AXIS Capital (NYSE: AXS) boosts Q1 2026 earnings and maintains sub-90% combined ratio
Filing Impact
Filing Sentiment
Form Type
10-Q
AXIS Capital Holdings Limited reported stronger results for the three months ended March 31, 2026. Net premiums earned rose to $1,480,466k from $1,340,820k, while net income increased to $254,767k from $194,071k. Net income available to common shareholders was $247,204k, translating into earnings per common share of $3.34 and diluted EPS of $3.29, up from $2.30 and $2.26 a year earlier.
The Group’s combined ratio improved slightly to 89.8% from 90.2%, supported by net favorable prior year reserve development of $18,062k and underwriting income of $187,363k. AXIS recorded catastrophe and weather-related losses, net of reinsurance, of $48,000k. Net investment income was $184,740k, with total investments of $15,830,415k at period end. Operating cash flow was robust at $519,403k, while the company returned capital via common share dividends of $33,108k and repurchased shares costing $82,234k, leaving total shareholders’ equity at $6,380,636k.
Positive
- Stronger profitability and cash generation: Net income increased to $254,767k from $194,071k, earnings per common share rose to $3.34 from $2.30, the combined ratio improved to 89.8%, and operating cash flow reached $519,403k, supporting dividends and $82,234k of share repurchases.
Negative
- None.
Insights
AXIS delivered higher Q1 2026 earnings with solid underwriting and strong cash generation.
AXIS Capital grew net premiums earned to $1,480,466k while keeping its consolidated combined ratio below 90% at 89.8%. Underwriting income reached $187,363k, and net income rose to $254,767k, indicating improved profitability versus the prior year.
Both segments contributed, with insurance underwriting income of $157,353k and reinsurance at $30,010k. Net favorable prior year reserve development of $18,062k and manageable catastrophe and weather-related losses of $48,000k supported results. Investment income of $184,740k remained a key earnings pillar despite net investment losses.
Operating cash flow of $519,403k comfortably funded common and preferred dividends plus $82,234k of share repurchases, while shareholders’ equity edged up to $6,380,636k. Investors will look to future filings for how catastrophe activity, reserve trends and investment performance evolve through the rest of 2026.
Key Figures
Net premiums earned: $1,480,466k
Net income: $254,767k
Earnings per common share: $3.34
+5 more
8 metrics
Net premiums earned
$1,480,466k
Three months ended March 31, 2026
Net income
$254,767k
Three months ended March 31, 2026
Earnings per common share
$3.34
Three months ended March 31, 2026
Combined ratio
89.8%
Consolidated, three months ended March 31, 2026
Net cash from operating activities
$519,403k
Three months ended March 31, 2026
Catastrophe and weather-related losses
$48,000k
Net of reinsurance, three months ended March 31, 2026
Share repurchases
$82,234k
Cost of common shares repurchased, Q1 2026
Total shareholders’ equity
$6,380,636k
As of March 31, 2026
Key Terms
combined ratio, catastrophe and weather-related losses, available for sale investments, variable interest entities, +2 more
6 terms
combined ratio financial
"Combined ratio | 86.3 | % | 92.7 | % | 89.8 | %"
The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.
catastrophe and weather-related losses financial
"recognized catastrophe and weather-related losses, net of reinsurance, of $48 million"
available for sale investments financial
"fixed maturities, available for sale, at fair value"
variable interest entities financial
"structured securities which are variable interests issued by VIEs"
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
performance restricted stock units financial
"Performance Restricted Stock Units granted with a market condition"
Performance restricted stock units (PRSUs) are promises to deliver company shares to employees or executives only if the business meets specific performance targets and any time-based holding rules. Think of them as a bonus that converts into stock only after set goals are reached, so investors watch PRSUs for two reasons: they can dilute existing shares if paid out, and they signal how closely management’s pay is tied to company performance.
allowance for expected credit losses financial
"Allowance for expected credit losses 2026: $ 3,119 ; 2025: $ 1,836"
Earnings Snapshot
Net premiums earned: $1,480,466k
Q1 2026
Net premiums earned
$1,480,466k
+10% YoY
Net income
$254,767k
+31% YoY
Earnings per common share
$3.34
+45% YoY
Combined ratio
89.8%
-0.4 pts YoY
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-31721
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
(Address of principal executive offices and zip code)
(441 ) 496-2600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | ||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
At April 24, 2026, there were 73,723,236 common shares outstanding, $0.0125 par value per share, of the registrant.
Table of Contents
AXIS CAPITAL HOLDINGS LIMITED
INDEX TO FORM 10-Q
| Page | ||||||||
| PART I | ||||||||
Financial Information | 3 | |||||||
| Item 1. | Consolidated Financial Statements | 5 | ||||||
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 44 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 73 | ||||||
| Item 4. | Controls and Procedures | 74 | ||||||
| PART II | ||||||||
Other Information | 74 | |||||||
| Item 1. | Legal Proceedings | 74 | ||||||
| Item 1A. | Risk Factors | 74 | ||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 75 | ||||||
| Item 5. | Other Information | 75 | ||||||
| Item 6. | Exhibits | 76 | ||||||
Signatures | 77 | |||||||
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PART I FINANCIAL INFORMATION
In this Form 10-Q, references to "AXIS Capital" refer to AXIS Capital Holdings Limited and references to "we", "us", "our", "AXIS", the "Group" or the "Company" refer to AXIS Capital Holdings Limited and its direct and indirect subsidiaries and branches.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This Quarterly Report on Form 10-Q or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements, other than statements of historical fact included in or incorporated by reference in this report are forward-looking statements. In some cases, these forward-looking 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", "continue", "intend" or similar statements of a future or forward-looking nature or their negative or similar terminology.
Forward-looking statements made in this report, such as those related to our performance, pricing, growth prospects, the outcome of our strategic initiatives, our expectations relating to our ability to successfully implement and manage technology initiatives – including artificial intelligence, our expectations about the current trade and geopolitical environment on our business, economic and market conditions, and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation:
Insurance Risk: the cyclical nature of insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates; the frequency and severity of natural and man-made disasters; the effects of emerging claims, systemic risks, and coverage and regulatory issues; reserve adequacy; losses relating to geopolitical conflicts; the adverse impact of economic and social inflation; failure of our loss limitation methods; failure of our cedants to adequately evaluate risk; and our reliance on industry models.
Strategic Risk: industry competition and consolidation; failure to keep the pace or manage technology developments, including artificial intelligence; general economic, capital, and credit market conditions, including market illiquidity, fluctuations in interest rates, credit spreads, equity securities' prices, foreign currency exchange rates, and evolving impacts of tariffs, sanctions, and international trade tensions; our ability to increase the use of data and analytics and technology as part of our business strategy and adapt to new technologies; changes in the political environment of certain countries where we operate or underwrite business; loss of business provided to us by major brokers; rating agency actions; key personnel changes; potential strategic opportunities including acquisitions and our ability to achieve them; evolving expectations regarding environmental, social, and governance matters; and the effect of contagious diseases on our business.
Credit and Market Risk: reinsurance availability and recoverability; premium collection risks; and counterparty defaults in our program business.
Liquidity Risk: the inability to access sufficient cash to meet our obligations when they are due.
Operational Risk: technology and cybersecurity challenges; failures in internal or outsourced operational processes, people, or systems; and changes in accounting policies or practices.
Regulatory Risk: changes in laws and regulations and potential government intervention in our industry; and inadvertent non-compliance with sanctions, anti-corruption, data protection and privacy requirements.
Taxation Risk: changes in tax laws.
Readers should carefully consider these risks alongside those detailed in Item 1A, 'Risk Factors' of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and in subsequent filings available at www.sec.gov.
3
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We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Website and Social Media Disclosure
We use our website (www.axiscapital.com) 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 (www.axiscapital.com). The contents of our website and social media channels are not part of this Quarterly Report on Form 10-Q.
4
Table of Contents
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
| Page | |||||
| Consolidated Balance Sheets at March 31, 2026 (Unaudited) and December 31, 2025 | 6 | ||||
| Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 (Unaudited) | 7 | ||||
| Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025 (Unaudited) | 8 | ||||
| Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2026 and 2025 (Unaudited) | 9 | ||||
| Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (Unaudited) | 10 | ||||
| Notes to Consolidated Financial Statements (Unaudited) | 12 | ||||
Note 1 - Basis of Presentation and Significant Accounting Policies | 12 | ||||
Note 2 - Segment Information | 13 | ||||
Note 3 - Investments | 15 | ||||
Note 4 - Fair Value Measurements | 26 | ||||
Note 5 - Derivative Instruments | 33 | ||||
Note 6 - Reserve for Losses and Loss Expenses | 35 | ||||
Note 7 - Earnings Per Common Share | 37 | ||||
Note 8 - Share-Based Compensation | 38 | ||||
Note 9 - Shareholders' Equity | 40 | ||||
Note 10 - Debt and Financing Arrangements | 41 | ||||
Note 11 - Federal Home Loan Bank Advances | 41 | ||||
Note 12 - Commitments and Contingencies | 42 | ||||
Note 13 - Other Comprehensive Income (Loss) | 42 | ||||
Note 14 - Related Party Transactions | 43 | ||||
Note 15 - Reorganization Expenses | 43 | ||||
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2026 (UNAUDITED) AND DECEMBER 31, 2025
| 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Assets | ||||||||||||||
| Investments: | ||||||||||||||
Fixed maturities, available for sale, at fair value (Amortized cost 2026: $ Allowance for expected credit losses 2026: $ | $ | $ | ||||||||||||
Fixed maturities, held to maturity, at amortized cost (Fair value 2026: $ Allowance for expected credit losses 2026: $ | ||||||||||||||
Equity securities, at fair value (Cost 2026: $ | ||||||||||||||
Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2026: $ | ||||||||||||||
| Other investments, at fair value | ||||||||||||||
| Equity method investments | ||||||||||||||
| Short-term investments, at fair value | ||||||||||||||
| Total investments | ||||||||||||||
| Cash and cash equivalents | ||||||||||||||
| Restricted cash and cash equivalents | ||||||||||||||
| Accrued interest receivable | ||||||||||||||
Insurance and reinsurance premium balances receivable (Allowance for expected credit losses 2026: $ | ||||||||||||||
Reinsurance recoverable on unpaid losses and loss expenses (Allowance for expected credit losses 2026: $ | ||||||||||||||
| Reinsurance recoverable on paid losses and loss expenses | ||||||||||||||
| Deferred acquisition costs | ||||||||||||||
| Prepaid reinsurance premiums | ||||||||||||||
| Receivable for investments sold | ||||||||||||||
| Goodwill | ||||||||||||||
| Intangible assets | ||||||||||||||
| Operating lease right-of-use assets | ||||||||||||||
Loan advances made | ||||||||||||||
| Other assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities | ||||||||||||||
| Reserve for losses and loss expenses | $ | $ | ||||||||||||
| Unearned premiums | ||||||||||||||
| Insurance and reinsurance balances payable | ||||||||||||||
| Debt | ||||||||||||||
| Federal Home Loan Bank advances | ||||||||||||||
| Payable for investments purchased | ||||||||||||||
| Operating lease liabilities | ||||||||||||||
| Other liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
| Shareholders’ equity | ||||||||||||||
| Preferred shares | ||||||||||||||
Common shares (shares issued 2026: shares outstanding 2026: | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Accumulated other comprehensive income (loss) | ( | |||||||||||||
| Retained earnings | ||||||||||||||
Treasury shares, at cost (2026: | ( | ( | ||||||||||||
| Total shareholders’ equity | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | $ | ||||||||||||
See accompanying notes to Consolidated Financial Statements.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Net premiums earned | $ | $ | |||||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
| Other insurance related income | |||||||||||||||||||||||||||||
| Net investment gains (losses): | |||||||||||||||||||||||||||||
Increase in allowance for expected credit losses | ( | ( | |||||||||||||||||||||||||||
| Impairment losses | ( | ( | |||||||||||||||||||||||||||
| Other realized and unrealized investment gains (losses) | ( | ( | |||||||||||||||||||||||||||
| Total net investment gains (losses) | ( | ( | |||||||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||
| Net losses and loss expenses | |||||||||||||||||||||||||||||
| Acquisition costs | |||||||||||||||||||||||||||||
| General and administrative expenses | |||||||||||||||||||||||||||||
| Foreign exchange losses (gains) | ( | ||||||||||||||||||||||||||||
| Interest expense and financing costs | |||||||||||||||||||||||||||||
| Reorganization expenses | |||||||||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||||||||
| Total expenses | |||||||||||||||||||||||||||||
Income before income taxes and interest in income of equity method investments | |||||||||||||||||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||||||||||||||
| Interest in income of equity method investments | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Preferred share dividends | |||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | |||||||||||||||||||||||||||
| Per share data | |||||||||||||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||||||
| Earnings per common share | $ | $ | |||||||||||||||||||||||||||
| Earnings per diluted common share | $ | $ | |||||||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||
| Weighted average diluted common shares outstanding | |||||||||||||||||||||||||||||
See accompanying notes to Consolidated Financial Statements.
7
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
| Three months ended March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
| Available for sale investments: | ||||||||||||||||||||||||||
| Unrealized gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | ( | |||||||||||||||||||||||||
| Unrealized gains (losses) arising during the period for which an allowance for expected credit losses has been recognized | ( | |||||||||||||||||||||||||
Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income | ( | |||||||||||||||||||||||||
| Unrealized gains (losses) arising during the period, net of reclassification adjustment | ( | |||||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | ||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | |||||||||||||||||||||||||
Comprehensive income | $ | $ | ||||||||||||||||||||||||
See accompanying notes to Consolidated Financial Statements.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Preferred shares | |||||||||||||||||||||||
| Balance at beginning and end of period | $ | $ | |||||||||||||||||||||
| Common shares (par value) | |||||||||||||||||||||||
| Balance at beginning and end of period | |||||||||||||||||||||||
| Additional paid-in capital | |||||||||||||||||||||||
| Balance at beginning of period | |||||||||||||||||||||||
| Treasury shares reissued | ( | ( | |||||||||||||||||||||
| Share-based compensation expense | |||||||||||||||||||||||
| Balance at end of period | |||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | |||||||||||||||||||||||
| Balance at beginning of period | ( | ||||||||||||||||||||||
| Unrealized gains (losses) on available for sale investments, net of tax: | |||||||||||||||||||||||
| Balance at beginning of period | ( | ||||||||||||||||||||||
| Unrealized gains (losses) arising during the period, net of reclassification adjustment | ( | ||||||||||||||||||||||
| Balance at end of period | ( | ( | |||||||||||||||||||||
| Cumulative foreign currency translation adjustments, net of tax: | |||||||||||||||||||||||
| Balance at beginning of period | ( | ( | |||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
| Balance at end of period | ( | ( | |||||||||||||||||||||
| Balance at end of period | ( | ( | |||||||||||||||||||||
| Retained earnings | |||||||||||||||||||||||
| Balance at beginning of period | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Preferred share dividends (1) | ( | ( | |||||||||||||||||||||
Common share dividends (1) | ( | ( | |||||||||||||||||||||
| Balance at end of period | |||||||||||||||||||||||
| Treasury shares, at cost | |||||||||||||||||||||||
| Balance at beginning of period | ( | ( | |||||||||||||||||||||
| Shares repurchased | ( | ( | |||||||||||||||||||||
| Shares reissued | |||||||||||||||||||||||
| Balance at end of period | ( | ( | |||||||||||||||||||||
| Total shareholders’ equity | $ | $ | |||||||||||||||||||||
(1) Refer to Note 9 'Shareholders' Equity' for details on dividends declared and paid related to the Company's common and preferred shares.
See accompanying notes to Consolidated Financial Statements.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Net investment (gains) losses | |||||||||||
| Net realized and unrealized gains on other investments | ( | ( | |||||||||
| Amortization of fixed maturities | ( | ( | |||||||||
Interest in income of equity method investments | ( | ( | |||||||||
| Other amortization and depreciation | |||||||||||
Share-based compensation expense | |||||||||||
| Changes in: | |||||||||||
| Accrued interest receivable | ( | ||||||||||
| Reinsurance recoverable on unpaid losses and loss expenses | ( | ||||||||||
| Reinsurance recoverable on paid losses and loss expenses | |||||||||||
| Deferred acquisition costs | ( | ( | |||||||||
| Prepaid reinsurance premiums | ( | ( | |||||||||
| Reserve for losses and loss expenses | |||||||||||
| Unearned premiums | |||||||||||
| Insurance and reinsurance balances, net | ( | ( | |||||||||
| Other items | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of: | |||||||||||
| Fixed maturities, available for sale | ( | ( | |||||||||
| Fixed maturities, held to maturity | ( | ( | |||||||||
| Equity securities | ( | ( | |||||||||
| Mortgage loans | ( | ( | |||||||||
| Other investments | ( | ( | |||||||||
| Equity method investments | ( | ( | |||||||||
| Short-term investments | ( | ( | |||||||||
| Proceeds from the sale of: | |||||||||||
| Fixed maturities, available for sale | |||||||||||
| Equity securities | |||||||||||
| Other investments | |||||||||||
| Short-term investments | |||||||||||
| Proceeds from redemption of fixed maturities, available for sale | |||||||||||
| Proceeds from redemption of fixed maturities, held to maturity | |||||||||||
| Proceeds from redemption of short-term investments | |||||||||||
| Proceeds from the repayment of mortgage loans | |||||||||||
Proceeds from the purchase of other assets | ( | ( | |||||||||
Loan advances made | ( | ( | |||||||||
| Net cash provided by (used in) investing activities | ( | ||||||||||
| Cash flows from financing activities: | |||||||||||
Repurchase of common shares | ( | ( | |||||||||
| Taxes paid on withholding shares | ( | ( | |||||||||
| Dividends paid - common shares | ( | ( | |||||||||
| Dividends paid - preferred shares | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash | ( | ||||||||||
| Increase in cash, cash equivalents and restricted cash | |||||||||||
| Cash, cash equivalents and restricted cash - beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash - end of period | $ | $ | |||||||||
See accompanying notes to Consolidated Financial Statements.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
| Three months ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
Income taxes paid (refund) | $ | ( | $ | ||||||||
| Interest paid | $ | $ | |||||||||
Refer to Note 3 'Investments' for details of non-cash settlements with Monarch Point Re (Monarch Point Re (ISA 2023) Ltd., Monarch Point Re (ISA 2024) Ltd., Monarch Point Re (ISA 2025) Ltd., Monarch Point Re (ISA 2026) Ltd., individually, collectively, or together with Monarch Point Re (ISAC) Ltd "Monarch Point Re").
See accompanying notes to Consolidated Financial Statements.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These unaudited consolidated financial statements (the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the U.S. Securities and Exchange Commission's ("SEC") instructions to Form 10-Q and Article 10 of Regulation S-X and include AXIS Capital Holdings Limited ("AXIS Capital") and its subsidiaries (the "Company"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and related notes included in AXIS Capital's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.
In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and results of operations for the periods presented.
The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated.
To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation.
Significant Accounting Policies
There were no notable changes to the Company's significant accounting policies subsequent to its Annual Report on Form 10-K for the year ended December 31, 2025.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2. SEGMENT INFORMATION
The Company's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.
Insurance
The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are property, professional lines, liability, cyber, marine and aviation, accident and health, and credit and political risk.
Reinsurance
The Company's reinsurance segment provides reinsurance to insurance companies on a worldwide basis. The product lines in this segment are liability, professional lines, motor, accident and health, credit and surety, agriculture, marine and aviation, and run-off lines which include catastrophe and property lines of business that the Company placed into run-off in 2022 and engineering lines of business that the Company placed into run-off in 2020.
The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets.
The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets:
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2. SEGMENT INFORMATION (CONTINUED)
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Three months ended and at March 31, | Insurance | Reinsurance | Total | Insurance | Reinsurance | Total | |||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Net premiums written | |||||||||||||||||||||||||||||||||||||||||
| Net premiums earned | |||||||||||||||||||||||||||||||||||||||||
| Other insurance related income | |||||||||||||||||||||||||||||||||||||||||
Current accident year net losses and loss expenses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Net favorable prior year reserve development | |||||||||||||||||||||||||||||||||||||||||
| Acquisition costs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Underwriting-related general and administrative expenses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Underwriting income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||||||||||||||
| Net investment gains (losses) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Corporate expenses | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Foreign exchange (losses) gains | ( | ||||||||||||||||||||||||||||||||||||||||
| Interest expense and financing costs | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Reorganization expenses | ( | ||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | ( | ( | |||||||||||||||||||||||||||||||||||||||
Income before income taxes and interest in income of equity method investments | |||||||||||||||||||||||||||||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Interest in income of equity method investments | |||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||
| Preferred share dividends | |||||||||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | ( | %) | ( | %) | ( | %) | ( | %) | ( | %) | ( | %) | |||||||||||||||||||||||||||||
| Net losses and loss expenses ratio | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||
| Acquisition cost ratio | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||
| General and administrative expense ratio | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||
| Combined ratio | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||
| Goodwill and intangible assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS
a) Fixed Maturities, Available for Sale
The following table provides the amortized cost and fair values of the Company's fixed maturities classified as available for sale:
Amortized cost | Allowance for expected credit losses | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Available for sale | |||||||||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
| Non-U.S. government | ( | ||||||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | |||||||||||||||||||||||||||||||||||||||
Agency RMBS(1) | ( | ||||||||||||||||||||||||||||||||||||||||
CMBS(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||
ABS(3) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Municipals(4) | ( | ||||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, available for sale | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Available for sale | |||||||||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
| Non-U.S. government | ( | ||||||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | |||||||||||||||||||||||||||||||||||||||
Agency RMBS(1) | ( | ||||||||||||||||||||||||||||||||||||||||
CMBS(2) | ( | ||||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||
ABS(3) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Municipals(4) | ( | ||||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, available for sale | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
(1)Residential mortgage-backed securities ("RMBS") originated by U.S. government-sponsored agencies.
(2)Commercial mortgage-backed securities ("CMBS").
(3)Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs").
(4)Municipals include bonds issued by states, municipalities and political subdivisions.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
Contractual Maturities
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The table below provides the contractual maturities of fixed maturities classified as available for sale:
Amortized cost | Fair value | % of Total fair value | |||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||
| Maturity | |||||||||||||||||||||||
| Due in one year or less | $ | $ | % | ||||||||||||||||||||
| Due after one year through five years | % | ||||||||||||||||||||||
| Due after five years through ten years | % | ||||||||||||||||||||||
| Due after ten years | % | ||||||||||||||||||||||
| % | |||||||||||||||||||||||
| Agency RMBS | % | ||||||||||||||||||||||
| CMBS | % | ||||||||||||||||||||||
| Non-agency RMBS | % | ||||||||||||||||||||||
| ABS | % | ||||||||||||||||||||||
| Total | $ | $ | % | ||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||
| Maturity | |||||||||||||||||||||||
| Due in one year or less | $ | $ | % | ||||||||||||||||||||
| Due after one year through five years | % | ||||||||||||||||||||||
| Due after five years through ten years | % | ||||||||||||||||||||||
| Due after ten years | % | ||||||||||||||||||||||
| % | |||||||||||||||||||||||
| Agency RMBS | % | ||||||||||||||||||||||
| CMBS | % | ||||||||||||||||||||||
| Non-agency RMBS | % | ||||||||||||||||||||||
| ABS | % | ||||||||||||||||||||||
| Total | $ | $ | % | ||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
Gross Unrealized Losses
The following table summarizes fixed maturities, available for sale in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
| 12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | |||||||||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
| Non-U.S. government | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Agency RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Municipals | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, available for sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | |||||||||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
| Non-U.S. government | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Agency RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Municipals | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, available for sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
At March 31, 2026, 3,429 fixed maturities (2025: 2,244 ) were in an unrealized loss position of $166 million (2025: $99 million) of which $29 million (2025: $9 million) was related to securities below investment grade or not rated.
At March 31, 2026, 1,374 fixed maturities (2025: 1,522 ) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $1,331 million (2025: $1,653 million).
The unrealized losses of $166 million (2025: $99 million) were due to non-credit factors and were expected to be recovered as the related securities approach maturity.
At March 31, 2026, the Company did not intend to sell the securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
b) Fixed Maturities, Held to Maturity
The following table provides the amortized cost and fair values of the Company's fixed maturities classified as held to maturity:
Amortized cost | Allowance for expected credit losses | Net carrying value | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Held to maturity | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
ABS(1) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, held to maturity | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Held to maturity | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
ABS(1) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturities, held to maturity | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
(1)Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by collateralized loan obligations ("CLOs").
At March 31, 2026, fixed maturities, held to maturity of $405 million (2025: $397 million) were presented net of an allowance for expected credit losses of $nil (2025: $nil ).
The Company's ABS, held to maturity consist of CLO debt tranched securities ("CLO Debt"). The Company uses a scenario-based approach to review its CLO debt portfolio and reviews subordination levels of these securities to determine their ability to absorb credit losses of the underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At March 31, 2026, the allowance for credit losses expected to be recognized over the life of the Company's ABS, held to maturity was $nil .
To estimate expected credit losses for corporate debt securities, held to maturity, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, which is a function of the probability of default and projected recovery rates. The Company's default and recovery rates are based on credit ratings, credit analysis and macroeconomic forecasts. At March 31, 2026, the allowance for credit losses expected to be recognized over the life of the Company's corporate debt, held to maturity was $nil .
Contractual Maturities
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ABS classified as held to maturity had a net carrying value of $265 million (2025: $252 million).
Corporate debt classified as held to maturity with a net carrying value of $32 million (2025: $32 million) is due in 3 years or less. Corporate debt classified as held to maturity with a net carrying value of $106 million (2025: $110 million) is due between 3 years and 10 years. Corporate debt classified as held to maturity with a net carrying value of $3 million (2025: $3 million) is due after 10 years.
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Table of Contents
AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
c) Equity Securities
The following table provides the cost and fair values of the Company's equity securities:
| Cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
| Common stocks | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
| Preferred stocks | ( | ||||||||||||||||||||||||||||
| Exchange-traded funds | ( | ||||||||||||||||||||||||||||
| Bond mutual funds | ( | ||||||||||||||||||||||||||||
| Total equity securities | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
| Common stocks | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
| Preferred stocks | ( | ||||||||||||||||||||||||||||
| Exchange-traded funds | ( | ||||||||||||||||||||||||||||
| Bond mutual funds | ( | ||||||||||||||||||||||||||||
| Total equity securities | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
d) Mortgage Loans
The following table provides details of the Company's mortgage loans, held for investment:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
| Carrying value | % of Total | Carrying value | % of Total | ||||||||||||||||||||||||||
| Mortgage loans, held for investment: | |||||||||||||||||||||||||||||
| Commercial | $ | % | $ | % | |||||||||||||||||||||||||
| Allowance for expected credit losses | ( | ( | %) | ( | ( | %) | |||||||||||||||||||||||
Total mortgage loans held for investment | $ | % | $ | % | |||||||||||||||||||||||||
The primary credit quality indicators for commercial mortgage loans are the debt service coverage ratio which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, (generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio which compares the unpaid principal balance of the loan to the estimated fair value of the underlying collateral (generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated quarterly.
The commercial mortgage loan portfolio has a weighted average debt service coverage ratio of 1.6 x (2025: 1.6 x) and a weighted average loan-to-value ratio of 85 % (2025: 84 %).
At March 31, 2026, there were two commercial mortgage loans (2025: two ) with past due amounts where the Company is assessing exit strategies. The carrying value of these loans net of an allowance for expected credit losses was $15 million (2025: $14 million).
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
On a quarterly basis, the Company's exposure to commercial mortgage loans in the office sector, that represents 50 % (2024: 51 %) of the total mortgage loan portfolio, is evaluated for credit losses based on inputs unique to this sector. This assessment utilizes historical credit loss experience adjusted to reflect current conditions and management forecasts. Further, collateral dependent commercial mortgage loans (e.g., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) are evaluated individually for credit losses. The allowance for expected credit losses for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan's underlying collateral, less selling cost when foreclosure is probable.
Accordingly, any change in estimated credit losses is recognized as a change in the allowance for expected credit losses and is recorded in net investment gains (losses).
At March 31, 2026, the Company's mortgage loan portfolio had an allowance for expected credit losses of $29 million (2025: $30 million).
e) Other Investments
The following table provides a summary of the Company's other investments, together with additional information relating to the liquidity of each category:
| Fair value | Redemption frequency (if currently eligible) | Redemption notice period | |||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||
| Multi-strategy funds | $ | % | Quarterly | ||||||||||||||||||||||||||
| Direct lending funds | % | Quarterly(1) | |||||||||||||||||||||||||||
| Private equity funds | % | n/a | n/a | ||||||||||||||||||||||||||
| Real estate funds | % | Quarterly(2), Annually(3) | |||||||||||||||||||||||||||
| Other privately held investments | % | n/a | n/a | ||||||||||||||||||||||||||
| Total other investments | $ | % | |||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||
| Multi-strategy funds | $ | % | Quarterly | ||||||||||||||||||||||||||
| Direct lending funds | % | Quarterly(1) | |||||||||||||||||||||||||||
| Private equity funds | % | n/a | n/a | ||||||||||||||||||||||||||
| Real estate funds | % | Quarterly(2), Annually(3) | |||||||||||||||||||||||||||
| Other privately held investments | % | n/a | n/a | ||||||||||||||||||||||||||
| Total other investments | $ | % | |||||||||||||||||||||||||||
n/a - not applicable
(1) Applies to one fund with a fair value of $2 million (2025: $2 million).
(2) Applies to one fund with a fair value of $29 million (2025:$44 million).
(3) Applies to one fund with a fair value of $23 million (2025: $24 million).
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
Two common redemption restrictions which may impact the Company's ability to redeem multi-strategy funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the fund's net assets which may otherwise hinder the general partner or investment manager's ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. During the three months ended March 31, 2026 and 2025, neither of these restrictions impacted the Company's redemption requests.
At March 31, 2026, the Company had $30 million (2025: $30 million) of unfunded commitments as a limited partner in multi-strategy funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until after the completion of the funds' investment term. These funds have investment terms ranging from two years to the dissolution of the underlying fund. At March 31, 2026, there were no multi-strategy fund holdings (2025: nil ) where the Company is still within the lockup period.
At March 31, 2026, the Company had $319 million (2025: $292 million) of unfunded commitments as a limited partner in direct lending funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until the completion of the fund's investment term. These funds have investment terms ranging from four to fifteen years and the General Partners of certain funds have the option to extend the term by up to three years . At March 31, 2026, there was one direct lending fund holding (2025: one ) with a fair value of $22 million (2025: $18 million) where the Company is still within the lockup period.
At March 31, 2026, the Company had $240 million (2025: $240 million) of unfunded commitments as a limited partner in private equity funds. The life of the funds is subject to the dissolution of the underlying funds. The Company expects the overall holding period to be over six years .
At March 31, 2026, the Company had $100 million (2025: $105 million) of unfunded commitments as a limited partner in real estate funds. These funds include an open-ended fund and funds with investment terms ranging from two years to the dissolution of the underlying fund.
At March 31, 2026, the Company had $15 million (2025: $16 million) of unfunded commitments as a limited partner in four private company investment funds focusing on financial services technology companies with an emphasis on insurance technology companies ("private company investment funds"). Two of these funds have investment terms of five years and one fund has an investment term of ten years and one fund has an investment term of ten years with the option to extend the term by up to three years .
f) Equity Method Investments
The following table provides details of the Company's equity method investments:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||
| Carrying value | Carrying value | ||||||||||||||||
Equity method investments: | |||||||||||||||||
Harrington Re | $ | $ | |||||||||||||||
Monarch Point Re | |||||||||||||||||
Total equity method investments | $ | $ | |||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
Harrington Re
During 2016, the Company paid $108 million including direct transaction costs to acquire 19 % of the common equity of Harrington Reinsurance Holdings Limited ("Harrington"), the parent company of Harrington Re Ltd. ("Harrington Re"), an independent reinsurance company jointly sponsored by the Company and The Blackstone Group L.P. ("Blackstone"). Following share tender offers in 2025 and 2024, the Company's ownership interest in Harrington increased to 23 % and 22 %, respectively.
Through long-term service agreements, the Company serves as Harrington Re's reinsurance underwriting manager and Blackstone serves as exclusive investment management service provider. As an investor, the Company expects to benefit from underwriting profit generated by Harrington Re and the income and capital appreciation Blackstone seeks to deliver through its investment management services. In addition, the Company has entered into an arrangement with Blackstone under which underwriting and investment related fees will be shared equally.
The Company accounts for its ownership interest in Harrington under the equity method of accounting.
Monarch Point Re
During 2023, the Company paid $22 million to acquire 18 % of the common equity of Monarch Point Re (ISAC) Ltd. and Monarch Point Re (ISA 2023) Ltd., a collateralized reinsurance company formed under the laws of Bermuda as an incorporated segregated accounts company under the Incorporated Segregated Accounts Companies Act 2019, as amended (the "ISAC Act"). During 2024, the Company paid $14 million to acquire 18 % of the common equity of Monarch Point Re (ISA 2024) Ltd. During 2025, the Company paid $11 million to acquire 18 % of the common equity of Monarch Point Re (ISA 2025) Ltd. During 2026, the Company paid $2 million to acquire 18 % of the common equity of Monarch Point Re (ISA 2025) Ltd and $5 million to acquire 19 % of the common equity of Monarch Point Re (ISA 2026) Ltd.
The Company retrocedes a diversified portfolio of casualty reinsurance business to Monarch Point Re and Stone Point Credit Adviser LLC, a wholly owned subsidiary of Stone Point Capital, LLC ("Stone Point" refer to Note 14 'Related Party Transactions') serves as its investment manager. As an investor, the Company expects to benefit from underwriting fees generated by Monarch Point Re and the income and capital appreciation Stone Point seeks to deliver through its investment management services.
Monarch Point Re is not a Variable Interest Entity ("VIE") that is required to be included in the Company's consolidated financial statements. The Company accounts for its ownership interest in Monarch Point Re under the equity method of accounting.
Loan Advances Made to Monarch Point Re
During 2026, the Company advanced $123 million (2025: $227 million) to Monarch Point Re that was included in loan advances made in the Company’s consolidated balance sheets. Loan balances receivable from Monarch Point Re are settled against amounts due to Monarch Point Re under the aforementioned retrocession agreements and are treated as a non-cash activity in the consolidated statement of cash flows. The loan balance receivable at March 31, 2026 was $299 million (2025: $228 million). Loan advances made are expected to be repaid in full by August 15, 2027 (2025: May 15, 2027).
Interest on these loans was payable in 2026 at an interest rate of 4.2 % (2025: interest rates between 4.3 % and 4.8 %). Interest related to these loans of $9 million (2025: $5 million) was received in advance and is included in other liabilities in the consolidated balance sheets.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
The following table provides a summary of non-cash settlements with Monarch Point Re:
| Non-cash settlements with Monarch Point Re | Three months ended March 31, | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Loan advances made | $ | $ | |||||||||||||||
Reinsurance recoverable on unpaid losses and loss expenses | |||||||||||||||||
| Interest receivable on loan advances made | |||||||||||||||||
Net cash inflows | $ | $ | |||||||||||||||
Insurance and reinsurance balances payable, net | $ | ( | $ | ( | |||||||||||||
Net cash outflows | $ | ( | $ | ( | |||||||||||||
g) Variable Interest Entities
In the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by VIEs. These structured securities include RMBS, CMBS and ABS.
The Company also invests in limited partnerships which represent 72 % of the Company's other investments. The investments in limited partnerships include multi-strategy funds, direct lending funds, private equity funds and real estate funds that are variable interests issued by VIEs (refer to Note 3(e) 'Other Investments').
The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs. Therefore, the Company is not the primary beneficiary of these VIEs. The maximum exposure to loss on these interests is limited to the carrying value reported in the Company's consolidated balance sheets and its unfunded commitments of $637 million at March 31, 2026 (2025: $612 million). The Company has not provided financial or other support to these structured securities other than the original investment.
h) Net Investment Income
Net investment income was derived from the following sources:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||
| Fixed maturities | $ | $ | ||||||||||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||||||||
| Mortgage loans | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||||||
Gross investment income | ||||||||||||||||||||||||||||||||
| Investment expenses | ( | ( | ||||||||||||||||||||||||||||||
| Net investment income | $ | $ | ||||||||||||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
i) Net Investment Gains (Losses)
The following table provides an analysis of net investment gains (losses):
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gross realized investment gains | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, short-term investments, and cash and cash equivalents | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross realized investment gains | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross realized investment losses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, short-term investments, and cash and cash equivalents | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gross realized investment losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Increase) decrease in allowance for expected credit losses, mortgage loans | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment losses(1) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of investment derivatives(2) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net unrealized gains (losses) on equity securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
(1) Related to instances where the Company intends to sell securities or it is more likely than not that the Company will be required to sell securities before their anticipated recovery.
(2) Refer to Note 5 'Derivative Instruments'.
The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected credit losses on securities where credit losses were not previously recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairments of securities which the Company intends to sell or more likely than not will be required to sell | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold/redeemed/matured | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. INVESTMENTS (CONTINUED)
The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on mortgage loans:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected credit losses on loans where credit losses were not previously recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||
Additions (reductions) for expected credit losses on loans where credit losses were previously recognized | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans sold/redeemed/matured | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
j) Reverse Repurchase Agreements
At March 31, 2026, the Company held $9 million (2025: $14 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents in the Company's consolidated balance sheets. The required collateral for these loans is either cash or U.S. Treasuries at a minimum rate of 102 % of the loan principal. Upon maturity, the Company receives principal and interest income. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS
Fair Value Hierarchy
Fair value is defined as the price to sell an asset or transfer a liability (i.e., the "exit price") in an orderly transaction between market participants. U.S. GAAP prescribes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. The hierarchy is broken down into three levels as follows:
•Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
•Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data.
•Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The unobservable inputs reflect the Company's judgments about assumptions that market participants might use.
The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment.
Accordingly, the degree of judgment exercised by management in determining fair value is greatest for financial instruments categorized as Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This may lead the Company to change the selection of valuation technique (from market to cash flow approach) or may cause the Company to use multiple valuation techniques to estimate the fair value of a financial instrument. This circumstance could cause an instrument to be reclassified between levels within the fair value hierarchy.
Valuation Techniques
The valuation techniques, including significant inputs and assumptions generally used to determine the fair values of the Company's financial instruments as well as the classification of the fair values of its financial instruments in the fair value hierarchy are described in detail below.
Fixed Maturities
At each valuation date, the Company uses the market approach valuation technique to estimate the fair value of its fixed maturities portfolio, where possible. The market approach includes, but is not limited to, prices obtained from third-party pricing services for identical or comparable securities and the use of "pricing matrix models" using observable market inputs such as yield curves, credit risks and spreads, measures of volatility, and prepayment speeds. Pricing from third-party pricing services is sourced from multiple vendors, where available, and the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Where prices are unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers who are active in the corresponding markets. The valuation techniques including significant inputs and assumptions generally used to determine the fair values of the Company's fixed maturities by asset class as well as the classifications of the fair values of these securities in the fair value hierarchy are described in detail below.
U.S. Government and Agency
U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. As the fair values of U.S. Treasury securities are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. The fair values of U.S. government agency securities are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
Non-U.S. Government
Non-U.S. government securities include bonds issued by non-U.S. governments and their agencies along with supranational organizations (collectively also known as sovereign debt securities). The fair values of these securities are based on prices obtained from international indices or valuation models that include inputs such as interest rate yield curves, cross-currency basis index spreads and country credit spreads for structures similar to the sovereign bond in terms of issuer, maturity and seniority. As the significant inputs used to price these securities are observable market inputs, the fair values of non-U.S. government securities are classified as Level 2.
Corporate Debt
Corporate debt securities consist primarily of investment grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of corporate debt securities are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3.
Agency RMBS
Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. The fair values of these securities are priced using a mortgage pool specific model which uses daily inputs from the active to be announced market and the spread associated with each mortgage pool based on vintage. As the significant inputs used to price these securities are observable market inputs, the fair values of Agency RMBS are classified as Level 2.
CMBS
CMBS mainly include investment grade bonds originated by non-agencies. The fair values of these securities are determined using a pricing model which uses dealer quotes and other available trade information along with security level characteristics to determine deal specific spreads. As the significant inputs used to price these securities are observable market inputs, the fair values of CMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3.
Non-agency RMBS
Non-agency RMBS mainly include investment grade bonds originated by non-agencies. The fair values of these securities are determined using an option adjusted spread model or other relevant models, which use inputs including available trade information or broker quotes, prepayment and default projections based on historical statistics of the underlying collateral and current market data. As the significant inputs used to price these securities are observable market inputs, the fair values of non-agency RMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3.
ABS
ABS mainly include investment grade bonds backed by pools of loans with a variety of underlying collateral, including auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs"), originated by a variety of financial institutions. The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, the fair values of ABS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3.
Municipals
Municipals comprise revenue bonds and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair values of these securities are determined using spreads obtained from the new issue market, trade prices and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, the fair values of municipals are classified as Level 2.
Equity Securities
Equity securities include common stocks, preferred stocks, exchange-traded funds and bond mutual funds. As the fair values of common stocks, exchange-traded funds and exchange listed preferred stocks are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. As the significant inputs used to price non-exchange listed preferred stocks are observable market inputs, the fair value of these securities are classified as Level 2. As bond mutual funds have daily liquidity, the fair values of these securities are classified as Level 2.
Other Investments
Other privately held investments include common shares, preferred shares, convertible notes, convertible preferred shares, a variable yield security and private company investment funds. These investments are initially valued at cost, which approximates fair value. In subsequent measurement periods, the fair values of these investments are generally derived from one or a combination of valuation methodologies which consider factors including recent capital raises by the investee companies, comparable precedent transaction multiples, comparable publicly traded multiples, third-party valuations, discounted cash-flow models, and other techniques that consider the industry and development stage of each investee company. The fair value of the variable yield security is determined using an externally developed discounted cash flow model. In order to assess the reasonableness of the information received from investee companies, the Company maintains an understanding of current market conditions, historical results, and emerging trends that may impact the results of operations, financial condition or liquidity of these companies. In addition, the Company engages in regular communication with management at investee companies.
As the significant inputs used to price these investments are unobservable, the fair values of other privately held investments are classified as Level 3. The fair values of private company investment funds are estimated using net asset valuations ("NAVs") as advised by external fund managers or third-party administrators.
Short-term Investments
Short-term investments primarily comprise highly liquid securities with maturities greater than three months but less than one year from the date of purchase. These securities are typically not actively traded due to their approaching maturity, therefore their amortized cost approximates fair value. The fair values of short-term investments are classified as Level 2.
Derivative Instruments
Derivative instruments include foreign exchange forward contracts that are customized to the Company's economic hedging strategies and trade in the over-the-counter derivative market. The fair values of these derivatives are determined using a market approach valuation technique based on significant observable market inputs from third-party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. As the significant inputs used to price these derivatives are observable market inputs, the fair values of these derivatives are classified as Level 2.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated:
| Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | |||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
| Non-U.S. government | — | ||||||||||||||||||||||||||||||||||
| Corporate debt | — | ||||||||||||||||||||||||||||||||||
| Agency RMBS | — | ||||||||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||||||||
| Non-agency RMBS | — | ||||||||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||||||||
| Municipals | — | ||||||||||||||||||||||||||||||||||
| — | |||||||||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||||||||
| Common stocks | — | ||||||||||||||||||||||||||||||||||
| Preferred stocks | — | ||||||||||||||||||||||||||||||||||
| Exchange-traded funds | — | ||||||||||||||||||||||||||||||||||
| Bond mutual funds | — | ||||||||||||||||||||||||||||||||||
| — | |||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Multi-strategy funds | |||||||||||||||||||||||||||||||||||
| Direct lending funds | |||||||||||||||||||||||||||||||||||
| Private equity funds | |||||||||||||||||||||||||||||||||||
| Real estate funds | |||||||||||||||||||||||||||||||||||
| Other privately held investments | |||||||||||||||||||||||||||||||||||
| Short-term investments | — | ||||||||||||||||||||||||||||||||||
| Other assets | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 5) | — | ||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 5) | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
| Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | |||||||||||||||||||||||||||||||||||
| U.S. government and agency | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
| Non-U.S. government | — | ||||||||||||||||||||||||||||||||||
| Corporate debt | — | ||||||||||||||||||||||||||||||||||
| Agency RMBS | — | ||||||||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||||||||
| Non-agency RMBS | — | ||||||||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||||||||
| Municipals | — | ||||||||||||||||||||||||||||||||||
| — | |||||||||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||||||||
| Common stocks | — | ||||||||||||||||||||||||||||||||||
| Preferred stocks | — | ||||||||||||||||||||||||||||||||||
| Exchange-traded funds | — | ||||||||||||||||||||||||||||||||||
| Bond mutual funds | — | ||||||||||||||||||||||||||||||||||
| — | |||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Multi-strategy funds | |||||||||||||||||||||||||||||||||||
| Direct lending funds | |||||||||||||||||||||||||||||||||||
| Private equity funds | |||||||||||||||||||||||||||||||||||
| Real estate funds | |||||||||||||||||||||||||||||||||||
| Other privately held investments | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Other assets | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 5) | — | ||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 5) | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
The following table presents changes in Level 3 for financial instruments measured at fair value on a recurring basis:
Opening balance | Transfers into Level 3 | Transfers out of Level 3 | Included in net income(1) | Included in OCI (2) | Purchases | Sales | Settlements/ distributions | Closing balance | Change in unrealized gains/(losses) (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other privately held investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ABS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other privately held investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Realized gains (losses) on fixed maturities and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income.
(2) Unrealized gains (losses) on fixed maturities are included in other comprehensive income ("OCI").
(3) Change in unrealized gains (losses) relating to assets and liabilities held at the reporting date.
Transfers into Level 3 from Level 2
There were no
Transfers out of Level 3 into Level 2
The transfers out of Level 3 into Level 2 during the three months ended March 31, 2026 were primarily due to the availability of observable market inputs and multiple quotes from pricing vendors for certain fixed maturities. There were no transfers out of Level 3 into Level 2 during the three months ended March 31, 2025.
Measuring the Fair Value of Other Investments Using Net Asset Valuations
The fair values of multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds are estimated using NAVs as advised by external fund managers or third-party administrators. For these funds, NAVs are based on the manager's or administrator's valuation of the underlying holdings in accordance with the fund's governing documents and in accordance with U.S. GAAP.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. FAIR VALUE MEASUREMENTS (CONTINUED)
For multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds, valuation statements are typically released on a reporting lag. Therefore, the Company estimates the fair value of these funds by starting with the most recent fund valuations and adjusting for capital calls, redemptions, drawdowns and distributions. Return estimates are not available from the relevant fund managers for these funds, therefore the Company typically has a reporting lag in its fair value measurements of these funds. At March 31, 2026 and December 31, 2025 all funds measured at fair value using NAVs are reported generally on a one quarter lag.
The Company often does not have access to financial information relating to the underlying securities held within the funds, therefore, management is unable to corroborate the fair values placed on the securities underlying the asset valuations provided by fund managers or fund administrators. In order to assess the reasonableness of the NAVs, the Company performs a number of monitoring procedures on a quarterly basis, to assess the quality of the information provided by fund managers and fund administrators. These procedures include, but are not limited to, regular review and discussion of each fund's performance with its manager, regular evaluation of fund performance against applicable benchmarks and the backtesting of the Company's fair value estimates against subsequently received NAVs. Backtesting involves comparing the Company's previously reported fair values for each fund against NAVs per audited financial statements (for year-end values) and final NAVs from fund managers and fund administrators (for interim values).
The fair values of multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds, are measured using the NAV practical expedient, therefore the fair values of these funds have not been categorized within the fair value hierarchy.
Financial Instruments Disclosed, But Not Carried, at Fair Value
The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments, including insurance contracts.
At March 31, 2026, the carrying values of cash and cash equivalents including restricted amounts, accrued investment income, receivable for investments sold, certain other assets, payable for investments purchased and certain other liabilities approximated fair values due to their short maturities. As these financial instruments are not actively traded, their fair values are classified as Level 2.
At March 31, 2026, the Company's fixed maturities, held to maturity, were recorded at amortized cost with a carrying value of $405 million (2025: $397 million) and a fair value of $401 million (2025: $396 million). The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, their fair values are classified as Level 2.
At March 31, 2026, the carrying value of mortgage loans, held for investment, approximated fair value. The fair values of mortgage loans are primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk or are determined from pricing for similar loans. As mortgage loans are not actively traded, their fair values are classified as Level 3.
At March 31, 2026, the Company's debt was recorded at amortized cost with a carrying value of $1,317 million (2025: $1,317 million) and a fair value of $1,273 million (2025: $1,293 million). The fair value of the Company's debt is based on prices obtained from a third-party pricing service and is determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair value of this debt is classified as Level 2.
At March 31, 2026, Federal Home Loan Bank advances were recorded at amortized cost with a carrying value of $66 million (2025: $66 million) and a fair value of $66 million (2025: $66 million). As these advances are not actively traded, their fair values are classified as Level 2.
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
5. DERIVATIVE INSTRUMENTS
The following table provides the balance sheet classifications of derivatives recorded at fair value:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||
Derivative notional amount | Derivative asset fair value(1) | Derivative liability fair value(1) | Derivative notional amount | Derivative asset fair value(1) | Derivative liability fair value(1) | ||||||||||||||||||||||||||||||||||||
| Relating to investment portfolio: | |||||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Relating to underwriting portfolio: | |||||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts | |||||||||||||||||||||||||||||||||||||||||
| Total derivatives | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(1)Derivative assets and derivative liabilities are classified within other assets and other liabilities in the consolidated balance sheets.
The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk.
None of the Company's derivative instruments are designated as hedges.
Offsetting Assets and Liabilities
The Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure.
The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
| Gross amounts | Gross amounts offset | Net amounts(1) | Gross amounts | Gross amounts offset | Net amounts(1) | ||||||||||||||||||||||||
| Derivative assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Derivative liabilities | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||
(1)Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets.
Refer to Note 3 'Investments' for information on reverse repurchase agreements.
a) Relating to Investment Portfolio
Foreign Currency Risk
The Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign currency exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
5. DERIVATIVE INSTRUMENTS (CONTINUED)
b) Relating to Underwriting Portfolio
Foreign Currency Risk
The Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures.
The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges:
| Consolidated statement of operations line item that includes gain (loss) recognized in net income (loss) | Three months ended March 31, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
| Relating to investment portfolio: | ||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts | Net investment gains (losses) | $ | $ | ( | ||||||||||||||||||||||||||||||||||
| Relating to underwriting portfolio: | ||||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts | Foreign exchange (losses) gains | |||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||||||||
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
6. RESERVE FOR LOSSES AND LOSS EXPENSES
Reserve Roll-Forward
The following table presents a reconciliation of the Company's beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses:
| Three months ended March 31, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Gross reserve for losses and loss expenses, beginning of period | $ | $ | ||||||||||||||||||
| Less reinsurance recoverable on unpaid losses and loss expenses, beginning of period | ( | ( | ||||||||||||||||||
| Net reserve for unpaid losses and loss expenses, beginning of period | ||||||||||||||||||||
| Net incurred losses and loss expenses related to: | ||||||||||||||||||||
| Current year | ||||||||||||||||||||
| Prior years | ( | ( | ||||||||||||||||||
| Net paid losses and loss expenses related to: | ||||||||||||||||||||
| Current year | ( | ( | ||||||||||||||||||
| Prior years | ( | ( | ||||||||||||||||||
| ( | ( | |||||||||||||||||||
| Foreign exchange and other | ( | |||||||||||||||||||
Ceded reserves related to retroactive transactions | ||||||||||||||||||||
| Net reserve for unpaid losses and loss expenses, end of period | ||||||||||||||||||||
| Reinsurance recoverable on unpaid losses and loss expenses, end of period | ||||||||||||||||||||
| Gross reserve for losses and loss expenses, end of period | $ | $ | ||||||||||||||||||
At March 31, 2026, net reserves for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include U.S. winter storms and the Middle East Conflict in 2026, and the California Wildfires in 2025. As a result, actual losses for these events may ultimately differ materially from current estimates. During the three months ended March 31, 2026, the Company recognized catastrophe and weather-related losses, net of reinsurance, of $48 million (2025: $49 million).
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
6. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED)
Prior Year Reserve Development
The Company's net favorable (adverse) prior year reserve development arises from changes to estimates of losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net favorable (adverse) prior year reserve development by segment:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||
| Favorable (Adverse) | Favorable (Adverse) | |||||||||||||||||||||||||||||||
| Insurance | $ | $ | ||||||||||||||||||||||||||||||
| Reinsurance | ||||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||
The following sections provide further details on net favorable (adverse) prior year reserve development by segment, reserve class and accident year:
Insurance Segment:
Prior year reserve development by reserve class was as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Favorable (Adverse) | Favorable (Adverse) | ||||||||||||||||||||||||||||||||||||||||||||||
Property | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Casualty | |||||||||||||||||||||||||||||||||||||||||||||||
Specialty other | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Segment:
Prior year reserve development by reserve class was as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Favorable (Adverse) | Favorable (Adverse) | ||||||||||||||||||||||||||||||||||||||||||||||
Casualty | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Specialty | |||||||||||||||||||||||||||||||||||||||||||||||
Run-off | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
7. EARNINGS PER COMMON SHARE
The following table presents a comparison of earnings per common share and earnings per diluted common share:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per common share | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Preferred share dividends | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per common share | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per diluted common share | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average diluted common shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per diluted common share | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average anti-dilutive shares excluded from the dilutive computation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8. SHARE-BASED COMPENSATION
Performance Restricted Stock Units
Performance Restricted Stock Units granted with a market condition
Certain share-settled performance restricted stock units include a market condition which is the Company’s total shareholder return relative to its peer group ("Relative TSR") over the performance period. Relative TSR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0 % to 200 % of target.
Performance Restricted Stock Units granted with a performance condition
Certain share-settled performance restricted stock units include a performance condition which is the Company’s average annual growth in book value per diluted common share, plus accumulated dividends over the performance period, adjusted to exclude unrealized investment gains (losses) recognized in accumulated other comprehensive income (loss), and share repurchases during the performance period ("Adjusted DBVPS"). Adjusted DBVPS is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0 % to 200 % of target.
Valuation assumptions
Performance Restricted Stock Units granted with a market condition
The fair value of these performance restricted stock units was measured on the grant date using a Monte Carlo simulation model.
The following table provides details of the significant inputs used in the Monte Carlo simulation model:
| Three months ended March 31, | 2026 | 2025 | ||||||||||||||||||||||||
| Expected volatility | ||||||||||||||||||||||||||
| Expected term (in years) | ||||||||||||||||||||||||||
| Expected dividend yield | n/a | n/a | ||||||||||||||||||||||||
| Risk-free interest rate | ||||||||||||||||||||||||||
n/a - not applicable
Beginning share price: The beginning share price for awards was based on the average closing share price over the 30 trading days preceding and including the start of the performance period.
Ending share price: The ending share price was based on the average projected closing share price over the 30 trading days preceding and including the end of the performance period.
Expected volatility: The expected volatility is estimated based on the Company's historical share price volatility.
Expected term: Performance for awards granted in 2026 is measured from January 1, 2026 to December 31, 2028, and performance for awards granted in 2025 is measured from January 1, 2025 to December 31, 2027.Expected dividend yield: The expected dividend yield is not applicable to the performance restricted stock units as dividends are paid at the end of the vesting period and do not affect the value of the performance restricted stock units.
Risk-free interest rate: The risk-free rate is estimated based on the yield on a U.S. treasury zero-coupon bond issued with a remaining term equal to the vesting period of the performance restricted stock units.
Compensation expense associated with performance restricted stock units granted is determined on the grant date based on the fair value calculated by the Monte Carlo simulation model, and is recognized on a straight-line basis over the requisite service period.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8. SHARE-BASED COMPENSATION (CONTINUED)
Performance Restricted Stock Units granted with a performance condition
The fair value of performance restricted stock units was determined based on the closing price of the Company's common shares on the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period and is subject to periodic adjustment based on the achievement of established performance criteria during the performance period.
The following table provides an activity summary of the Company's share-settled restricted stock units for the three months ended March 31, 2026:
| Share-Settled Performance Restricted Stock Units | Share-Settled Service Restricted Stock Units | ||||||||||||||||||||||||||||
Number of restricted stock units | Weighted average grant date fair value | Number of restricted stock units | Weighted average grant date fair value | ||||||||||||||||||||||||||
| Non-vested restricted stock units - beginning of period | $ | $ | |||||||||||||||||||||||||||
| Granted | |||||||||||||||||||||||||||||
Performance adjustment (1) | |||||||||||||||||||||||||||||
| Vested | ( | ( | |||||||||||||||||||||||||||
| Forfeited | ( | ( | |||||||||||||||||||||||||||
| Non-vested restricted stock units - end of period | $ | $ | |||||||||||||||||||||||||||
The following table provides additional information related to share-based compensation:
| Three months ended March 31, | 2026 | 2025 | |||||||||||||||
Share-based compensation expense | $ | $ | |||||||||||||||
Tax benefits associated with share-based compensation expense | $ | $ | |||||||||||||||
Fair value of restricted stock units vested(1) | $ | $ | |||||||||||||||
| Unrecognized share-based compensation expense | $ | $ | |||||||||||||||
| Expected weighted average period associated with the recognition of unrecognized share-based compensation expense | |||||||||||||||||
(1) Fair value is based on the closing price of the Company's common shares on the vest date.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
9. SHAREHOLDERS' EQUITY
The following table presents changes in common shares issued and outstanding:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued, balance at beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total shares issued at end of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury shares, balance at beginning of period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares reissued | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total treasury shares at end of period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Shares
On September 17, 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 March 31, 2026, remaining authorization under this plan was $53 million.
On February 26, 2026, the Company's Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares. The new share repurchase programs supplements the existing share repurchase program, and 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.
The following table presents common shares repurchased from shares held in Treasury:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
Publicly announced programs:(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Total shares | ||||||||||||||||||||||||||||||||||||||||||||
| Total cost | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Average price per share(2) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
From employees:(3) | ||||||||||||||||||||||||||||||||||||||||||||
| Total shares | ||||||||||||||||||||||||||||||||||||||||||||
| Total cost | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Average price per share(2) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Total shares repurchased: | ||||||||||||||||||||||||||||||||||||||||||||
| Total shares | ||||||||||||||||||||||||||||||||||||||||||||
| Total cost | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Average price per share(2) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(1) Shares are repurchased pursuant to the Company's Board-authorized share repurchase programs.
(2) Calculated using whole numbers.
(3) Shares are repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
9. SHAREHOLDERS' EQUITY (CONTINUED)
Dividends
| Per share data | |||||||||||||||||||||||
| Dividends declared | Dividends paid in period of declaration | Dividends paid in period following declaration | |||||||||||||||||||||
| Three months ended March 31, 2026 | |||||||||||||||||||||||
| Common shares | $ | $ | $ | ||||||||||||||||||||
| Series E preferred shares | $ | $ | $ | ||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||
| Common shares | $ | $ | $ | ||||||||||||||||||||
| Series E preferred shares | $ | $ | $ | ||||||||||||||||||||
10. DEBT AND FINANCING ARRANGEMENTS
Letter of Credit Facility
On March 23, 2026, the $300 million Facility was amended to reduce the committed utilization capacity available under the Facility to $250 million (the "$250 million Facility") and extend the tenors of issuable letters of credit to March 31, 2028.
On March 23, 2025, the $300 million Facility was amended to extend the tenors of issuable letters of credit to March 31, 2027.
On August 26, 2025, AXIS Corporate Capital UK II Limited (the "Borrower"), acting through AXIS Managing Agency Limited, as managing agent of Syndicate 1686 and Syndicate 2050 (collectively, the "Syndicates"), entered into a Facility Letter and Master Agreement (together, the "Agreements") with Citibank (the "Lender"), providing for an uncommitted unsecured letter of credit facility up to a maximum aggregate amount of $90 million (the "$90 million Facility") with tenors of issuable letters of credit to August 31, 2030. The facility is supported by a guarantee issued by AXIS Specialty Limited.
The letter of credit facility is intended to support the Borrower's obligations in connection with the Syndicates’ participation in the Lloyd’s insurance market, specifically its Funds at Lloyd’s requirements. The facility contains customary representations, warranties, covenants, and events of default for transactions of this nature.
On October 8, 2025, AXIS Specialty Limited (the "Borrower"), entered into a Letter Agreement with Wells Fargo Bank, National Association (the "Bank"), providing for an uncommitted bilateral short-term line of credit facility up to a maximum aggregate amount of $150 million (the "$150 million Facility") with tenors of issuable letters of credit to October 7, 2026.
The $150 million Facility is intended to support the Borrower's working capital requirements and general corporate expenses. The line of credit facility contains customary representations, warranties, covenants, and events of default for transactions of this nature.
11. FEDERAL HOME LOAN BANK ADVANCES
The Company's subsidiaries, AXIS Insurance Company and AXIS Surplus Insurance Company, are members of the Federal Home Loan Bank of Chicago ("FHLB").
At March 31, 2026, the companies had admitted assets of approximately $3.5 billion (2025: $3.6 billion) which provides borrowing capacity of up to approximately $877 million (2025: $888 million).
At March 31, 2026, the Company had borrowings under the FHLB program of $66 million (2025: $66 million).
The FHLB advances have maturities in 2026 (2025: 2026) and interest payable at interest rates between 3.9 % and 4.2 % (2025: interest rates between 3.9 % and 4.6 %). The Company incurred interest expense of $1 million (2025: $1 million).
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
12. COMMITMENTS AND CONTINGENCIES
Legal Proceedings
From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of its insurance or reinsurance operations. Estimated amounts payable related to these proceedings are included in the reserve for losses and loss expenses in the Company's consolidated balance sheets.
The Company is not party to any material legal proceedings arising outside the ordinary course of business.
Investments
Refer to Note 3 - 'Investments' for information on the Company's unfunded investment commitments related to the Company's other investment portfolio.
13. OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents the tax effects allocated to each component of other comprehensive income (loss):
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Before tax amount | Income tax (expense) benefit | Net of tax amount | Before tax amount | Income tax (expense) benefit | Net of tax amount | |||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| Available for sale investments: | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
| Unrealized gains (losses) arising during the period for which an allowance for expected credit losses has been recognized | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustment | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
The following table presents details of amounts reclassified from accumulated other comprehensive income (loss) ("AOCI") to net income (loss):
Amount reclassified from AOCI(1) | ||||||||||||||||||||||||||||||||
| AOCI Components | Consolidated statement of operations line item that includes reclassification adjustment | Three months ended March 31, | ||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) on available for sale investments | ||||||||||||||||||||||||||||||||
Other realized and unrealized investment gains (losses) | $ | $ | ( | |||||||||||||||||||||||||||||
| Impairment losses | ( | ( | ||||||||||||||||||||||||||||||
| Total before tax | ( | |||||||||||||||||||||||||||||||
| Income tax (expense) benefit | ( | |||||||||||||||||||||||||||||||
| Net of tax | $ | $ | ( | |||||||||||||||||||||||||||||
(1) Amounts in parentheses are charges to net income (loss).
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AXIS CAPITAL HOLDINGS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
14. RELATED PARTY TRANSACTIONS
Related Party Transactions with Stone Point Capital, LLC ("Stone Point")
Investment in Monarch Point Re
Refer to Note 3 'Investments'
Loan Advances Made to Monarch Point Re
Refer to Note 3 'Investments'
15. REORGANIZATION EXPENSES
For the three months ended March 31, 2026, reorganization expenses were $23 million (2025: $nil ) primarily related to costs attributable to streamlining our reinsurance operations and costs attributable to transitions in executive leadership.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of our results of operations for the three months ended March 31, 2026 and 2025 and our financial condition at March 31, 2026 and December 31, 2025. This should be read in conjunction with Item 1 'Consolidated Financial Statements' of this report and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts in tables may not reconcile due to rounding differences.
| Page | |||||
| First Quarter 2026 Financial Highlights | 45 | ||||
| Overview | 46 | ||||
| Consolidated Results of Operations | 48 | ||||
| Results by Segment: | |||||
| i) Insurance Segment | 50 | ||||
| ii) Reinsurance Segment | 54 | ||||
| Net Investment Income and Net Investment Gains (Losses) | 58 | ||||
| Other Expenses (Revenues), Net | 61 | ||||
| Financial Measures | 62 | ||||
| Non-GAAP Financial Measures Reconciliation | 63 | ||||
| Cash and Investments | 67 | ||||
| Liquidity and Capital Resources | 70 | ||||
| Critical Accounting Estimates | 72 | ||||
| Recent Accounting Pronouncements | 72 | ||||
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FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS
First Quarter 2026 Consolidated Results of Operations
•Net income available to common shareholders of $247 million, or $3.29 per diluted common share
•Operating income(1) of $257 million, or $3.42 per diluted common share(1)
•Gross premiums written of $3.1 billion
•Net premiums written of $1.9 billion
•Net premiums earned of $1.5 billion
•Pre-tax, catastrophe and weather-related losses, net of reinsurance, of $48 million ($38 million, after-tax), (Insurance: $48 million; Reinsurance: $nil), or 3.2 points, including natural catastrophe losses of $33 million, or 2.2 points, primarily attributable to U.S. winter storms and other weather-related events. The remaining losses of $15 million, or 1.0 point, were attributable to the Middle East Conflict
•Net favorable prior year reserve development of $18 million (Insurance: $15 million; Reinsurance: $3 million)
•Underwriting income(2) of $187 million and combined ratio of 89.8%
•Fees related to arrangements with strategic capital partners of $23 million, including $18 million recognized as a reimbursement of general and administrative expenses
•Net investment income of $185 million
•Net investment losses of $27 million
•Foreign exchange gains of $36 million
•Reorganization expenses of $23 million primarily related to costs attributable to streamlining our reinsurance operations and costs attributable to transitions in executive leadership
•Income tax expense of $56 million, resulting in an effective tax rate of 18.0%
First Quarter 2026 Consolidated Financial Condition
•Total cash and invested assets of $17.3 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 86% of total cash and investments and have an average credit rating of AA-
•Total assets of $35.6 billion
•Reserve for losses and loss expenses of $18.3 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $9.5 billion
•Debt of $1.3 billion and debt to total capital ratio(3) of 17.1%
•Total common shares repurchased were 0.8 million shares for a total of $82 million, including $60 million repurchased pursuant to our Board-authorized share repurchase programs, and $23 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units
•Common shareholders’ equity of $5.8 billion; book value per diluted common share of $78.19
(1)Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. 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 in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.
(2)Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to the most comparable GAAP financial measure, net income (loss), is presented in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations', and a discussion of the rationale for its presentation is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.
(3)The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt.
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OVERVIEW
Business Overview
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions with locations in Bermuda, the U.S., Europe, Singapore and Canada. Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re.
We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and inclusive culture that promotes outstanding client service, intelligent risk taking, operating efficiency, sustainability and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy for the first three months of 2026 included the following:
•growing in a number of targeted specialty lines insurance and reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business;
•cycle-managing our portfolio towards attractive lines of business, that carry premium adequate returns while deploying capital within risk limits, diversification criteria and risk management strategy;
•investing in attractive growth markets and advancing capabilities to address more transactional specialist business targeting the lower middle market with our key distribution partners;
•leveraging our global platform to introduce our products and services to new regions including the continued expansion of our North America product capabilities;
•continuing the implementation of a more focused distribution strategy while building mutually beneficial relationships with clients and partners;
•improving the effectiveness and efficiency of our operating platforms and processes through our "How We Work" program;
•investing in data and technology, together with AI capabilities and tools, to empower our teammates and enhance the service that we provide to our customers;
•utilizing reinsurance markets and third-party capital relationships; and
•fostering a positive workplace environment that enables us to attract, retain and develop top talent.
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Outlook
AXIS is executing with clarity and conviction on our strategy to be a leading global specialty underwriter, delivering durable, profitable growth across market cycles. Our differentiated market positioning—anchored by a diversified specialty portfolio, deep underwriting expertise, a global operating platform, strong claims and risk management capabilities, and long‑standing distribution partnerships—provides a powerful foundation for continued value creation. This is reinforced by a conservative, high‑quality investment portfolio that enhances earnings resilience and capital flexibility.
The global trade and geopolitical landscape remains fluid, introducing uncertainty across economic conditions, loss costs, and capital deployment. AXIS is built to operate effectively in precisely these environments. We proactively assess evolving risks and translate uncertainty into underwriting advantage through disciplined pricing, portfolio management, and rigorous risk selection. Our underwriting framework is designed to protect outsized downside outcomes while positioning the business to capitalize on market dislocations as they emerge.
Key trends shaping our markets underscore the strength of our approach:
•Pricing dynamics are evolving following multiple years of rate increases that exceeded loss cost trends. While pricing has moderated overall—and softened in select classes—casualty lines continue to achieve positive rate momentum, financial lines pricing remains stable, and property markets are experiencing pressure from increased capital inflows. We are deliberately concentrating capacity where premium adequacy remains compelling, where volatility is appropriately priced, and where dislocations create opportunities to deploy capital at attractive returns.
•Distribution dynamics remain constructive for disciplined specialty underwriters. In North America, submission growth through the wholesale channel has remained steady as market conditions vary by class, reinforcing the importance of underwriting selectivity. In the London Market, increasingly granular "micro‑markets" by class and channel continue to reward technical underwriting expertise and strong broker relationships. These conditions play directly to AXIS’s strengths and support sustainable, profitable growth.
•Reinsurance pricing is moderating, with outcomes varying by line of business and structure. We expect this environment to persist and continue to manage our reinsurance portfolio with a singular focus on margin, volatility management, and long‑term profitability.
Across AXIS, we are actively deploying capital in areas where pricing supports our return thresholds and scaling back where it does not. Growth is a consequence of disciplined underwriting—not an objective in isolation. With a strengthened portfolio, improved mix, and expanding presence in our chosen specialty markets, AXIS is well positioned to generate attractive, risk‑adjusted returns and drive profitable growth through 2026.
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CONSOLIDATED RESULTS OF OPERATIONS
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Underwriting revenues: | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 3,097,967 | 11% | $ | 2,794,652 | ||||||||||||||||||||||||||||||||||||
| Net premiums written | 1,907,036 | 9% | 1,750,039 | ||||||||||||||||||||||||||||||||||||||
| Net premiums earned | 1,480,466 | 10% | 1,340,820 | ||||||||||||||||||||||||||||||||||||||
| Other insurance related income | 5,649 | 58% | 3,578 | ||||||||||||||||||||||||||||||||||||||
| Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||
| Net losses and loss expenses | (867,283) | 10% | (785,925) | ||||||||||||||||||||||||||||||||||||||
| Acquisition costs | (304,255) | 15% | (264,581) | ||||||||||||||||||||||||||||||||||||||
Underwriting-related general and administrative expenses(1) | (127,214) | (2%) | (130,438) | ||||||||||||||||||||||||||||||||||||||
Underwriting income (2) | 187,363 | 163,454 | |||||||||||||||||||||||||||||||||||||||
| Net investment income | 184,740 | (11%) | 207,713 | ||||||||||||||||||||||||||||||||||||||
| Net investment gains (losses) | (27,224) | (9%) | (30,005) | ||||||||||||||||||||||||||||||||||||||
Corporate expenses(1) | (30,942) | 8% | (28,725) | ||||||||||||||||||||||||||||||||||||||
Foreign exchange (losses) gains | 36,196 | nm | (57,034) | ||||||||||||||||||||||||||||||||||||||
| Interest expense and financing costs | (16,426) | (1%) | (16,572) | ||||||||||||||||||||||||||||||||||||||
| Reorganization expenses | (23,168) | nm | — | ||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | (2,396) | (12%) | (2,729) | ||||||||||||||||||||||||||||||||||||||
Income before income taxes and interest in income of equity method investments | 308,143 | 236,102 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (55,806) | 26% | (44,322) | ||||||||||||||||||||||||||||||||||||||
| Interest in income of equity method investments | 2,430 | 6% | 2,291 | ||||||||||||||||||||||||||||||||||||||
| Net income | 254,767 | 194,071 | |||||||||||||||||||||||||||||||||||||||
| Preferred share dividends | (7,563) | —% | (7,563) | ||||||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 247,204 | $ | 186,508 | |||||||||||||||||||||||||||||||||||||
nm – not meaningful is defined as a variance greater than +/-100%
(1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $31 million and $29 million for the three months ended March 31, 2026 and 2025, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
(2)Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented in the table above. Refer also to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.
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Underwriting Revenues
Underwriting revenues by segment were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Gross premiums written: | |||||||||||||||||||||||||||||||||||||||||
| Insurance | $ | 1,983,742 | 20% | $ | 1,655,903 | ||||||||||||||||||||||||||||||||||||
| Reinsurance | 1,114,225 | (2%) | 1,138,749 | ||||||||||||||||||||||||||||||||||||||
| Total gross premiums written | $ | 3,097,967 | 11% | $ | 2,794,652 | ||||||||||||||||||||||||||||||||||||
| Percent of gross premiums written ceded | |||||||||||||||||||||||||||||||||||||||||
| Insurance | 35 | % | (2 pts) | 37 | % | ||||||||||||||||||||||||||||||||||||
| Reinsurance | 45 | % | 7 pts | 38 | % | ||||||||||||||||||||||||||||||||||||
| Total percent of gross premiums written ceded | 38 | % | 1 pt | 37 | % | ||||||||||||||||||||||||||||||||||||
| Net premiums written: | |||||||||||||||||||||||||||||||||||||||||
| Insurance | $ | 1,293,077 | 24% | $ | 1,044,580 | ||||||||||||||||||||||||||||||||||||
| Reinsurance | 613,959 | (13%) | 705,459 | ||||||||||||||||||||||||||||||||||||||
| Total net premiums written | $ | 1,907,036 | 9% | $ | 1,750,039 | ||||||||||||||||||||||||||||||||||||
| Net premiums earned: | |||||||||||||||||||||||||||||||||||||||||
| Insurance | $ | 1,141,753 | 13% | $ | 1,010,086 | ||||||||||||||||||||||||||||||||||||
| Reinsurance | 338,713 | 2% | 330,734 | ||||||||||||||||||||||||||||||||||||||
| Total net premiums earned | $ | 1,480,466 | 10% | $ | 1,340,820 | ||||||||||||||||||||||||||||||||||||
Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment' for further details on underwriting revenues.
Combined Ratio
The components of the combined ratio were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Point Change | 2025 | |||||||||||||||||||||||||||||||||||||||
Current accident year loss ratio, excluding catastrophe and weather-related losses(1) | 56.6 | % | 0.3 | 56.3 | % | ||||||||||||||||||||||||||||||||||||
Catastrophe and weather-related losses ratio(1) | 3.2 | % | (0.5) | 3.7 | % | ||||||||||||||||||||||||||||||||||||
Current accident year loss ratio(1) | 59.8 | % | (0.2) | 60.0 | % | ||||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | (1.2 | %) | 0.2 | (1.4 | %) | ||||||||||||||||||||||||||||||||||||
| Net losses and loss expenses ratio | 58.6 | % | — | 58.6 | % | ||||||||||||||||||||||||||||||||||||
| Acquisition cost ratio | 20.5 | % | 0.8 | 19.7 | % | ||||||||||||||||||||||||||||||||||||
General and administrative expense ratio(2) | 10.7 | % | (1.2) | 11.9 | % | ||||||||||||||||||||||||||||||||||||
| Combined ratio | 89.8 | % | (0.4) | 90.2 | % | ||||||||||||||||||||||||||||||||||||
(1) Current accident year loss ratio, catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measure, net losses and loss expenses ratio is provided above and a discussion of the rationale for the presentation of these items are provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.
(2) The general and administrative expense ratio included corporate expenses not allocated to underwriting segments of 2.1% for the three months ended March 31, 2026 and 2025. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details.
Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment' for further details on underwriting expenses.
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RESULTS BY SEGMENT
Insurance Segment
Results for the insurance segment were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 1,983,742 | 20% | $ | 1,655,903 | ||||||||||||||||||||||||||||||||||||
| Net premiums written | 1,293,077 | 24% | 1,044,580 | ||||||||||||||||||||||||||||||||||||||
| Net premiums earned | 1,141,753 | 13% | 1,010,086 | ||||||||||||||||||||||||||||||||||||||
Other insurance related income | 370 | nm | 156 | ||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||
| Current accident year net losses and loss expenses | (656,047) | (576,066) | |||||||||||||||||||||||||||||||||||||||
| Prior year reserve development | 15,059 | 13,978 | |||||||||||||||||||||||||||||||||||||||
| Acquisition costs | (223,769) | (194,021) | |||||||||||||||||||||||||||||||||||||||
| Underwriting-related general and administrative expenses | (120,013) | (119,592) | |||||||||||||||||||||||||||||||||||||||
| Underwriting income | $ | 157,353 | $ | 134,541 | |||||||||||||||||||||||||||||||||||||
| Ratios: | % Point Change | ||||||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio, excluding catastrophe and weather-related losses | 53.3 | % | 1.0 | 52.3 | % | ||||||||||||||||||||||||||||||||||||
| Catastrophe and weather-related losses ratio | 4.2 | % | (0.5) | 4.7 | % | ||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio | 57.5 | % | 0.5 | 57.0 | % | ||||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | (1.4 | %) | — | (1.4 | %) | ||||||||||||||||||||||||||||||||||||
| Net losses and loss expenses ratio | 56.1 | % | 0.5 | 55.6 | % | ||||||||||||||||||||||||||||||||||||
| Acquisition cost ratio | 19.6 | % | 0.4 | 19.2 | % | ||||||||||||||||||||||||||||||||||||
| Underwriting-related general and administrative expense ratio | 10.6 | % | (1.3) | 11.9 | % | ||||||||||||||||||||||||||||||||||||
| Combined ratio | 86.3 | % | (0.4) | 86.7 | % | ||||||||||||||||||||||||||||||||||||
nm – not meaningful
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Gross Premiums Written
Gross premiums written by line of business were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property | $ | 613,480 | 31 | % | $ | 495,417 | 29 | % | 24% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional lines | 345,381 | 17 | % | 257,159 | 16 | % | 34% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability | 337,674 | 17 | % | 303,758 | 18 | % | 11% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyber | 119,999 | 6 | % | 113,945 | 7 | % | 5% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marine and aviation | 294,960 | 15 | % | 267,151 | 16 | % | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident and health | 171,365 | 9 | % | 124,843 | 8 | % | 37% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit and political risk | 100,883 | 5 | % | 93,630 | 6 | % | 8% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,983,742 | 100 | % | $ | 1,655,903 | 100 | % | 20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross premiums written for the three months ended March 31, 2026 increased by $328 million, or 20% ($309 million, or 19%, on a constant currency basis(1)), compared to the three months ended March 31, 2025, primarily attributable to new business in property, professional lines and accident and health lines. In addition, our AXIS Capacity Solutions capability contributed approximately $173 million to the increase in gross premiums written in three months ended March 31, 2026, compared to the three months ended March 31, 2025, including $59 million attributable to discrete Funds at Lloyds ("FAL") transactions. The FAL transactions were written on a proportional basis therefore, annual estimated premium income was recognized at inception of the contracts.
The increase in property lines was also due to a higher level of premiums associated with excess and surplus lines, and onshore renewable energy business, partially offset by reduced opportunities in global property associated with competitive market conditions.
The increase in professional lines was also driven by a higher level of premiums and increased rate associated with transactional liability business.
The increase in accident and health lines was also attributable to increased rate associated with renewed pet insurance business.
Ceded Premiums Written
Ceded premiums written for the three months ended March 31, 2026 was $691 million, or 35%, of gross premiums written, compared to $611 million, or 37%, of gross premiums written for the three months ended March 31, 2025. The decrease in ceded premiums written to gross premiums written of 2% was primarily due to a decreased cession rate in liability lines, partially offset by an increased cession rate in property lines.
(1) Amounts presented on a constant currency basis are non-GAAP financial measures as defined in Item 10 (e) of SEC Regulation S-K. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to the prior year balance.
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Net Premiums Earned
Net premiums earned by line of business were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property | $ | 357,779 | 32 | % | $ | 318,333 | 31 | % | 12% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional lines | 250,884 | 22 | % | 202,642 | 20 | % | 24% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability | 153,105 | 13 | % | 118,152 | 12 | % | 30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyber | 70,690 | 6 | % | 79,206 | 8 | % | (11%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marine and aviation | 156,910 | 14 | % | 154,946 | 15 | % | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident and health | 94,052 | 8 | % | 89,145 | 9 | % | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit and political risk | 58,333 | 5 | % | 47,662 | 5 | % | 22% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,141,753 | 100 | % | $ | 1,010,086 | 100 | % | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned for the three months ended March 31, 2026 increased by $132 million, or 13%, compared to the three months ended March 31, 2025, primarily driven by increases in professional lines, property, and liability lines.
The increases in professional lines and property lines was due to increases in gross premiums earned. The increase in liability lines was due to an increase in gross premiums earned, together with a decrease in ceded premiums earned attributable to the restructuring of existing quota share treaties that increased our retentions on this line of business.
Loss Ratio
The components of the loss ratio were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Point Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio | 57.5 | % | 0.5 | 57.0 | % | ||||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | (1.4 | %) | — | (1.4 | %) | ||||||||||||||||||||||||||||||||||||
| Loss ratio | 56.1 | % | 0.5 | 55.6 | % | ||||||||||||||||||||||||||||||||||||
Current Accident Year Loss Ratio
The current accident year loss ratio increased to 57.5% for the three months ended March 31, 2026, from 57.0% for the three months ended March 31, 2025.
During the three months ended March 31, 2026, catastrophe and weather-related losses, net of reinsurance, were $48 million, or 4.2 points, including natural catastrophe losses of $33 million, or 2.9 points, primarily attributable to U.S. winter storms and other weather-related events. The remaining losses of $15 million, or 1.4 points, were attributable to the Middle East conflict.
Comparatively, during the three months ended March 31, 2025, catastrophe and weather-related losses, net of reinsurance, were $47.5 million, or 4.7 points, primarily attributable to California Wildfires.
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 53.3% for the three months ended March 31, 2026, from 52.3% for the three months ended March 31, 2025, principally due to increased competition in property lines and cyber lines.
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Prior Year Reserve Development
Refer to Item 1, Note 6 to the Consolidated Financial Statements 'Reserve for losses and loss expenses' for details on prior year reserve development by segment, reserve class and accident year.
Acquisition Cost Ratio
The acquisition cost ratio increased to 19.6% for the three months ended March 31, 2026, from 19.2% for the three months ended March 31, 2025, primarily related to an increase in gross acquisition costs in property lines. In addition, gross acquisition costs increased due to changes in business mix attributable to increases in pet insurance business written in accident and health lines, and program business written in property and professional lines all associated with relatively higher gross acquisition cost ratios. The acquisition cost ratio for the three months ended March 31, 2026 benefited from increases in ceding commission in accident and health, and cyber lines.
Underwriting-Related General and Administrative Expense Ratio
The underwriting-related general and administrative expense ratio decreased to 10.6% for the three months ended March 31, 2026, from 11.9% for the three months ended March 31, 2025, mainly driven by an increase in net premiums earned.
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Reinsurance Segment
Results from the reinsurance segment were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 1,114,225 | (2%) | $ | 1,138,749 | ||||||||||||||||||||||||||||||||||||
| Net premiums written | 613,959 | (13%) | 705,459 | ||||||||||||||||||||||||||||||||||||||
| Net premiums earned | 338,713 | 2% | 330,734 | ||||||||||||||||||||||||||||||||||||||
| Other insurance related income | 5,279 | 54% | 3,422 | ||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||
| Current accident year net losses and loss expenses | (229,298) | (227,796) | |||||||||||||||||||||||||||||||||||||||
| Prior year reserve development | 3,003 | 3,959 | |||||||||||||||||||||||||||||||||||||||
| Acquisition costs | (80,486) | (70,560) | |||||||||||||||||||||||||||||||||||||||
| Underwriting-related general and administrative expenses | (7,201) | (10,846) | |||||||||||||||||||||||||||||||||||||||
Underwriting income | $ | 30,010 | $ | 28,913 | |||||||||||||||||||||||||||||||||||||
| Ratios: | % Point Change | ||||||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio, excluding catastrophe and weather-related losses | 67.7 | % | (0.7) | 68.4 | % | ||||||||||||||||||||||||||||||||||||
| Catastrophe and weather-related losses ratio | — | % | (0.5) | 0.5 | % | ||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio | 67.7 | % | (1.2) | 68.9 | % | ||||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | (0.9 | %) | 0.3 | (1.2 | %) | ||||||||||||||||||||||||||||||||||||
| Net losses and loss expenses ratio | 66.8 | % | (0.9) | 67.7 | % | ||||||||||||||||||||||||||||||||||||
| Acquisition cost ratio | 23.8 | % | 2.5 | 21.3 | % | ||||||||||||||||||||||||||||||||||||
| Underwriting-related general and administrative expense ratio | 2.1 | % | (1.2) | 3.3 | % | ||||||||||||||||||||||||||||||||||||
| Combined ratio | 92.7 | % | 0.4 | 92.3 | % | ||||||||||||||||||||||||||||||||||||
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Gross Premiums Written
Gross premiums written by line of business were as follows:
| Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability | $ | 163,106 | 15 | % | $ | 253,070 | 22 | % | (36%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional lines | 177,953 | 16 | % | 188,445 | 17 | % | (6%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Motor | 87,312 | 8 | % | 124,380 | 11 | % | (30%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident and health | 296,290 | 27 | % | 281,355 | 25 | % | 5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit and surety | 308,973 | 28 | % | 204,666 | 18 | % | 51% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agriculture | 52,715 | 4 | % | 48,901 | 4 | % | 8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marine and aviation | 25,978 | 2 | % | 33,492 | 3 | % | (22%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Run-off lines(1) | 1,898 | — | % | 4,440 | — | % | (57%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,114,225 | 100 | % | $ | 1,138,749 | 100 | % | (2%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Run-off lines include the catastrophe, property, and engineering lines of business.
Gross premiums written for the three months ended March 31, 2026, decreased by $25 million, or 2% ($65 million, or 6%, on a constant currency basis), compared to the three months ended March 31, 2025 primarily attributable to non-renewals and decreased line sizes.
The decrease in liability lines was due to non-renewals and decreased line sizes primarily related to general liability business.
The decrease in motor lines was driven by decreased line sizes and non-renewals of non-proportional U.K business attributable to increased competition and unfavorable market conditions, partially offset by new non-U.K. proportional and non-proportional business.
The increase in credit and surety lines was driven by increased line sizes and new credit, surety and credit and political risk business.
Ceded Premiums Written
Ceded premiums written for the three months ended March 31, 2026, was $500 million, or 45%, of gross premiums written, compared to $433 million, or 38%, of gross premiums written for the three months ended March 31, 2025. The increase in ceded premiums written to gross premiums written of 7% was primarily due to increased cession rates in motor, professional lines and liability lines.
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Net Premiums Earned
Net premiums earned by line of business were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability | $ | 70,727 | 21 | % | $ | 74,140 | 22 | % | (5%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional lines | 49,275 | 14 | % | 43,175 | 13 | % | 14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Motor | 21,240 | 6 | % | 29,278 | 9 | % | (27%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident and health | 76,589 | 23 | % | 68,987 | 21 | % | 11% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit and surety | 74,936 | 22 | % | 63,039 | 19 | % | 19% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agriculture | 32,489 | 10 | % | 32,085 | 10 | % | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marine and aviation | 12,139 | 4 | % | 15,695 | 5 | % | (23%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Run-off lines | 1,318 | — | % | 4,335 | 1 | % | (70%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 338,713 | 100 | % | $ | 330,734 | 100 | % | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned for the three months ended March 31, 2026, increased by $8 million, or 2% ($nil, on a constant currency basis), compared to the three months ended March 31, 2025 primarily driven by increases in credit and surety, and accident and health lines, partially offset by a decrease in motor lines.
The increase in credit and surety lines was due to an increase in gross premiums earned, partially offset by an increase in ceded premiums earned attributable to the restructuring of existing quota share treaties with strategic capital partners that decreased our retentions of these lines of business. The increase in accident and health lines was attributable to gross premiums earned. The decrease in motor lines was due to a decrease in gross premiums earned.
Loss Ratio
The components of the loss ratio were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Point Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Current accident year loss ratio | 67.7 | % | (1.2) | 68.9 | % | ||||||||||||||||||||||||||||||||||||
| Prior year reserve development ratio | (0.9 | %) | 0.3 | (1.2 | %) | ||||||||||||||||||||||||||||||||||||
| Loss ratio | 66.8 | % | (0.9) | 67.7 | % | ||||||||||||||||||||||||||||||||||||
Current Accident Year Loss Ratio
The current accident year loss ratio decreased to 67.7% for the three months ended March 31, 2026, from to 68.9% for the three months ended March 31, 2025.
During the three months ended March 31, 2026, catastrophe and weather-related losses, net of reinsurance, were $nil. Comparatively, during the three months ended March 31, 2025, catastrophe and weather-related losses, were $1.5 million, or 0.5 points, attributable to California Wildfires.
Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio decreased to 67.7% for the three months ended March 31, 2026, from 68.4% for the three months ended March 31, 2025, principally due to changes in our view of risk, rate and trend.
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Prior Year Reserve Development
Refer to Item 1, Note 6 to the Consolidated Financial Statements 'Reserve for losses and loss expenses' for details on prior year reserve development by segment, reserve class and accident year.
Acquisition Cost Ratio
The acquisition cost ratio increased to 23.8% for the three months ended March 31, 2026, from 21.3% for the three months ended March 31, 2025, primarily related to changes in business mix due to an increase in credit and surety lines business written in the recent period which is associated with a relatively higher acquisition cost ratio. In addition, the acquisition cost ratio increased due to changes in business mix within motor, and credit and surety lines mainly related to an increase in proportional business written in the recent periods.
Underwriting-Related General and Administrative Expense Ratio
The underwriting-related general and administrative expense ratio decreased to 2.1% for the three months ended March 31, 2026, from 3.3% for the three months ended March 31, 2025, mainly driven by an increase in fees related to arrangements with strategic capital partners.
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NET INVESTMENT INCOME AND NET INVESTMENT GAINS (LOSSES)
Net Investment Income
Net investment income from our cash and investment portfolio by major asset class was as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Fixed maturities | $ | 156,696 | 7% | $ | 146,711 | ||||||||||||||||||||||||||||||||||||
| Other investments | 17,705 | (21%) | 22,410 | ||||||||||||||||||||||||||||||||||||||
| Equity securities | 4,152 | 29% | 3,208 | ||||||||||||||||||||||||||||||||||||||
| Mortgage loans | 4,165 | (39%) | 6,868 | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 8,918 | (73%) | 33,380 | ||||||||||||||||||||||||||||||||||||||
| Short-term investments | 132 | (93%) | 1,986 | ||||||||||||||||||||||||||||||||||||||
| Gross investment income | 191,768 | (11%) | 214,563 | ||||||||||||||||||||||||||||||||||||||
| Investment expense | (7,028) | 3% | (6,850) | ||||||||||||||||||||||||||||||||||||||
| Net investment income | $ | 184,740 | (11%) | $ | 207,713 | ||||||||||||||||||||||||||||||||||||
Pre-tax yield:(1) | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities | 4.7 | % | 4.6 | % | |||||||||||||||||||||||||||||||||||||
(1) Pre-tax yield is calculated by dividing annualized net investment income by the average month-end amortized cost balances.
Fixed Maturities
Net investment income in 2026 increased $10 million or 7% compared to the same period in 2025 due to the increase in average fixed maturity assets and an increase in yields.
Other Investments
Net investment income from other investments was as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
Multi-strategy, direct lending, private equity and real estate funds | $ | 16,145 | $ | 15,170 | |||||||||||||||||||||||||
| Other privately held investments | 1,560 | 6,656 | |||||||||||||||||||||||||||
| CLO-Equities | — | 584 | |||||||||||||||||||||||||||
Total net investment income from other investments | $ | 17,705 | $ | 22,410 | |||||||||||||||||||||||||
Net investment income in 2026 decreased $5 million or 21%, compared to the same period in 2025 attributable to lower returns from other privately held investments and real estate funds.
Mortgage Loans
Net investment income in 2026 decreased $3 million or 39%, compared to the same period in 2025 related to loan repayments during the period.
Cash and cash equivalents
Net investment income in 2026 decreased $24 million or 73%, compared to the same period in 2025 due to lower average cash balances following premiums paid for the loss portfolio transfer reinsurance agreement transaction with Enstar that was completed in April 2025.
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Net Investment Gains (Losses)
Net investment gains (losses) were as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| On sale of investments: | |||||||||||||||||||||||||||||
Fixed maturities, short-term investments, and cash and cash equivalents | $ | 6,937 | $ | (29,601) | |||||||||||||||||||||||||
| Equity securities | 11,460 | 27,197 | |||||||||||||||||||||||||||
Mortgage loans | (4,595) | — | |||||||||||||||||||||||||||
| 13,802 | (2,404) | ||||||||||||||||||||||||||||
(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale | (1,284) | (245) | |||||||||||||||||||||||||||
(Increase) decrease in allowance for expected credit losses, mortgage loans | 434 | (2,484) | |||||||||||||||||||||||||||
Impairment losses (1) | (267) | (1,926) | |||||||||||||||||||||||||||
Change in fair value of investment derivatives | 146 | (416) | |||||||||||||||||||||||||||
| Net unrealized gains (losses) on equity securities | (40,055) | (22,530) | |||||||||||||||||||||||||||
Net investment gains (losses) | $ | (27,224) | $ | (30,005) | |||||||||||||||||||||||||
(1)Related to instances where we intend to sell securities, or it is more likely than not that we will be required to sell securities before their anticipated recovery.
On Sale of Investments and Net Unrealized Gains (Losses) on Equity Securities
Generally, sales of individual securities occur when there are changes in the relative value, credit quality, or duration of a particular issue. We may also sell securities to re-balance our investment portfolio in order to change exposure to particular asset classes or sectors.
Net investment losses in 2026 were $27 million compared to net investment losses of $30 million in the same period of 2025. Net investment losses reported in 2026 mainly reflected net unrealized losses on equities, partially offset by net realized gains on the sale of equities, U.S. government and Agency RMBS.
Net investment losses reported in 2025 mainly reflected net realized losses on the sale of corporate debt and U.S. government securities and net unrealized losses on equity securities, partially offset by net realized gains on the sale of equity securities.
(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale
Refer to Note 3(i) to the Consolidated Financial Statements 'Investments'.
(Increase) decrease in allowance for expected credit losses, mortgage loans
Refer to Note 3(i) to the Consolidated Financial Statements 'Investments'.
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Total Return
Total return on cash and investments was as follows:
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Net investment income | $ | 184,740 | $ | 207,713 | |||||||||||||||||||||||||
Net investment gains (losses) | (27,224) | (30,005) | |||||||||||||||||||||||||||
Change in net unrealized gains (losses) on fixed maturities (1) | (159,243) | 135,560 | |||||||||||||||||||||||||||
Interest in income of equity method investments | 2,430 | 2,291 | |||||||||||||||||||||||||||
| Total | $ | 703 | $ | 315,559 | |||||||||||||||||||||||||
Average cash and investments(2) | $ | 17,335,191 | $ | 18,019,104 | |||||||||||||||||||||||||
Pre-tax, total return on average cash and investments: | |||||||||||||||||||||||||||||
| Including investment related foreign exchange movements | — | % | 1.8 | % | |||||||||||||||||||||||||
Excluding investment related foreign exchange movements(3) | 0.1 | % | 1.5 | % | |||||||||||||||||||||||||
(1)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.
(2)The average cash and investments balance is the average of the monthly fair value balances.
(3)Pre-tax, total return on average cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, included foreign exchange (losses) gains of $(24) million and $47 million for the three months ended March 31, 2026 and 2025, respectively.
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OTHER EXPENSES (REVENUES), NET
The following table provides a summary of other expenses (revenues), net:
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | |||||||||||||||||||||||||||||||||||||||
| Corporate expenses | $ | 30,942 | 8% | $ | 28,725 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange losses (gains) | (36,196) | nm | 57,034 | ||||||||||||||||||||||||||||||||||||||
| Interest expense and financing costs | 16,426 | (1%) | 16,572 | ||||||||||||||||||||||||||||||||||||||
| Income tax expense | 55,806 | 26% | 44,322 | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 66,978 | $ | 146,653 | |||||||||||||||||||||||||||||||||||||
nm – not meaningful
Corporate Expenses
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 a percentage of net premiums earned, corporate expenses were 2.1% for the three months ended March 31, 2026 and 2025.
Foreign Exchange Losses (Gains)
Foreign exchange gains of $36 million for the three months ended March 31, 2026 reflected the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling, euro and Canadian dollar.
Foreign exchange losses of $57 million for the three months ended March 31, 2025 reflected the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling and euro.
Interest Expense and Financing Costs
Interest expense and financing costs are related to interest due on senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2026 and 2025.
Interest expense and financing costs were $16 million for the three months ended March 31, 2026 was comparable to $17 million for the three months ended March 31, 2025.
Income Tax Expense (Benefit)
Income tax expense (benefit) primarily results from income (loss) in our global operations. Our effective tax rate which is calculated as income tax expense (benefit) divided by income (loss) before tax including interest in income (loss) of equity method investments was 18.0%, for the three months ended March 31, 2026, and 18.6% for the three months ended March 31, 2025. This effective rate can vary between periods depending on the distribution of net income (loss) among tax jurisdictions, as well as other factors.
The income tax expense of $56 million, for the three months ended March 31, 2026, was principally due to pre-tax income in our U.S. and U.K operations.
The income tax expense of $44 million for the three months ended March 31, 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S., and European operations.
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FINANCIAL MEASURES
We believe the following financial indicators are important in evaluating performance and measuring the overall growth in value generated for common shareholders:
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
Annualized return on average common equity(1) | 17.0 | % | 13.7 | % | |||||||||||||||||||||||||
Annualized operating return on average common equity(2) | 17.7 | % | 19.2 | % | |||||||||||||||||||||||||
Book value per diluted common share(3) | $ | 78.19 | $ | 66.48 | |||||||||||||||||||||||||
| Cash dividends declared per common share | $ | 0.44 | $ | 0.44 | |||||||||||||||||||||||||
(1)Annualized return on average common equity ("ROACE") is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders' equity determined using the common shareholders' equity balances at the beginning and end of the period.
(2)Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to the most comparable GAAP financial measure, annualized ROACE, and a discussion of the rationale for its presentation is provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.
(3)Book value per diluted common share represents total common shareholders’ equity divided by the number of diluted common share outstanding, determined using the treasury stock method.
Return on Average Common Equity and Operating Return on Average Common Equity
Our objective is to generate superior returns on capital that appropriately reward common shareholders for the risks we assume and to grow revenue only when we expect the returns will meet or exceed our requirements. We recognize that the nature of underwriting cycles and the frequency or severity of large loss events in any one year may challenge the ability to achieve a profitability target in any specific period.
The increase in ROACE for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily driven by net income available to commons shareholders, partially offset by an increase in average common shareholders' equity.
The decrease in operating ROACE for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily driven by an increase in average common shareholders' equity.
Book Value per Diluted Common Share
We consider book value per diluted common share to be an appropriate measure of returns to common shareholders, as we believe growth in book value on a diluted basis will ultimately translate into appreciation of our stock price.
During the three months ended March 31, 2026, book value per diluted common share increased by 1.3% due to net income for the period, partially offset by net unrealized investment losses recognized in accumulated other comprehensive income (loss), common share repurchases and common share dividends declared.
During the three months ended March 31, 2025, book value per diluted common share increased by 1.9% due to net income for the period, and net unrealized investment gains recognized in accumulated other comprehensive income (loss), partially offset by common share repurchases and common share dividends declared.
Cash Dividends Declared per Common Share and Common Share Repurchases
We believe in returning excess capital to shareholders by way of dividends. Accordingly, dividend policy is an integral part of the value we create for shareholders. Our Board of Directors has approved quarterly common share dividends for twenty-three consecutive years.
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NON-GAAP FINANCIAL MEASURES RECONCILIATION
| Three months ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 247,204 | $ | 186,508 | |||||||||||||||||||||||||
Net investment (gains) losses | 27,224 | 30,005 | |||||||||||||||||||||||||||
Foreign exchange losses (gains) | (36,196) | 57,034 | |||||||||||||||||||||||||||
Reorganization expenses | 23,168 | — | |||||||||||||||||||||||||||
Interest in income of equity method investments | (2,430) | (2,291) | |||||||||||||||||||||||||||
Income tax benefit(1) | (2,081) | (9,787) | |||||||||||||||||||||||||||
| Operating income | $ | 256,889 | $ | 261,469 | |||||||||||||||||||||||||
| Earnings per diluted common share | $ | 3.29 | $ | 2.26 | |||||||||||||||||||||||||
Net investment (gains) losses | 0.36 | 0.36 | |||||||||||||||||||||||||||
Foreign exchange losses (gains) | (0.48) | 0.69 | |||||||||||||||||||||||||||
| Reorganization expenses | 0.31 | — | |||||||||||||||||||||||||||
Interest in income of equity method investments | (0.03) | (0.03) | |||||||||||||||||||||||||||
Income tax benefit | (0.03) | (0.11) | |||||||||||||||||||||||||||
| Operating income per diluted common share | $ | 3.42 | $ | 3.17 | |||||||||||||||||||||||||
Weighted average diluted common shares outstanding(2) | 75,153 | 82,378 | |||||||||||||||||||||||||||
| Average common shareholders' equity | $ | 5,818,536 | $ | 5,446,089 | |||||||||||||||||||||||||
| Annualized return on average common equity | 17.0 | % | 13.7 | % | |||||||||||||||||||||||||
Annualized operating return on average common equity | 17.7 | % | 19.2 | % | |||||||||||||||||||||||||
(1)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.
(2)Refer to Item 1, Note 7 to our Consolidated Financial Statements 'Earnings per Common Share' for further details.
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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 Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), 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, 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 average cash and investments excluding foreign exchange movements, which are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. 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 Item 8, Note 3 to the Consolidated Financial Statements 'Segment Information', 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 consolidated underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations'.
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 Item 8, Note 3 to the Consolidated Financial Statements 'Segment Information', 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).
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Reorganization expenses in 2026 primarily related to costs attributable to streamlining our reinsurance operations and costs attributable to transitions in executive leadership. 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 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations'.
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 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations'.
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 catastrophes, man-made disasters, other significant 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 catastrophes, man-made disasters, other significant 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 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations'.
Operating Income (Loss)
Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments.
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
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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 2026 primarily related to costs attributable to streamlining our reinsurance operations and costs attributable to transitions in executive leadership. 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).
Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments 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 and interest in income (loss) of equity method investments 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 above.
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 above to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively.
Constant Currency Basis
We present gross premiums written and net premiums earned on a constant currency basis in this MD&A. 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 earned on a constant basis. The reconciliation to gross premiums written and net premiums earned on a GAAP basis is presented in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment'.
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 investment 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 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Net Investment Income and Net Investment Gains (Losses)'.
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CASH AND INVESTMENTS
Details of cash and investments are as follows:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Fair Value | Fair Value | |||||||||||||||||||||||||
| Fixed maturities, available for sale | $ | 13,107,142 | $ | 13,018,027 | ||||||||||||||||||||||
Fixed maturities, held to maturity(1) | 401,480 | 395,942 | ||||||||||||||||||||||||
| Equity securities | 688,842 | 707,569 | ||||||||||||||||||||||||
| Mortgage loans | 343,959 | 356,840 | ||||||||||||||||||||||||
| Other investments | 1,042,649 | 1,027,798 | ||||||||||||||||||||||||
| Equity method investments | 236,767 | 227,181 | ||||||||||||||||||||||||
| Short-term investments | 5,836 | 20,298 | ||||||||||||||||||||||||
| Total investments | $ | 15,826,675 | $ | 15,753,655 | ||||||||||||||||||||||
Cash and cash equivalents(2) | $ | 1,388,118 | $ | 1,321,185 | ||||||||||||||||||||||
(1)Presented at net carrying value of $405 million (2025: $397 million) in the consolidated balance sheets.
(2)Includes restricted cash and cash equivalents of $526 million and $501 million at March 31, 2026 and at December 31, 2025, respectively.
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Overview
The fair value of total investments increased by $73 million in the three months ended March 31, 2026, as the reinvestment of interest income and cashflows from operations was partially offset by the decrease in market value of fixed maturities and equities.
An analysis of our investment portfolio by asset class is detailed below:
Fixed Maturities
Details of our fixed maturities portfolio are as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
| Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||||||
| Fixed maturities: | |||||||||||||||||||||||||||||
| U.S. government and agency | $ | 2,462,147 | 18 | % | $ | 2,417,901 | 18 | % | |||||||||||||||||||||
| Non-U.S. government | 846,705 | 6 | % | 810,544 | 6 | % | |||||||||||||||||||||||
| Corporate debt | 5,321,178 | 41 | % | 5,365,509 | 41 | % | |||||||||||||||||||||||
| Agency RMBS | 2,073,952 | 15 | % | 2,035,352 | 15 | % | |||||||||||||||||||||||
| CMBS | 788,789 | 6 | % | 801,511 | 6 | % | |||||||||||||||||||||||
| Non-agency RMBS | 197,508 | 1 | % | 190,124 | 1 | % | |||||||||||||||||||||||
| ABS | 1,768,457 | 13 | % | 1,740,933 | 13 | % | |||||||||||||||||||||||
Municipals(1) | 49,886 | — | % | 52,095 | — | % | |||||||||||||||||||||||
| Total | $ | 13,508,622 | 100 | % | $ | 13,413,969 | 100 | % | |||||||||||||||||||||
| Credit ratings: | |||||||||||||||||||||||||||||
| U.S. government and agency | $ | 2,462,147 | 18 | % | $ | 2,417,901 | 18 | % | |||||||||||||||||||||
AAA(2) | 2,622,092 | 19 | % | 2,577,512 | 19 | % | |||||||||||||||||||||||
AA | 3,198,065 | 25 | % | 3,182,165 | 24 | % | |||||||||||||||||||||||
| A | 2,313,733 | 17 | % | 2,331,459 | 17 | % | |||||||||||||||||||||||
| BBB | 1,399,221 | 10 | % | 1,339,101 | 10 | % | |||||||||||||||||||||||
Below BBB(3) | 1,513,364 | 11 | % | 1,565,831 | 12 | % | |||||||||||||||||||||||
| Total | $ | 13,508,622 | 100 | % | $ | 13,413,969 | 100 | % | |||||||||||||||||||||
(1)Includes bonds issued by states, municipalities, and political subdivisions.
(2)Includes U.S. government-sponsored agencies, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS").
(3)Non-investment grade and non-rated securities.
At March 31, 2026, fixed maturities had a weighted average credit rating of A+ (2025: A+), a book yield of 4.7% (2025: 4.6%), and an average duration of 3.2 years (2025: 3.1 years).
At March 31, 2026, fixed maturities together with short-term investments, cash and cash equivalents (i.e. total investments of $14.9 billion) had a weighted average credit rating of AA- (2025: AA-) and an average duration of 2.9 years (2025: 2.8 years).
At March 31, 2026, net unrealized losses on fixed maturities, available for sale were $81 million, compared to net unrealized gains of $80 million at December 31, 2025, a decrease of $161 million due to the decline in market values.
Equity Securities
At March 31, 2026, net unrealized gains on equity securities were $86 million, compared to $126 million at December 31, 2025, a decrease of $40 million driven by the decline in market values, and net realized gains associated with sales in the period.
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Mortgage Loans
At March 31, 2026, investment in commercial mortgage loans was $344 million, compared to $357 million at December 31, 2025, a decrease of $13 million mainly driven by repayments of loans. The commercial mortgage loans are collateralized by a variety of commercial properties and diversified geographically throughout the U.S. and by property type to reduce the risk of concentration. At March 31, 2026, the allowance for expected credit losses of $29 million, was primarily related to commercial properties exposed to the office sector.
Other Investments
Details of our other investments portfolio are as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
| Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||||||
| Multi-strategy funds | $ | 10,987 | 1 | % | $ | 11,577 | 1 | % | |||||||||||||||||||||
| Direct lending funds | 193,616 | 19 | % | 186,747 | 18 | % | |||||||||||||||||||||||
| Private equity funds | 382,826 | 37 | % | 364,376 | 36 | % | |||||||||||||||||||||||
| Real estate funds | 279,937 | 27 | % | 291,491 | 28 | % | |||||||||||||||||||||||
Total multi-strategy, direct lending, private equity and real estate funds | 867,366 | 84 | % | 854,191 | 83 | % | |||||||||||||||||||||||
| Other privately held investments | 175,283 | 17 | % | 173,607 | 17 | % | |||||||||||||||||||||||
| Total other investments | $ | 1,042,649 | 100 | % | $ | 1,027,798 | 100 | % | |||||||||||||||||||||
Refer to Note 3(e) to the Consolidated Financial Statements 'Investments'.
Equity Method Investments
Refer to Note 3(f) to the Consolidated Financial Statements 'Investments'.
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LIQUIDITY AND CAPITAL RESOURCES
Refer to the 'Liquidity and Capital Resources' section included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025 for a general discussion of liquidity and capital resources.
The following table summarizes consolidated capital:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||
| Debt | $ | 1,317,104 | $ | 1,316,710 | |||||||||||||
| Preferred shares | 550,000 | 550,000 | |||||||||||||||
| Common equity | 5,830,636 | 5,806,435 | |||||||||||||||
| Shareholders’ equity | 6,380,636 | 6,356,435 | |||||||||||||||
| Total capital | $ | 7,697,740 | $ | 7,673,145 | |||||||||||||
| Ratio of debt to total capital | 17.1 | % | 17.2 | % | |||||||||||||
We finance our operations with a combination of debt and equity capital. The debt to total capital ratio provides an indication of our capital structure, along with some insight into our financial strength. We believe that our financial flexibility remains strong. Adjustments are made if developments occur that are different from previous expectations.
Federal Home Loan Bank Advances
The Company's subsidiaries, AXIS Insurance Company and AXIS Surplus Insurance Company, are members of the Federal Home Loan Bank of Chicago ("FHLB").
At March 31, 2026, the companies had admitted assets of approximately $3.5 billion which provides borrowing capacity of up to approximately $877 million.
At March 31, 2026, the Company had borrowings under the FHLB program of $66 million.
The FHLB advances have maturities in 2026 and interest payable at interest rates between 3.9% and 4.2%. The Company incurred interest expense of $1 million for the three months ended March 31, 2026.
The borrowings under the FHLB program are secured by cash and investments with a fair value of $74 million.
Refer to Note 11 to the Consolidated Financial Statements 'Federal Home Loan Advances'.
Letter of Credit Facility
On March 23, 2026, the $300 million Facility was amended to reduce the committed utilization capacity available under the Facility to $250 million (the "$250 million Facility") and extend the tenors of issuable letters of credit to March 31, 2028.
On March 23, 2025, the $300 million Facility was amended to extend the tenors of issuable letters of credit to March 31, 2027.
On August 26, 2025, AXIS Corporate Capital UK II Limited (the "Borrower"), acting through AXIS Managing Agency Limited, as managing agent of Syndicate 1686 and Syndicate 2050 (collectively, the "Syndicates"), entered into a Facility Letter and Master Agreement (together, the "Agreements") with Citibank (the "Lender"), providing for an uncommitted unsecured letter of credit facility up to a maximum aggregate amount of $90 million (the "$90 million Facility") with tenors of issuable letters of credit to August 31, 2030. The facility is supported by a guarantee issued by AXIS Specialty Limited.
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The letter of credit facility is intended to support the Borrower's obligations in connection with the Syndicates’ participation in the Lloyd’s insurance market, specifically its Funds at Lloyd’s requirements. The facility contains customary representations, warranties, covenants, and events of default for transactions of this nature.
On October 8, 2025, AXIS Specialty Limited (the "Borrower"), entered into a Letter Agreement with Wells Fargo Bank, National Association (the "Bank"), providing for an uncommitted bilateral short-term line of credit facility up to a maximum aggregate amount of $150 million (the "$150 million Facility") with tenors of issuable letters of credit to October 7, 2026.
The $150 million Facility is intended to support the Borrower's working capital requirements and general corporate expenses. The line of credit facility contains customary representations, warranties, covenants, and events of default for transactions of this nature.
Common Equity
During the three months ended March 31, 2026, common equity increased by $24 million. The following table reconciles opening and closing common equity positions:
| Three months ended March 31, | 2026 | ||||||||||
| Common equity - opening | $ | 5,806,435 | |||||||||
| Share-based compensation expense | 15,864 | ||||||||||
Change in unrealized gains (losses) on available for sale investments, net of tax | (122,498) | ||||||||||
| Foreign currency translation adjustment | (3,061) | ||||||||||
Net income | 254,767 | ||||||||||
| Preferred share dividends | (7,563) | ||||||||||
| Common share dividends | (33,108) | ||||||||||
| Treasury shares repurchased | (82,234) | ||||||||||
| Treasury shares reissued | 2,034 | ||||||||||
| Common equity - closing | $ | 5,830,636 | |||||||||
During the three months ended March 31, 2026, we repurchased 0.8 million common shares for a total of $82 million, including $60 million repurchased pursuant to our Board-authorized share repurchase programs and $23 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units granted under our 2017 Long-Term Equity Compensation Plan.
On September 17, 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 March 31, 2026, remaining authorization under this plan was $53 million.
On February 26, 2026, the Company's Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares. The new share repurchase programs supplements the existing share repurchase program, and 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 (refer to Part II, Item 2 'Unregistered Sales of Equity Securities and Use of Proceeds' for further details).
We expect cash flows generated from operations, combined with liquidity provided by our investment portfolio, will be sufficient to cover cash outflows and other contractual commitments through the foreseeable future.
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CRITICAL ACCOUNTING ESTIMATES
The consolidated financial statements include certain amounts that are inherently uncertain and judgmental in nature. As a result, we are required to make assumptions and best estimates in order to determine the reported values. We consider an accounting estimate to be critical if: (1) it requires that significant assumptions be made in order to deal with uncertainties and (2) changes in the estimate could have a material impact on our results of operations, financial condition or liquidity.
We believe the material items requiring such subjective and complex estimates are:
•reserves for losses and loss expenses;
•reinsurance recoverable on unpaid losses and loss expenses, including the allowance for expected credit losses;
•gross premiums written and net premiums earned;
•fair value measurements of financial assets and liabilities; and
•the allowance for expected credit losses associated with fixed maturities, available for sale.
We believe that the critical accounting estimates discussion in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, continues to describe the significant estimates and judgments included in the preparation of the consolidated financial statements.
RECENT ACCOUNTING PRONOUNCEMENTS
At March 31, 2026, there were no recently issued accounting pronouncements that we have not yet adopted that we expect could have a material impact on our results of operations, financial condition or liquidity.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Refer to Item 7A included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to this item since December 31, 2025, with the exception of the changes in exposure to foreign currency risk presented below.
Foreign Currency Risk
The table below provides a sensitivity analysis of total net foreign currency exposures:
| AUD | CAD | EUR | GBP | JPY | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| At March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives | $ | 74,059 | $ | 358,912 | $ | 48,965 | $ | (13,394) | $ | (25,452) | $ | 204,625 | $ | 647,715 | |||||||||||||||||||||||||||||||||||||||
Foreign currency derivatives, net | (126,627) | (415,142) | (57,934) | (65,151) | 17,867 | (185,105) | (832,092) | ||||||||||||||||||||||||||||||||||||||||||||||
Net managed foreign currency exposure | (52,568) | (56,230) | (8,969) | (78,545) | (7,585) | 19,520 | (184,377) | ||||||||||||||||||||||||||||||||||||||||||||||
| Other net foreign currency exposure | — | 276 | 245 | 159 | — | 1 | 681 | ||||||||||||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | (52,568) | $ | (55,954) | $ | (8,724) | $ | (78,386) | $ | (7,585) | $ | 19,521 | $ | (183,696) | |||||||||||||||||||||||||||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity | (0.8 | %) | (0.9 | %) | (0.1 | %) | (1.2 | %) | (0.1 | %) | 0.3 | % | (2.9 | %) | |||||||||||||||||||||||||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) | $ | (5,257) | $ | (5,595) | $ | (872) | $ | (7,839) | $ | (759) | $ | 1,952 | $ | (18,370) | |||||||||||||||||||||||||||||||||||||||
(1)Assumes 10% appreciation in underlying currencies relative to the U.S. dollar.
Total Net Foreign Currency Exposure
At March 31, 2026, total net foreign currency liabilities were $184 million primarily driven by exposures to the pound sterling, Canadian dollar, Australian dollar, euro and Japanese yen. During the three months ended March 31, 2026, the change in total net foreign currency exposure was primarily due to new business written in the period.
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ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The Company’s management has performed an evaluation, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act")) at March 31, 2026. Based upon that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that, at March 31, 2026, the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and is accumulated and communicated to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
The Company’s management has performed an evaluation, with the participation of the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, of changes in the Company’s internal control over financial reporting that occurred during the three months ended March 31, 2026.
Based upon that evaluation, there were no changes in the Company's internal control over financial reporting that occurred during the three months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we are subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against us in the ordinary course of our insurance or reinsurance operations. Estimated amounts payable related to these proceedings are included in the reserve for losses and loss expenses in our consolidated balance sheets.
We are not party to any material legal proceedings arising outside the ordinary course of business.
ITEM 1A. RISK FACTORS
There were no material changes from the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
The following table shows information regarding the number of common shares repurchased in the quarter ended March 31, 2026:
| Period | Total number of shares purchased (a) (b) | Average price paid per share | Total number of shares purchased as part of publicly announced programs (a) | Maximum number (or approximate dollar value) of shares that may yet be purchased under the announced programs (c) (d) | ||||||||||||||||||||||
| January 1-31, 2026 | 1 | $107.09 | — | $112 million | ||||||||||||||||||||||
| February 1-28, 2026 | 259 | $103.87 | 255 | $386 million | ||||||||||||||||||||||
| March 1-31, 2026 | 534 | $103.32 | 324 | $353 million | ||||||||||||||||||||||
Total | 794 | 579 | $353 million | |||||||||||||||||||||||
(a) In thousands.
(b) Includes shares repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units under our 2017 Long-Term Equity Compensation Plans.
(c) On September 17, 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 March 31, 2026, remaining authorization under this plan was $53 million.
(d) On February 26, 2026, the Company's Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares. The new share repurchase programs supplements the existing share repurchase program, and 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.
ITEM 5. OTHER INFORMATION
Disclosure of Certain Activities Under Section 13(r) of the Securities Exchange Act of 1934
Section 13(r) of the Securities Exchange Act of 1934, as amended, requires issuers to disclose in their annual and quarterly reports whether they or any of their affiliates knowingly engaged in certain activities with Iran or with individuals or entities that are subject to certain sanctions under U.S. law. Issuers are required to provide this disclosure even where the activities, transactions or dealings are conducted outside of the U.S. in compliance with applicable law.
As and when allowed by the applicable law and regulations, certain of our non-U.S. subsidiaries provide treaty reinsurance coverage to non-U.S. insurers on a worldwide basis, including insurers of liability, marine, aviation and energy risks, and as a result, these underlying insurance and reinsurance portfolios may have some exposure to Iran. In addition, we provide insurance and facultative reinsurance on a global basis to non-U.S. insureds and insurers, including for liability, marine, aviation and energy risks. Coverage provided to non-Iranian business may indirectly cover an exposure in Iran. For example, certain of our operations underwrite global marine hull war and cargo policies that provide coverage for vessels navigating into and out of ports worldwide, including Iran. For the quarter ended March 31, 2026, there has been no material amount of premium allocated or apportioned to activities relating to Iran. We intend for our non-U.S. subsidiaries to continue to provide such coverage only to the extent permitted by applicable law.
Insider Trading Arrangements and Policies
During the three months ended March 31, 2026, no director or officer of the Company adopted terminated
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ITEM 6. EXHIBITS
3.1 | Certificate of Incorporation and Memorandum of Association (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1(Amendment No. 1) (No. 333-103620) filed on April 16, 2003). | |||||||
3.2 | Amended and Restated Bye-Laws (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-8 filed on May 15, 2009). | |||||||
4.1 | Specimen Common Share Certificate (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-1 (Amendment No. 3) (No. 333-103620) filed on June 10, 2003). | |||||||
4.2 | Certificate of Designations establishing the specific rights, preferences, limitations and other terms of the Series E Preferred Shares (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 7, 2016). | |||||||
10.1 | Amendment Agreement dated March 23, 2026, by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 24, 2026). | |||||||
†31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
†31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
†32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
†32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
| †101 | The following financial information from AXIS Capital Holdings Limited’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in Inline XBRL: (i) Consolidated Balance Sheets at March 31, 2026 and December 31, 2025; (ii) Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025; (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025; (iv) Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2026 and 2025; (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025; and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and in detail. | |||||||
| †104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
† Filed herewith.
* Management contract, compensatory plan or arrangement.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: April 29, 2026
| AXIS CAPITAL HOLDINGS LIMITED | |||||
| By: | /S/ VINCENT TIZZIO | ||||
| Vincent Tizzio | |||||
| President and Chief Executive Officer | |||||
| (Principal Executive Officer) | |||||
/S/ MATTHEW KIRK | |||||
Matthew Kirk | |||||
| Chief Financial Officer | |||||
| (Principal Financial Officer) | |||||
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FAQ
How did AXIS Capital (AXS) perform financially in Q1 2026?
AXIS Capital reported net income of $254.8 million for Q1 2026, up from $194.1 million a year earlier. Net premiums earned grew to $1.48 billion, while earnings per common share increased to $3.34, reflecting stronger underwriting and investment contributions.
What was AXIS Capital’s combined ratio for Q1 2026 and what does it indicate?
AXIS Capital’s consolidated combined ratio was 89.8% in Q1 2026, slightly better than 90.2% in 2025. A combined ratio below 100% indicates the company earned an underwriting profit before investment income, showing its core insurance and reinsurance operations were profitable.
How much underwriting income did AXIS Capital generate in Q1 2026?
AXIS Capital generated total underwriting income of $187.4 million in Q1 2026, up from $163.5 million. The insurance segment contributed $157.4 million and the reinsurance segment $30.0 million, supported by net favorable prior year reserve development of $18.1 million.
What were AXIS Capital’s catastrophe and weather-related losses in Q1 2026?
AXIS Capital recorded $48 million of catastrophe and weather-related losses, net of reinsurance, in Q1 2026. These losses related to events including U.S. winter storms and the Middle East Conflict, contributing to overall net losses and loss expenses of $867.3 million for the quarter.
How strong was AXIS Capital’s operating cash flow in Q1 2026?
AXIS Capital generated $519.4 million of net cash from operating activities in Q1 2026, up from $309.1 million. This strong cash flow helped fund dividends on common and preferred shares and supported common share repurchases while maintaining solid liquidity and investment capacity.
How much capital did AXIS Capital return to shareholders in Q1 2026?
In Q1 2026, AXIS Capital paid $33.1 million in common share dividends and $7.6 million in preferred share dividends. It also repurchased common shares at a total cost of $82.2 million, reflecting active capital return alongside modest growth in shareholders’ equity.
What was AXIS Capital’s investment portfolio size and income in Q1 2026?
AXIS Capital held total investments of $15.83 billion at March 31, 2026. Net investment income for Q1 2026 was $184.7 million, mainly from fixed maturities, partially offset by net investment losses of $27.2 million from realized, unrealized, and credit-related investment movements.