AXIS Capital, a provider of specialty insurance and reinsurance solutions, outlined the potential impacts of tariffs on its operations during its Q1 2025 earnings call.
CEO Vincent Tizzio emphasised that while the company anticipates various uncertainties due to the current geopolitical environment, the most immediate impact from tariffs is expected to be on loss costs, particularly within the property and cargo insurance lines.
The CEO’s comments follow the release of a strong set of quarterly results, with AXIS reporting an improved combined ratio and premium growth.
Tizzio began by noting that the broader geopolitical situation presents a range of challenges for the company.
“As I noted at the outset of our call, 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,” he said.
This uncertainty, according to Tizzio, is something AXIS actively monitors, and it informs their underwriting practices to mitigate adverse outcomes.
The CEO specifically addressed tariffs, explaining that the direct consequence of such measures could be increased loss costs in AXIS’s first-party lines, particularly in property and cargo. “With respect to tariffs in particular, we anticipate that the most immediate impact could be on loss costs. This would be most likely reflected in our first party line predominantly property and cargo,” Tizzio said.
He acknowledged that if tariff-related uncertainties persist, the company might also experience slower growth in certain business lines, though he reassured investors that AXIS’s diversified portfolio positions the company well to navigate these challenges.
Tizzio’s remarks during the Q&A further emphasised the company’s cautious yet adaptable approach. “We have a diverse product portfolio that’s global, and in my prepared remarks, I certainly pointed to how we’re assessing the potential impact of tariffs, if they’re sustained and executed,” he explained.
He made it clear that while the property and cargo sectors could be impacted, other lines, like auto physical damages, are not as crucial to AXIS’s overall business.
Despite these potential headwinds, Tizzio underscored AXIS’s ability to adapt quickly to shifting market conditions. “I think we have a very prudent approach and how we’re accounting for tariffs,” he said.
“We certainly don’t have a crystal ball on the outcome. It remains highly fluid, but our organisation is agile and being responsive to a number of scenarios including the potential impact of loss costs in our company.” He further expressed confidence in the company’s ability to address the issue through its strategic approach and robust risk management practices.
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