Strategic Portfolio Rebalancing and Capital Return Plan
Cannae has sold approximately $1.1 billion of public company stakes since February 2024, significantly reducing its public holdings from 63% to 22% of assets.
The company expects to receive around $630 million from the sale of Dun & Bradstreet, which will be used for share repurchases, debt repayment, and dividends.
Cannae has repurchased 7.6 million shares, or about 12% of outstanding shares, at an average price of $19.71, aiming to close the NAV discount.
The company increased its quarterly dividend by 25% to $0.15 per share, reflecting a commitment to returning capital to shareholders.
Since February 2024, Cannae has returned approximately $414 million through buybacks and dividends, demonstrating a strategic focus on capital deployment.
Alternative private markets assets increased by $1.3 billion or 7%, mainly due to FX impact and net sales of $231 million.
Equity assets increased by $8.1 billion or 10% from the prior quarter, with second quarter equity net sales of $1.8 billion representing an organic growth rate just under 9%.
Federated Hermes ended Q2 2025 with record assets under management of $846 billion, driven by gains in equity strategies.
Fixed income assets decreased by about $800 million or 1% due mainly to net redemptions of $2.4 billion, partially offset by market valuations and FX gains of $1.6 billion.
MDT equity strategies had net sales of $3.8 billion in Q2, up from $3.3 billion in Q1, with strong performance rankings in Morningstar categories.
Money market fund assets reached a record high of $468 billion at the end of Q2, increasing by $3.1 billion despite seasonal factors.
Operating expenses increased mainly due to a VAT refund in Q1 not recurring, and compensation expenses rose due to higher incentive compensation and merit increases.
Q2 effective tax rate was 26.1%, expected to be in the 25% to 28% range for 2025.
The company repurchased approximately 1.5 million shares for about $64.5 million and approved a new share repurchase program for 5 million shares.
Total revenue for Q2 increased slightly from the prior quarter due to more days in the quarter and revenue from the Rivington acquisition, partially offset by lower performance fees and carried interest.
AXIS delivered an annualized operating return on equity of 19% in Q2 2025, with record diluted book value per common share of $70.34, up 18.6% year-over-year.
Catastrophe losses were $37 million, primarily from severe convective storms in the U.S., with a cat loss ratio of 2.6%.
G&A ratio was 11.6%, slightly up from 11.4% a year ago due to severance and IT investments.
Insurance segment gross premiums written were $1.9 billion, a 7% increase year-over-year, with an overall combined ratio of 85.3%.
Investment income was strong at $187 million, benefiting from FX and a market yield of 5% above the 4.6% book yield.
Net income available to common shareholders was $216 million or $2.72 per diluted common share; operating income was $261 million or $3.29 per diluted common share.
Operating earnings per share reached an all-time high of $3.29, a 12% increase over the prior year quarter.
Record second quarter premiums totaled $2.5 billion, including $732 million in new business, with a combined ratio of 88.9%.
Reinsurance segment gross premiums were down 6.8%, with a combined ratio of 92% and underwriting income of $38 million.
Reserve releases totaled $20 million from short-tail lines, split between insurance and reinsurance.
30-plus delinquency rate improved to 4.18%, down 29 basis points year-over-year; net charge-off rate decreased to 5.7%, down 72 basis points.
Allowance for credit losses as a percent of loan receivables was 10.59%, down 28 basis points from the prior quarter.
Capital ratios improved with CET1 at 13.6%, Tier 1 capital ratio at 14.8%, and total capital ratio at 16.9%.
Deposits represented 84% of total funding; total liquid assets increased 9% to $21.8 billion.
Net interest margin increased 32 basis points to 14.78%, supported by higher loan receivable yield and lower funding costs.
Net revenue decreased 2% to $3.6 billion, while net interest income increased 3% to $4.5 billion, driven by a 10% decrease in interest expense and a 1% increase in interest and fees on loans.
Provision for credit losses decreased by $545 million to $1.1 billion, including a $265 million reserve release and a $210 million decrease in net charge-offs.
Purchase volume was $46 billion, down 2% year-over-year, impacted by credit actions and selective consumer spend behavior.
Returned $614 million to shareholders in Q2, including $500 million in share repurchases and $114 million in dividends.
Synchrony delivered net earnings of $967 million or $2.50 per diluted share in Q2 2025, with a return on average assets of 3.2% and return on tangible common equity of 28.3%.
Dafinchi