AXIS CAPITAL HOLDINGS LTD

Previous wording

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.

Current wording

The following is a discussion and analysis of our results of operations for the three and six months ended June 30, 2026 and 2025 and our financial condition at June 30, 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.

Previous wording

First Quarter 2026 Consolidated Results of Operations

Current wording

Second Quarter 2026 Consolidated Results of Operations

Previous wording

•Net income available to common shareholders of $247 million, or $3.29 per diluted common share

Current wording

•Net income available to common shareholders of $251 million, or $3.38 per diluted common share

Previous wording

•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

Current wording

•Pre-tax, catastrophe and weather-related losses, net of reinsurance, of $80 million ($63 million, after-tax), (Insurance: $78 million; Reinsurance: $3 million), or 5.3 points, including natural catastrophe losses of $49 million, or 3.2 points. The remaining losses of $31 million, or 2.1 points, were attributable to the Middle East Conflict

Previous wording

•Net favorable prior year reserve development of $18 million (Insurance: $15 million; Reinsurance: $3 million)

Current wording

•Net favorable prior year reserve development of $15 million (Insurance: $12 million; Reinsurance: $3 million)

Previous wording

•Underwriting income(2) of $187 million and combined ratio of 89.8%

Current wording

•Underwriting income(2) of $143 million and combined ratio of 93.1%

Previous wording

•Fees related to arrangements with strategic capital partners of $23 million, including $18 million recognized as a reimbursement of general and administrative expenses

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•Fees related to arrangements with strategic capital partners of $22 million, including $17 million recognized as a reimbursement of general and administrative expenses

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•Income tax expense of $56 million, resulting in an effective tax rate of 18.0%

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•Income tax expense of $61 million, resulting in an effective tax rate of 19.2%

Previous wording

First Quarter 2026 Consolidated Financial Condition

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Second Quarter 2026 Consolidated Financial Condition

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•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-

Current wording

•Total cash and invested assets of $17.8 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 87% of total cash and investments and have an average credit rating of AA-

Previous wording

•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

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•Reserve for losses and loss expenses of $18.6 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $9.6 billion

Previous wording

•Debt of $1.3 billion and debt to total capital ratio(3) of 17.1%

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•Debt of $1.3 billion and debt to total capital ratio(3) of 16.8%

Previous wording

•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

Current wording

•Total common shares repurchased were 978,000 shares for a total of $97 million, including $89 million repurchased pursuant to our Board-authorized share repurchase programs, and $8 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units

Previous wording

•Common shareholders’ equity of $5.8 billion; book value per diluted common share of $78.19

Current wording

•Common shareholders’ equity of $6.0 billion; book value per diluted common share of $80.67

Previous wording

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.

Current wording

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions with locations in Bermuda, the United States, Europe, Singapore and Canada. Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re.

Previous wording

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:

Current wording

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 six months of 2026 included the following:

Previous wording

•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;

Current wording

•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 with a focus on short-tail lines;

Previous wording

•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;

Current wording

•investing in data and technology, together with AI capabilities and tools, to enhance productivity, empower our teammates and enhance the service that we provide to our customers;

Previous wording

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.

Current wording

AXIS is executing with clarity and conviction in 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 global multivariate distribution model – 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.

Previous wording

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.

Current wording

The global trade and geopolitical landscape remain fluid, introducing uncertainty across economic conditions, loss costs, and capital deployment. AXIS is built to operate effectively in dynamic risk environments. We proactively assess evolving risks and translate uncertainty into specialized insurance solutions 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.

Previous wording

Key trends shaping our markets underscore the strength of our approach:

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The following are some key trends shaping our markets that underscore the strength of our approach:

Previous wording

•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.

Current wording

•Pricing dynamics are evolving following multiple years of rate increases that exceeded loss cost trends. Market conditions are softening with variances across the various "micro markets" where AXIS competes: casualty lines continue to achieve positive rate momentum, financial lines pricing remains stable, and property markets continue to experience pressure from increased capital inflows that are fueling global market competition. We are deliberately managing capital deployment where premium adequacy remains compelling. This approach includes ensuring volatility is appropriately priced while seeking additional market dislocations and opportunities at target returns.

Previous wording

•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.

Current wording

•Distribution dynamics remain constructive for disciplined specialty underwriters. In North America, submission growth through the wholesale channel remains steady as market conditions vary by line of business, reinforcing the importance of underwriting selectivity. In the London Market, increasingly granular "micro‑markets" by line of business and channel continue to reward technical underwriting expertise and strong broker relationships. These conditions play directly to AXIS, strengths and support sustainable, profitable growth.

Previous wording

(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.

Current wording

(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 $33 million and $26 million for the three months ended June 30, 2026 and 2025, respectively and $64 million and $55 million for thesix months ended June 30, 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.

Previous wording

(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'.

Current wording

(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 measures, net losses and loss expenses ratio are 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'.

Previous wording

(2) The general and administrative expense ratio included corporate expenses not allocated to underwriting segmentsof 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.

Current wording

(2) The general and administrative expense ratio includes corporate expenses not allocated to underwriting segmentsof 2.1% and 1.9% for the three months ended June 30, 2026 and 2025, respectively, and 2.1% and 2.0% for the six months ended June 30, 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.

Previous wording

The increase in professional lines was also driven by a higher level of premiums and increased rate associated with transactional liability business.

Current wording

The increase in professional lines was also driven by the timing of renewals of transactional liability business and higher renewals of design professional liability business.

Previous wording

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 inproperty, 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.

Current wording

Gross premiums written for the six months ended June 30, 2026 increased by $624 million, or 17%, compared to the six months ended June 30, 2025, attributable to all lines of business with the exception of cyber lines. In addition, our ACS capability contributed approximately $338 million to the increase in gross premiums written in six months ended June 30, 2026, compared to the six months ended June 30, 2025, including $61 million attributable to a discrete Funds at Lloyds ("FAL") transaction. The FAL transaction was written on a proportional basis therefore, annual estimated premium income was recognized at inception of the contract.

Previous wording

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.

Current wording

Ceded premiums written for the six months ended June 30, 2026 was $1,548 million, or 37%, of gross premiums written, compared to $1,253 million, or 35%, of gross premiums written for the six months ended June 30, 2025. The increase in ceded premiums written as a percentage of gross premiums written was 2% primarily due to an increased cession ratein property lines, partially offset bydecreased cession rates in liability, and accident and health lines.

Previous wording

The increases inprofessional lines and property lineswas due to increases ingross 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.

Current wording

The increases in professional lines and marine and aviation lines were 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 an existing quota share treaty that increased our retention on this line of business.

Previous wording

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.

Current wording

Net premiums earned for the six months ended June 30, 2026 increased by $286 million, or 14%, compared to the six months ended June 30, 2025, primarily driven by increases in professional lines, liability, property, and marine and aviation lines.

Previous wording

(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.

Current wording

(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. The reconciliations to the most comparable GAAP financial measures are provided in'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment'and a discussion of the rationale for the presentation of these items is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'. Variances that are unchanged on a constant currency basis are omitted from the narrative.

Previous wording

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.

Current wording

Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 54.0% for the three months ended June 30, 2026, from 52.3% for the three months ended June 30, 2025, principally due an acceleration in property market softening and the recognition of increasingly competitive conditions in casualty lines.

Previous wording

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.

Current wording

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 and reserve class.

Previous wording

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.

Current wording

The acquisition cost ratio increased to 20.1% and 19.9% for thethree and six months ended June 30, 2026, from 18.9% and 19.0% for thethree and six months ended June 30, 2025, primarily related to an increase in gross variable 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, which are associated with relatively higher gross acquisition cost ratios. The acquisition cost ratio for the three months ended June 30, 2026 benefited from increases in ceding commission in accident and health, and cyber lines.

Previous wording

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.

Current wording

The underwriting-related general and administrative expense ratio decreased to 10.3% for the six months ended June 30, 2026, from 12.0% for the six months ended June 30, 2025, mainly driven by an increase in net premiums earned.

Previous wording

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.

Current wording

Gross premiums written for the three months ended June 30, 2026, decreased by $144 million, or 25%, compared to the three months ended June 30, 2025 primarily attributable to non-renewals and decreased line sizes in professional lines and liability lines.

Previous wording

The decrease in liability lines was due to non-renewals and decreased line sizes primarily related to general liability business.

Current wording

The decrease in liability lines was due to decreased line sizes and non-renewals primarily related to general liability business.

Previous wording

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.

Current wording

The decrease in motor lines was due to decreased line sizes and non-renewals of non-proportional U.K. business associated with increased competition and unfavorable market conditions, partially offset by new non-U.K. proportional and non-proportional business.

Previous wording

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.

Current wording

Ceded premiums written for the six months ended June 30, 2026, was $705 million, or 45%, of gross premiums written, compared to $672 million, or 39%, of gross premiums written for the six months ended June 30, 2025. The increase in ceded premiums writtenas a percentage of gross premiums written was 6% primarily due to increased cession rates in professional lines, liability and motor lines.