AXIS Capital — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common shareholders for the third quarter of 2026 was $202 million ($2.75 per diluted share), a 32% decrease compared to the third quarter of 2025.
• Operating income for the third quarter was $229 million ($3.12 per diluted share), a 10% decrease compared to the third quarter of 2025.
• Net income available to common shareholders year-to-date was $699 million ($9.42 per diluted share), a 0.4% increase compared to the nine months ended September 30, 2025.
• Operating income year-to-date was $697 million ($9.39 per diluted share), a 10% decrease compared to the nine months ended September 30, 2025.
• Underwriting income for the third quarter was $134 million, a 29% decrease compared to the third quarter of 2025.
• Underwriting income year-to-date was $464 million, a 14% decrease compared to the nine months ended September 30, 2025.
• Annualized return on average common equity (ROACE) was 13.8% for the third quarter of 2026, compared to 20.6% in the prior year quarter.
• Annualized operating ROACE was 15.7% for the third quarter of 2026, compared to 17.8% in the prior year quarter.
• Combined ratio was 94.0% for the third quarter of 2026, compared to 89.4% in the prior year quarter.
• Combined ratio was 92.3% year-to-date, compared to 89.5% in the prior year period.
• Book value per diluted common share was $79.06 at September 30, 2026, a 2.0% decrease from June 30, 2026, and a 7.1% increase over the past twelve months.
• Book value per diluted common share, excluding AOCI, was $84.33 at September 30, 2026, a 14.4% increase compared to $73.69 at September 30, 2025.
• Total capital returned to common shareholders in the quarter was $141 million, including $109 million in share repurchases and $32 million in dividends.
• Net investment income increased 14% to $211 million in the third quarter, driven by higher yields and average fixed maturity assets.
• Net investment gains (losses) recognized in net income were $(46.5) million for the third quarter, primarily due to realized losses on fixed maturities and unrealized losses on equity securities.
• Change in net unrealized gains (losses) on fixed maturities was $(361) million pre-tax for the third quarter.
• Book yield of fixed maturities was 4.9% at September 30, 2026, compared to 4.6% at September 30, 2025.
• Reorganization expenses were $nil for the third quarter and $29 million year-to-date.

Guidance and Future Outlook:

• Management stated the company is well-positioned for the remainder of 2026 and 2027, citing a strong balance sheet that provides flexibility for investments in products, platforms, and talent.
• The company emphasized a clear strategy, balanced and resilient portfolio, enhanced operating model, and a deep team as key drivers for future performance.

Business Segments and Product Lines:

• Insurance Segment:
  • Gross premiums written increased 13% to $1.9 billion in the third quarter and 16% to $6.1 billion year-to-date.
  • Net premiums written increased 13% to $1.2 billion in the third quarter and 14% to $3.9 billion year-to-date.
  • Underwriting income was $104 million in the third quarter (down 32%) and $381 million year-to-date (down 13%).
  • Combined ratio was 92.0% for the third quarter and 89.5% year-to-date.
  • Current accident year combined ratio, excluding catastrophe and weather-related losses, was 87.2% for the third quarter.
  • Growth was driven by marine and aviation lines (marine war business), property and professional lines (new business via AXIS Capacity Solutions), and accident and health lines.
  • The acquisition cost ratio increased 3.7 points in the third quarter due to new property/professional lines and a mix of short-tail lines like marine war.
• Reinsurance Segment:
  • Gross premiums written increased 4% to $449 million in the third quarter but decreased 7% to $2.0 billion year-to-date.
  • Net premiums written decreased 5% to $256 million in the third quarter and 16% to $1.1 billion year-to-date.
  • Underwriting income was $30 million in the third quarter (down 15%) and $83 million year-to-date (down 18%).
  • Combined ratio was 92.4% for the third quarter and 93.2% year-to-date.
  • The segment generated its 11th consecutive profitable quarter.
  • Year-to-date decreases were driven by non-renewals and decreased line sizes in casualty lines, partially offset by increased line sizes in credit and surety lines.
  • Acquisition cost ratio increased 1.2 points year-to-date due to higher business in credit and surety lines.

Market and Competitive Landscape:

• Gross premiums rose 11% in the third quarter, driven by attractive underwriting opportunities in a transitioning market.
• The insurance segment's current accident year loss ratio, excluding catastrophe and weather-related losses, increased 1.9 points in the third quarter due to property market softening and increasingly competitive casualty conditions.
• Reinsurance segment gross premiums were impacted by non-renewals and decreased line sizes in liability lines.
• Fees related to arrangements with strategic capital partners were $23 million in the third quarter and $67 million year-to-date.

Risks and Challenges:

• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $75 million in the third quarter (4.6 points), including $44 million attributable to the Middle East conflict and Russia-Ukraine war.
• Year-to-date pre-tax catastrophe and weather-related losses were $203 million (4.4 points), including $112 million from U.S. winter storms and other weather events, and $90 million from geopolitical conflicts.
• The acquisition cost ratio increased due to a greater mix of short-tail lines with higher acquisition costs.
• Net investment gains were negatively impacted by unrealized losses on equity securities and a decrease in the market value of fixed maturities due to rising sovereign yields and widening credit spreads.

Management Commentary and Tone:

• Vince Tizzio, President and CEO, described the quarter as "strong," noting the team leaned into attractive underwriting opportunities while practicing disciplined cycle management.
• Management highlighted a 15.7% annualized operating return-on-equity and an 11% rise in gross premiums.
• Over the past twelve months, AXIS generated a 14.4% increase in diluted book value per share, excluding AOCI.
• The tone was confident regarding the company's positioning for 2027, citing balance sheet strength and strategic flexibility.

Other Key Points:

• Net favorable prior year reserve development was $15 million in the third quarter ($12 million from Insurance, $3 million from Reinsurance), compared to $19 million in the prior year quarter.
• Net favorable prior year reserve development was $48 million year-to-date ($39 million from Insurance, $9 million from Reinsurance), compared to $57 million in the prior year period.
• Shareholders' equity was $6.3 billion at September 30, 2026.
• The company maintains financial strength ratings of "A+" from Standard & Poor's and "A" from A.M. Best.
• A conference call was scheduled for October 29, 2026, at 8:30 a.m. ET.