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AXIS Capital Reports Second Quarter Net Income Available to Common Shareholders of $216 Million, or $2.72 Per Diluted Common Share and Operating Income of $261 Million, or $3.29 Per Diluted Common Share
PEMBROKE, Bermuda--(BUSINESS WIRE)--AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the second quarter ended June 30, 2025. Commenting on the second quarter 2025 financial results, Vince Tizzio, President and CEO of AXIS Capital said: "AXIS delivered an excellent second quarter highlighted by record profitability and we continued our trend of strong performance, with 18.6% diluted book value per share growth over the prior year. In the quarter, we produced an annualized operating return-on-equity of 19% and an 88.9% combined ratio. In addition, we set new company records for first half underwriting income and production, while targeting premium adequate business that meets our risk-adjusted returns. Our Insurance segment continued to excel, generating an 85.3% combined ratio and all time highs in premium volume at $1.9 billion and underwriting income at $152 million, with increasing contributions from our new and expanded products. Our reinsurance business again generated steady positive bottom-line results, with a 92% combined ratio. Our sustained profitable growth is supported by the ongoing enhancement of our operations through our 'How We Work' program, which is enabled by investments in technology and AI. While we acknowledge the progress achieved, we remain steadfast in advancing our strategy and providing value to our customers and the broader market." Second Quarter Consolidated Results* Net income available to common shareholders for the second quarter of 2025 was $216 million, or $2.72 per diluted common share, compared to net income available to common shareholders of $204 million, or $2.40 per diluted common share, for the second quarter of 2024. Operating income 1 for the second quarter of 2025 was $261 million, or $3.29 per diluted common share 1, compared to operating income of $250 million, or $2.93 per diluted common share, for the second quarter of 2024. Completed loss portfolio transfer reinsurance agreement ("LPT") to retrocede net reserves for losses and loss expenses of approximately $2 billion to Enstar. Net investment income for the second quarter of 2025 was $187 million, compared to $191 million, for the second quarter of 2024, with lower income from fixed maturities resulting from lower fixed maturity assets due to the LPT transaction, partially offset by higher returns on alternative investments. Book yield of fixed maturities was 4.6% at June 30, 2025, compared to 4.4% at June 30, 2024. The market yield was 5.0% at June 30, 2025. The effective tax rate of 20.1% for the quarter was due to pre-tax income in our Bermuda, U.K., U.S., and European operations. Corporate income tax of 15% applied to Bermuda pre-tax income effective January 1, 2025. Common share repurchases pursuant to our Board-authorized share repurchase program of $50 million and common share dividends of $35 million. Book value per diluted common share was $70.34 at June 30, 2025, an increase of $3.86, or 5.8%, compared to March 31, 2025, driven by net income, and net unrealized investment gains, partially offset by common share repurchases, and common share dividends of $0.44 per share. Book value per diluted common share increased by $11.05, or 18.6%, over the past twelve months, driven by net income, and net unrealized investment gains, partially offset by common share repurchases, and common share dividends of $1.76 per share. Adjusted for net unrealized investment gains (losses), after-tax, book value per diluted common share was $70.29 at June 30, 2025, an increase of $2.44, or 3.6%, compared to $67.85 at March 31, 2025, and an increase of $6.75, or 10.6%, compared to $63.54 at June 30, 2024. * Amounts may not reconcile due to rounding differences. 1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release. Expand Second Quarter Consolidated Underwriting Highlights 2 Gross premiums written increased by $76 million, or 3%, to $2.5 billion with an increase of $118 million, or 7% in the insurance segment, partially offset by a decrease of $43 million, or 7% in the reinsurance segment. Net premiums written increased by $62 million, or 4%, to $1.6 billion with an increase of $96 million, or 8% in the insurance segment, partially offset by a decrease of $35 million, or 9% in the reinsurance segment. Pre-tax, catastrophe and weather-related losses, net of reinsurance, were $37 million ($31 million, after-tax), (Insurance: $36.4 million; Reinsurance: $0.2 million), or 2.6 points, primarily attributable to weather-related events. Net favorable prior year reserve development was $20 million (Insurance: $15 million; Reinsurance: $5 million), compared to $nil in 2024. 2 All comparisons are with the same period of the prior year, unless otherwise stated. 3 The current accident year loss ratio, excluding catastrophe and weather-related losses is calculated by dividing the current accident year losses less pre-tax catastrophe and weather-related losses, net of reinsurance, by net premiums earned less reinstatement premiums. 4 Current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, and current accident year combined ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net losses and loss expenses ratio and combined ratio are provided above and a discussion of the rationale for the presentation of these items is provided later in this press release. Expand Year to Date Consolidated Underwriting Highlights Gross premiums written increased by $216 million, or 4% ($246 million, or 5%, on a constant currency basis (5)), to $5.3 billion with an increase of $200 million, or 6% in the insurance segment, and an increase of $16 million, or 1% in the reinsurance segment. Net premiums written increased by $90 million, or 3% ($118 million or 4%, on a constant currency basis), to $3.4 billion with an increase of $119 million, or 5% in the insurance segment, partially offset by a decrease of $29 million, or 3% in the reinsurance segment. Pre-tax catastrophe and weather-related losses, net of reinsurance, were $86 million ($69 million after-tax), (Insurance: $84 million; Reinsurance: $2 million), or 3.2 points, including $32 million, or 1.2 points attributable to California Wildfires. The remaining losses were primarily attributable to other weather-related events. Net favorable prior year reserve development was $38 million (Insurance: $29 million; Reinsurance: $9 million), compared to $nil in 2024. General and administrative expense ratio decreased by 0.6 points, mainly driven by an increase in net premiums earned and efficiencies gained through our "How We Work" program, partially offset by increases in personnel costs and information technology costs. 5 Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures are provided above/later in this press release, and a discussion of the rationale for the presentation of these items is provided later in this press release. Variances that are unchanged on a constant currency basis are omitted from the narrative. Expand Segment Highlights Insurance Segment Three months ended June 30, ($ in thousands) 2025 2024 Change Gross premiums written $ 1,932,435 $ 1,814,066 6.5 % Net premiums written 1,290,510 1,194,197 8.1 % Net premiums earned 1,032,961 958,212 7.8 % Underwriting income 151,639 115,640 31.1 % Underwriting ratios: Current accident year loss ratio, excluding catastrophe and weather-related losses 52.3 % 51.8 % 0.5 pts Catastrophe and weather-related losses ratio 3.6 % 4.8 % (1.2 pts) Current accident year loss ratio 55.9 % 56.6 % (0.7 pts) Prior year reserve development ratio (1.5 %) — % (1.5 pts) Net losses and loss expenses ratio 54.4 % 56.6 % (2.2 pts) Acquisition cost ratio 18.9 % 19.6 % (0.7 pts) Underwriting-related general and administrative expense ratio 12.0 % 11.7 % 0.3 pts Combined ratio 85.3 % 87.9 % (2.6 pts) Current accident year combined ratio 86.8 % 87.9 % (1.1 pts) Current accident year combined ratio, excluding catastrophe and weather-related losses 83.2 % 83.1 % 0.1 pts Expand Gross premiums written increased by $118 million, or 7% ($116 million, or 6%, on a constant currency basis), attributable to all lines of business with the exception of cyber lines which decreased in the quarter, principally due to a lower level of premiums associated with program business. Net premiums written increased by $96 million, or 8%, reflecting the increase in gross premiums written in the quarter, together with decreased cession rates in property and liability lines, partially offset by an increased cession rate in accident and health lines. The current accident year loss ratio, excluding catastrophe and weather-related losses is consistent with recent quarters. The acquisition cost ratio decreased by 0.7 points, primarily related to an increase in ceding commissions. The underwriting-related general and administrative expense ratio increased by 0.3 points, due to the inclusion of personnel costs associated with new underwriting teams, together with investments in information technology in 2025, compared to the inclusion of elevated severance expenses in reorganization expenses in 2024. Gross premiums written increased by $200 million, or 6%, attributable to all lines of business with the exception of cyber lines which decreased in the period, principally due to a lower level of premiums associated with program business. Net premiums written increased by $119 million, or 5% ($124 million, or 6%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, together with a decreased cession rate in property lines, partially offset by increased cession rates in accident and health, and cyber lines. Gross premiums written decreased by $43 million, or 7%, primarily attributable to the timing of renewals in multiple lines, together with a lower level of premiums associated with accident and health lines, partially offset by premium adjustments and new business in credit and surety lines. Net premiums written decreased by $35 million, or 9%, reflecting the decrease in gross premiums written in the quarter, together with increased cession rates to our strategic capital partners. The current accident year loss ratio, excluding catastrophe and weather-related losses is consistent with the first quarter as we continue to take a cautious stance given uncertainty in the current environment. Gross premiums written increased by $16 million, or 1% ($40 million, or 2%, on a constant currency basis), primarily attributable to new business and premium adjustments in credit and surety lines, together with the timing of renewals in liability lines, partially offset by decreased line sizes and non-renewals in accident and health, marine and aviation, and motor lines. Net premiums written decreased by $29 million, or 3% ($6 million, or 1%, on a constant currency basis), reflecting the increased cession rates to our strategic capital partners in the period, partially offset by the increase in gross premiums written in the period. Net investment income decreased by $4 million, or 2%, compared to the second quarter of 2024, primarily attributable to lower income from fixed maturities resulting from lower fixed maturity assets due to the LPT transaction, partially offset by higher returns on alternative investments. Net investment gains (losses) recognized in net income (loss) for the quarter primarily related to net unrealized gains on equity securities, partially offset by realized losses on the sale of fixed maturities. Change in net unrealized gains on fixed maturities, pre-tax of $142 million ($86 million excluding foreign exchange movements) recognized in other comprehensive income (loss) in the quarter due to an increase in the market value of fixed maturities attributable to the decline in yields and the strengthening of the euro and pound sterling against the US dollar, compared to change in net unrealized gains, pre-tax of $21 million ($22 million excluding foreign exchange movements) recognized during the second quarter of 2024. Book yield of fixed maturities was 4.6% at June 30, 2025, compared to 4.4% at June 30, 2024 and 4.5% at December 31, 2024. The market yield was 5.0% at June 30, 2025. 6 Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end. 7 The average cash and investments balance is the average of the monthly fair value balances. 8 Pre-tax, total return on average cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $97 million and $(5) million for the three months ended June 30, 2025 and 2024, respectively and foreign exchange (losses) gains of $144 million and $(30) million for the six months ended June 30, 2025 and 2024, respectively. Expand Total capital of $7.5 billion included $1.3 billion of debt and $550 million of preferred equity, compared to $7.4 billion at December 31, 2024, with the increase driven by net income, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common shares repurchased pursuant to our Board-authorized share repurchase programs of $490 million and common share dividends. On February 6, 2025, authorization under our Board-authorized share repurchase program for common share repurchases approved in May 2024 was exhausted. On February 19, 2025, the Company's Board of Directors approved a new share repurchase program for up to $400 million of the Company's common shares. The new share repurchase program is open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. At June 30, 2025, we had $110 million of remaining authorization under our open-ended Board-authorized share repurchase program for common share repurchases. Dividends declared were $0.44 per common share in the current quarter and $1.76 per common share over the past twelve months. Book value per diluted common share increased by $3.86 in the quarter, and by $11.05 over the past twelve months, driven by net income, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common share repurchases and common share dividends. Adjusted for net unrealized investment gains (losses), after-tax, reported in accumulated other comprehensive income (loss), book value per diluted common share was $70.29. 9 Total capital represents the sum of total shareholders' equity and debt. 10 Calculated using the treasury stock method. Expand Conference Call We will host a conference call on Wednesday, July 30, 2025 at 8:30 a.m. (EDT) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers), 1-866-605-3850 (Canada callers), or 1-412-902-6506 (international callers), and entering the passcode 9336672 approximately ten minutes in advance of the call. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at A replay of the teleconference will be available for two weeks by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada callers), or 1-412-317-0088 (international callers), and entering the passcode 4028900. The webcast will be archived in the Investor Information section of our website. In addition, an investor financial supplement for the quarter ended June 30, 2025 is available in the Investor Information section of our website. About AXIS Capital AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $6.2 billion at June 30, 2025, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at Website and Social Media Disclosure We use our website ( and our corporate LinkedIn (AXIS Capital) and X Corp. (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program which can be found in the Investor Information section of our website ( The contents of our website and social media channels are not part of this press release. Follow AXIS Capital on LinkedIn ( and X Corp ( AXIS CAPITAL HOLDINGS LIMITED FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 Three months ended Six months ended 2025 2024 2025 2024 (in thousands, except per share amounts) Revenues Net premiums earned $ 1,393,431 $ 1,304,478 $ 2,734,251 $ 2,562,519 Net investment income 187,297 190,975 395,009 358,358 Net investment gains (losses) 43,468 (53,479 ) 13,462 (62,687 ) Other insurance related income 8,662 8,526 12,240 16,867 Total revenues 1,632,858 1,450,500 3,154,962 2,875,057 Expenses Net losses and loss expenses 801,754 765,988 1,587,679 1,494,659 Acquisition costs 275,897 265,091 540,477 519,345 General and administrative expenses 161,078 148,441 320,241 311,813 Foreign exchange losses (gains) 94,885 (7,384 ) 151,920 (30,936 ) Interest expense and financing costs 16,586 17,010 33,158 34,157 Reorganization expenses — 14,014 — 26,312 Amortization of intangible assets 2,396 2,729 5,125 5,458 Total expenses 1,352,596 1,205,889 2,638,600 2,360,808 Income before income taxes and interest in income (loss) of equity method investments 280,262 244,611 516,362 514,249 Income tax (expense) benefit (56,199 ) (40,547 ) (100,521 ) 84,107 Interest in income (loss) of equity method investments (705 ) 7,900 1,586 9,069 Net income 223,358 211,964 417,427 607,425 Preferred share dividends 7,563 7,563 15,125 15,125 Net income available to common shareholders $ 215,795 $ 204,401 $ 402,302 $ 592,300 Per share data Earnings per common share: Earnings per common share $ 2.75 $ 2.42 $ 5.04 $ 6.99 Earnings per diluted common share $ 2.72 $ 2.40 $ 4.98 $ 6.93 Weighted average common shares outstanding 78,378 84,475 79,757 84,677 Weighted average diluted common shares outstanding 79,329 85,326 80,845 85,509 Cash dividends declared per common share $ 0.44 $ 0.44 $ 0.88 $ 0.88 Expand AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED SEGMENTAL DATA (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024 2025 2024 (in thousands) Gross premiums written $ 1,932,435 $ 583,536 $ 2,515,971 $ 1,814,066 $ 626,170 $ 2,440,236 Net premiums written 1,290,510 344,924 1,635,434 1,194,197 379,547 1,573,744 Net premiums earned 1,032,961 360,470 1,393,431 958,212 346,266 1,304,478 Other insurance related income (loss) 6 8,656 8,662 (61 ) 8,587 8,526 Current accident year net losses and loss expenses (576,986 ) (244,997 ) (821,983 ) (542,591 ) (223,397 ) (765,988 ) Net favorable prior year reserve development 15,216 5,013 20,229 — — — Acquisition costs (194,912 ) (80,985 ) (275,897 ) (188,026 ) (77,065 ) (265,091 ) Underwriting-related general and administrative expenses (11) (124,646 ) (10,595 ) (135,241 ) (111,894 ) (8,874 ) (120,768 ) Underwriting income (12) $ 151,639 $ 37,562 189,201 $ 115,640 $ 45,517 161,157 Net investment income 187,297 190,975 Net investment gains (losses) 43,468 (53,479 ) Corporate expenses (11) (25,837 ) (27,673 ) Foreign exchange (losses) gains (94,885 ) 7,384 Interest expense and financing costs (16,586 ) (17,010 ) Reorganization expenses — (14,014 ) Amortization of intangible assets (2,396 ) (2,729 ) Income before income taxes and interest in income (loss) of equity method investments 280,262 244,611 Income tax (expense) benefit (56,199 ) (40,547 ) Interest in income (loss) of equity method investments (705 ) 7,900 Net income 223,358 211,964 Preferred share dividends 7,563 7,563 Net income available to common shareholders $ 215,795 $ 204,401 Current accident year loss ratio 55.9 % 68.0 % 59.0 % 56.6 % 64.5 % 58.7 % Prior year reserve development ratio (1.5 %) (1.4 %) (1.5 %) — % — % — % Net losses and loss expenses ratio 54.4 % 66.6 % 57.5 % 56.6 % 64.5 % 58.7 % Acquisition cost ratio 18.9 % 22.5 % 19.8 % 19.6 % 22.3 % 20.3 % Underwriting-related general and administrative expense ratio 12.0 % 2.9 % 9.7 % 11.7 % 2.5 % 9.3 % Corporate expense ratio 1.9 % 2.1 % Combined ratio 85.3 % 92.0 % 88.9 % 87.9 % 89.3 % 90.4 % 11 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $26 million and $28 million for the three months ended June 30, 2025 and 2024, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio. 12 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above. Expand 2025 2024 (in thousands) Gross premiums written $ 3,588,337 $ 1,722,285 $ 5,310,622 $ 3,388,571 $ 1,706,092 $ 5,094,663 Net premiums written 2,335,090 1,050,383 3,385,473 2,216,551 1,079,266 3,295,817 Net premiums earned 2,043,047 691,204 2,734,251 1,876,159 686,360 2,562,519 Other insurance related income (loss) 162 12,078 12,240 (39 ) 16,906 16,867 Current accident year net losses and loss expenses (1,153,052 ) (472,793 ) (1,625,845 ) (1,039,455 ) (455,204 ) (1,494,659 ) Net favorable prior year reserve development 29,194 8,972 38,166 — — — Acquisition costs (388,933 ) (151,544 ) (540,477 ) (364,055 ) (155,290 ) (519,345 ) Underwriting-related general and administrative expenses (13) (244,238 ) (21,441 ) (265,679 ) (233,981 ) (24,580 ) (258,561 ) Underwriting income (14) $ 286,180 $ 66,476 352,656 $ 238,629 $ 68,192 306,821 Net investment income 395,009 358,358 Net investment gains (losses) 13,462 (62,687 ) Corporate expenses (13) (54,562 ) (53,252 ) Foreign exchange (losses) gains (151,920 ) 30,936 Interest expense and financing costs (33,158 ) (34,157 ) Reorganization expenses — (26,312 ) Amortization of intangible assets (5,125 ) (5,458 ) Income before income taxes and interest in income of equity method investments 516,362 514,249 Income tax (expense) benefit (100,521 ) 84,107 Interest in income of equity method investments 1,586 9,069 Net Income 417,427 607,425 Preferred share dividends 15,125 15,125 Net income available to common shareholders $ 402,302 $ 592,300 Current accident year loss ratio 56.4 % 68.4 % 59.5 % 55.4 % 66.3 % 58.3 % Prior year reserve development ratio (1.4 )% (1.3 )% (1.4 )% — % — % — % Net losses and loss expenses ratio 55.0 % 67.1 % 58.1 % 55.4 % 66.3 % 58.3 % Acquisition cost ratio 19.0 % 21.9 % 19.8 % 19.4 % 22.6 % 20.3 % Underwriting-related general and administrative expense ratio 12.0 % 3.1 % 9.6 % 12.5 % 3.6 % 10.1 % Corporate expense ratio 2.0 % 2.1 % Combined ratio 86.0 % 92.1 % 89.5 % 87.3 % 92.5 % 90.8 % 13 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $55 million and $53 million for the six months ended June 30, 2025 and 2024, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio. 14 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above. Expand Three months ended Six months ended 2025 2024 2025 2024 (in thousands, except per share amounts) Net income available to common shareholders $ 215,795 $ 204,401 $ 402,302 $ 592,300 Net investment (gains) losses (43,468 ) 53,479 (13,462 ) 62,687 Foreign exchange losses (gains) 94,885 (7,384 ) 151,920 (30,936 ) Reorganization expenses — 14,014 — 26,312 Interest in (income) loss of equity method investments 705 (7,900 ) (1,586 ) (9,069 ) Amortization of Bermuda net deferred tax asset (2025) and Bermuda net deferred tax asset (2024) (15) 3,384 — 3,384 (162,705 ) Income tax benefit (16) (9,997 ) (6,621 ) (19,440 ) (8,435 ) Operating income $ 261,304 $ 249,989 $ 523,118 $ 470,154 Earnings per diluted common share $ 2.72 $ 2.40 $ 4.98 $ 6.93 Net investment (gains) losses (0.55 ) 0.63 (0.17 ) 0.73 Foreign exchange losses (gains) 1.20 (0.09 ) 1.88 (0.36 ) Reorganization expenses — 0.16 — 0.31 Interest in (income) loss of equity method investments 0.01 (0.09 ) (0.02 ) (0.11 ) Amortization of Bermuda net deferred tax asset (2025) Bermuda net deferred tax asset (2024) 0.04 — 0.04 (1.90 ) Income tax benefit (0.13 ) (0.08 ) (0.24 ) (0.10 ) Operating income per diluted common share $ 3.29 $ 2.93 $ 6.47 $ 5.50 Weighted average diluted common shares outstanding 79,329 85,326 80,845 85,509 Average common shareholders' equity $ 5,488,599 $ 5,032,313 $ 5,581,889 $ 4,911,334 Annualized return on average common equity 15.7 % 16.2 % 14.4 % 24.1 % Annualized operating return on average common equity (17) 19.0 % 19.9 % 18.7 % 19.1 % 15 Bermuda deferred tax expense in 2025 is due to the amortization of the Bermuda net deferred tax asset related to Bermuda corporate income tax. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax that is effective for fiscal years beginning on or after January 1, 2025. 16 Tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to common shareholders. Tax impact is estimated by applying the statutory rates of applicable jurisdictions. 17 Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in this press release. Expand Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this press release, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. Forward-looking statements contained in this press release may include, but are not limited to, information regarding our estimates for losses and loss expenses, measurements of potential losses in the fair value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives including the loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited, our expectations regarding pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, the impact of the current trade and geopolitical environment on our business, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates. Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following: Insurance Risk the cyclical nature of insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates; the occurrence and magnitude of natural and man-made disasters, including the potential increase of our exposure to natural catastrophe losses due to climate change and the potential for inherently unpredictable losses from man-made catastrophes, such as cyber-attacks; the effects of emerging claims, systemic risks, and coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions; actual claims exceeding reserves for losses and loss expenses; losses related to the conflict in the Middle East, the Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses; the adverse impact of social and economic inflation; the failure of any of the loss limitation methods we employ; the failure of our cedants to adequately evaluate risks; the use of industry models and changes to these models; Strategic Risk increased competition and consolidation in the insurance and reinsurance industry; general economic, capital and credit market conditions, including banking and commercial real estate sector instability, financial market illiquidity, fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency exchange rates and the evolving impacts from tariffs, sanctions or other trade tensions between the U.S. and other countries (including implementation of new tariffs and retaliatory measures; changes in the political environment of certain countries in which we operate or underwrite business; the loss of business provided to us by major brokers; a decline in our ratings with rating agencies; the loss of one or more of our key executives; increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters; the adverse impact of contagious diseases on our business, results of operations, financial condition, and liquidity; Credit and Market Risk the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased; the failure of our policyholders or intermediaries to pay premiums; breaches by third parties in our program business of their obligations to us; Liquidity Risk the inability to access sufficient cash to meet our obligations when they are due; Operational Risk changes in accounting policies or practices; difficulties with technology and/or data security; the failure of the processes, people or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties; Regulatory Risk changes in governmental regulations and potential government intervention in our industry; inadvertent failure to comply with certain laws and regulations relating to sanctions, foreign corrupt practices, data protection and privacy; and Risks Related to Taxation changes in tax laws. Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Rationale for the Use of Non-GAAP Financial Measures We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this press release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, current accident year combined ratio, excluding catastrophe and weather-related losses, operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Underwriting-Related General and Administrative Expenses Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis. Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses. The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release. Consolidated Underwriting Income (Loss) Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis. We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure. Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss). Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss). Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss). We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release. Current Accident Year Loss Ratio Current accident year loss ratio represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year loss ratio provides investors with an enhanced understanding of our results of operations by highlighting net losses and loss expenses associated with our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year loss ratio to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release. Catastrophe and Weather-Related Losses Ratio and Current Accident Year Loss Ratio, excluding Catastrophe and Weather-Related Losses Catastrophe and weather-related losses ratio represents net losses and loss expenses ratio associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development. Current accident year loss ratio, excluding catastrophe and weather-related losses represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events. We believe that the presentation of these ratios that separately identify net losses and loss expenses associated with catastrophe and weather-related events provide investors with an enhanced understanding of our results of operations due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events. The reconciliation of catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release. Current Accident Year Combined Ratio Current accident year combined ratio represents underwriting results exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year combined ratio provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year combined ratio to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release. Current Accident Year Combined Ratio, excluding Catastrophe and Weather-Related Losses Current accident year combined ratio, excluding catastrophe and weather-related losses represents underwriting results exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events. We believe that the presentation of current accident year combined ratio, excluding catastrophe and weather-related losses provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development and by separately identifying net losses and loss expenses associated with catastrophe and weather-related events due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events. The reconciliation of current accident year combined ratio, excluding catastrophe and weather-related losses to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release. Operating Income (Loss) Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments, amortization of Bermuda net deferred tax asset in 2025 and Bermuda net deferred tax asset in 2024 ("Bermuda deferred tax"). Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies. Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses) and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss). Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from operating income (loss). Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss). Bermuda deferred tax expense in 2025 is due to the amortization of the Bermuda net deferred tax asset related to Bermuda corporate income tax. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax that is effective for fiscal years beginning on or after January 1, 2025. Bermuda deferred tax expense (benefit) is not related to the underwriting process. Therefore, this income is excluded from operating income (loss). Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax in order to understand the profitability of recurring sources of income. We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this press release. We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this press release. Constant Currency Basis We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release. Pre-Tax, Total Return on Average Cash and Investments excluding Foreign Exchange Movements Pre-tax, total return on average cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax, total return on average cash and investments excluding foreign exchange movements to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.
RTÉ News
2 days ago
- Business
- RTÉ News
The pros and cons of the local property tax
Analysis: With most house owners facing higher property tax bills, a look at the advantages and disadvantages of the tax introduced in 2013 By , University of Galway The local property tax (LPT) is in the news again. Councillors in Dublin City Council (DCC) recently voted to raise the rate of tax next year, which will mean higher LPT bills for capital city residents. In November, a nationwide revaluation of residential properties will also lead to higher LPT payments. Over a decade since the LPT was introduced, it is time to reflect on the pros and cons of Ireland's residential property tax, viewed from the perspective of taxpayers, users of public services, government (both central and local), and wider society. Pros (1) As a tax on property, the LPT widens the tax base. As a desired feature of a country's overall tax system, a broad tax base means that there is less need for higher taxes on household incomes, business profits, or consumer spending. From RTÉ News, Dublin City Council votes to increase local property tax (2) It is a tax on wealth. As the majority of household wealth in Ireland is in the form of real estate property (primarily housing assets), an annual tax on the value of residential properties is a fair and equitable way to redistribute wealth. (3) Property taxes distort economic activity and harm economic growth less than other taxes. According to the OECD, on a ' tax and growth ' ranking, recurrent taxes on immovable property appear to have the least impact on economic growth, compared to, for example, personal income taxes, corporate taxes, or consumption taxes (e.g. VAT or excise duties). (4) Property taxes are an ideal way to fund local government and the provision of local public services as properties are relatively immobile preventing taxpayers from relocating elsewhere. In Ireland, local authorities can vary the LPT rate. These rate-setting powers increase fiscal autonomy and improve local accountability. (5) As currently designed, the LPT is relatively straightforward to understand and comply with. The tax rate is low (currently at 0.1029% and to be lowered to 0.0906% from next year), progressive (with higher rates, of 0.25% and 0.3%, for higher-valued properties), exemptions are few, deferrals are allowed, revaluations are regular (keeping it up-to-date), with multiple payment options available. From RTÉ Radio 1's Morning Ireland, majority of Dubliners to see property tax rise next year Cons (1) Worldwide, property taxes are unpopular, with opposition from property owners and tenants, public representatives, lobby groups, etc. Often described as the most hated tax of all, the unpopularity of property taxes is related to its visibility, the yearly one-off payment by means of the 'cheque in the post', and as it is a tax on the home. In Ireland, opposition is also related to the fact that it is a relatively new tax and was introduced during the austerity era when many households were experiencing financial difficulties. (2) As a tax source, it raises relatively little revenue. It accounts for less than one per cent of government's total tax revenue, and is diminishing over time. Despite the rise in property prices, the tax take from the LPT, at about €550m per year, is flat due to the persistent widening of the valuation bands and lowering of the basic rate as a means to placate homeowners and voters. (3) As it is self-assessed, there is the likelihood that some properties are undervalued, raising less revenue for local government, leading to inequities across properties, and ultimately undermining the LPT system. Ó RTÉ Raidió na Gaeltachta's Tús Áite, aréir do vótáil Comhairle Contae Dhún Laoghaire Ráth an Dúin ar son laghdú 15% a dhéanamh ar an gcáin mhaoin áitiúil sa chontae – an leibhéal is ísle go bhféadfaí. Labhair Oisín O'Connor, Comhairleoir leis an gComhaontas Glas i gComhairle Contae Dhún Laoghaire Ráth an Dúin linn faoin scéal seo (4) From the local authority perspective, the LPT is not a buoyant source of income, making it difficult to meet the extra demands on its services and the higher costs arising from recent inflationary pressures. In addition, for urban local authorities with a large property tax base, not all of the income from the LPT is discretionary, as a portion (known as self-funding) is decided by central government vis-à-vis the Department of Housing, Local Government and Heritage. For example, in DCC, although the estimated LPT amount in 2025 was €101m, €57.6m was used for self-funding with only €43.3m left for own-use purposes. When the discount of 15% was applied (albeit by local councillors), it left only €28m for discretionary use. (5) Given the unpopular nature of the LPT (and especially from the main opposition political party which is committed to phasing out the tax) combined with the relatively small amount of revenue raised, there is the possibility that a future government might be tempted to abolish the LPT, leaving no annual residential property tax levied on homeowners. While many households might welcome such a decision, this would be a mistake similar to the decision almost 50 years ago to abolish domestic rates leaving our local authorities under-resourced and a system of public administration in Ireland that is very centralised with a weakened local democracy. As homeowners prepare to revalue their properties on November 1st for the purposes of the LPT, I am reminded of a quote attributed to James Madison, the fourth president of the United States and acclaimed father of the US Constitution: "the power to tax people and their property is essential to the very existence of government". We may not like tax and especially property taxes but as another famous American once said, taxes are what we pay for a civilised society.
Irish Times
18-07-2025
- Business
- Irish Times
Dublin city homeowners' Local Property Tax bills to rise next year
Higher local property tax (LPT) bills will be issued to Dublin city homeowners next year following the decision by councillors to scrap discounts for the first time since the tax was introduced more than a decade ago. The move by Dublin City Council members to increase the property tax means homeowners will face charges of €18.50 to €797.15 more next year than in 2025, depending on the value of their home. Fine Gael, Fianna Fáil, the Greens, Labour and the Social Democrats supported the end of the discount, saying LPT was 'progressive' and a 'wealth tax'. Sinn Féin, most independents and People Before Profit voted to retain the discount. [ South Dublin councillors agree to cut local property tax by 7.5% for next four years Opens in new window ] The change in the rate, coupled with the upcoming national LPT revaluation, means most homeowners within the council area can expect to pay between 22 per cent and 34 per cent more in their bills from next year. LPT, which is based on the value of a property, has a base rate that can be raised or lowered by 15 per cent by councillors each year. Since the introduction of the tax in 2013, Dublin city councillors have always voted for the maximum discount. The increase will coincide with a national property tax revaluation this November that comes into force next year, and will mean increased charges for each of the 20 'valuation bands'. For a property in Dublin city valued at less than €200,000, LPT will increase from €76.50 to €95 – just over 24 per cent. For homes between €420,001 and €525,000, the charge will be €428, up from €344.25, also an increase of just over 24 per cent. [ Local property tax bands and rates set to be changed to stave off big increases Opens in new window ] Owners of higher value properties can expect even steeper increases. Homes valued from €1,470,001 – €1,575,000 will have a €1,797 charge – up from €1,382, a 30 per cent increase. At the top of the scale a homeowner whose house is valued between €1,995,001-€2,100,000 will get a bill for €3,110, up from the €2,312.85 band 19 charge, an increase of more than 34 per cent. This will provide an additional €16.4 million in funds for the city, the council said. More than €5 million of this would be spent on improvements to social homes, €3 million for road and footpaths, another €3 million for bringing vacant and derelict properties back into use, with smaller sums to fund zebra crossings, apprenticeships, local community initiatives and council borrowing. Fine Gael, Fianna Fáil and Sinn Féin city councillors had consistently voted for the lowest possible annual LPT charge. Following last year's local elections, Fine Gael and Fianna Fáil agreed to increases from 2026, to secure the support of the Green Party and Labour for a power pact on the council. Fine Gael and Fianna Fáil would not agree to increase the LPT in advance of last November's election, but acceded to the increase from 2026 and for each subsequent year until the next local elections in 2029. Fine Gael's Danny Byrne acknowledged charging the full LPT rate was 'not popular but it is prudent and fiscally responsible'. Sinn Féin's Daithí Doolan said LPT was 'an unfair regressive tax on people's homes'. Labour's Darragh Moriarty said 75 per cent of homeowners will have a 'very modest increase' of between €18.50 and €83.75 a year. 'I think that's fair and it's progressive,' he said. Independent councillor Pat Dunne said the city council should not add 'another burden' to people who were struggling when 'central Government has billions in the coffers'. The Green Party's Michael Pidgeon said 'fixing Dublin means investing in Dublin'.
Irish Independent
18-07-2025
- Business
- Irish Independent
Explainer: What does the expected hike in Local Property Tax mean for Dublin?
The issue will be voted on at a meeting scheduled for 6.15pm this evening. But what does that mean for homeowners and the city at large? What's going on? The largest local authority in the country, Dublin City Council (DCC), is today expected to increase the rate of LPT for homeowners, subject to a vote this evening by councillors. This is because, for the first time since the LPT was introduced in 2013, they will have elected not to apply a 15pc discount to the baseline rate. The council's governing grouping, made up of Fine Gael, Fianna Fáil, Green Party and Labour councillors, say it'll bring in an extra €16.4m of funds over the coming year for much-needed service improvements. But Sinn Féin, the Social Democrats, People Before Profit and Independents say that not continuing the 15pc discount is unfair on families, pointing to the cost of living crisis. So, how much will I be charged on my home? If you live in the DCC area, your LPT bills will go up by 15pc from this measure alone. However, on top of that, the government is also in the process of adjusting the bands and rates for the tax upwards, meaning even higher payments for households, particularly those with high-value homes. The value of properties that fall into the 20 bands have increased by 20pc, as property values have grown since the last valuation in 2021, meaning 96pc of homes will stay in the same band as before. But each band will also cost homeowners more, for example band 4 properties, which are set to be valued between €420,001 and €525,000 under the changes, will now pay LPT at a rate of €428-a-year, up from €405. Just under 75pc of homes in the DCC area fall between bands 1 and 4, according to Revenue. Band 10 homes, to be valued between €1,050,001 and €1,155,000, will be charged €998-a-year, up from €945. Those in band 19, to be valued between €1,995,001 and €2,100,000, would see their contribution jump to €3,110 from €2,721. Homes with a valuation of more than €2.1m will see an even larger increase, as any value above this cut-off point is charged the highest annual rate of 0.3pc of the property's value. Homes in band 1 (up to €240,000) will pay the lowest LPT, at a fixed rate of €95 annually, up from €90. The combined effect of the rising DCC rate and national revaluation, means that LPT bills could increase by anything up to 34pc for homeowners in Dublin next year. Who's against the increase? The Social Democrats, Sinn Féin, People Before Profit and many independents have been urging councillors to continue reducing the LPT rate, citing cost of living challenges for residents of the capital. Daithí Doolan, Sinn Féin councillor, said not only is his party pushing for the maximum possible 15pc reduction, but they are seeking the abolishment of the tax altogether. 'It is not even a property tax,' he said. 'It is a charge on people's homes. Meanwhile, Dubliners are unfairly punished by the extremely high price of housing in the capital.' Mr Doolan said Sinn Féin saw it as 'unfair, regressive charge', because it is not based on people's incomes. 'The prince pays the same as the pauper,' he added. What will the money be spent on? The DCC governing parties are already gushing about how the extra €16.4m will be spent, with €5.4m of that ring-fenced for housing maintenance in council-owned complexes. Green Party councillor Janet Horner said rejuvenating council housing is a top priority. 'People should not be living with single glazed windows, with mould and cold, damp conditions in our flat complexes,' she said. 'This spending commitment marks a genuine commitment to addressing that injustice.' Around €3m will be spent on additional road, footpath and carriageway maintenance, with another €3m devoted to a revolving fund which would target urban regeneration and vacant properties. Repayment of borrowing for infrastructural projects will be allocated a further €2m, while DCC will get an additional discretionary spend of €1m from the fund. A further €1m will be spent on new apprentices, with the same figure going towards additional zebra crossings. What about the other Dublin councils? Dublin City Council is set to be the only authority in the capital to apply the baseline rate of LPT to homeowners, with South Dublin County Council (SDCC), Fingal County Council and Dun Laoghaire-Rathdown (DLR) County Council all applying reductions to varying degrees. Councillors in DLR recently voted to continue the 15pc reduction for homeowners there, costing the council around €10m in lost income. SDCC has voted for a 7pc reduction in LPT this year, down from their previous 15pc discount level. Fingal councillors also voted to continue reducing the rate, by 5pc, albeit down slightly from the 7.5pc previously.
The Journal
18-07-2025
- Business
- The Journal
Property tax is being hiked in Dublin - if you own a house here's how much you'll pay next year
HOMEOWNERS IN DUBLIN will pay a higher rate of property tax next year as a result of a vote being held this evening by Dublin City Council. Councillors are expected to vote to remove a 15% discount on the tax for the first time in over a decade. The council's ruling group, comprising Fine Gael, Fianna Fáil, Labour and the Green Party, agreed after last year's local elections to apply the baseline rate with no discount this year for the first time. The Local Property Tax (LPT) was introduced in 2013 – at the behest of the Troika - and councillors have the power to reduce or increase it by 15% either side of the baseline level; they has consistently voted to keep a reduced rate in recent years. Dublin City Council management has long argued that the vast majority of homeowners would not be hit with substantial additional charges if councillors agreed to reduce the discount applied. According to the council, the decision to lift the discount now is expected to bring in up to €16.4m in extra funding for the city, which will be allocated to areas such as improving the council's housing stock, tackling dereliction and improving footpaths. The cost of property tax is based on the value of a person's home. Dublin City Council said 75% of eligible households will see an increase of between €18 and €83 per year in their property tax as a result of the vote passing, with the remaining 25% set to pay €523 or higher annually. For example, those with a home worth between €240,001 and €315,000 will pay €235 from next year, an annual increase of €43.75. Advertisement Homeowners with a property valued between €420,001 and €525,000 will pay €428 in property tax, an increase of €83.75. Figures released last month revealed that the average price of a second-hand home in Dublin is now €600,047 . Anyone who owns a home worth that amount will see their property tax rise to €523 a year. Houses worth between €1,050,001 and €1,155,000 will have a property tax charge of €998 , up €194.75 annually. For anyone with a house valued at between €1,995,001 and €2,100,000 , annual property tax will cost €3,110 . You can find a full list of the property bands and how much each will pay here . 'The additional revenue raised by ending the LPT tax cut will go towards improving every aspect of Dublin, from the quality of the footpaths and roads, to the quality of the homes that people are living in,' Green Party group leader Janet Horner said. 'No one should be living in damp, mouldy or cold conditions in our Council housing and the revenue we are raising here takes a meaningful step to end that injustice,' the north inner city councillor said. Fine Gael group leader Colm O'Rourke said communities across Dublin have consistently and repeatedly called for improvements in a range of local services, 'and it's time those calls were properly answered'. 'These aren't minor issues, they go to the heart of safety, accessibility and local pride. This investment is about listening to residents and delivering meaningful improvements that strengthen communities right across the city,' the Cabra-Glasnevin councillor said. Property tax for 2026 is owed on 1 November. The government changed property tax bands earlier this year to moderate the increase in the amount of tax payable as a result of increasing house prices. A possible left-leaning ruling coalition on Dublin City council last year including Sinn Féin fell apart over the question of property tax . Sinn Féin wanted to continue to apply the 15% property tax discount. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
