In recent years, Bermuda-based re/insurer AXIS Capital Holdings has repositioned its reinsurance strategy to better fit with the company’s view of risk, and Chief Executive Officer (CEO), Vincent Tizzio, has said that the firm’s approach to reinsurance will remain both agile and flexible.
During the carrier’s Q2 2025 earnings call, held earlier this week, CEO Tizzio was questioned on the fact AXIS attributed the 8% growth in insurance net written premiums, in part, to decreased cession rates in property and liability lines, which was somewhat offset by an increased cession rate in accident and health lines of business.
The analyst noted that about one-third of the insurance segment’s written premium growth is ceded, so questioned the firm on how it is thinking about cession rates in the future, and whether AXIS envisages it coming down, and by how much.
“Look, broadly speaking, our reinsurance strategy is a composite of many factors,” said Tizzio. “And, as you know, as a specialist, given the breadth of our product offering, given the customer segmentation that we are aiming to pursue and penetrate, our strategy will remain agile.”
He went on to remind listeners that AXIS has worked to reposition its reinsurance buying strategy “to comport with our view of risk.”
“The internal capabilities that are enhancing our underwriting risk selection, the increased capital position of our company, the ability to manage our expenses in a different manner than our historical path,” said the CEO.
“While I won’t predict the next several years, what I will say expressly is that you should expect our reinsurance purchase strategy to remain agile, flexible and to comport to our view of risk and all the other factors that we take into account. As I mentioned, capital, certainly expenses, and our view of risk.
“I would say at the moment, as I’ve said previously, we have high confidence in the insurance segment business generally. And as you know, in this quarter, with the exception of our cyber business, each of our businesses grew,” he added.
The insurance operation at AXIS reported gross written premiums of more than $1.9 billion for Q2’25, up 6.5% on the prior year’s comparable quarter, while net written premiums rose to $1.3 billion from $1.2 billion, and net premiums earned increased by 8% to over $1 billion.
“And so, we’re pleased with both the financial results and more specifically to your question, we’re comfortable with our current reinsurance purchase strategy. We won’t predict the future, as you highlighted a number of years, but what I would say to you is, remember, we’ll be flexible and comport our strategy to our underwriting view of risk,” said Tizzio.
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