conference call. Reconciliations are included in our earnings press release and financial supplement. With that, I'll turn the call over to Vince.
Speaker #3: This includes the additional risks identified in the cautionary note regarding the forward-looking statements in our earnings press release issued last night. We undertake no obligation to publicly update or revise any forward-looking statements.
Speaker #3: In addition, our non-GAAP financial measures may be discussed during this conference call. Reconciliations are included in our earnings press release and financial supplement. And with that, I'll turn the call over to Vince.
Speaker #4: Thank you, Cliff. Good morning and thank you for joining our call. The fourth quarter marked the close of an excellent year for AXIS. As we built upon our track record of sustained positive results, with 13 quarters of increases in diluted book value per share growth and 77% growth over that period, our performance has been consistent, and our actions have aligned with the core principles that we laid out at our investor day in May of '24.
Vincent Tizzio: Thank you, Cliff. Good morning, and thank you for joining our call. The Q4 marks the close of an excellent year for AXIS, as we built upon our track record of sustained positive results, with 13 quarters of increases in diluted book value per share growth and 77% growth over that period. Our performance has been consistent, and our actions have aligned with the core principles that we laid out at our Investor Day in May 2024. In 2025, this translated to strong results across our key indices as we leaned into attractive specialty markets, drove increased profitable growth that was largely propelled by our new and expanded business classes, and further enhanced our operating efficiency. I'll share some of the headline metrics for 2025.
Vincent Tizzio: Thank you, Cliff. Good morning, and thank you for joining our call. The Q4 marks the close of an excellent year for AXIS, as we built upon our track record of sustained positive results, with 13 quarters of increases in diluted book value per share growth and 77% growth over that period. Our performance has been consistent, and our actions have aligned with the core principles that we laid out at our Investor Day in May 2024. In 2025, this translated to strong results across our key indices as we leaned into attractive specialty markets, drove increased profitable growth that was largely propelled by our new and expanded business classes, and further enhanced our operating efficiency. I'll share some of the headline metrics for 2025.
Speaker #4: In 2025, this translated to strong results across our key indices, as we leaned into attractive specialty markets, drove increased profitable growth that was largely propelled by our new and expanded business classes, and further enhanced our operating efficiency.
Speaker #4: I'll share some of the headline metrics for 2025. 18% year-over-year increase in diluted book value per common share, at 77.20. 18% operating return on equity, record gross written premiums of 9.6 billion up 7% over the prior year, and a combined ratio of 89.8, our lowest full-year combined ratio since 2010.
Vincent Tizzio: 18% year-over-year increase in diluted book value per common share at $77.20, 18% operating return on equity, record gross written premiums of $9.6 billion, up 7% over the prior year, and a combined ratio of 89.8, our lowest full-year combined ratio since 2010. We entered 2026 well-positioned to advance our momentum and have confidence in our ability to execute. I'll share 5 key messages that we would like our listeners to take from this call. First, AXIS is built for all seasons. As a specialist, we have an operating model that enables us to leverage our size and speed to pivot as needed across our business lines and geographies, serving as a competitive differentiator in today's changing risk landscape. Second, we're poised for profitable growth, driven by our strategic initiatives.
Vincent Tizzio: 18% year-over-year increase in diluted book value per common share at $77.20, 18% operating return on equity, record gross written premiums of $9.6 billion, up 7% over the prior year, and a combined ratio of 89.8, our lowest full-year combined ratio since 2010. We entered 2026 well-positioned to advance our momentum and have confidence in our ability to execute. I'll share 5 key messages that we would like our listeners to take from this call. First, AXIS is built for all seasons. As a specialist, we have an operating model that enables us to leverage our size and speed to pivot as needed across our business lines and geographies, serving as a competitive differentiator in today's changing risk landscape. Second, we're poised for profitable growth, driven by our strategic initiatives.
Speaker #4: We entered 2026 well-positioned to advance our momentum and have confidence in our ability to execute. I'll share five key messages that we would like our listeners to take from this call.
Speaker #4: First, AXIS is built for all seasons. As a specialist, we have an operating model that enables us to leverage our size and speed to pivot as needed across our business lines and geographies serving as a competitive differentiator in today's changing risk landscape.
Speaker #4: Second, we're poised for profitable growth driven by our strategic initiatives. We would point directly to our new and expanded business classes as well as the growing contributions from our dedicated lower-middle market units and our recently introduced AXIS CAPACITY solutions as proof points.
Vincent Tizzio: We would point directly to our new and expanded business classes, as well as the growing contributions from our dedicated lower middle market units and our recently introduced AXIS Capacity Solutions as proof points. Third, disciplined cycle management. Our growth will not come at the expense of bottom line, and we remain steadfast in putting profits above premiums. In recent years, we have instilled a culture of strong cycle management, as evidenced by the repositioning of several of our businesses. You may recall the actions taken in primary casualty, cyber, and public D&O as just three examples. Four, our global distribution model. Our multivariate distribution platform is grounded in customer centricity and deep broker partnerships that we've worked diligently to nurture. In our most recent annual broker survey, this was reflected by top-quartile net promoter scores and the recognition of AXIS in its specialty leadership positions.
Vincent Tizzio: We would point directly to our new and expanded business classes, as well as the growing contributions from our dedicated lower middle market units and our recently introduced AXIS Capacity Solutions as proof points. Third, disciplined cycle management. Our growth will not come at the expense of bottom line, and we remain steadfast in putting profits above premiums. In recent years, we have instilled a culture of strong cycle management, as evidenced by the repositioning of several of our businesses. You may recall the actions taken in primary casualty, cyber, and public D&O as just three examples. Four, our global distribution model. Our multivariate distribution platform is grounded in customer centricity and deep broker partnerships that we've worked diligently to nurture. In our most recent annual broker survey, this was reflected by top-quartile net promoter scores and the recognition of AXIS in its specialty leadership positions.
Speaker #4: Third, disciplined cycle management. Our growth will not come at the expense of the bottom line, and we remain steadfast in putting profits above premiums. In recent years, we have instilled a culture of strong cycle management, as evidenced by the repositioning of several of our businesses.
Speaker #4: You may recall the actions taken in primary casualty, cyber, and public D&O as just three examples. Four, our global distribution model. Our multivariate distribution platform is grounded in customer-centricity and deep broker partnerships that we've worked diligently to nurture.
Speaker #4: In our most recent annual broker survey, this was reflected by top quartile net promoter scores and the recognition of AXIS in its specialty leadership positions.
Vincent Tizzio: Five, finally, we've driven a performance culture. We have built a culture that is both results-driven and people-oriented, encouraging exceptional work through our pay-for-performance model. Further, in recent years, we've built a strong and talented team while providing a favorable workplace environment that has earned AXIS numerous awards and recognitions. In supporting each of these areas, we continue to invest significant resources to our How We Work transformation program, which is driving continued improvements across our business and operating model, leveraging enhanced technology and AI solutions. The investments we're making through our How We Work program are reflective of the commitment we made at our Investor Day to deploy $100 million to strengthen our operations and how we go to market.
Vincent Tizzio: Five, finally, we've driven a performance culture. We have built a culture that is both results-driven and people-oriented, encouraging exceptional work through our pay-for-performance model. Further, in recent years, we've built a strong and talented team while providing a favorable workplace environment that has earned AXIS numerous awards and recognitions. In supporting each of these areas, we continue to invest significant resources to our How We Work transformation program, which is driving continued improvements across our business and operating model, leveraging enhanced technology and AI solutions. The investments we're making through our How We Work program are reflective of the commitment we made at our Investor Day to deploy $100 million to strengthen our operations and how we go to market.
Speaker #4: Five, finally, we've driven a performance culture. We have built a culture that is both results-driven and people-oriented. Encouraging exceptional work through our pay-for-performance model.
Speaker #4: Further, in recent years, we've built a strong and talented team while providing a favorable workplace environment that has earned AXIS numerous awards and recognitions.
Speaker #4: In supporting each of these areas, we continue to invest significant resources into our How We Work transformation program, which is driving continued improvements across our business and operating model, leveraging enhanced technology and AI solutions.
Speaker #4: The investments we are making through our How We Work program are reflective of the commitment we made at our Investor Day to deploy $100 million to strengthen our operations and how we go to market.
Speaker #4: We accelerated these efforts in 2025 and indeed raised our investment threshold with an emphasis on scaling our new and expanded lines and integrating a new AI-enabled front end within our organization.
Vincent Tizzio: We accelerated these efforts in 2025, and indeed, raised our investment threshold with an emphasis on scaling our new and expanded lines and integrating a new AI-enabled front end within our organization. We're pleased with the momentum that's coming from these investments. Let's now discuss our segment results. We'll begin with insurance. Our insurance segment produced outstanding results in 2025, including several all-time highs. Record gross written premiums of $7.2 billion, a 9% increase over the prior year. Record new premiums written of $2.4 billion. Record underwriting income of $597 million, a 40% increase over the prior year. And finally, a combined ratio of 86, a 3 percentage point improvement over the prior year.
Vincent Tizzio: We accelerated these efforts in 2025, and indeed, raised our investment threshold with an emphasis on scaling our new and expanded lines and integrating a new AI-enabled front end within our organization. We're pleased with the momentum that's coming from these investments. Let's now discuss our segment results. We'll begin with insurance. Our insurance segment produced outstanding results in 2025, including several all-time highs. Record gross written premiums of $7.2 billion, a 9% increase over the prior year. Record new premiums written of $2.4 billion. Record underwriting income of $597 million, a 40% increase over the prior year. And finally, a combined ratio of 86, a 3 percentage point improvement over the prior year.
Speaker #4: We're pleased with the momentum that's coming from these investments. Let's now discuss our segment results. We'll begin with insurance. Our insurance segment produced outstanding results in 2025, including several all-time highs.
Speaker #4: Record gross written premiums of $7.2 billion, a 9% increase over the prior year. Record new premiums written of $2.4 billion, and record underwriting income of $597 million, a 40% increase over the prior year.
Speaker #4: And finally, a combined ratio of 86, a 3 percentage point improvement over the prior year. In North America, we delivered standout performance with gross written premiums up 10%, reflecting the benefits of strategic investments in product and channel expansion coupled with significant underwriting platform enhancements.
Vincent Tizzio: In North America, we delivered standout performance, with gross written premiums up 10%, reflecting the benefits of strategic investments in product and channel expansion, coupled with significant underwriting platform enhancements. These efforts are continuing to unlock new opportunities in our targeted markets. In global markets, results were strong as we leveraged our lead line product positions and multi-platform solutions, including Lloyd’s, while driving a 6% increase in gross written premiums. Key drivers included marine, energy, and construction, lines where we have strong margin and a healthy pipeline. In addition, our investments to establish a footprint in the retail lower middle market space are starting to produce attractive results within the UK property segment. To complement our profitable growth journey, we have continued investing in innovation, including those that extend beyond technology.
Vincent Tizzio: In North America, we delivered standout performance, with gross written premiums up 10%, reflecting the benefits of strategic investments in product and channel expansion, coupled with significant underwriting platform enhancements. These efforts are continuing to unlock new opportunities in our targeted markets. In global markets, results were strong as we leveraged our lead line product positions and multi-platform solutions, including Lloyd’s, while driving a 6% increase in gross written premiums. Key drivers included marine, energy, and construction, lines where we have strong margin and a healthy pipeline. In addition, our investments to establish a footprint in the retail lower middle market space are starting to produce attractive results within the UK property segment. To complement our profitable growth journey, we have continued investing in innovation, including those that extend beyond technology.
Speaker #4: These efforts are continuing to unlock new opportunities in our targeted markets. In global markets, results were strong as we leveraged our lead line product positions and multi-platform solutions, including Lloyd's, while driving a 6% increase in gross written premiums.
Speaker #4: Included marine energy and key drivers—construction lines where we have strong margin and a healthy pipeline. In addition, our investments to establish a footprint in the retail lower-middle market space are starting to produce attractive results within the UK property segment.
Speaker #4: To complement our profitable growth journey, we have continued investing in innovation, including those that extend beyond technology. For example, we're pleased by the early progress of AXIS Capacity Solutions, otherwise known as ACS.
Vincent Tizzio: For example, we're pleased by the early progress of AXIS Capacity Solutions, otherwise known as ACS. Through ACS, we are tapping into our deep knowledge and experience with third-party capital, bringing innovation to the insurance platform of our company, serving both our open brokerage and delegated businesses. This includes leveraging our underwriting and portfolio management expertise to work in tandem with our strategic partners to develop structured portfolios at scale, while producing new business and underwriting fee income as a new stream to AXIS. While it is early days, several transactions have already been completed. Stepping back and looking at the broader insurance market, we continue to see many micro markets influenced by a risk landscape that is being impacted by a number of dynamics: geopolitical tension, economic uncertainty, war, volatility in climate, energy transition, and technological disruption.
Vincent Tizzio: For example, we're pleased by the early progress of AXIS Capacity Solutions, otherwise known as ACS. Through ACS, we are tapping into our deep knowledge and experience with third-party capital, bringing innovation to the insurance platform of our company, serving both our open brokerage and delegated businesses. This includes leveraging our underwriting and portfolio management expertise to work in tandem with our strategic partners to develop structured portfolios at scale, while producing new business and underwriting fee income as a new stream to AXIS. While it is early days, several transactions have already been completed. Stepping back and looking at the broader insurance market, we continue to see many micro markets influenced by a risk landscape that is being impacted by a number of dynamics: geopolitical tension, economic uncertainty, war, volatility in climate, energy transition, and technological disruption.
Speaker #4: Through ACS, we are tapping into our deep knowledge and experience with third-party capital, bringing innovation to the insurance platform of our company serving both our open brokerage and delegated businesses.
Speaker #4: This includes leveraging our underwriting and portfolio management expertise to work in tandem with our strategic partners to develop structured portfolios at scale, while producing new business and underwriting fee income as a new stream to AXIS.
Speaker #4: While it is early days, several transactions have already been completed. Stepping back and looking at the broader insurance market, we continue to see many micro markets influenced by a risk landscape that is being impacted by a number of dynamics.
Speaker #4: Geopolitical tension, economic uncertainty, war, volatility in climate, energy transition, and technological disruption. Against this backdrop, the need for customized insurance solutions is as high as it's ever been, and as a specialist, with a diverse product portfolio and robust global platform, AXIS is fit for purpose.
Vincent Tizzio: Against this backdrop, the need for customized insurance solutions is as high as it's ever been, and as a specialist with a diverse product portfolio and robust global platform, AXIS is fit for purpose. As noted, we're seeing varying market conditions across our different lines of business. In liability, overall rates were up 10% in the quarter, with 6% growth. In US excess casualty, we generated a 13% rate increase and 4% growth. In particular, our wholesale lower middle market segment continues to show favorable margin and sustained positive momentum. Within property, we grew our property book by 12% across our eight underwriting units worldwide, observing different degrees of competitive pressure.
Vincent Tizzio: Against this backdrop, the need for customized insurance solutions is as high as it's ever been, and as a specialist with a diverse product portfolio and robust global platform, AXIS is fit for purpose. As noted, we're seeing varying market conditions across our different lines of business. In liability, overall rates were up 10% in the quarter, with 6% growth. In US excess casualty, we generated a 13% rate increase and 4% growth. In particular, our wholesale lower middle market segment continues to show favorable margin and sustained positive momentum. Within property, we grew our property book by 12% across our eight underwriting units worldwide, observing different degrees of competitive pressure.
Speaker #4: As noted, we're seeing varying market conditions across our different lines of business. In liability, overall rates were up 10% in the quarter, with 6% growth.
Speaker #4: In US excess casualty, we generated a 13% rate increase and 4% growth. In particular, our wholesale lower-middle market segment continues to show favorable margin and sustained positive momentum.
Speaker #4: Within property, we grew our property book by 12% across our eight underwriting units worldwide, observing different degrees of competitive pressure. Our growth has been bolstered by our highly premium-adequate lower-middle market units, both in the US and UK.
Vincent Tizzio: Our growth has been bolstered by our highly premium-adequate, lower middle market units, both in the US and UK, as well as by taking advantage of the innovation we've brought to the market through ACS. Pete will share more detail about property in his comments. In professional, we grew 19% with a rate environment that's virtually flat. The majority of our growth was generated from transactional liability and our new and expanded E&O lines, which by way of example, includes allied health, miscellaneous E&O, and enhancements to our design professional offering. As respects management liability, we continue to produce solid growth within our private D&O business. Importantly, the areas where we have grown continue to meet our risk-adjusted return expectations. Within cyber, consistent with our prior observations, we are seeing an escalating risk landscape impacted by increasing ransomware attacks....
Vincent Tizzio: Our growth has been bolstered by our highly premium-adequate, lower middle market units, both in the US and UK, as well as by taking advantage of the innovation we've brought to the market through ACS. Pete will share more detail about property in his comments. In professional, we grew 19% with a rate environment that's virtually flat. The majority of our growth was generated from transactional liability and our new and expanded E&O lines, which by way of example, includes allied health, miscellaneous E&O, and enhancements to our design professional offering. As respects management liability, we continue to produce solid growth within our private D&O business. Importantly, the areas where we have grown continue to meet our risk-adjusted return expectations. Within cyber, consistent with our prior observations, we are seeing an escalating risk landscape impacted by increasing ransomware attacks....
Speaker #4: As well as by taking advantage of the innovation we've brought to the market through ACS. Pete will share more detail about property in his comments.
Speaker #4: In Professional, we grew 19% with a rate environment that's virtually flat. The majority of our growth was generated from transactional liability and our new and expanded E&O lines, which, by way of example, includes Allied Health, Miscellaneous E&O, and enhancements to our Design Professional offering.
Speaker #4: As respects management liability, we continue to produce solid growth within our private D&O business. Importantly, the areas where we have grown continue to meet our risk-adjusted return expectations.
Speaker #4: Within cyber, consistent with our prior observations, we are seeing an escalating risk landscape impacted by increasing ransomware attacks. And the environment is made worse by the potential of AI enabling more effective and sophisticated ransomware threats.
Vincent Tizzio: and the environment is made worse by the potential of AI, enabling more effective and sophisticated ransomware threats. This phenomenon, coupled with increasing competition from MGAs, is placing downward pressure on price adequacy. Thus, we will continue to maintain a cautious and selective appetite, and do not see cyber as a growth area for the foreseeable future, unless a better risk-reward outcome is realized. Moving to our reinsurance business, AXIS Re has generated positive bottom-line results for the last 8 consecutive quarters. This financial consistency has been grounded by a clear underwriting strategy centered around selective, profitable growth and strong cycle management. In 2025, AXIS Re produced a strong combined ratio of 92.6, underwriting income of $128 million. We produced $2.5 billion in gross written premiums, a low single-digit increase over the prior year period, consistent with prior indications.
Vincent Tizzio: and the environment is made worse by the potential of AI, enabling more effective and sophisticated ransomware threats. This phenomenon, coupled with increasing competition from MGAs, is placing downward pressure on price adequacy. Thus, we will continue to maintain a cautious and selective appetite, and do not see cyber as a growth area for the foreseeable future, unless a better risk-reward outcome is realized. Moving to our reinsurance business, AXIS Re has generated positive bottom-line results for the last 8 consecutive quarters. This financial consistency has been grounded by a clear underwriting strategy centered around selective, profitable growth and strong cycle management. In 2025, AXIS Re produced a strong combined ratio of 92.6, underwriting income of $128 million. We produced $2.5 billion in gross written premiums, a low single-digit increase over the prior year period, consistent with prior indications.
Speaker #4: This phenomenon, coupled with increasing competition from MGAs is placing downward pressure on price adequacy. Thus, we will continue to maintain a cautious and selective appetite and do not see cyber as a growth area for the foreseeable future unless a better risk-reward outcome is realized.
Speaker #4: Moving to our reinsurance business, AXIS RE has generated positive bottom-line results for the last eight consecutive quarters. This financial consistency has been grounded by a clear underwriting strategy, centered around selective profitable growth and strong cycle management.
Speaker #4: In 2025, AXIS RE produced a strong combined ratio of 92.6, and underwriting income of $128 million. We produced $2.5 billion in gross written premiums, a low single-digit increase over the prior year period, consistent with prior indications.
Speaker #4: As respects the one-one renewals, the market grew increasingly competitive, and we held our discipline across our casualty lines for the same reasons we've cited in the past.
Vincent Tizzio: As respects the 1-1 renewals, the market grew increasingly competitive, and we held to our discipline across our casualty lines. For the same reasons we've cited in the past, we maintain a cautious and highly selective stance in professional and liability, and our caution has only escalated, reflecting our view of a misalignment of risk and reward. As we progress into 2026, AXIS Re's focus is to continue to deliver bottom-line performance. Before I close, I want to take a moment to extend my gratitude to our longtime and long-serving CFO, Pete Vogt, as this will be his last earnings call before he passes the baton to Matt Kirk. On behalf of all of his AXIS colleagues, we're deeply appreciative to Pete for his years of leadership and important contributions to our multiyear transformation program.
Vincent Tizzio: As respects the 1-1 renewals, the market grew increasingly competitive, and we held to our discipline across our casualty lines. For the same reasons we've cited in the past, we maintain a cautious and highly selective stance in professional and liability, and our caution has only escalated, reflecting our view of a misalignment of risk and reward. As we progress into 2026, AXIS Re's focus is to continue to deliver bottom-line performance. Before I close, I want to take a moment to extend my gratitude to our longtime and long-serving CFO, Pete Vogt, as this will be his last earnings call before he passes the baton to Matt Kirk. On behalf of all of his AXIS colleagues, we're deeply appreciative to Pete for his years of leadership and important contributions to our multiyear transformation program.
Speaker #4: We maintain a cautious and highly selective stance in professional and liability, and our caution has only escalated, reflecting our view of a misalignment of risk and reward.
Speaker #4: As we progress into 2026, AXIS RE's focus is to continue to deliver bottom-line performance. Before I close, I want to take a moment to extend my gratitude to our long-time and long-serving CFO, Peter Vogt, as this will be his last earnings call before he passes the baton to Matt Kirk.
Speaker #4: On behalf of all of his AXIS colleagues, we're deeply appreciative to Pete for his years of leadership and important contributions to our multi-year transformation program.
Speaker #4: I, in particular, am indebted to his assistance during my initial transition as CEO of our great company. In summary, 2025 was an outstanding year for AXIS.
Vincent Tizzio: I, in particular, am indebted to his assistance during my initial transition as CEO of our great company. In summary, 2025 was an outstanding year for AXIS. We are pleased and motivated by the consistent progress and momentum we have achieved. We remain focused on continuing to pursue our specialty leadership ambition, while delivering tailored insurance solutions to our customers and producing attractive returns for our shareholders. Finally, I want to extend my appreciation to our AXIS teammates worldwide for their many accomplishments and commitment to excellence. With that, I'll now pass the floor to Pete for his comments.
Vincent Tizzio: I, in particular, am indebted to his assistance during my initial transition as CEO of our great company. In summary, 2025 was an outstanding year for AXIS. We are pleased and motivated by the consistent progress and momentum we have achieved. We remain focused on continuing to pursue our specialty leadership ambition, while delivering tailored insurance solutions to our customers and producing attractive returns for our shareholders. Finally, I want to extend my appreciation to our AXIS teammates worldwide for their many accomplishments and commitment to excellence. With that, I'll now pass the floor to Pete for his comments.
Speaker #4: We're re pleased and motivated by the consistent progress and momentum we have achieved. We remain focused on continuing to pursue our specialty leadership ambition while delivering tailored insurance solutions to our customers and producing attractive returns for our shareholders.
Speaker #4: appreciation to our AXIS Finally, I want to extend my teammates worldwide for their many accomplishments and commitment to excellence. With that, I'll now pass the floor to Pete for his
Speaker #4: comments.
Speaker #2: Thank you, Vince, and good morning, everyone. AXIS had an excellent quarter and a phenomenal full year 2025. For the quarter, our net income available to common shareholders was $282, or $3.67, per diluted common share.
Peter Vogt: Thank you, Vince, and good morning, everyone. AXIS had an excellent quarter and a phenomenal full year 2025. For the quarter, our net income available to common shareholders was $282 million, or $3.67 per diluted common share. For the full year, $978 million, or $12.35 per diluted common share, producing a 17% return on common equity. This drove our book value per diluted common share to $77.20 at 31 December 2025, an increase of 18% over the past twelve months, and up nearly 24% when adjusted for dividends declared and share repurchases.
Peter Vogt: Thank you, Vince, and good morning, everyone. AXIS had an excellent quarter and a phenomenal full year 2025. For the quarter, our net income available to common shareholders was $282 million, or $3.67 per diluted common share. For the full year, $978 million, or $12.35 per diluted common share, producing a 17% return on common equity. This drove our book value per diluted common share to $77.20 at 31 December 2025, an increase of 18% over the past twelve months, and up nearly 24% when adjusted for dividends declared and share repurchases.
Speaker #2: For the full year, $978, or $12.35, per diluted common share. Producing a 17% return on common equity. This drove our book value per diluted common share to $77.20 at December 31.
Speaker #2: An increase of 18% over the past 12 months and up nearly 24% when adjusted for dividends declared and share repurchases. Our operating income was $250, or $3.25, per diluted common share for the quarter.
Peter Vogt: Our operating income was $250 million, or $3.25 per diluted common share for the quarter, or just over $1 billion, or $12.92 per diluted common share for the full year, resulting in an operating ROE for the year of 18.1%. Let's look at the consolidated company underwriting highlights. Our gross premiums written of $2.2 billion were up 12% over the prior year quarter, driven by accelerating growth initiatives in insurance. On a net basis, premiums were up 13%. For the full year, gross premiums were $9.6 billion, up 7%. Our quarterly combined ratio was an excellent 90.4, consistent with an outstanding 89.8 for the full year. Cat losses in the quarter were just $30 million, producing a cat loss ratio of 2%.
Peter Vogt: Our operating income was $250 million, or $3.25 per diluted common share for the quarter, or just over $1 billion, or $12.92 per diluted common share for the full year, resulting in an operating ROE for the year of 18.1%. Let's look at the consolidated company underwriting highlights. Our gross premiums written of $2.2 billion were up 12% over the prior year quarter, driven by accelerating growth initiatives in insurance. On a net basis, premiums were up 13%. For the full year, gross premiums were $9.6 billion, up 7%. Our quarterly combined ratio was an excellent 90.4, consistent with an outstanding 89.8 for the full year. Cat losses in the quarter were just $30 million, producing a cat loss ratio of 2%.
Speaker #2: We're just over $1 billion or $12.92 per diluted common share for the full year, resulting in an operating ROE for the year of 18.1%.
Speaker #2: Let's look at the consolidated company underwriting highlights. Our gross premiums written of 2.2 billion were up 12% over the prior year quarter, driven by accelerating growth initiatives in insurance.
Speaker #2: On a net basis, premiums were up 13%. For the full year, gross premiums were 9.6 billion, up 7%. Our quarterly combined ratio was an excellent 90.4, consistent with an outstanding 89.8 for the full year.
Speaker #2: CAT losses in the quarter were just $30 million, producing a CAT loss ratio of 2%. CAT losses were driven largely by Hurricane Melissa, which devastated Jamaica.
Peter Vogt: Cat losses were driven largely from Hurricane Melissa, which devastated Jamaica. Our full-year cat loss ratio was 2.8%. We're pleased to see the benefits of the strategic actions we have executed over the past few years, reduced the volatile impact of cats to our earnings. We adhere to our philosophy of wanting to see sustained positive signals before releasing reserves. We recorded a release of $30 million, with $23 million in insurance and $7 million in reinsurance in the quarter. We remain highly confident in our reserve position, and as is our normal practice at year-end, an independent third-party actuarial firm completed a review of our reserves, and this provided us additional confidence in our reserve position. Our consolidated G&A ratio for the quarter, including corporate, was 13.9% versus 13.7% a year ago.
Peter Vogt: Cat losses were driven largely from Hurricane Melissa, which devastated Jamaica. Our full-year cat loss ratio was 2.8%. We're pleased to see the benefits of the strategic actions we have executed over the past few years, reduced the volatile impact of cats to our earnings. We adhere to our philosophy of wanting to see sustained positive signals before releasing reserves. We recorded a release of $30 million, with $23 million in insurance and $7 million in reinsurance in the quarter. We remain highly confident in our reserve position, and as is our normal practice at year-end, an independent third-party actuarial firm completed a review of our reserves, and this provided us additional confidence in our reserve position. Our consolidated G&A ratio for the quarter, including corporate, was 13.9% versus 13.7% a year ago.
Speaker #2: Our full-year CAT loss ratio was 2.8%. We're pleased to see the benefits of the strategic actions we have executed over the past few years have reduced the volatile impact of CATs to our earnings.
Speaker #2: We adhere to our philosophy of wanting to see sustained positive signals before releasing reserves. We recorded a release of $30 million with $23 million in insurance and $7 million in reinsurance in the quarter.
Speaker #2: We remain highly confident in our reserve position. And, as is our normal practice at year-end, an independent third-party actuarial firm completed a review of our reserves, and this provided us additional confidence in our reserve position.
Speaker #2: Our consolidated G&A ratio for the quarter, including corporate, was 13.9% versus 13.7% a year ago. The increase is mainly driven by variable compensation and an increase in headcount in insurance, as we have added new teams throughout the year.
Peter Vogt: The increase is mainly driven by variable compensation and an increase in headcount in insurance as we have added new teams throughout the year. For the year, the ratio is 12.4% versus 12.6% in 2024. We continue to invest in new technology as part of our How We Work program, and we expect our new hires and investments to drive growth and efficiency. I'd note that the benefit of our G&A ratio from Bermuda's substance-based tax credits were minimal. I would also note that underwriting fees from ILS partners were $14 million in the quarter and $54 million for the year, and represent an attractive stream of fee-like earnings delivered from our ILS partners. Insurance had a strong all-around quarter and year.
Peter Vogt: The increase is mainly driven by variable compensation and an increase in headcount in insurance as we have added new teams throughout the year. For the year, the ratio is 12.4% versus 12.6% in 2024. We continue to invest in new technology as part of our How We Work program, and we expect our new hires and investments to drive growth and efficiency. I'd note that the benefit of our G&A ratio from Bermuda's substance-based tax credits were minimal. I would also note that underwriting fees from ILS partners were $14 million in the quarter and $54 million for the year, and represent an attractive stream of fee-like earnings delivered from our ILS partners. Insurance had a strong all-around quarter and year.
Speaker #2: For the year, the ratio was 12.4% versus 12.6% in 2024. We continue to invest in new technology as part of our How We Work program, and we expect our new hires and investments to drive growth and efficiency.
Speaker #2: I'd note that the benefit of our G&A ratio from Bermuda's Substance-Based Tax Credits were minimal. I would also note that underwriting fees from ILS partners were $14 million in the quarter and $54 million for the year, and represent an attractive stream of fee-like earnings delivered from our ILS partners.
Speaker #2: Insurance had a strong all-around quarter and year. Fourth quarter gross premiums written were $1.9 billion, an increase of 12% compared to the prior year quarter, and $7.2 billion for the full year up 9%.
Peter Vogt: Fourth quarter gross premiums written were $1.9 billion, an increase of 12% compared to the prior year quarter, and $7.2 billion for the full year, up 9%. As Vince detailed in his byline market commentary, we're seeing a wide spectrum of distinct market cycles across insurance products. Our growth has been broad-based across the portfolio as all classes of business grew, except for cyber. We are focused on the profitability and are pleased with the premium adequacy we continue to see across the portfolio. I will note that specifically in property, a significant proportion of the 12% growth came from the build-out of our US and UK lower middle market businesses, as well as new business associated with ACS partnerships. As Vince noted, our property book is quite diverse across both geography and classes of risk.
Peter Vogt: Fourth quarter gross premiums written were $1.9 billion, an increase of 12% compared to the prior year quarter, and $7.2 billion for the full year, up 9%. As Vince detailed in his byline market commentary, we're seeing a wide spectrum of distinct market cycles across insurance products. Our growth has been broad-based across the portfolio as all classes of business grew, except for cyber. We are focused on the profitability and are pleased with the premium adequacy we continue to see across the portfolio. I will note that specifically in property, a significant proportion of the 12% growth came from the build-out of our US and UK lower middle market businesses, as well as new business associated with ACS partnerships. As Vince noted, our property book is quite diverse across both geography and classes of risk.
Speaker #2: As Vince detailed in his by-line market commentary, we're seeing a wide spectrum of distinct market cycles across insurance products. Our growth has been broad-based across the portfolio, as all classes of business grew except for cyber.
Speaker #2: We are focused on profitability and are pleased with the premium adequacy we continue to see across the portfolio. I will note that, specifically in property, a significant proportion of the 12% growth came from the build-out of our US and UK lower middle market businesses, as well as new business associated with ACS partnerships.
Speaker #2: As Vince noted, our property book is quite diverse, across both geography and classes of risk. As we look to 2026, given the current insurance market conditions, we reiterate our confidence that we can grow gross written premiums at a mid- to high-single-digit rate while maintaining premium adequacy at our long-term targets.
Peter Vogt: As we look to 2026, given the current insurance market conditions, we reiterate our confidence that we can grow gross written premiums at a mid- to high-single-digit rate, while maintaining premium adequacy at our long-term targets. The insurance combined ratio for the quarter and the year were 86.5% and 86.1%, respectively, improved from 91.2% and 89.1% in the year-ago periods. We've shown remarkable stability in our ex cat accident year loss ratios. For the quarter and the year, we were 52.5% and 52.4%, respectively, compared to 52.2% and 52.1% in the comparative periods in 2024. This quarter, we saw an uptick in the loss ratio from the effect of rate and trend, which wasn't fully offset by mix.
Peter Vogt: As we look to 2026, given the current insurance market conditions, we reiterate our confidence that we can grow gross written premiums at a mid- to high-single-digit rate, while maintaining premium adequacy at our long-term targets. The insurance combined ratio for the quarter and the year were 86.5% and 86.1%, respectively, improved from 91.2% and 89.1% in the year-ago periods. We've shown remarkable stability in our ex cat accident year loss ratios. For the quarter and the year, we were 52.5% and 52.4%, respectively, compared to 52.2% and 52.1% in the comparative periods in 2024. This quarter, we saw an uptick in the loss ratio from the effect of rate and trend, which wasn't fully offset by mix.
Speaker #2: The insurance combined ratio for the quarter and the year were 86.5% and 86.1%, respectively. Improved from 91.2% and 89.1% in the year-ago periods. We've shown remarkable stability and our exit year loss ratios.
Speaker #2: For the quarter and the year, we were 52.5% and 52.4%, respectively. Compared to 52.2% and 52.1% in the comparative periods in 2024. This quarter, we saw an uptick in the loss ratio from the effect of rate and trend, which wasn't fully offset by mix.
Speaker #2: Our insurance expense ratios for the quarter and the year were 33.4% and 31.6%, respectively. Versus 32.4% and 31.9% in the comparative periods in 2024.
Peter Vogt: Our insurance expense ratios for the quarter and the year were 33.4% and 31.6%, respectively, versus 32.4 and 31.9 in the comparative periods in 2024. The increase in the quarter is driven by variable compensation for a very successful year in insurance and the investments we've made throughout the year in hiring teams, as well as technology and operations. Our investments in operations have significantly reduced submission, quoting, and ingestion times, particularly as we employ AI tools, and we are still at the early days of implementation. Turning to reinsurance. Gross premiums were up 13% in the quarter. I would stress that Q4 is seasonally our smallest quarter, with only about 10% of the annual GWP generated in the fourth quarter.
Peter Vogt: Our insurance expense ratios for the quarter and the year were 33.4% and 31.6%, respectively, versus 32.4 and 31.9 in the comparative periods in 2024. The increase in the quarter is driven by variable compensation for a very successful year in insurance and the investments we've made throughout the year in hiring teams, as well as technology and operations. Our investments in operations have significantly reduced submission, quoting, and ingestion times, particularly as we employ AI tools, and we are still at the early days of implementation. Turning to reinsurance. Gross premiums were up 13% in the quarter. I would stress that Q4 is seasonally our smallest quarter, with only about 10% of the annual GWP generated in the fourth quarter.
Speaker #2: The increase in the quarter is driven by variable compensation for a very successful year in insurance, and the investments we've made throughout the year in hiring teams, as well as technology and operations.
Speaker #2: Our investments in operations have significantly reduced submission, quoting, and ingestion times, particularly as we employ AI tools. And we are still at the early days of implementation.
Speaker #2: Turning to reinsurance, gross premiums were up 13% in the quarter. I would stress that 4Q is seasonally our smallest quarter with only about 10% of the annual GWP generated in the fourth quarter.
Speaker #2: This quarter, a significant part of the growth was driven by a single large quota share UK motor transaction, which has renewable and Q1 2027, and therefore will not repeat in 4Q 2026.
Peter Vogt: This quarter, a significant part of the growth was driven by a single large quota share UK motor transaction, which is renewable in Q1 2027, and therefore will not repeat in Q4 2026. We also saw new business and favorable adjustments in the credit and surety line of business. Full-year gross premiums were up 3% and a better characterization of the year's trend. The reinsurance combined ratio is 93.9% in the quarter, with an ex cat accident year loss ratio of 68, with no cats and a 1.9 benefit from reserve releases. For the full year, combined ratio was 92.6%, with an ex cat accident year loss ratio of 68.1, including 0.2 of a point for cats and 1.5 point benefit from reserve releases.
Peter Vogt: This quarter, a significant part of the growth was driven by a single large quota share UK motor transaction, which is renewable in Q1 2027, and therefore will not repeat in Q4 2026. We also saw new business and favorable adjustments in the credit and surety line of business. Full-year gross premiums were up 3% and a better characterization of the year's trend. The reinsurance combined ratio is 93.9% in the quarter, with an ex cat accident year loss ratio of 68, with no cats and a 1.9 benefit from reserve releases. For the full year, combined ratio was 92.6%, with an ex cat accident year loss ratio of 68.1, including 0.2 of a point for cats and 1.5 point benefit from reserve releases.
Speaker #2: We also saw new business and favorable adjustments in the credit and surety line of business. Full-year gross premiums were up 3%, and that's a better characterization of the year's trend.
Speaker #2: The reinsurance combined ratio is 93.9% in the quarter, with an ex-cat accident year loss ratio of 68. With no cats, and a 1.9 benefit from reserve releases.
Speaker #2: For the full year combined ratio, it was 92.6%, with an ex-cat accident year loss ratio of 68.1, including two-tenths of a point for cats and one and a half point benefit from reserve releases.
Speaker #2: The quarters and years acquisition ratios were 23.1% and 22.2%, respectively, up from 21.8% and 22% in 2024, reflecting business mix changes. The increase in the G&A ratio for the quarter, up to 4.7% from 4.0% a year ago, largely reflected higher variable compensation accruals.
Peter Vogt: The quarter's and year's acquisition ratios were 23.1% and 22.2% respectively, up from 21.8 and 22 in 2024, reflecting business mix changes. The increase in the G&A ratio for the quarter, up 4.7 from 4.0 a year ago, largely reflected higher variable compensation accruals. For the full year, the ratio was 3.6%, flat versus 2024. Building upon Vince's comments about the January 1 renewals, we held true to our strategy of a bottom-line focus, with an emphasis on premium adequacy. We kept a cautious stance in reinsurance, liability, and professional lines. If we continue to see a challenging reinsurance market as we progress through 2026, we will remain bottom-line focused. Our overall reinsurance gross premiums could be down in 2026, even up to double digits.
Peter Vogt: The quarter's and year's acquisition ratios were 23.1% and 22.2% respectively, up from 21.8 and 22 in 2024, reflecting business mix changes. The increase in the G&A ratio for the quarter, up 4.7 from 4.0 a year ago, largely reflected higher variable compensation accruals. For the full year, the ratio was 3.6%, flat versus 2024. Building upon Vince's comments about the January 1 renewals, we held true to our strategy of a bottom-line focus, with an emphasis on premium adequacy. We kept a cautious stance in reinsurance, liability, and professional lines. If we continue to see a challenging reinsurance market as we progress through 2026, we will remain bottom-line focused. Our overall reinsurance gross premiums could be down in 2026, even up to double digits.
Speaker #2: For the full year, the ratio was 3.6%, flat versus 2024. Building upon Vince's comments about the January 1 renewals, we held true to our strategy of a bottom-line focus.
Speaker #2: With an emphasis on premium adequacy, we kept a cautious stance in reinsurance liability and professional lines. If we continue to see a challenging reinsurance market as we progress through 2026, we will remain bottom-line focused.
Speaker #2: Our overall reinsurance gross premiums could be down in 2026, even up to double digits. However, while the volume may be reduced, we remain confident in the portfolio's expected underwriting profitability.
Peter Vogt: However, while the volume may be reduced, we remain confident in the portfolio's expected underwriting profitability. We had a strong quarter and year for investment income. In the quarter, investment income was $187 million, and for the full year, investment income was $767 million, up 1% over the prior year. This despite the impact of the LPT transaction, which closed in April. With increasing stability in our underwriting results, we have moved up marginally in our investment risk appetite, with a slightly increased exposure to below BBB-rated bonds at year-end. We are now at the high end of our stated range of 15 to 20% of the portfolio designated for higher risk at 19%....
Peter Vogt: However, while the volume may be reduced, we remain confident in the portfolio's expected underwriting profitability. We had a strong quarter and year for investment income. In the quarter, investment income was $187 million, and for the full year, investment income was $767 million, up 1% over the prior year. This despite the impact of the LPT transaction, which closed in April. With increasing stability in our underwriting results, we have moved up marginally in our investment risk appetite, with a slightly increased exposure to below BBB-rated bonds at year-end. We are now at the high end of our stated range of 15 to 20% of the portfolio designated for higher risk at 19%....
Speaker #2: We had a strong quarter and year for investment income. In the millions, and for the full year, investment income was $767 million, up 1% over the prior year. For the quarter, investment income was $187 million.
Speaker #2: This, despite the impact of the LPT transaction, which closed in April. With increasing stability in our underwriting results, we have moved up marginally in our investment risk appetite.
Speaker #2: With a slightly increased exposure to below BBB-rated bonds at year-end. We are now at the high end of our standard range of 15 to 20% of the portfolio designated to higher risk at 19%.
Speaker #2: Our effective tax rate in the quarter was 14%, and included a $19 million non-operating income benefit arising from an increase in our Bermuda ETA that was required due to an amendment to the Bermuda Corporate Income Tax Act.
Peter Vogt: Our effective tax rate in the quarter was 14% and included a $19 million non-operating income benefit, arising from an increase in our Bermuda ETA that was required due to an amendment to the Bermuda Corporate Income Tax Act. We expect an ongoing overall effective tax rate in the 19% to 20% range. We are in a very strong capital position, which enabled us to return substantial capital to shareholders this year through $139 million of dividends and $888 million of share repurchases. We have a current authorization for another $112 million of share repurchases. I would highlight that our priority for capital is to fund organic growth opportunities, which are accelerating in our specialty insurance business. I wanted to take a moment to acknowledge that this will be my last earnings call for AXIS.
Peter Vogt: Our effective tax rate in the quarter was 14% and included a $19 million non-operating income benefit, arising from an increase in our Bermuda ETA that was required due to an amendment to the Bermuda Corporate Income Tax Act. We expect an ongoing overall effective tax rate in the 19% to 20% range. We are in a very strong capital position, which enabled us to return substantial capital to shareholders this year through $139 million of dividends and $888 million of share repurchases. We have a current authorization for another $112 million of share repurchases. I would highlight that our priority for capital is to fund organic growth opportunities, which are accelerating in our specialty insurance business. I wanted to take a moment to acknowledge that this will be my last earnings call for AXIS.
Speaker #2: We expect an ongoing overall effective tax rate in the 19% to 20% range. We are in a very strong capital position, which enabled us to return substantial capital to shareholders this year through $139 million of dividends and $888 million of share repurchases.
Speaker #2: And we have a current authorization for another $112 million of share repurchases. I would highlight that our priority for capital is to fund organic growth opportunities which are accelerating in our specialty insurance business.
Speaker #2: I wanted to take a moment to acknowledge that this will be my last earnings call for AXIS. The company has gone through a lot of changes over the years, and I'm pleased to be able to step back when the company is better positioned than it has ever been before.
Peter Vogt: The company has gone through a lot of changes over the years, and I'm pleased to be able to step back when the company is better positioned than it has ever been before, both operationally and financially. It has been a privilege to represent my AXIS colleagues to the public markets over the years, and I'm confident that Matt and the rest of the AXIS finance team will continue to serve you all well. Thank you, and we'd be happy to take your questions.
Peter Vogt: The company has gone through a lot of changes over the years, and I'm pleased to be able to step back when the company is better positioned than it has ever been before, both operationally and financially. It has been a privilege to represent my AXIS colleagues to the public markets over the years, and I'm confident that Matt and the rest of the AXIS finance team will continue to serve you all well. Thank you, and we'd be happy to take your questions.
Speaker #2: Both operationally and financially. It has been a privilege to represent my AXIS colleagues for the public markets over the years, and I'm confident that Matt and the rest of the AXIS finance team will continue to serve you all well.
Speaker #2: Thank you, and we'd be happy to take your questions.
Speaker #1: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.
Operator: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Andrew Kligerman with TD Cowen. Please go ahead.
Operator: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Andrew Kligerman with TD Cowen. Please go ahead.
Speaker #1: If, at any time, your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster.
Speaker #1: The first question comes from Andrew Kligerman with TD Cohen. Please go ahead.
Andrew Kligerman: Hey, thanks for taking my question, Pete. Great run. Congrats. And, I guess the first question I, I'd like to touch on is, the expense ratio. And so the underwriting-related general and administrative expense ratio came in for the year at 12.4%. And make sure I'm right, please, I, I think the goal for 2026 would be 11%, so that's 140 basis points down. So that's the part A of it. And the part B of it is, the overall expense ratio consolidated was 34.2%. Where does that go over time as well?
Andrew Kligerman: Hey, thanks for taking my question, Pete. Great run. Congrats. And, I guess the first question I, I'd like to touch on is, the expense ratio. And so the underwriting-related general and administrative expense ratio came in for the year at 12.4%. And make sure I'm right, please, I, I think the goal for 2026 would be 11%, so that's 140 basis points down. So that's the part A of it. And the part B of it is, the overall expense ratio consolidated was 34.2%. Where does that go over time as well?
Speaker #3: Hey, thanks for taking my question. Pete, great run—congrats. And I guess the first question I'd like to touch on is the expense ratio.
Speaker #3: And so the underwriting-related general and administrative expense ratio came in for the year at 12.4%. And make sure I'm right, please. I think the goal for 2026 would be 11%.
Speaker #3: So that's $140 basis points down. So that's the part A of it. And the part B of it is the overall expense ratio consolidated was 34.2%.
Speaker #3: Where does that go over time as well?
Speaker #4: So, thanks, Andrew. Thanks for your opening comment, too. This is Pete. I'll take that, and I'll break it into the two pieces when we think about it.
Peter Vogt: So thanks, Andrew. Thanks for your opening comment, too. This is Pete. I'll take that, and I'll break it into the two pieces when we think about it. The G&A ratio for the year and the quarter were impacted by variable compensation. If I normalize, and I think that's a good way to look at it, for the year, the G&A ratio, underwriting G&A would be 11.6, and so there was a top-up there for variable comp. And in the quarter, it would have been 11.2. I'd say both those metrics were on our glide path, on our path to 11, as we were planning it from 2024 to 2025 to 2026.
Peter Vogt: So thanks, Andrew. Thanks for your opening comment, too. This is Pete. I'll take that, and I'll break it into the two pieces when we think about it. The G&A ratio for the year and the quarter were impacted by variable compensation. If I normalize, and I think that's a good way to look at it, for the year, the G&A ratio, underwriting G&A would be 11.6, and so there was a top-up there for variable comp. And in the quarter, it would have been 11.2. I'd say both those metrics were on our glide path, on our path to 11, as we were planning it from 2024 to 2025 to 2026.
Speaker #4: The G&A ratio for the year and the quarter were impacted by variable compensation. And if I normalize, and I think that's a good way to look at it, for the year, the G&A ratio of underwriting G&A would be 11.6.
Speaker #4: And so there was a top-up there for variable comp. And in the quarter, it would have been 11.2. I'd say both those metrics were on our glide path, on our path to 11, as we were planning it from 2024 to '25 to '26.
Speaker #4: And I'd even say that we spent more money, as Vince indicated, in our IT and operations getting more efficient in '25 by accelerating some spending there than we even thought we were going to do when we set our targets all the way back for the investor day in 2024.
Peter Vogt: I'd even say that we spent more money, as Vince indicated, in our IT and operations, getting more efficient in 2025 by accelerating some spending there than we even thought we were going to do when we set our targets, you know, all the way back for the Investor Day in 2024. So we feel good about our glide path into 2026, and we're holding to our commitment of an 11% G&A ratio as we go into 2026. I would say we'll always do everything in the best interest of the shareholder, and, and we look forward to actually being able to deliver on that promise. But that is the glide path we're going on. We feel really, really good about where we are, and we feel good going into 2026.
Peter Vogt: I'd even say that we spent more money, as Vince indicated, in our IT and operations, getting more efficient in 2025 by accelerating some spending there than we even thought we were going to do when we set our targets, you know, all the way back for the Investor Day in 2024. So we feel good about our glide path into 2026, and we're holding to our commitment of an 11% G&A ratio as we go into 2026. I would say we'll always do everything in the best interest of the shareholder, and, and we look forward to actually being able to deliver on that promise. But that is the glide path we're going on. We feel really, really good about where we are, and we feel good going into 2026.
Speaker #4: So we feel good about our glide path into 2026, and we're holding to our commitment of an 11% G&A ratio as we go into 2026.
Speaker #4: But I would say we'll always do everything in the best interest of the shareholder and we look forward to actually being able to deliver on that promise.
Speaker #4: that is the glide path we're going on. We feel But really, really good about where we are, and we feel good going into
Speaker #4: 2026. I don't know, Vince, do you want to add?
Peter Vogt: I don't know if, Vince, you want to-
Peter Vogt: I don't know if, Vince, you want to-
Vincent Tizzio: I would. Thank you. Thank you, Peter. Good morning, Andrew. I think the other important point that perhaps adds the how to Pete's comments is that we expect in the 2026 year to realize the leverage of the various investments that we've made, Andrew. You'll recall that we mentioned in Q3 we had accelerated our investments in technology, in all facets and forms. We hired a number of teams. We reasonably expect in the operating year of 2026, to start to monetize those investments in efficiency, productivity, and rationalized expenses in our operating model. There's a variety of shapes and forms that, that will show itself over the coming quarters, but we remain optimistic, as we head toward end of 2026 and representing the goal that we had talked to, accounting for, of course, normalized incentive compensation.
Vincent Tizzio: I would. Thank you. Thank you, Peter. Good morning, Andrew. I think the other important point that perhaps adds the how to Pete's comments is that we expect in the 2026 year to realize the leverage of the various investments that we've made, Andrew. You'll recall that we mentioned in Q3 we had accelerated our investments in technology, in all facets and forms. We hired a number of teams. We reasonably expect in the operating year of 2026, to start to monetize those investments in efficiency, productivity, and rationalized expenses in our operating model. There's a variety of shapes and forms that, that will show itself over the coming quarters, but we remain optimistic, as we head toward end of 2026 and representing the goal that we had talked to, accounting for, of course, normalized incentive compensation.
Speaker #5: I would. Thank you. Thank you, Peter. Good morning, Andrew. I think the other important point that perhaps adds the how to Pete's comments is that we expect in the 26th year to realize the leverage of the various investments that we've made, Andrew.
Speaker #5: Recall that we mentioned in the third quarter, Q3, that we had accelerated our investments in technology in all facets and forms. We hired a number of teams.
Speaker #5: We reasonably expect in the operating year of 2026 to start to monetize those investments in efficiency, productivity, and rationalized expenses in our operating model.
Speaker #5: There's a variety of shapes and forms that that will show itself over the coming quarters. But we remain optimistic as we head toward end of 2026 and representing the goal that we had talked to accounting for, of course, normalized incentive compensation.
Speaker #5: There's a variety of shapes and forms that will show itself over the coming quarters. But we remain optimistic as we head toward the end of 2026 and representing the goal that we had talked to accounting for, of course, normalized incentive.
Andrew Kligerman: That was super helpful. And maybe shifting over to kind of the sustainability of margins as you grow. I mean, 12% net written, constant currency unconsolidated was really strong, and I think I heard mid to high single digit growth outlook for insurance and potentially even low double digit in reinsurance. So, as you do this, do you feel comfortable with what was, you know, an accident year combined ratio ex cats consolidated of 88.6 for the year and 90.4 for the quarter? Do those numbers feel... very sustainable? Do you do closer to the 90.4 or closer to the 88.6 that was for the full year? How should we kind of think about those combines on a consolidated basis?
Andrew Kligerman: That was super helpful. And maybe shifting over to kind of the sustainability of margins as you grow. I mean, 12% net written, constant currency unconsolidated was really strong, and I think I heard mid to high single digit growth outlook for insurance and potentially even low double digit in reinsurance. So, as you do this, do you feel comfortable with what was, you know, an accident year combined ratio ex cats consolidated of 88.6 for the year and 90.4 for the quarter? Do those numbers feel very sustainable? Do you do closer to the 90.4 or closer to the 88.6 that was for the full year? How should we kind of think about those combines on a consolidated basis?
Speaker #3: And that was super helpful. And maybe shifting over to the sustainability of margins as you grow. I mean, 12% net written, constant currency unconsolidated, was really strong.
Speaker #3: And I think I heard mid- to high-single-digit growth outlook for insurance, and potentially even down double digits in reinsurance. So as you do this, do you feel comfortable with what was an accident-year combined ratio ex-CATS consolidated of 88.6 for the year and 90.4 for the quarter?
Speaker #3: Do those numbers feel very sustainable? Do you do closer to the 90.4 or closer to the 88.6 that was for the full year? How should we kind of think about those combined on a consolidated
Speaker #3: Basis? So, Andrew, this is Pete.
Peter Vogt: So, Andrew, this is Pete. I'll, I'll take that first. You know, as we think about where we are in the quarter and then leading off into 2026, you know, when we think about the various pieces, as I mentioned, we already talked about the G&A ratio, so I'll, I'll let that conversation go, but we feel really good about where we're going there. When we think about the, you know, the CAT loss ratios, you know, as I've mentioned on the CAT side, we really do expect full year CATs to be in the 4 to 5% range. And so, you know, really good year for us in CAT this year. Really good, us handling the volatility that was out there. But I think a normalized year would kind of be in that range.
Peter Vogt: So, Andrew, this is Pete. I'll, I'll take that first. You know, as we think about where we are in the quarter and then leading off into 2026, you know, when we think about the various pieces, as I mentioned, we already talked about the G&A ratio, so I'll, I'll let that conversation go, but we feel really good about where we're going there. When we think about the, you know, the CAT loss ratios, you know, as I've mentioned on the CAT side, we really do expect full year CATs to be in the 4 to 5% range. And so, you know, really good year for us in CAT this year. Really good, us handling the volatility that was out there. But I think a normalized year would kind of be in that range.
Speaker #4: I'll take that first. As we think about where we are in the quarter and then leading off into 2026, when we think about the various pieces, as I mentioned, we already talked about the G&A ratio.
Speaker #4: So, I'll let that conversation go, but we feel really good about where we're going there. When we think about the CAT loss ratios, as I mentioned on the CAT side, we really do expect full-year CATs to be in the 4% to 5% range.
Speaker #4: And so really good year for us in CATS this year, really good us handling the volatility that was out there. But I think a normalized year would kind of be in that range.
Speaker #4: And then when we think about the attritional, we've been actually very much able, especially on the insurance side, as we've talked about, there's been some pressure on the attritional due to rate and trend, but we've been able to offset that by mix.
Peter Vogt: Then when we think about the attritional, we've been actually very much able, especially on the insurance side, you know, as we've talked about, you know, there's been some pressure on the attritional due to rate and trend, but we've been able to offset that by mix, and we've been able to do that all through 2025. As we go into 2026, I think there'll be some more pressure on rate and trend that we may not be able to completely offset by mix as we go into 2026, and that would be the one area where we see some pressure. But again, I'd look at the all-in combined, where if we see some uptick in the attritional loss ratio, as we talked about, we're working on bringing the G&A ratio down.
Peter Vogt: Then when we think about the attritional, we've been actually very much able, especially on the insurance side, you know, as we've talked about, you know, there's been some pressure on the attritional due to rate and trend, but we've been able to offset that by mix, and we've been able to do that all through 2025. As we go into 2026, I think there'll be some more pressure on rate and trend that we may not be able to completely offset by mix as we go into 2026, and that would be the one area where we see some pressure. But again, I'd look at the all-in combined, where if we see some uptick in the attritional loss ratio, as we talked about, we're working on bringing the G&A ratio down.
Speaker #4: And we've been able to do that all through 2025. As we go into '26, I think there'll be some more pressure on rate and trend that we may not be able to completely offset by mix as we go into 2026.
Speaker #4: And that would be the one area where we'd see some pressure. But again, I'd look at the all-in combined where if we see some uptick in the attritional loss ratio as we talked about, we're working on bringing the G&A ratio down.
Speaker #4: And so all-in combined, around that 90 target is a pretty good number for the overall company. And Vince, you want to come in over the
Peter Vogt: And so all-in combined, you know, around that 90 target, it is a pretty good number for the overall company. And Vince, you want to come in over the top?
Peter Vogt: And so all-in combined, you know, around that 90 target, it is a pretty good number for the overall company. And Vince, you want to come in over the top?
Speaker #5: I think you're right, Pete. And I think you
Vincent Tizzio: I think you're right, Pete, and I think you broke out the component parts of how we get there. But we entered the year of feeling very good about the portfolio in terms of the start point of premium adequacy. As Pete indicated in his prepared remarks, we acknowledge some of the intersection of rate trend and mix. We've done a really superb job at redesigning the underwriting portfolio. We're entering the year here at 2026 with continued discipline around our cost structure. I'd mentioned in your prior question some of what will be revealing itself through the investments that we accelerated in the prior year. We've done a really good job in managing our catastrophe exposure, but I think ultimately, the range that Pete just expressed is in keeping with our own expectations.
Vincent Tizzio: I think you're right, Pete, and I think you broke out the component parts of how we get there. But we entered the year of feeling very good about the portfolio in terms of the start point of premium adequacy. As Pete indicated in his prepared remarks, we acknowledge some of the intersection of rate trend and mix. We've done a really superb job at redesigning the underwriting portfolio. We're entering the year here at 2026 with continued discipline around our cost structure. I'd mentioned in your prior question some of what will be revealing itself through the investments that we accelerated in the prior year. We've done a really good job in managing our catastrophe exposure, but I think ultimately, the range that Pete just expressed is in keeping with our own expectations.
Speaker #5: broke out the component parts of how we top? get there. But we entered the year feeling very good about the portfolio in terms of the start point of premium adequacy as Pete indicated in his prepared remarks.
Speaker #5: We acknowledge some of the intersection of rate trend and mix. We've done a really superb job at redesigning the underwriting portfolio. We're entering the year here '26 with continued discipline around our cost structure.
Speaker #5: I mentioned in your prior question some of what will be revealing itself through the investments that we accelerated in the prior year. We've done a really good job in managing our catastrophe exposure.
Speaker #5: But I think ultimately the range that Pete just expressed is in keeping with our own expectations.
Andrew Kligerman: That was great. If I could sneak one last quick one in,
Andrew Kligerman: That was great. If I could sneak one last quick one in,
Speaker #3: That was great. If I could sneak one last quick one in, the reserves you talked about favorable. Thank you so much. You talked about favorable development of 23 million and 7 in insurance, 7 in reinsurance.
Peter Vogt: Sure.
Peter Vogt: Sure.
Andrew Kligerman: With reserves, you talked about favorable... Thank you so much. You talked about favorable development of $23 million and $7 million in insurance, $7 million in reinsurance. You know, anything you would break out on casualty that was unusual? And with Matt, I don't know if Matt's on the call, but he has consistently expressed confidence in the reserves. I'm curious if, Pete, you're going out feeling still confident, and Matt, how you felt as you looked at the reserves coming in.
Andrew Kligerman: With reserves, you talked about favorable... Thank you so much. You talked about favorable development of $23 million and $7 million in insurance, $7 million in reinsurance. You know, anything you would break out on casualty that was unusual? And with Matt, I don't know if Matt's on the call, but he has consistently expressed confidence in the reserves. I'm curious if, Pete, you're going out feeling still confident, and Matt, how you felt as you looked at the reserves coming in.
Speaker #3: Anything you would break out on casualty that was unusual and with Matt? I don't know if Matt's on the call, but Pete has consistently expressed confidence in the reserves.
Speaker #3: I'm curious if Pete, you're going out feeling still confident and Matt how you felt as you looked at the reserves coming in?
Speaker #5: Andrew, it's Vince starting off. First, we feel very good about our reserve position for the company. Secondly, in the quarter, we followed the same philosophy that we articulated since our reserve charge.
Vincent Tizzio: Andrew, it's Vince, starting off. First, we feel very good about our reserve position for the company. Secondly, in the quarter, we followed the same philosophy that we articulated since our reserve charge. So there's no change in our philosophy of how we manage our reserve position. As relates to the source of where it came, it did not come from long-tail lines, as you know, and I'll transfer to Pete now.
Vincent Tizzio: Andrew, it's Vince, starting off. First, we feel very good about our reserve position for the company. Secondly, in the quarter, we followed the same philosophy that we articulated since our reserve charge. So there's no change in our philosophy of how we manage our reserve position. As relates to the source of where it came, it did not come from long-tail lines, as you know, and I'll transfer to Pete now.
Speaker #5: So, there's no change in our philosophy of how we manage our reserve position. As relates to the source of where it came, it did not come from long-tail lines, as you know.
Speaker #5: And
Speaker #5: I'll transfer to Pete now.
Speaker #4: Yeah, thanks,
Peter Vogt: Yeah. Thanks, Andrew. I guess what I would say is, again, the reserve releases really did come from short-tail lines. You'll see it from property, and on the insurance side, as well as credit surety, and then a little bit from agriculture credit surety and A&H on the reinsurance side. And overall, I'd say when we think about the long-tail lines, there's always some little puts and takes across the accident years, and we'll see that when we have the triangles in the 10-K. However, there was nothing significant or material that would give us any pause or concern. If there was, we would have taken some action. So we feel good about all that.
Peter Vogt: Yeah. Thanks, Andrew. I guess what I would say is, again, the reserve releases really did come from short-tail lines. You'll see it from property, and on the insurance side, as well as credit surety, and then a little bit from agriculture credit surety and A&H on the reinsurance side. And overall, I'd say when we think about the long-tail lines, there's always some little puts and takes across the accident years, and we'll see that when we have the triangles in the 10-K. However, there was nothing significant or material that would give us any pause or concern. If there was, we would have taken some action. So we feel good about all that.
Speaker #4: Andrew, I guess what I would say is, again, the reserve release really did come from short-tail lines. You'll see it from property on the insurance side, as well as credit and surety.
Speaker #4: And then a little bit from agriculture credit surety and A&H on the reinsurance side. And overall, I'd say when we think about the long-tail lines, there's always some little puts and takes across the accident years and we'll see that when we have the triangles and the 10K.
Speaker #4: However, there was nothing significant or material that would give us any pause or concern. If there was, we would have taken some action. So, we feel good about all that.
Speaker #1: And add to your first question to me . You know , I as I as here at the end and I look at the balance sheet , I feel very confident and feel good about leaving the company in the great hands of and Vince rest of the management .
Peter Vogt: And to your first question to me, you know, as I sit here at the end and I look at the balance sheet, I feel very confident, and feel good about leaving the company in the great hands of Vince, Matt, and the rest of the management team, and where the balance sheet stands, both from a capital position and a reserve position. With that, I'll pass it to Matt.
Peter Vogt: And to your first question to me, you know, as I sit here at the end and I look at the balance sheet, I feel very confident, and feel good about leaving the company in the great hands of Vince, Matt, and the rest of the management team, and where the balance sheet stands, both from a capital position and a reserve position. With that, I'll pass it to Matt.
Speaker #1: I feel very confident . And feel good the about leaving company in the great of hands Vince and the rest of the management Matt and team , and where the balance sheet stands , both from a capital position and a reserve position .
Matt Kirk: Hey, Andrew, and great to be here and speak to you all. I would just reiterate, I've been here for three months in a very well-planned-out transition plan. Much of that time has been spent working with the reserving team, working with Pete, and overall, I'm quite comfortable with where the reserving's at right now. And I agree with what Pete said; we have a strong balance sheet and a strong capital position.
Matthew Kirk: Hey, Andrew, and great to be here and speak to you all. I would just reiterate, I've been here for three months in a very well-planned-out transition plan. Much of that time has been spent working with the reserving team, working with Pete, and overall, I'm quite comfortable with where the reserving's at right now. And I agree with what Pete said; we have a strong balance sheet and a strong capital position.
Speaker #1: with that , I'll pass it to And Matt .
Speaker #2: Hey , Andrew , great to be here and speak to you all . I reiterate , would just here for three months I've been in a planned out very well transition and plan .
Speaker #2: Much of that time has been spent working with the reserve team , working with Pete , and overall I'm quite comfortable with where the with what strong is at and a right .
Andrew Kligerman: Great to hear. Thank you.
Andrew Kligerman: Great to hear. Thank you.
Speaker #2: balance strong I agree sheet And Pete said . reserving now We have a position .
Speaker #2: balance strong I agree sheet And Pete said . reserving now We have a position . capital
Operator: The next question comes from Yaron Kinar with Mizuho. Please go ahead.
Operator: The next question comes from Yaron Kinar with Mizuho. Please go ahead.
Speaker #3: Great to you hear . Thank
Yaron Kinar: Thank you. Good morning, and before my questions, Pete, just want to wish you well, as you embark into retirement. I guess going back to the expense ratio, so I understand this quarter, part of the increase in the expense ratio is variable comp, which I think was also true also in the year. But and obviously, it's a good problem to have because you have strong performance. But as you expect to build momentum, isn't that going to remain a headwind in the future, in 2026 and beyond?
Yaron Kinar: Thank you. Good morning, and before my questions, Pete, just want to wish you well, as you embark into retirement. I guess going back to the expense ratio, so I understand this quarter, part of the increase in the expense ratio is variable comp, which I think was also true also in the year. But and obviously, it's a good problem to have because you have strong performance. But as you expect to build momentum, isn't that going to remain a headwind in the future, in 2026 and beyond?
Speaker #4: comes question The next
Speaker #4: from . Yaron Kinar with Mizuho . Please go ahead .
Speaker #5: Thank you . Good morning . And before my just questions , Pete , want to wish you all well as you embark into retirement I .
Speaker #5: the the back to guess going expense ratio . So I part of the understand this quarter increase in the expense ratio is variable comp , which I think was also elsewhere in the true year .
Speaker #5: obviously it's a good problem to because you But and strong performance have . But expect to build as you momentum , isn't that going to remain headwind a in the future ?
Peter Vogt: Yeah. As we think about going forward, you know, the annual targets that we use, you know, are reflective of what we think the environment is, Yaron. So, you know, this year we just-- we had a great year across a number of dimensions, but as we look forward, you know, we're constantly adjusting our annual plans, and that moves our targets a bit. So, you know, I do hope it'll always be a headwind. And, I think as a headwind, if we have some variable comp because we've performed tremendously great for the shareholders in a particular twelve-month period, you know, if we have to put up some variable comp-...
Peter Vogt: Yeah. As we think about going forward, you know, the annual targets that we use, you know, are reflective of what we think the environment is, Yaron. So, you know, this year we just-- we had a great year across a number of dimensions, but as we look forward, you know, we're constantly adjusting our annual plans, and that moves our targets a bit. So, you know, I do hope it'll always be a headwind. And, I think as a headwind, if we have some variable comp because we've performed tremendously great for the shareholders in a particular twelve-month period, you know, if we have to put up some variable comp-...
Speaker #5: In beyond 26 and ?
Speaker #1: Yeah , as we think about going forward , you know , the annual targets that the we you know , use , are reflective of what we think the environment is .
Speaker #1: Your So , you know , this year great had a own . we we across year a dimensions . But as we look forward you know we're constantly adjusting our annual that moves our plans .
Speaker #1: bit . So I And do hope it'll always be headwind . a And I think as a headwind , have some variable comp because we've performed tremendously the shareholders in great for a 12 month period .
Peter Vogt: Due to that, you know, if we go above 11 because that's the reason, I think that would be, I'll call it agreeable to the shareholders, given that it would be good financial performance that they'd be receiving.
Peter Vogt: Due to that, you know, if we go above 11 because that's the reason, I think that would be, I'll call it agreeable to the shareholders, given that it would be good financial performance that they'd be receiving.
Speaker #1: You know , particular if we have to put up some variable comp due to that , you know , if we go above 11 because that's the reason , I think that would be I'll call it agreeable to the shareholders , given that it would be good financial performance , that they'd be receiving .
Vincent Tizzio: Yaron, this is Vince. Welcome, welcome back. It's good to hear your voice. Please don't underestimate the leverage that I pointed to in Andrew's question inside the operating model. The number of persons that will be required to execute our financial plan, the increased productivity from the resources and the numerous teams that we brought into the organization, the reshaping of our general cost structure that extend beyond personnel costs, the increased fee income that's resulting from our various sources of underwriting fee income, both in our reinsurance and more recent in our insurance business. The mix shift that has dramatically taken hold with respect to the insurance versus reinsurance contribution and the continued portfolio reshaping going on in that business. Will it be an earnest effort? Everything's been earnest at Axis.
Vincent Tizzio: Yaron, this is Vince. Welcome, welcome back. It's good to hear your voice. Please don't underestimate the leverage that I pointed to in Andrew's question inside the operating model. The number of persons that will be required to execute our financial plan, the increased productivity from the resources and the numerous teams that we brought into the organization, the reshaping of our general cost structure that extend beyond personnel costs, the increased fee income that's resulting from our various sources of underwriting fee income, both in our reinsurance and more recent in our insurance business. The mix shift that has dramatically taken hold with respect to the insurance versus reinsurance contribution and the continued portfolio reshaping going on in that business. Will it be an earnest effort? Everything's been earnest at Axis.
Speaker #6: And you're on . This is Vince . Welcome , welcome back . to hear your voice It's good . underestimate the the leverage Please don't that I pointed to in Andrew's question inside the operating model , number of the persons the that will be required to execute our financial plan .
Speaker #6: The increased productivity from the resources and the numerous teams that we brought into the organization , the cost our general reshaping of structure extend that beyond personnel costs .
Speaker #6: The increased fee income that's resulting from our various sources of underwriting fee income , in our both reinsurance and more in our recent insurance business .
Speaker #6: The mix shift that has dramatically taken fold with respect to the versus insurance reinsurance contribution and the continued portfolio reshaping in that going on business .
Vincent Tizzio: We've been leading quite a bit of a transformation. We're focused on the objective that we set forth. If we ever course correct, we'll certainly announce it, but we are focused on our 11% in the manner that we described. And we feel very good, again, about the ability to monetize the numerous investments that we took in our operating platform, which has had a bearing, certainly in our GA ratio, in the reported results of year-end 2025.
Vincent Tizzio: We've been leading quite a bit of a transformation. We're focused on the objective that we set forth. If we ever course correct, we'll certainly announce it, but we are focused on our 11% in the manner that we described. And we feel very good, again, about the ability to monetize the numerous investments that we took in our operating platform, which has had a bearing, certainly in our GA ratio, in the reported results of year-end 2025.
Speaker #6: Will it be an earnest effort? Everything's earnest at AXIS. We've been leading quite a bit of a transformation. We're on the objective that we set forth. If we ever course correct, we'll certainly announce it to you.
Speaker #6: But we are focused on our 11% in the manner that we described , and we feel very good . Again , about the ability to monetize the numerous investments that we took operating in our platform , which has had a a certainly in our GA bearing ratio in the reported results of year end 2025 .
Yaron Kinar: Thank you. And thanks for the welcome. It's good to be back. Just to confirm, though, on the expense ratio, we are also seeing, I think, a lot of talent movement right now, and I think there's also maybe a bit of an increase in what talent is being paid right now. I just want to confirm, if you see the opportunity to grow in a geography or a line by investing more in personnel, you'd be willing to jump on that, even if it means that the 11% target may be delayed by a bit, even with the leverage and the other efficiencies that you mentioned?
Yaron Kinar: Thank you. And thanks for the welcome. It's good to be back. Just to confirm, though, on the expense ratio, we are also seeing, I think, a lot of talent movement right now, and I think there's also maybe a bit of an increase in what talent is being paid right now. I just want to confirm, if you see the opportunity to grow in a geography or a line by investing more in personnel, you'd be willing to jump on that, even if it means that the 11% target may be delayed by a bit, even with the leverage and the other efficiencies that you mentioned?
Speaker #5: Thank you . And thanks for welcome . It's the good to be back . Just to confirm that , on the expense ratio , we are also seeing , I think a lot of talent movement right now and I think there's also maybe a bit of an increase what talent in is being paid right now just want .
Speaker #5: I to confirm if you see the opportunity to grow in a geography or a line by investing more in personnel . You'd be willing to jump on that , even if it means that the 11% target may be by a delayed bit , even with the leverage and the other efficiencies that you mentioned .
Vincent Tizzio: Yes.
Vincent Tizzio: Yes.
Yaron Kinar: Okay. And one final quick one. The combined ratio, Pete, you said that you still feel comfortable with the 90%, that is reported, right? Not underlying.
Yaron Kinar: Okay. And one final quick one. The combined ratio, Pete, you said that you still feel comfortable with the 90%, that is reported, right? Not underlying.
Speaker #7: Yes .
Speaker #5: Okay . And one final quick one , the combined ratio , you said that you still feel comfortable with the 90% that reported , right ?
Peter Vogt: Yeah, that, so, you know, you look at the fourth quarter at 90.4, you know, as we go forward into 2026, you know, somewhere in that, in that range is, you know, what we would expect, given the puts and takes that we'll have as we go into the year, but still comfortable in that range.
Peter Vogt: Yeah, that, so, you know, you look at the fourth quarter at 90.4, you know, as we go forward into 2026, you know, somewhere in that, in that range is, you know, what we would expect, given the puts and takes that we'll have as we go into the year, but still comfortable in that range.
Speaker #5: Not underlying .
Speaker #1: Yeah . So , you know , you look at the fourth quarter at 90.4 , you know as we look going forward into 2026 , you know somewhere in that in that range know what we would expect given the puts and takes that have as we we'll go into the year , but still comfortable in that range .
Yaron Kinar: Okay. Thank you.
Yaron Kinar: Okay. Thank you.
Operator: The next question comes from Christian Trott with Wells Fargo. Please go ahead.
Operator: The next question comes from Christian Choe with Wells Fargo. Please go ahead.
Speaker #5: Thank Okay . you
Speaker #5: . The next
Christian Trott: Hi, good morning. Going to the high single digit, mid to high single digit growth guide for insurance, can you maybe just give a little bit more color on the path to getting there, just given maybe you could provide some assumptions on the rate environment as well as the expected growth uplift from some of your new and improved product offerings? And then just sticking with that, any early insights into how the RAC Re vehicle is performing, and did that have any growth impact in the quarter?
Christian Choe: Hi, good morning. Going to the high single digit, mid to high single digit growth guide for insurance, can you maybe just give a little bit more color on the path to getting there, just given maybe you could provide some assumptions on the rate environment as well as the expected growth uplift from some of your new and improved product offerings? And then just sticking with that, any early insights into how the RAC Re vehicle is performing, and did that have any growth impact in the quarter?
Speaker #4: question comes from Christian Trost with Wells Fargo . Please go ahead .
Speaker #8: Good Hi . morning . Going to the high single digit mid to high single digit growth guide for insurance . Can you maybe just give a little bit more color on the path to getting there ?
Speaker #8: Just given . provide some Maybe you could assumptions on the on the rate environment as well as the expected growth uplift from some of your new and improved product offerings .
Speaker #8: And then just sticking with that . Any insights early into how the rack re vehicle is performing , and did that have any growth impact in the quarter ?
Vincent Tizzio: Christian, I'll start out, and then, Pete, Pete will come over the top. So as I mentioned, in the Q3, our insurance business enters 2026 without any material reshaping going on. Obviously, as a specialist, we'll always have pruning. Additionally, we indicated that we entered this year with a premium adequate portfolio. We have further leaned into our new and expanded lines, which we've been talking about now for the last couple of quarters, and continue to realize material inroads. In fact, if you were to look at the growth in our insurance segment in the Q4, discrete, about $150 million of our growth came from the new and expanded classes.
Vincent Tizzio: Christian, I'll start out, and then, Pete, Pete will come over the top. So as I mentioned, in the Q3, our insurance business enters 2026 without any material reshaping going on. Obviously, as a specialist, we'll always have pruning. Additionally, we indicated that we entered this year with a premium adequate portfolio. We have further leaned into our new and expanded lines, which we've been talking about now for the last couple of quarters, and continue to realize material inroads. In fact, if you were to look at the growth in our insurance segment in the Q4, discrete, about $150 million of our growth came from the new and expanded classes.
Speaker #6: Christian I'll start out and then Pete Pete will come over the So top . as I in the third quarter , mentioned our insurance enters business 2026 without any material reshaping going on .
Speaker #6: Obviously as a specialist , we'll always have pruning . Additionally , we indicated that we entered this year with a premium adequate portfolio .
Speaker #6: We have further leaned into our new and expanded lines , which we've been about now talking for the last couple of quarters , and continue to realize material .
Speaker #6: In inroads fact , if you were to look at the growth in our insurance segment fourth quarter , in the discrete , about 150 odd million dollars of our growth came from the new and expanded classes .
Vincent Tizzio: We view these classes in the aggregate as premium adequate, and what they've done for Axis is create new revenue streams in terms of products, forms of distribution, and customer segmentation. We have optimism around the runway that exists to continue executing the growth that we have produced, in keeping with the range of estimate that Pete mentioned. As it relates to ACS, Pete, I'll ask that you come over the top in terms of the contribution, but it was not a substantial volume contributor in Q4.
Vincent Tizzio: We view these classes in the aggregate as premium adequate, and what they've done for Axis is create new revenue streams in terms of products, forms of distribution, and customer segmentation. We have optimism around the runway that exists to continue executing the growth that we have produced, in keeping with the range of estimate that Pete mentioned. As it relates to ACS, Pete, I'll ask that you come over the top in terms of the contribution, but it was not a substantial volume contributor in Q4.
Speaker #6: We view these classes in the aggregate as premium , adequate , and what they've done for access is create new revenue streams in terms of products , forms of distribution and customer segmentation .
Speaker #6: We have optimism around the runway that exists to continue executing the growth that we . In produced have the keeping with range of that Pete mentioned as it relates to Aces .
Peter Vogt: Yeah. Overall, ACS, this was the Q1 we've booked any gross written premiums to ACS in the quarter. You know, it came in, just around $20 million for insurance. Very little net earned in the quarter, quite frankly, because it's gonna earn over a long period of time. So it's just getting started. And again, we expect, as we've talked about in the last call, when you think about the RAC Re deal, you'll see most of the written, you know, come in over 2026 and 2027 and 2028 because of the way that deal is structured. And again, the net earned is gonna come in over 2026, 2027, 2028, and 2029 because of how that's gonna earn. So it's a really good deal. We're excited about it, and it's just started in this Q4.
Peter Vogt: Yeah. Overall, ACS, this was the Q1 we've booked any gross written premiums to ACS in the quarter. You know, it came in, just around $20 million for insurance. Very little net earned in the quarter, quite frankly, because it's gonna earn over a long period of time. So it's just getting started. And again, we expect, as we've talked about in the last call, when you think about the RAC Re deal, you'll see most of the written, you know, come in over 2026 and 2027 and 2028 because of the way that deal is structured. And again, the net earned is gonna come in over 2026, 2027, 2028, and 2029 because of how that's gonna earn. So it's a really good deal. We're excited about it, and it's just started in this Q4.
Speaker #6: I'll ask that you come over to Pete, top in terms of the contribution, but it was not a substantial volume contributor in the fourth quarter.
Speaker #1: Yeah . Overall , aces . This was the first quarter we booked any gross written premiums to aces in the quarter . You know , it came in just around $20 million for insurance .
Speaker #1: net earned in the Very quarter , quite frankly , because it's over a long going to earn period of time . So it's just getting started .
Speaker #1: And again , we as we've expect , talked about in the last call , when you think about there you'll re deal , see most of the written come in over 26 and 27 .
Speaker #1: And 28 because of the way that deal is structured . And again the the going to come earned is net in over 26 , 27 , 28 and 29 because of how that's going to earn .
Christian Trott: Got it. Thank you. And then, for my follow-up, just switching to paid and incurred trends, they, they were a bit better sequentially, and they did improve year-over-year when you adjust for cats, but it is still a bit elevated in the low 90s. And I know previously you've pointed out business mix, but can you maybe provide some more color of, like, what we should expect to see going forward as we continue to see that mix shift and any other drivers that could potentially improve those metrics?
Christian Choe: Got it. Thank you. And then, for my follow-up, just switching to paid and incurred trends, they, they were a bit better sequentially, and they did improve year-over-year when you adjust for cats, but it is still a bit elevated in the low 90s. And I know previously you've pointed out business mix, but can you maybe provide some more color of, like, what we should expect to see going forward as we continue to see that mix shift and any other drivers that could potentially improve those metrics?
Speaker #1: So it's a really good deal. We're about it. And it's just started in fourth quarter this—
Speaker #1: .
Speaker #8: it . Thank you . And for my Got follow up , just switching to paid in incurred trends . They they were a bit better sequentially .
Speaker #8: And they did improve year over year. When you adjust CATS for that, it is still a bit elevated in the low 90s.
Speaker #8: I know And pointed out business mix , but can you maybe provide some more color of like what we should expect to see going forward as we continue to see that mix shift and any other drivers that could potentially improve those metrics ?
Vincent Tizzio: ... Christian, consistent with what we've indicated in the past, we've had, as a company in the midst of an underwriting transformation, there has been a substantial set of changes related to both what you pointed out on the mix. Our claims organization has had substantial investment in resources, capabilities. We've had some acceleration with respect to large payment claims. We look at this indication really in combination with many other factors. In and of itself, it's really not dispositive of anything that is alarming to us. We feel very good confidence around our reserve position. We did have, as you indicated, a decrease in the outcome of that ratio. And even if you were to compare the prior year, same quarter discrete, it's explainable by catastrophe losses. In Q4 2024, we paid out, I believe, $80 million.
Vincent Tizzio: ... Christian, consistent with what we've indicated in the past, we've had, as a company in the midst of an underwriting transformation, there has been a substantial set of changes related to both what you pointed out on the mix. Our claims organization has had substantial investment in resources, capabilities. We've had some acceleration with respect to large payment claims. We look at this indication really in combination with many other factors. In and of itself, it's really not dispositive of anything that is alarming to us. We feel very good confidence around our reserve position. We did have, as you indicated, a decrease in the outcome of that ratio. And even if you were to compare the prior year, same quarter discrete, it's explainable by catastrophe losses. In Q4 2024, we paid out, I believe, $80 million.
Speaker #6: Christian . Consistent with what we've indicated in the past , we've had as company in the a midst of an underwriting transformation , there's been a substantial set of changes related to both what you pointed out on the mix .
Speaker #6: Our claims organization has had in substantial investment resources , capabilities . We've had some acceleration with respect to large payment claims . We look at this indication really in with many other combination factors in and of It's itself .
Speaker #6: really not dispositive of anything that is alarming to We feel very us . good reserve confidence our We we did have , as you a indicated , decrease in the outcome of that ratio .
Speaker #6: And even if you were to compare the prior year , same quarter , discrete , it's explainable by catastrophe losses in for 2024 , we paid out , I believe , $80 million .
Vincent Tizzio: You see the material difference here in Q4 2025. We are attentive to this issue. We are not dismissive about it. We place it in a broader context, and from our judgment, we're pleased with how we're managing the overall outcome of our underwriting results, the resolve we have in our reserve position, and the continued integration of our underwriting model that takes together the insights of our claims organization, our actuarial function, and underwriting, making certain that we are as observant to our bottom line aspiration as possible.
Vincent Tizzio: You see the material difference here in Q4 2025. We are attentive to this issue. We are not dismissive about it. We place it in a broader context, and from our judgment, we're pleased with how we're managing the overall outcome of our underwriting results, the resolve we have in our reserve position, and the continued integration of our underwriting model that takes together the insights of our claims organization, our actuarial function, and underwriting, making certain that we are as observant to our bottom line aspiration as possible.
Speaker #6: so you see the material And difference for here in Q 2025 . And so we are attentive to this issue . We are not dismissive about it .
Speaker #6: We a place it in broader context . And from our judgment , we're pleased with how we're managing the overall outcome of our underwriting results .
Speaker #6: The resolve we have in our reserve position and the continued integration of our underwriting model that takes together the insights of claims, our organization, our actuarial function, and underwriting, making certain that we are as observant to our bottom-line aspiration as possible.
Christian Trott: Got it. Thank you. And if I could just sneak one more on the G&A. Is it safe to assume, I mean, obviously, it sounds like you will do opportunistic hiring if it arises. But, is it safe to assume that we should have a more normalized, I guess, hiring pattern in 26 versus 25? Because it sounds like there was a lot of upfront investments on some of these new underwriting teams. Is that a safe assumption?
Christian Choe: Got it. Thank you. And if I could just sneak one more on the G&A. Is it safe to assume, I mean, obviously, it sounds like you will do opportunistic hiring if it arises. But, is it safe to assume that we should have a more normalized, I guess, hiring pattern in 26 versus 25? Because it sounds like there was a lot of upfront investments on some of these new underwriting teams. Is that a safe assumption?
Speaker #8: Got it . Thank you . And if I could just sneak one more on the G&A , is it safe to assume , I mean , obviously it you sounds like will do opportunistic hiring if it arises , but is it safe to assume that we should have a more normalized , I guess , hiring pattern in 26 versus 25 ?
Vincent Tizzio: I think we want to reserve the right to remain very strategic in how we go about hiring teams. We have some scheduled for the 2026 year. I don't really want to reveal how many or in what lines of business, but suffice to say, my business leaders are certainly active. AXIS's brand is sought after, and we're going to use great discretion in making certain that we can optimize the productivity, enhance the alignment to our distribution strategy that has worked substantially well for our organization and make certain that it's aligned to our overall underwriting strategy.
Vincent Tizzio: I think we want to reserve the right to remain very strategic in how we go about hiring teams. We have some scheduled for the 2026 year. I don't really want to reveal how many or in what lines of business, but suffice to say, my business leaders are certainly active. AXIS's brand is sought after, and we're going to use great discretion in making certain that we can optimize the productivity, enhance the alignment to our distribution strategy that has worked substantially well for our organization and make certain that it's aligned to our overall underwriting strategy.
Speaker #8: Because it sounds like there was a lot of upfront investments on some of these new underwriting teams . Is that a safe assumption ?
Speaker #6: I think we want to reserve the right to remain very strategic in how we go about hiring teams. We have some about scheduled for the 2026 year.
Speaker #6: I don't really want to reveal how or in many what lines of business , but suffice to business my leaders say , are certainly active .
Speaker #6: brand is is after and we're going to use great sought discretion in making certain that we can optimize the productivity , enhance the alignment to our distribution strategy that has substantially worked our organization , and make certain that it's aligned to our overall underwriting strategy .
Christian Trott: Great. Thank you, and good luck to you, Pete.
Christian Choe: Great. Thank you, and good luck to you, Pete.
Peter Vogt: Thank you.
Peter Vogt: Thank you.
Operator: The next question comes from Meyer Shields with KBW. Please go ahead.
Operator: The next question comes from Meyer Shields with KBW. Please go ahead.
Speaker #8: Great . Thank you and good luck to you , Pete .
Speaker #1: Thank you .
[Analyst] (Keefe Bruyette & Woods): Hi, good morning. This is Jane for Meyer. Thank you for taking my question. My first question is on growth. You've mentioned, like, low middle market growth throughout 2025, which significantly contribute to the property growth in Q4 Q2. Can you add more details of what's driving the sustained momentum? And also, could you update us on the competitive landscape there? Thank you.
[Analyst 1]: Hi, good morning. This is Jane for Meyer. Thank you for taking my question. My first question is on growth. You've mentioned, like, low middle market growth throughout 2025, which significantly contribute to the property growth in Q4 Q2. Can you add more details of what's driving the sustained momentum? And also, could you update us on the competitive landscape there? Thank you.
Speaker #4: The next question comes from Meyer with Shields KBW . Please go ahead .
Speaker #9: Hi . morning . Good This is Jane on for Thank you for mayor . taking my question . My first question is on growth .
Speaker #9: You've mentioned like low middle market growth throughout the 2025 , which significantly contributed to the property growth and for Q2 add more can details of to driving sustain momentum .
Vincent Tizzio: Yeah, good morning to you. The lower middle market continues to be, for AXIS, a dedicated and new customer segment that we've been pursuing for the last couple of years. Kindly recall that we've brought in, in chief, most of our product set from our wholesale division, including our professional liability classes. We've been executing a strategy that has been both wholesale and retail distribution source. We're pleased with the continued proposition development that our North American team has created, bringing customized solutions to this customer segment that has varied meaning and definition, but in the aggregate, is really a transaction risk profile, a lower complex risk profile. We're pleased with the sustained growth. The runway remains fairly long, and the competition, of course, exists. This is a known customer segment that has good margin.
Vincent Tizzio: Yeah, good morning to you. The lower middle market continues to be, for AXIS, a dedicated and new customer segment that we've been pursuing for the last couple of years. Kindly recall that we've brought in, in chief, most of our product set from our wholesale division, including our professional liability classes. We've been executing a strategy that has been both wholesale and retail distribution source. We're pleased with the continued proposition development that our North American team has created, bringing customized solutions to this customer segment that has varied meaning and definition, but in the aggregate, is really a transaction risk profile, a lower complex risk profile. We're pleased with the sustained growth. The runway remains fairly long, and the competition, of course, exists. This is a known customer segment that has good margin.
Speaker #9: And also , update could you us on the competitive there ? landscape Thank .
Speaker #9: And also , update could you us on the competitive there ? landscape Thank .
Speaker #6: Good morning Yeah . to The lower you . middle market continues to be for access a dedicated and new customer segment that we've been pursuing for the last couple of years .
Speaker #6: Kindly recall that we brought in in chief of our product set from most our wholesale division , including our professional liability classes . We've been executing a strategy that has been wholesale and retail both distribution We're pleased with the source .
Speaker #6: proposition development that our North American team has created , bringing customized solutions to this customer segment that has varied meaning and definition . But in the aggregate is really a transaction risk profile , a lower complex risk We're profile .
Speaker #6: pleased with the sustained growth , the runway remains fairly long and the competition , of course , exists . This is a a known customer segment that has good margin .
Vincent Tizzio: It has the potential to be sticky, but we're pleased with what the channel that we're going through, the partnerships that we have formed, the product design, and finally, and critically importantly, the investments that we've taken in technology to enable a heightened pace of straight-through processing, enhanced quoting productivity, both by individuals and therefore in the aggregate. We're pleased with the momentum, and we do not see any reason why we cannot sustain the growth in this segment. And the submission volume in this area of our company is just substantial. It's just substantial.
Vincent Tizzio: It has the potential to be sticky, but we're pleased with what the channel that we're going through, the partnerships that we have formed, the product design, and finally, and critically importantly, the investments that we've taken in technology to enable a heightened pace of straight-through processing, enhanced quoting productivity, both by individuals and therefore in the aggregate. We're pleased with the momentum, and we do not see any reason why we cannot sustain the growth in this segment. And the submission volume in this area of our company is just substantial. It's just substantial.
Speaker #6: It has the potential to be sticky , but we're pleased with the what the channel that we're going through . The partnerships that we have formed , the product design .
Speaker #6: finally And and critically importantly , the investments that we've taken in technology to enable a heightened pace of straight through processing , enhanced quoting productivity , both by individuals and the therefore in aggregate , we're pleased with the momentum and we do any not see reason why we cannot sustain the growth in this segment and the the submission volume in this in this area of our company is just substantial .
[Analyst] (Keefe Bruyette & Woods): Thank you. That's very helpful. My second question will be on the core loss ratio. I know you mentioned the tick up because rate and trend isn't fully aligned. Could you, like, unpack where you're seeing the loss trends running ahead of pricing?
[Analyst 1]: Thank you. That's very helpful. My second question will be on the core loss ratio. I know you mentioned the tick up because rate and trend isn't fully aligned. Could you, like, unpack where you're seeing the loss trends running ahead of pricing?
Speaker #6: It's just substantial .
Speaker #9: you . Thank That's very helpful . My second question would be on the call loss ratio . I know you the mentioned takeout because Ray and trend isn't fully aligned .
Speaker #9: you like unpack where you're seeing the loss running ahead trends of pricing .
Peter Vogt: I, I would say, you know, this is Pete. I'll come in, and I'll ask Vince to then come over the top. But I, I'd say, you know, you know, where we're seeing, probably the most significant pricing would be in some of our property books, where, you know, E&S property and global property, specifically in London, we've had some. You know, that's where the pricing pressure is probably most acute. I'd say one thing we're really happy about would be on the long tail lines, we continue to see, rate in excess of trends. That's given us some, some confidence in there, and I think that's why Vince has currently and always characterized the current market as kind of a, a changing market, not necessarily a soft market, because of the different puts and takes.
Peter Vogt: I, I would say, you know, this is Pete. I'll come in, and I'll ask Vince to then come over the top. But I, I'd say, you know, you know, where we're seeing, probably the most significant pricing would be in some of our property books, where, you know, E&S property and global property, specifically in London, we've had some. You know, that's where the pricing pressure is probably most acute. I'd say one thing we're really happy about would be on the long tail lines, we continue to see, rate in excess of trends. That's given us some, some confidence in there, and I think that's why Vince has currently and always characterized the current market as kind of a, a changing market, not necessarily a soft market, because of the different puts and takes.
Speaker #1: I would say this is Pete . I'll come in . I'll ask Vince to then over the top . But come I'd say , you know , we know where we're seeing probably the most significant would pricing be in some of our property books as where property and global property , specifically in London , we've had some , you know , that's pricing where the pressure is probably most acute .
Speaker #1: I'd say the one thing we're happy about really the long tail be on lines . We continue to see rate in excess of trends .
Speaker #1: That's given us some some there . And I think that's why Vince is currently and always characterized the current market as kind of a changing not market , necessarily a soft market because of the different puts and takes .
Vincent Tizzio: Yeah, Pete, I think that's right. We continue to have strong observation management control over the long-tail lines, where we have acute watchfulness around trend. We continue to leverage our short-tail versus long-tail portfolio composition, which has obviously different trend assumptions. We have a vigilant accounting of trend quarterly with our actuaries, our claims organization, our underwriting organization. As you know, over the last several years, this portfolio has shifted increasingly toward our short-tail lines. Finally, within the new and expanded classes, you'll recall, we estimated some 60-odd percent of our new and expanded classes were coming from the short-tail lines. So that's how we would respond to you. Thank you for your question.
Vincent Tizzio: Yeah, Pete, I think that's right. We continue to have strong observation management control over the long-tail lines, where we have acute watchfulness around trend. We continue to leverage our short-tail versus long-tail portfolio composition, which has obviously different trend assumptions. We have a vigilant accounting of trend quarterly with our actuaries, our claims organization, our underwriting organization. As you know, over the last several years, this portfolio has shifted increasingly toward our short-tail lines. Finally, within the new and expanded classes, you'll recall, we estimated some 60-odd percent of our new and expanded classes were coming from the short-tail lines. So that's how we would respond to you. Thank you for your question.
Speaker #6: Pete , Yeah , that I think that's right . We continue to have strong observation management control over the long tail lines have where we acute watchfulness around trend .
Speaker #6: We continue leverage to our short tail versus long tail portfolio composition , which has obviously trend different We have a vigilant assumptions . accounting of trend quarterly with our actuaries .
Speaker #6: Our claims organization , our underwriting organization . And as you know , over the last several years , this portfolio has shifted increasingly toward our short tail lines .
Speaker #6: And finally , within the new and expanded classes , you'll we recall , estimated some 60 odd percent of our new and expanded classes were coming from the short tail lines .
Clifford Gallant: No, thank you.
Cliff Gallant: No, thank you.
Speaker #6: And so that's that's how we respond would to you . Thank you for your question .
Operator: The next question comes from Josh Shanker with BOA. Please go ahead.
Operator: The next question comes from Josh Shanker with BOA. Please go ahead.
Speaker #9: Thank you .
Joshua Shanker: Yeah, good morning, everyone. Thanks for taking my question, and I'll circle to the Pete bandwagon. You're a real one, man, so and I appreciate it. Thank you.
Joshua Shanker: Yeah, good morning, everyone. Thanks for taking my question, and I'll circle to the Pete bandwagon. You're a real one, man, so and I appreciate it. Thank you.
Speaker #4: The next question comes from Josh Schenker with Boa . Please ahead .
Speaker #10: Yeah . Good morning everyone . Thanks for taking my question . And I'll circle the the Pete bandwagon . Your a real one man .
Vincent Tizzio: Thank you, Josh.
Vincent Tizzio: Thank you, Josh.
Joshua Shanker: All right, so tough question time. Third-party underwriting or outside underwriting from partners, how big do you expect it to get as a percentage of the whole in 2026? If and you can go wherever you want, but in terms of, you know, the way you segment the business, not by class, what percentages will see the biggest surge, or I should say, biggest percentage coming from third-party underwriters? And if you could compare the expense and acquisition ratios of third-party business versus in-house business, that would be wonderful.
Joshua Shanker: All right, so tough question time. Third-party underwriting or outside underwriting from partners, how big do you expect it to get as a percentage of the whole in 2026? If and you can go wherever you want, but in terms of, you know, the way you segment the business, not by class, what percentages will see the biggest surge, or I should say, biggest percentage coming from third-party underwriters? And if you could compare the expense and acquisition ratios of third-party business versus in-house business, that would be wonderful.
Speaker #10: So, I appreciate it. Thank you.
Speaker #1: Thank you Josh .
Speaker #10: All right so tough question time . Third party underwriting or outside underwriting from partners . How big do you expect it to get as a percentage of the whole in 2026 ?
Speaker #10: And you can go wherever you want . But in terms of , you know , the way you segment the business , not by class , what percentages will see the biggest surge or should I say biggest percentage coming from third party underwriters .
Speaker #10: And if you could compare the expense and acquisition ratios of third party business versus in-house business , that would be wonderful .
Vincent Tizzio: Josh, good, good morning, and let me try and unpack your question, your use of third-party underwriting. Okay, so with respect to what we call delegated, let me provide some context, and I'll try and address each of the elements of your question directly and hopefully responsibly. So firstly, at the end of 2025, delegated across our insurance platform represent approximately 32% of the volume of what we produced in the company. Importantly, there are four delegated relationships that have substantial contribution to that 32%. We've spoken about these areas in prior calls.
Vincent Tizzio: Josh, good, good morning, and let me try and unpack your question, your use of third-party underwriting. Okay, so with respect to what we call delegated, let me provide some context, and I'll try and address each of the elements of your question directly and hopefully responsibly. So firstly, at the end of 2025, delegated across our insurance platform represent approximately 32% of the volume of what we produced in the company. Importantly, there are four delegated relationships that have substantial contribution to that 32%. We've spoken about these areas in prior calls.
Speaker #6: Josh , good morning and let me try and unpack your question . Your your use of third party underwriting . Okay . So with respect to what we call delegated , let me let me provide some context and I'll try and address each of the elements of your question directly and hopefully responsibly .
Speaker #6: So firstly , at the end of 2025 , delegated across our insurance platform represent approximately 32% of the volume of what we produced in the company .
Speaker #6: Importantly , there are four delegated relationships that have substantial contribution to that 32% . We've spoken about these areas in prior calls . They of involve , course , our pet delegated relationship , our surety , delegated relationship , are transactional liability book , which is an increasing focus .
Vincent Tizzio: They involve, of course, our pet delegated relationship, our surety delegated relationship, our transactional liability book, which is an increasing focus, of course, in this changing risk landscape, and finally, our portfolio solutions group out of London, where we are a so-called smart follow market. And you know the lexicon in London, that is a term of art. Third, with respect to the difference in acquisition costs, I can tell you that they're contemplated in our overall estimates. They're approximately, it's difficult because of the profit-sharing agreements to give it a fine point. I'll ask Pete to help me on that. And then finally, in terms of sizing, I don't think that the delegated book will become smaller for Axis. I think staying in the 30-odd range.
Vincent Tizzio: They involve, of course, our pet delegated relationship, our surety delegated relationship, our transactional liability book, which is an increasing focus, of course, in this changing risk landscape, and finally, our portfolio solutions group out of London, where we are a so-called smart follow market. And you know the lexicon in London, that is a term of art. Third, with respect to the difference in acquisition costs, I can tell you that they're contemplated in our overall estimates. They're approximately, it's difficult because of the profit-sharing agreements to give it a fine point. I'll ask Pete to help me on that. And then finally, in terms of sizing, I don't think that the delegated book will become smaller for Axis. I think staying in the 30-odd range.
Speaker #6: Of course , in changing risk this landscape . And finally , our portfolio solutions group out of London , where we are a so-called smart follow market .
Speaker #6: And , you know , the the lexicon in London , that is a a term that is of art . Third , with respect to the the difference in acquisition costs , I can tell you that there contemplated in our overall estimates , there approximately it's difficult because of the profit sharing agreements to give it a fine point .
Speaker #6: ask Pete to help I'll me on that and then finally , in terms of sizing , I don't think that the delegated book become will smaller for access .
Vincent Tizzio: Please note, in the North American component, it is only 14% of our total volume in distribution delegated. And as you would reasonably expect from a London Lloyd's market, we have a substantial percentage of our business coming from a variety forms of delegated. Hopefully, that answers your question.
Vincent Tizzio: Please note, in the North American component, it is only 14% of our total volume in distribution delegated. And as you would reasonably expect from a London Lloyd's market, we have a substantial percentage of our business coming from a variety forms of delegated. Hopefully, that answers your question.
Speaker #6: think I staying in the 30 odd range , please note in the North American component , it is only 14% of our total volume in distribution from delegated .
Speaker #6: And as you would reasonably expect from a London Lloyd's , we market have a substantial percentage of our business coming from a variety forms of delegated .
Joshua Shanker: Nothing short of an excellent answer. Thank you very much. In terms of, you know, looking forward into 2026, 2027, 2028 beyond, are you thinking the industry's changing in a way that delegated underwriting is going to be an increasingly large proportion of the portfolio? Or is this a soft market strategy that will invert in 2029 when the markets change?
Joshua Shanker: Nothing short of an excellent answer. Thank you very much. In terms of, you know, looking forward into 2026, 2027, 2028 beyond, are you thinking the industry's changing in a way that delegated underwriting is going to be an increasingly large proportion of the portfolio? Or is this a soft market strategy that will invert in 2029 when the markets change?
Speaker #6: Hopefully that answers your question .
Speaker #10: Nothing short of an excellent answer . Thank you very much . And in terms of looking , you know , forward into 26 , 27 , 28 beyond , are you thinking the industry's changing in a way that delegated underwriting increasingly large proportion of the be an is going to portfolio , or a is this soft market strategy that will invert 2029 , when the markets in change ?
Vincent Tizzio: You know, if I have this approximately right, it would be great. But look, instinctively, there is structural change that has gone on in the delegated space. And in particular, if you look at the order of investment that has been made within our strongest set of partnerships, US wholesale distribution, a considerable investment has been made in the MGU entities within those organizations. I think that has staying power. I do think that there'll be a consolidation of lines of business changes that will emerge. I can't be perfectly prescriptive about which lines of business-driven MGAs are going to fold. I would point to the environment that we're competing in is quite different than three years ago with respect to margin.
Vincent Tizzio: You know, if I have this approximately right, it would be great. But look, instinctively, there is structural change that has gone on in the delegated space. And in particular, if you look at the order of investment that has been made within our strongest set of partnerships, US wholesale distribution, a considerable investment has been made in the MGU entities within those organizations. I think that has staying power. I do think that there'll be a consolidation of lines of business changes that will emerge. I can't be perfectly prescriptive about which lines of business-driven MGAs are going to fold. I would point to the environment that we're competing in is quite different than three years ago with respect to margin.
Speaker #6: You know , if if I this have approximately right , it great . But look would be instinctively there is structural that has gone on in the delegated space and in particular , if you look at the order of investment that has been made within our strongest set of partnerships , a US wholesale distribution , a investment has been considerable made in the mgu within those entities organizations .
Speaker #6: that I think has staying power . I do think that there'll be a consolidation of lines of business changes that will emerge . I can't be perfectly prescriptive about which lines of business driven mgas are going to fold .
Vincent Tizzio: And, and the underwriting acumen that has to be shown by these, entities will be critically under examination, I think particularly those that are private equity-owned. I do think, in contrast, the wholesale, dedicated MGUs, have staying power. As you'll recall, Josh, when Pete and I executed the reserve charge, we redefined the role and purpose of MGAs, and delegated authority inside our organization. It was a painful set of lessons that we had to take. We're very pleased with what Mike and Sara have done in executing the change in our underwriting strategy.
Vincent Tizzio: And, and the underwriting acumen that has to be shown by these, entities will be critically under examination, I think particularly those that are private equity-owned. I do think, in contrast, the wholesale, dedicated MGUs, have staying power. As you'll recall, Josh, when Pete and I executed the reserve charge, we redefined the role and purpose of MGAs, and delegated authority inside our organization. It was a painful set of lessons that we had to take. We're very pleased with what Mike and Sara have done in executing the change in our underwriting strategy.
Speaker #6: I would point to the environment that competing in we're is quite different than three years ago . With respect to margin and the underwriting acumen that has to be shown by these entities will be critically under examination .
Speaker #6: I think , particularly those that are private equity I owned . do think in contrast , the wholesale dedicated Mgas have staying power , as you'll recall , Josh , when Pete and I executed the reserve charge , we redefined the role and purpose of Mgas and delegated authority inside our organization .
Speaker #6: It was a painful set of lessons that we had to take . We're very Mike pleased with what Sara have and done , and executing the change in our underwriting strategy .
Vincent Tizzio: We're more concerned about the controls that we have in place, which has resulted from substantial investment in data and analytics, and more importantly, the economic alignment of interest that we've created through the profit-sharing agreements and where we, RAC Re, in particular, if you just go back to the notes that we conveyed, it shows convincingly how we have changed the dynamic of how we interact in the MGU arena. I'll leave it there. If there's any further questions, we're happy to take it.
Vincent Tizzio: We're more concerned about the controls that we have in place, which has resulted from substantial investment in data and analytics, and more importantly, the economic alignment of interest that we've created through the profit-sharing agreements and where we, RAC Re, in particular, if you just go back to the notes that we conveyed, it shows convincingly how we have changed the dynamic of how we interact in the MGU arena. I'll leave it there. If there's any further questions, we're happy to take it.
Speaker #6: We're more concerned about the controls that we have in place , which has resulted from substantial investment in data and analytics and more importantly , the economic alignment of interest that we've created through the profit sharing agreements and where we in particular , if you just go back to the notes that we conveyed , it shows convincingly how we have changed the dynamic of how we interact in the Mgu arena leave it there .
Joshua Shanker: Thank you.
Joshua Shanker: Thank you.
Operator: The next question comes from Andrew Anderson with Jefferies. Please go ahead.
Operator: The next question comes from Andrew Andersen with Jefferies. Please go ahead.
Speaker #6: If there's any . I'll further questions . We're happy it .
Andrew Andersen: Hey, good morning. Pete, I think last quarter you were saying within the insurance segment, RAC Re could push growth into double digits, but now you're kind of pointing to mid to high single digits. So is there kind of a change in expectation on either organic growth or on RAC Re into next year?
Andrew Andersen: Hey, good morning. Pete, I think last quarter you were saying within the insurance segment, RAC Re could push growth into double digits, but now you're kind of pointing to mid to high single digits. So is there kind of a change in expectation on either organic growth or on RAC Re into next year?
Speaker #10: you Thank
Speaker #10: .
Speaker #4: next The question to take comes from Andrew Anderson with Jefferies . Please go ahead .
Speaker #11: Hey , good morning Pete . I think last quarter you were saying within the insurance RAC segment , re could push growth into double digits , but now you're kind of pointing to mid to high single digits .
Peter Vogt: You know what, Andy, I am very consistent with what I said in the Q3. Yeah, I think, Vince came in over the top of there, but, mid to high single digits would be excluding RAC Re as we look at 2026. RAC Re, you know, given what our expectations are, you know, could push, you know, would push the insurance into the double digits.
Peter Vogt: You know what, Andy, I am very consistent with what I said in the Q3. Yeah, I think, Vince came in over the top of there, but, mid to high single digits would be excluding RAC Re as we look at 2026. RAC Re, you know, given what our expectations are, you know, could push, you know, would push the insurance into the double digits.
Speaker #11: is there kind of a So change in on either expectation organic growth or on RAC ? Re into next year .
Speaker #1: You know what, Andy? I am very consistent with what I said in the third quarter. Yeah, I think Vince came in over the top of there, but the mid to high single digits would be excluding RAC Re.
Speaker #1: As we look at 2026 RAC re you know , given what our expectations are , you know , could push would push the insurance into the double digits .
Andrew Andersen: Okay. Thank you for that clarification. And then on reinsurance, you know, kind of pointing to the potential for double-digit down, I suppose, on a gross basis. I do think maybe half of that segment, 40 to 50% is what could be short tail or specialty lines. Is that kind of more of a flattish expectation there, or could we break apart the casualty and specialty within reinsurance? How you're thinking about that?
Andrew Andersen: Okay. Thank you for that clarification. And then on reinsurance, you know, kind of pointing to the potential for double-digit down, I suppose, on a gross basis. I do think maybe half of that segment, 40 to 50% is what could be short tail or specialty lines. Is that kind of more of a flattish expectation there, or could we break apart the casualty and specialty within reinsurance? How you're thinking about that?
Speaker #11: Okay . Thank you for that clarification . And then on reinsurance , you know , kind of pointing to the potential for double digit down I a on suppose on a gross basis , I do think maybe half of that segment , 40 to 50% is what could be short tail or specialty lines .
Speaker #11: Is that kind of more of a flattish expectation ? There , or could we break apart the casualty and specialty within reinsurance ? How you're thinking about that .
Vincent Tizzio: This is Vince. I think if you, if you want to talk about the portfolio construct, you should reasonably expect in the long tail lines, for us to continue the reshaping that we've been talking about, these past couple of years. A continued focus within our specialty lines. There's a variety of makeup between and among our definition of specialty reinsurance lines as respects, short tail, or longer tail, but not long tail. But the bumper sticker that I hope you take is, while volume may be, less than year-end 2025, we feel very good about the margin contribution of underwriting profitability that will be generated from our reinsurance business, and we continue to see, substantial alignment between the reward of our distribution partners and the capability set of our specialist reinsurance teammates. And so, I'll leave it there.
Vincent Tizzio: This is Vince. I think if you, if you want to talk about the portfolio construct, you should reasonably expect in the long tail lines, for us to continue the reshaping that we've been talking about, these past couple of years. A continued focus within our specialty lines. There's a variety of makeup between and among our definition of specialty reinsurance lines as respects, short tail, or longer tail, but not long tail. But the bumper sticker that I hope you take is, while volume may be, less than year-end 2025, we feel very good about the margin contribution of underwriting profitability that will be generated from our reinsurance business, and we continue to see, substantial alignment between the reward of our distribution partners and the capability set of our specialist reinsurance teammates. And so, I'll leave it there.
Speaker #6: is Vince . I think if This you if you want to talk about the portfolio construct , you should reasonably expect in the long tail lines to for us continue the reshaping that we've been talking about , these past couple of years .
Speaker #6: continued A focus within our specialty lines . There's a variety of makeup between and among our definition of specialty reinsurance lines . As respects short tail or longer tail , but not long tail .
Speaker #6: But the bumper sticker that I hope you take is . While volume may be less than year end , 2025 , we feel very good about the margin contribution of underwriting profitability .
Speaker #6: will be That generated from our reinsurance business , and we continue to see substantial alignment between the reward of our distribution partners and the capability set of our specialist reinsurance teammates .
Andrew Andersen: Thank you, and congrats, Pete.
Andrew Andersen: Thank you, and congrats, Pete.
Peter Vogt: Thank you very much, Andy.
Peter Vogt: Thank you very much, Andy.
Speaker #6: And so I'll leave it there .
Operator: The next question comes from Charlie Lederer with BMO. Please go ahead.
Operator: The next question comes from Charlie Lederer with BMO. Please go ahead.
Speaker #11: And thank you. Congrats, Pete.
Charles Lederer: Hey, thank you. Good morning, and congrats, Pete, and best of luck to you. Look forward to getting to work with you, Matt. Maybe just going back to Christian's question on the attritional loss ratio and insurance. Appreciate the new and expanded classes are rate adequate. I guess when we think about the increasing contribution from professional liability and the rates subsiding in property, can you just talk about how that mix shift should impact the attritional loss ratio in those two lines from those two lines, you know, as we progress through 2026?
Charles Lederer: Hey, thank you. Good morning, and congrats, Pete, and best of luck to you. Look forward to getting to work with you, Matt. Maybe just going back to Christian's question on the attritional loss ratio and insurance. Appreciate the new and expanded classes are rate adequate. I guess when we think about the increasing contribution from professional liability and the rates subsiding in property, can you just talk about how that mix shift should impact the attritional loss ratio in those two lines from those two lines, you know, as we progress through 2026?
Speaker #1: Thank you very much .
Speaker #12: And .
Speaker #4: next question comes The from Lederer with Charlie BMO . Please ahead go .
Speaker #13: Hey , thank you . Good morning . And congrats , best of Pete . And luck to you . Look forward to getting to work with you Matt .
Speaker #13: Maybe just going back to Christian's question on the attritional loss ratio and insurance . Appreciate expanded classes . R rate , adequate . I guess when we think about the increasing contribution from professional liability and the the rate subsiding and property , can you just talk about how that mix shift should impact the attritional loss ratio in those two lines ?
Vincent Tizzio: Look, I don't know if I'll answer it in the lens that you raise it, but I'll give you, I think, a more helpful answer to the broader part that I take from your question. Firstly, the growth in professional was substantially driven by transactional liability and our new and expanded E&O classes, with some complement of contribution from our design professional business. Second, we've constructed a portfolio that has leveraged, of course, a lot of growth expectancy from the new and expanded, and if you look at the last couple of quarters, you'd certainly have a consistent proof point. We've introduced a capability in the form of AXIS Capacity Solutions that is really addressing a unique needs from our customers in utilizing third-party capital.
Vincent Tizzio: Look, I don't know if I'll answer it in the lens that you raise it, but I'll give you, I think, a more helpful answer to the broader part that I take from your question. Firstly, the growth in professional was substantially driven by transactional liability and our new and expanded E&O classes, with some complement of contribution from our design professional business. Second, we've constructed a portfolio that has leveraged, of course, a lot of growth expectancy from the new and expanded, and if you look at the last couple of quarters, you'd certainly have a consistent proof point. We've introduced a capability in the form of AXIS Capacity Solutions that is really addressing a unique needs from our customers in utilizing third-party capital.
Speaker #13: From those two lines , as we progress through 26 ?
Speaker #6: Look , I don't know if I'll answer it in the in the lens that you raise it , but I'll give you , I think , a more helpful answer to to the broader part that I take from your question .
Speaker #6: Firstly , the growth in professional was substantially driven by transactional liability . And our new and expanded , you know , classes with some contribution from complement of our design professional business .
Speaker #6: Second , we've constructed a portfolio that has leveraged , of course , a lot of growth expectancy from the new and expanded . And at the if you look last couple of you'd quarters , certainly have a consistent proof point .
Speaker #6: We've introduced a capability in the form of access capacity solutions that has really addressing unique needs from our our customers and utilizing third party capital .
Vincent Tizzio: When you put in context Pete's remarks around the headwinds, you know, obviously, the pressure on our ex-cat attritional ratio, ex-cat attritional. That's a tongue twister, excuse me. Ex-cat attritional loss ratio will be shown in the 26 year. We don't think it's in an outsized manner. If it's about a point, that, that would be in keeping with what I would reasonably expect with the information we have today, but it's certainly not something that's going to materially move. The influence of a short tail portfolio, a balanced approach in our long tail lines, gives us confidence in the overall outcome of our loss ratio performance. Pete, I don't know if you want to come over the top and clean anything up, but-
Vincent Tizzio: When you put in context Pete's remarks around the headwinds, you know, obviously, the pressure on our ex-cat attritional ratio, ex-cat attritional. That's a tongue twister, excuse me. Ex-cat attritional loss ratio will be shown in the 26 year. We don't think it's in an outsized manner. If it's about a point, that, that would be in keeping with what I would reasonably expect with the information we have today, but it's certainly not something that's going to materially move. The influence of a short tail portfolio, a balanced approach in our long tail lines, gives us confidence in the overall outcome of our loss ratio performance. Pete, I don't know if you want to come over the top and clean anything up, but-
Speaker #6: When you put in context , Pete's remarks around the headwinds , you know , obviously the pressure on our xcat attritional ratio , exh.cat attritional , that's a tongue twister .
Speaker #6: Excuse me . Xcat attritional loss ratio will be shown in the 26 year . We don't think it's in an outsized manner . If it's about a point that that would be in keeping with what I would reasonably expect with the information we have today .
Speaker #6: But it's certainly not something that's going to materially move the influence of a short tail A portfolio . approach in our long tail gives us lines confidence in the overall outcome of our loss ratio , performance .
Peter Vogt: Yeah, I think you kind of hit it there, Vince. You know, we've had actually a real benefit of mix change this year. As we go into next year, depending upon where the markets go, we may not get the exact same benefits that we've been getting on mix. And so, you know, we do think that, I think Vince said it right, you know, somewhere around a point would be an expectation on the insurance side.
Peter Vogt: Yeah, I think you kind of hit it there, Vince. You know, we've had actually a real benefit of mix change this year. As we go into next year, depending upon where the markets go, we may not get the exact same benefits that we've been getting on mix. And so, you know, we do think that, I think Vince said it right, you know, somewhere around a point would be an expectation on the insurance side.
Speaker #6: Pete, I don't know if you want to come over to talk about cleaning anything up.
Speaker #1: Yeah , I think you kind of hit it there , Vince . You know , we've had actually a real benefit of mixed change this year as we go into next year , depending upon where the markets go , we may not get the exact same benefits that we've been getting on mix .
Speaker #1: And so , you know , we do think that I think Vince said it right . You know , somewhere around a point would be an expectation on the insurance side .
Charles Lederer: Thanks, guys. And you mentioned the prioritization of organic growth over buybacks in your prepared remarks. Obviously, appreciate that buybacks were a little bit elevated this year. Just wondering, I guess, if you get an average cat year and you hit your top line, you know, targets, how we should think about the capital return profile for AXIS, just given the mix shift and the evolution?
Charles Lederer: Thanks, guys. And you mentioned the prioritization of organic growth over buybacks in your prepared remarks. Obviously, appreciate that buybacks were a little bit elevated this year. Just wondering, I guess, if you get an average cat year and you hit your top line, you know, targets, how we should think about the capital return profile for AXIS, just given the mix shift and the evolution?
Speaker #13: Thanks , guys . And you mentioned that the prioritization of organic growth over buybacks and prepared your remarks , obviously appreciate that . Buybacks were a little bit elevated this year .
Speaker #13: wondering , Just I guess get an if you average cat year and you hit your top line targets , how we should think about the capital return profile for an axis just given the mix shift and the evolution .
Peter Vogt: Yeah, this is Pete, Andy. Again, we're gonna continue to be opportunistic with the share buyback. We do still believe at our current market price we're undervalued, and so we did a fair amount of share buyback in Q4. But our number one, as we said in our prepared remarks, is organic growth. And, you know, with the opportunities we have in front of us with who we've been dealing on, we think we'll have good opportunities for growth in this year in our insurance specialty side. And then based upon, you know, the earnings profile that we have, you know, we'll look to put capital to use, still continuing to build out our data and analytics and our platforms, but then, you know, we'll look to share buyback in an opportunistic manner.
Peter Vogt: Yeah, this is Pete, Andy. Again, we're gonna continue to be opportunistic with the share buyback. We do still believe at our current market price we're undervalued, and so we did a fair amount of share buyback in Q4. But our number one, as we said in our prepared remarks, is organic growth. And, you know, with the opportunities we have in front of us with who we've been dealing on, we think we'll have good opportunities for growth in this year in our insurance specialty side. And then based upon, you know, the earnings profile that we have, you know, we'll look to put capital to use, still continuing to build out our data and analytics and our platforms, but then, you know, we'll look to share buyback in an opportunistic manner.
Speaker #1: is Yeah . This this is Pete . Andy again , we're going to continue to be with with the share buyback . We do stay still believe at our current market price .
Speaker #1: We're undervalued . And so we did a fair amount of share buyback in the fourth quarter . But our number one as we said in our prepared remarks , is organic growth .
Speaker #1: And you know , with the opportunities we have in front of us with what we've been dealing on , we think we'll have good opportunities for growth in this year .
Speaker #1: And our insurance specialty side . And then based upon , you know , the earnings profile that we have , you know , we'll look to put capital to use .
Peter Vogt: Wouldn't give it a specific number, you know, per quarter or anything like that.
Peter Vogt: Wouldn't give it a specific number, you know, per quarter or anything like that.
Speaker #1: Still continuing to build out our data and analytics and our platforms. But then, you know, we'll look to share buyback in an opportunistic manner.
Charles Lederer: Thanks, guys.
Charles Lederer: Thanks, guys.
Speaker #1: Wouldn't give it a specific number . You know , per quarter or anything like that .
Operator: The next question comes from Roland Mayer with RBC Capital Markets. Please go ahead.
Operator: The next question comes from Rowland Mayor with RBC Capital Markets. Please go ahead.
Speaker #13: Thanks guys .
Roland Mayer: Thank you. Yeah, I need to be faster on the star one. I wanted to quickly ask on the reinsurance growth. I assume that the down up to 10% or up, down double digits includes the motor renewal. Am I thinking about it correctly, that that effectively renewed twice in 2025?
Rowland Mayor: Thank you. Yeah, I need to be faster on the star one. I wanted to quickly ask on the reinsurance growth. I assume that the down up to 10% or up, down double digits includes the motor renewal. Am I thinking about it correctly, that that effectively renewed twice in 2025?
Speaker #4: The next question comes from Roland Mayer with RBK Capital Markets. Please go ahead.
Speaker #14: Thank you . And yeah , I need to be faster on the star one . I wanted to quickly ask on the reinsurance growth .
Speaker #14: I assume that down up to 10% or up down double digits includes the motor renewal . And am I thinking about it correctly that that effectively renewed twice in 2025 .
Peter Vogt: It did not renew twice in 2025. So that's a good question. It was a brand-new product really that we did in Q4. It just happens to be, I'll call it, a 15-month product, and so it's gonna come up for renewal in Q1 2027. That does have a bit of an impact because it was a large quota share. But I think our comments are more around our feeling about where the current market is in the long-tail lines, the casualty lines, especially in reinsurance, and how we're seeing the market dynamics play out there. I don't know, Vince, if you wanna add anything else.
Peter Vogt: It did not renew twice in 2025. So that's a good question. It was a brand-new product really that we did in Q4. It just happens to be, I'll call it, a 15-month product, and so it's gonna come up for renewal in Q1 2027. That does have a bit of an impact because it was a large quota share. But I think our comments are more around our feeling about where the current market is in the long-tail lines, the casualty lines, especially in reinsurance, and how we're seeing the market dynamics play out there. I don't know, Vince, if you wanna add anything else.
Speaker #1: It did not renew twice in 2025 . So that's a good question . It was a brand new product really that that we did in the fourth quarter .
Speaker #1: It just happens to be , I'll call it a 15 month product . And so it's going to come up for renewal in the first quarter of 27 .
Speaker #1: That does have a bit of an impact because it was a large quota share . But I think our comments are more around our feeling about where the current market is in the long tail casualty lines , the lines , especially in reinsurance and how we're seeing the market dynamics play out there .
Vincent Tizzio: I think you answered it great. Yeah.
Vincent Tizzio: I think you answered it great. Yeah.
Roland Mayer: Yeah. Thank you. And then I guess on the next one, going back to Charlie's question on the buyback, 2025 was just, it was very lumpy with all the StonePoint deals. Is the right way to think about it, it should be a bit smoother next year? And, I mean, the payout ratio this year was 100%. I assume it, that won't happen again. There was some elevation because of just the StonePoint opportunity.
Rowland Mayor: Yeah. Thank you. And then I guess on the next one, going back to Charlie's question on the buyback, 2025 was just, it was very lumpy with all the StonePoint deals. Is the right way to think about it, it should be a bit smoother next year? And, I mean, the payout ratio this year was 100%. I assume it, that won't happen again. There was some elevation because of just the StonePoint opportunity.
Speaker #1: I don't know if, Vince, you want to add anything else.
Speaker #6: I think you you answered it great . Yeah , yeah .
Speaker #14: then I Thank you . And guess on the next one , going back to Charlie's question on the buyback , 2025 was just it was very lumpy with all the stone point deals is the right way to think about it .
Speaker #14: It should be a bit smoother next year . And I mean , the payout ratio this year 100% . I assume was it that won't happen again .
Peter Vogt: Yeah, this is Pete. I'll come in over the top on that. One of the things that did elevate the payout ratio in the year was, remember, we did the Enstar LPT transaction, which actually gave us a real benefit to our capital position in the year and allowed us to do what I would call more share buyback as a percent of income than we would normally see in a normal year. I would say it was a bit lumpy in 2025. Again, that was the opportunistic nature of our share buyback. So I still would say that we're gonna be opportunistic through 2026. Could be lumpy, depending upon what we see happening in the markets, as well as our needs for growth.
Peter Vogt: Yeah, this is Pete. I'll come in over the top on that. One of the things that did elevate the payout ratio in the year was, remember, we did the Enstar LPT transaction, which actually gave us a real benefit to our capital position in the year and allowed us to do what I would call more share buyback as a percent of income than we would normally see in a normal year. I would say it was a bit lumpy in 2025. Again, that was the opportunistic nature of our share buyback. So I still would say that we're gonna be opportunistic through 2026. Could be lumpy, depending upon what we see happening in the markets, as well as our needs for growth.
Speaker #14: There were some elevation because of just the stone point opportunity .
Speaker #7: Yeah ,
Speaker #1: This is Pete . I'll come in over the top on that . One of the things that did elevate the payout ratio in the year was , remember , we did the NStar , LPT which transaction , actually gave us a real benefit to our capital position in the year and allowed us to do what I would call more share buyback as a percent of income than we would see in a normally normal year .
Speaker #1: I would say it was a bit lumpy in 2025 . Again , that was the opportunistic nature of our share buyback . So I still would say that we're going to be opportunistic through 26 .
Roland Mayer: All right, perfect. Thank you, and congrats.
Rowland Mayor: All right, perfect. Thank you, and congrats.
Speaker #1: Could be lumpy , depending upon what we see happening in the markets as well as our needs for growth .
Peter Vogt: Thank you.
Peter Vogt: Thank you.
Operator: There is a follow-up question from Yaron Kinar with Mizuho. Please go ahead.
Operator: There is a follow-up question from Yaron Kinar with Mizuho. Please go ahead.
Speaker #14: All right. Perfect. Thank you, and congrats.
Yaron Kinar: Thanks. Back for more. Just maybe pounding a little more on this capital deployment issue. You know, your premium surplus is still below 1. You are growing, but, you know, with the growth targets you're offering and the lines of business in which you're growing, which I think are probably a bit more capital light, you've moved away from cat exposures. Like, why is it reasonable to think of the payout ratio sustaining above, call it, the 60% range, even when you're growing?
Yaron Kinar: Thanks. Back for more. Just maybe pounding a little more on this capital deployment issue. You know, your premium surplus is still below 1. You are growing, but, you know, with the growth targets you're offering and the lines of business in which you're growing, which I think are probably a bit more capital light, you've moved away from cat exposures. Like, why is it reasonable to think of the payout ratio sustaining above, call it, the 60% range, even when you're growing?
Speaker #7: Thank you .
Speaker #4: Is a follow-up question from Yaron Kinar with Mizuho. Please go ahead.
Speaker #5: Thanks back for more . Just maybe pounding a little more on the capital deployment issue . Your premium surplus is still below one .
Speaker #5: growing , are You but you know with the targets growth you're offering and the lines of business in which you're growing , which I think are probably a bit more capital light .
Speaker #5: You've moved away from cat exposures , like why is it reasonable to think of the the payout ratio sustaining above ? Call it the 60% range , even when you're growing .
Peter Vogt: So Yaron, this is Pete. I would say if you're looking at a payout ratio that high, then that would be including what is a very good, common dividend. I would say that looks-
Peter Vogt: So Yaron, this is Pete. I would say if you're looking at a payout ratio that high, then that would be including what is a very good, common dividend. I would say that looks-
Speaker #1: So your own this is would say if Pete . I you're looking at a payout ratio that high , then that would be including what is a very good common dividend .
Yaron Kinar: Yeah.
Yaron Kinar: Yeah.
Peter Vogt: That sounds a bit high side to me. So I would actually, if you're thinking about modeling, I would be modeling below that number.
Peter Vogt: That sounds a bit high side to me. So I would actually, if you're thinking about modeling, I would be modeling below that number.
Vincent Tizzio: Yeah, and I think the assumption on some of the capital use in certain of our specialty lines is perhaps larger than Yaron-
Vincent Tizzio: Yeah, and I think the assumption on some of the capital use in certain of our specialty lines is perhaps larger than Yaron-
Speaker #1: I would say that looks—that sounds a bit on the high side to me. So I would actually, if you're thinking about modeling, I would be modeling below that number.
Peter Vogt: Larger than you think.
Peter Vogt: Larger than you think.
Speaker #6: Yeah . And I think the assumption on some of the capital use in certain of our specialty lines is perhaps larger than your .
Vincent Tizzio: accounting for it.
Vincent Tizzio: accounting for it.
Peter Vogt: Yeah.
Peter Vogt: Yeah.
Vincent Tizzio: I think that's an important point.
Vincent Tizzio: I think that's an important point.
Yaron Kinar: Okay.
Yaron Kinar: Okay.
Vincent Tizzio: We can talk further about it, but-
Vincent Tizzio: We can talk further about it, but-
Peter Vogt: Yeah.
Peter Vogt: Yeah.
Yaron Kinar: Okay. Yeah, we can take that offline. Thank you.
Yaron Kinar: Okay. Yeah, we can take that offline. Thank you.
Speaker #1: Larger than .
Speaker #6: You're accounting for it, but I think that's an important point. We can talk further about it, but yeah.
Vincent Tizzio: Thank you.
Vincent Tizzio: Thank you.
Operator: This concludes our question and answer session. I would like to turn the conference back over to Vince Tizzio, CEO, for any closing remarks.
Operator: This concludes our question and answer session. I would like to turn the conference back over to Vince Tizzio, CEO, for any closing remarks.
Speaker #5: Okay . Yeah . that We can take offline . Thank you .
Speaker #7: Thank you
Speaker #7: .
Speaker #4: our concludes This question and answer session . I would like to turn the conference back over to Vincent Tizzio CEO . For any closing remarks .
Vincent Tizzio: Thank you for joining today's call. As we look to the future, we believe AXIS is very well positioned in the marketplace and poised to continue to build on its positive momentum. We look forward to updating you on our continued progress in future quarters. Thank you very much.
Vincent Tizzio: Thank you for joining today's call. As we look to the future, we believe AXIS is very well positioned in the marketplace and poised to continue to build on its positive momentum. We look forward to updating you on our continued progress in future quarters. Thank you very much.
Speaker #6: Thank you for joining today's call. As we look to the future, we believe AXIS is very well positioned in the marketplace and poised to continue to build on its positive momentum.
Speaker #6: We look forward to updating you on our continued progress and future quarters . Thank you very much .
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
