Axis’ property and cargo segments most affected by tariffs, says CEO Tizzio

By Chris Munro

May 1 - (The Insurer) - Axis Capital expects the most immediate impact from U.S. tariffs will be on loss costs within its property and cargo operations.

Talking to analysts on Thursday morning after Axis reported its Q1 2025 earnings on Wednesday, CEO Vince Tizzio said the current trade and geopolitical environment “introduces uncertainty across a number of dimensions, including rising loss costs, potential impacts on economic growth and the threat of a recessionary environment”.

The executive said Axis assesses all forms of uncertainty it is presented with, and through its standard underwriting practices takes steps and measures that guard the company against adverse outcomes.

“With respect to tariffs, in particular we anticipate that the most immediate impact could be on loss costs,” said Tizzio.

“This would be most likely reflected in our first-party line, predominantly property and cargo.

“Additionally, should the current uncertainty surrounding tariffs persist, we would expect an impact on growth in certain of our lines of business,” the executive stated.

Despite those potential challenges, Tizzio said Axis has confidence in its ability to address them while also leveraging the diversification within its portfolio.

“That said, our strategy remains firm and contemplates shifting market conditions.

“We continue to see areas that bring our specialty underwriting capabilities to further serve customer needs globally,” said Tizzio.