Axis pursuing more selective property growth strategy after rates fall 7.1% in Q1

By Chris Munro

May 2 - (The Insurer) - Axis Capital is pursuing a more selective property insurance growth strategy amid heightened competition which led to rate reductions of 7.1% during the first three months of 2025, the carrier said on its quarterly earnings call on Thursday.

The Bermuda-based company booked $1.66 billion of insurance gross written premium in 2025’s first quarter, growth of 5.2% on the prior-year period.

Axis’ property insurance unit grew its gross written premium to $495.4 million in Q1 2025, an increase of 3.5% year on year.

CEO Vince Tizzio said that after seven years of rate hardening and strong results within the property sector, the company is now “pursuing a more selective growth strategy” in the segment.

“In the quarter, we evidenced a negative 7% rate change with 3% growth across our eight operating divisions that bring property to market.

“Our portfolio continues to be highly premium adequate, well-constructed and has an average net limit in the low single-digit millions, and through the quarter, the changes in competition are primarily affecting rate and not terms and conditions,” said Tizzio.

Discussing the 7.1% decrease in property rates in more detail, Tizzio said it is important to note that the sector is dealing with changing total insured values, and a more competitive market in London than in the U.S.

He said the rate change “is more directed in our global market business at the moment where we're seeing a more precipitous rate change”.

“Within our predominant business in the U.S., our E&S wholesale business, we’re seeing rate change, to be sure, but not in the same order of magnitude.”

The expansion of Axis’ property insurance division in Q1 2025 was led by what CFO Peter Vogt described as “good growth in renewable energy and construction”.

“This was somewhat offset by a reduction in our E&S property book – down about 2% – and a double-digit decline in our London global property book as competition has increased,” said Vogt.

Away from property, Tizzio said liability insurance pricing “is being sustained at elevated levels”, with the company achieving a 13.5% rate increase in the segment during Q1 2025.

“Going deeper, in U.S. excess casualty we generated a 16% rate change in the quarter. Further, in primary casualty, rates were up 21% in the quarter,” said Tizzio.

The executive said in 2025’s first quarter, Axis completed its previously announced remediation of its primary casualty portfolio.

“We continue to see attractive opportunities in excess casualty, which drove growth and liability and more than offset the remediation in primary casualty,” Vogt added.

Rate in both excess casualty and primary casualty continued to be above loss trend, Axis’ CFO noted.

Within the credit and political risks segment, Vogt said Axis grew its new surety business, while “good project financing opportunities” also contributed to the expansion.

“Pricing generally remains highly adequate, and we are putting capital to work at attractive returns above our long term targets,” said Vogt.

“Our business from new initiatives which were launched over the past two years meaningfully contributed to our growth in the quarter, with premiums from these initiatives growing by about over 50% including the targeted lower middle market business,” he added.