AXIS CAPITAL HOLDINGS LTD (AXS)

CIK: 0001214816. SIC: 6331 Fire, Marine & Casualty Insurance. Latest 10-K as of: 2026-02-27.

SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6331 Fire, Marine & Casualty Insurance

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1214816. Latest filing source: 0001214816-26-000097.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001214816.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001214816.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001214816-26-000162.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-04-29. Report date: 2026-03-31.

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

44

Table of Contents

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.

45

Table of Contents

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.

46

Table of Contents

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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Table of Contents

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 administrat

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high. Filing date: 2026-02-27. Report date: 2025-12-31.

ITEM 7.    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 years ended December 31, 2025 and 2024, and our financial condition at December 31, 2025 and 2024. This should be read in conjunction with Item 8 'Financial Statements and Supplementary Data' of this report. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts may not reconcile due to rounding differences.

  Page  

2025 Financial Highlights

59

Overview

60

Consolidated Results of Operations

63

Results by Segment:

i) Insurance Segment

65

ii) Reinsurance Segment

69

Net Investment Income and Net Investment Gains (Losses)

73

Other Expenses (Revenues), Net

76

Financial Measures

78

Non-GAAP Financial Measures Reconciliation

79

Cash and Investments

83

Liquidity and Capital Resources

90

Critical Accounting Estimates

97

i) Reserve for Losses and Loss Expenses

97

ii) Reinsurance Recoverable on Unpaid Losses and Loss Expenses

102

iii) Gross Premiums Written

103

iv) Net Premiums Earned

104

v) Fair Value Measurements of Financial Assets and Liabilities

105

vi) Impairment Losses and the Allowance for Expected Credit Losses - Fixed Maturities, Available for Sale

106

Recent Accounting Pronouncements

107

58

2025 FINANCIAL HIGHLIGHTS

2025 Consolidated Results of Operations

•Net income available to common shareholders of $979 million, or $12.52 per common share, and $12.35 per diluted common share

•Operating income(1) of $1.0 billion, or $12.92 per diluted common share(1)

•Gross premiums written of $9.6 billion

•Net premiums written of $6.1 billion

•Net premiums earned of $5.7 billion

•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $159 million ($127 million, after-tax), (Insurance: $156 million; Reinsurance: $3 million) or 2.8 points, including natural catastrophe and weather-related losses of $137 million or 2.4 points, primarily attributable to California Wildfires, Hurricane Melissa and other weather-related events. The remaining losses of $22 million or 0.4 points were attributable to the Middle East Conflict.

•Net favorable prior year reserve development of $87 million

•Underwriting income(2) of $725 million and combined ratio of 89.8%

•Net investment income of $767 million

•Net investment gains of $59 million

•Foreign exchange losses of $142 million

•Income tax expense of $217 million, inclusive of a Bermuda deferred tax benefit of $19 million. Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments – Bermuda Corporate Income Tax Act 2023 for further details.

2025 Consolidated Financial Condition

•Total cash and investments of $17.2 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 $34.5 billion

•Reserve for losses and loss expenses of $18.1 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $9.6 billion.

•Debt of $1.3 billion and a debt to total capital ratio(3) of 17.2%

•Total common shares repurchased were 10 million shares for a total of $914 million, including $888 million repurchased pursuant to our Board-authorized share repurchase programs, and $27 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 $77.20

(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.

59

OVERVIEW

Business Overview

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions with operations 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 diverse 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 in 2025 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 underwriters and enhance the service that we provide to our customers;

•utilizing reinsurance markets and third-party capital relationships;

•fostering a positive workplace environment that enables us to attract, retain and develop top talent; and

•leveraging our sustainability program to support and to make a positive impact on our communities.

For discussion of our results of operations and changes in financial condition for year ended December 31, 2024, compared to year ended December 31, 2023, refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, which was filed with the SEC on February 26, 2025, and such discussions are incorporated herein by reference.

60

Outlook

We are executing on our commitment to advance AXIS as a specialty underwriting leader that delivers consistent, profitable growth. Our market positioning, diversified book of business, specialty underwriting acumen, global platform, claims management capabilities, and deep distribution relationships, supported by a well performing investment portfolio, provide the foundation for profitable growth in our targeted specialty markets.

The current trade and geopolitical environment introduce uncertainty across several dimensions including potential impacts on economic growth and loss costs. At AXIS, we assess all forms of uncertainty presented, and through our normal underwriting practices we take steps and measures that guard against adverse outcomes. Looking at the trends impacting our business:

•Following multiple years of rate increases outpacing loss cost trends across the specialty sector, overall pricing has moderated and in some sectors is softening. Casualty lines continue to see positive rate achievement while property rates are deteriorating due to the influx of capital being deployed in the space. We will continue to lean into sectors where premium adequacy metrics remain strong, where market dislocations arise and where organic profitable growth opportunities exist.

•The wholesale channel continues to experience submission growth in North America due to dislocations in the standard lines markets. This dynamic broadly enables specialty carriers to deploy a disciplined underwriting strategy to market opportunities.

•Overall pricing remains robust but is moderating for our reinsurance business. We continue to see nuances by line of business and expect these conditions to persist. We continue to focus on underwriting discipline and profitability.

Across the business, we will continue to pursue attractive opportunities by employing a focused underwriting strategy and selective appetite.

Where price continues to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strong and balanced book of business, and an expanding footprint in our chosen specialty markets, we believe AXIS remains well positioned to drive profitable growth in 2026.

Recent Developments

Loss Portfolio Transfer Reinsurance Agreement with Enstar

On December 13, 2024, we entered into a loss portfolio transfer reinsurance agreement ("LPT agreement") with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years. The transaction was subject to regulatory approvals and other customary conditions.

On April 24, 2025 (the "closing date"), the LPT transaction was completed and consideration of $2,039 million was paid to Enstar.

The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $2,060 million and provides cover up to a policy limit of approximately $940 million. The transaction was deemed to have met the established criteria for retroactive reinsurance accounting. Under the terms of the LPT agreement we retained responsibility for the management of claims.

Pursuant to the LPT transaction, Enstar was required to post collateral equal to 102% of our estimate of Enstar's obligations based on our estimate of net reserves for losses and loss expenses at the closing date. The collateral is provided through a collateral trust arrangement (the "LPT Trust") established by Enstar. At December 31, 2025, the balance in the LPT Trust was $1,895 million, together with a funds withheld balance of $17 million, and a letter of credit of $65 million, with the total balance of collateral securing Enstar’s obligations of $1,977 million. At December 31, 2025, the total reinsurance recoverable on unpaid losses associated with the LPT transaction was $1,755 million.

61

In subsequent periods, we will reassess the reserves for losses and loss expenses subject to the LPT agreement. Any adverse prior year reserve development associated with the subject business will increase the cumulative amounts ceded to the reinsurer compared to the consideration paid and will increase the gain determined in accordance with retroactive reinsurance accounting. Consistent with our accounting policy, gains are deferred and amortized into net income over the claims settlement period.

Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the LPT agreement will provide significant protection from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreement.

Bermuda Corporate Income Tax Act of 2023

On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which applies a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment ("Bermuda ETA"), which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, the Company recorded a Bermuda ETA net deferred tax asset of $177 million in 2024.

On December 11, 2025, the Bermuda government enacted the Corporate Income Tax Amendment (No. 2) Act 2025 (the "Amendment Act") which provided technical corrections to the Act. The Amendment Act includes a provision to allow for the derecognition of deferred tax liabilities where a Bermuda tax group recognized both deferred tax assets and deferred tax liabilities under the Bermuda ETA provision. Pursuant to the Amendment Act, we released $19 million of deferred tax liabilities previously established under the Bermuda ETA provision in 2025.

While we anticipated utilizing the Bermuda ETA net deferred tax asset over a ten-year period, guidance issued by the OECD in January 2025 makes it likely that the benefit of the Bermuda ETA net deferred tax asset will only apply in 2025 and 2026. The benefit of the Bermuda ETA net deferred tax asset is excluded from operating income (loss).

Organization for Economic Cooperation and Development ("OECD") Update

On January 15, 2025, the OECD issued guidelines that limit the use of the Bermuda ETA net deferred tax asset and similar assets in other jurisdictions in which we operate under Global Anti-Base Erosion ("GLoBE") rules. The guidelines clarify the use of deferred tax assets under transition rules and limits the benefit of deferred tax assets relating to transactions that occurred after November 30, 2021. The guidelines seek to restrict the benefit of the Bermuda ETA net deferred tax asset to 20% of the balance at January 1, 2025 to be utilized in 2025 and 2026. Thereafter GLoBE rules will apply a minimum tax rate of 15% to pre-tax income generated in Bermuda by disallowing the benefit of the Bermuda ETA net deferred tax asset.

62

CONSOLIDATED RESULTS OF OPERATIONS

Year ended December 31,

2025

% Change

2024

% Change

2023

Underwriting revenues:

Gross premiums written

$

9,644,514 

7%

$

9,005,888 

8%

$

8,356,525 

Net premiums written

6,121,656 

6%

5,757,351 

13%

5,102,325 

Net premiums earned

5,714,609 

8%

5,306,235 

4%

5,083,781 

Other insurance related income

23,216 

(24%)

30,721 

37%

22,495 

Underwriting expenses:

Net losses and loss expenses

(3,288,541)

4%

(3,158,487)

(7%)

(3,393,102)

Acquisition costs

(1,136,469)

6%

(1,070,551)

7%

(1,000,945)

Underwriting-related general and administrative expenses(1)

(587,669)

10%

(536,442)

(3%)

(551,467)

Underwriting income(2)

725,146 

571,476 

160,762 

Net investment income

766,903 

1%

759,229 

24%

611,742 

Net investment gains (losses)

58,950 

nm

(138,534)

86%

(74,630)

Corporate expenses(1)

(116,262)

(10%)

(129,760)

(2%)

(132,979)

Foreign exchange (losses) gains

(141,983)

nm

50,822 

nm

(58,115)

Interest expense and financing costs

(66,659)

(2%)

(67,766)

(1%)

(68,421)

Reorganization expenses

— 

(100%)

(26,312)

(9%)

(28,997)

Amortization of intangible assets

(9,917)

(9%)

(10,917)

—%

(10,917)

Income before income taxes and interest in income of equity method investments

1,216,178 

1,008,238 

398,445 

Income tax (expense) benefit

(216,732)

nm

55,595 

nm

(26,316)

Interest in income of equity method investments

9,452 

(47%)

17,953 

nm

4,163 

Net income

1,008,898 

1,081,786 

376,292 

Preferred share dividends

(30,250)

—%

(30,250)

—%

(30,250)

Net income available to common shareholders

$

978,648 

$

1,051,536 

$

346,042 

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 $116 million, $130 million, and $133 million for 2025, 2024, and 2023, 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.

63

Underwriting Revenues

Underwriting revenues by segment were as follows:

Year ended December 31,

2025

% Change

2024

% Change

2023

Gross premiums written:

Insurance

$

7,179,206

9%

$

6,615,584

8%

$

6,140,764

Reinsurance

2,465,308

3%

2,390,304

8%

2,215,761

Total gross premiums written

$

9,644,514

7%

$

9,005,888

8%

$

8,356,525

Percent of gross premiums written ceded:

Insurance

36

%

— pts

36

%

(3 pts)

39

%

Reinsurance

39

%

2 pts

37

%

(2 pts)

39

%

Total percent of gross premiums written ceded

37

%

1 pt

36

%

(3 pts)

39

%

Net premiums written:

Insurance

$

4,627,224

9%

$

4,250,545

13%

$

3,758,720

Reinsurance

1,494,432

(1%)

1,506,806

12%

1,343,605

Total net premiums written

$

6,121,656

6%

$

5,757,351

13%

$

5,102,325

Net premiums earned:

Insurance

$

4,291,485

9%

$

3,926,036

13%

$

3,461,700

Reinsurance

1,423,124

3%

1,380,199

(15%)

1,622,081

Total net premiums earned

$

5,714,609

8%

$

5,306,235

4%

$

5,083,781

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:

Year ended December 31,

2025

% Point

Change

2024

% Point

Change

2023

Current accident year loss ratio, excluding catastrophe and weather-related losses (1)

56.3

%

0.6 

55.7

%

(0.2)

55.9

%

Catastrophe and weather-related losses ratio(1)

2.8

%

(1.5)

4.3

%

1.6 

2.7

%

Current accident year loss ratio(1)

59.1

%

(0.9)

60.0

%

1.4 

58.6

%

Prior year reserve development ratio

(1.6

%)

(1.1)

(0.5

%)

(8.6)

8.1

%

Net losses and loss expenses ratio

57.5

%

(2.0)

59.5

%

(7.2)

66.7

%

Acquisition cost ratio

19.9

%

(0.3)

20.2

%

0.5 

19.7

%

General and administrative expense ratio(2)

12.4

%

(0.2)

12.6

%

(0.9)

13.5

%

Combined ratio

89.8

%

(2.5)

92.3

%

(7.6)

99.9

%

(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 administration expense ratio included corporate expenses not allocated to underwriting segments of 2.0%, 2.4% and 2.6% for 2025, 2024 and 2023, respectively. 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.

64

RESULTS BY SEGMENT

Insurance Segment

Results for the insurance segment were as follows:

Year ended December 31,

2025

% Change

2024

% Change

2023

Revenues:

Gross premiums written

$

7,179,206 

9%

$

6,615,584 

8%

$

6,140,764 

Net premiums written

4,627,224 

9%

4,250,545 

13%

3,758,720 

Net premiums earned

4,291,485 

9%

3,926,036 

13%

3,461,700 

Other insurance related income (loss)

677 

nm

94 

nm

(198)

Expenses:

Current accident year net losses and loss expenses

(2,404,202)

(2,261,629)

(1,903,648)

Prior year reserve development

66,975 

16,209 

(176,353)

Acquisition costs

(820,324)

(766,915)

(648,463)

Underwriting-related general and administrative expenses

(537,558)

(485,929)

(472,094)

Underwriting income

$

597,053 

$

427,866 

$

260,944 

Ratios:

% Point

Change

% Point

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses

52.4

%

0.3

52.1

%

0.3

51.8

%

Catastrophe and weather-related losses ratio

3.6

%

(1.9)

5.5

%

2.3

3.2

%

Current accident year loss ratio

56.0

%

(1.6)

57.6

%

2.6

55.0

%

Prior year reserve development ratio

(1.5

%)

(1.1)

(0.4

%)

(5.5)

5.1

%

Net losses and loss expenses ratio

54.5

%

(2.7)

57.2

%

(2.9)

60.1

%

Acquisition cost ratio

19.1

%

(0.4)

19.5

%

0.8

18.7

%

Underwriting-related general and administrative expense ratio

12.5

%

0.1

12.4

%

(1.3)

13.7

%

Combined ratio

86.1

%

(3.0)

89.1

%

(3.4)

92.5

%

nm – not meaningful

65

Gross Premiums Written

Gross premiums written by line of business were as follows:

% Change

Year ended December 31,

2025

2024

2023

2024 to 2025

2023 to 2024

Property

$

2,166,222 

30

%

$

2,050,329 

31

%

$

1,736,586 

28

%

6

%

18

%

Professional lines

1,343,252 

19

%

1,162,323 

18

%

1,140,695 

19

%

16

%

2

%

Liability

1,366,245 

19

%

1,251,603 

19

%

1,256,951 

20

%

9

%

—

%

Cyber

473,604 

7

%

561,937 

8

%

649,160 

11

%

(16

%)

(13

%)

Marine and aviation

880,604 

12

%

815,168 

12

%

771,162 

13

%

8 

%

6

%

Accident and health

564,374 

8

%

450,810 

7

%

333,559 

5

%

25

%

35

%

Credit and political risk

384,905 

5

%

323,414 

5

%

252,651 

4

%

19

%

28

%

Total

$

7,179,206 

100

%

$

6,615,584 

100

%

$

6,140,764 

100

%

9

%

8

%

Gross premiums written in 2025 increased by $564 million, or 9% ($553 million, or 8%, on a constant currency basis(1)), compared to 2024, attributable to all lines of business with the exception of cyber lines.

The increases in professional lines, property, liability, accident and health, marine and aviation, and credit and political risk lines were driven by new business.

The increase in professional lines was also driven by a higher level of premiums associated with transactional liability business, increased rate associated with renewed environmental business, and higher renewals of program business, partially offset by reduced opportunities in Europe associated with competitive market conditions.

The increase in property lines was also due to higher renewals of program business and onshore renewable energy business, together with increased rate associated with program business, partially offset by reduced opportunities in the excess and surplus lines market associated with competitive market conditions.

The increase in liability lines was also driven by a higher level of premiums and increased rate associated with renewed U.S. excess casualty business, and higher renewals of program business, partially offset by a lower level of premiums in U.S. primary casualty business principally due to underwriting actions taken to reposition the portfolio.

The increase in accident and health lines was also attributable to a higher level of premiums and increased rate associated with renewed pet insurance business.

The decrease in cyber lines was related to the cancellation of two programs in 2024 and reduced opportunities associated with competitive market conditions, partially offset by premium adjustments related to business written on a line slip basis.

(1) Amounts presented on a constant currency basis are non-GAAP financial measures as defined in Item10 (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.

66

Ceded Premiums Written

Ceded premiums written in 2025 were $2,552 million, or 36% of gross premiums written, compared to $2,365 million, or 36% in 2024. The increase in ceded premiums written of $187 million, or 8% was primarily driven by increases in accident and health, credit and political risk, professional lines, and marine and aviation lines, partially offset by decreases in property, liability, and cyber lines.

The increase in accident and health lines was attributable to a new quota share treaty covering pet insurance business effective July 2024 and the increase in gross premiums written for 2025, compared to 2024. The increases in credit and political risk, professional lines, and marine and aviation lines reflected the increases in gross premiums written for 2025, compared to 2024.

The decreases in property, and liability lines were due to the restructuring of existing quota share treaties that increased our retentions on these lines of business, partially offset by increases in gross premiums written for 2025, compared to 2024. The decrease in cyber lines reflected the decrease in gross premiums written for 2025, compared to 2024.

Net Premiums Earned

Net premiums earned by line of business were as follows:

% Change

Year ended December 31,

2025

2024

2023

2024 to 2025

2023 to 2024

Property

$

1,347,011 

30

%

$

1,139,308 

28

%

$

878,849 

26

%

18

%

30

%

Professional lines

887,533 

21

%

$

817,535 

21

%

764,558 

22

%

9

%

7

%

Liability

543,627 

13

%

494,561 

13

%

496,381 

14

%

10

%

—

%

Cyber

310,837 

7

%

347,842 

9

%

323,025 

9

%

(11

%)

8

%

Marine and aviation

665,306 

16

%

614,826 

16

%

567,292 

16

%

8

%

8

%

Accident and health

338,522 

8

%

360,894 

9

%

306,061 

9

%

(6

%)

18

%

Credit and political risk

198,649 

5

%

151,070 

4

%

125,534 

4

%

31

%

20

%

Total

$

4,291,485 

100

%

$

3,926,036 

100

%

$

3,461,700 

100

%

9

%

13

%

Net premiums earned in 2025 increased by $365 million, or 9%, compared to 2024, primarily driven by an increase in gross premiums earned in property lines together with a decrease in ceded premiums earned attributable to the restructuring of an existing quota share treaty that increased our retention of property business. In addition, gross premiums earned increased in professional lines, credit and political risk, liability, and marine and aviation lines.

These increases were partially offset by a decrease in gross premiums earned in cyber lines and a decrease in net premiums earned in accident and health lines attributable to an increase in ceded premiums earned associated with the new quota share treaty covering pet insurance business, effective July 2024.

67

Loss Ratio

The components of the loss ratio were as follows:

Year ended December 31,

2025

% Point

Change

2024

% Point

Change

2023

Current accident year loss ratio

56.0

%

(1.6)

57.6

%

2.6 

55.0

%

Prior year reserve development ratio

(1.5

%)

(1.1)

(0.4

%)

(5.5)

5.1

%

Loss ratio

54.5

%

(2.7)

57.2

%

(2.9)

60.1

%

Current Accident Year Loss Ratio

The current accident year loss ratio decreased to 56.0% in 2025 from 57.6% in 2024. The decrease in the current accident year loss ratio was impacted by a lower level of catastrophe and weather-related losses.

During 2025, catastrophe and weather-related losses, net of reinsurance, were $156 million, or 3.6 points, including natural catastrophe and weather-related losses of $134 million or 3.1 points attributable to California Wildfires, Hurricane Melissa and other weather-related events. The remaining losses of $22 million, or 0.5 points were attributable to the Middle East Conflict.

Comparatively, in 2024, catastrophe and weather-related losses, net of reinsurance, were $216 million, or 5.5 points, including natural catastrophe and weather-related losses of $203 million, or 5.2 points, primarily attributable to Hurricanes Milton, Helene, and Beryl, and other weather-related events. The remaining losses of $13 million, or 0.3 points were attributable to the Red Sea Conflict.

Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio of 52.4% in 2025 was comparable to 52.1% in 2024, principally due to the benefits of changes in business mix, largely offsetting the impact of rate and trend.

Prior Year Reserve Development

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses' for details of prior year reserve development by segment, reserve class and accident year.

Acquisition Cost Ratio

The acquisition cost ratio decreased to 19.1% in 2025 from 19.5% in 2024, primarily related to an increase in ceding commissions in accident and health lines, partially offset by an increase in gross acquisition cost attributable to changes in business mix driven by the increases in credit and political risk, accident and health, and excess and surplus lines property business written in recent periods which is associated with relatively higher gross acquisition cost ratios.

Underwriting-Related General and Administrative Expense Ratio

The underwriting-related general and administrative expense ratio of 12.5% in 2025 was comparable to 12.4% in 2024, mainly driven by increases in personnel costs associated with the expansion of underwriting teams and performance-related compensation costs, together with investments in information technology, largely offset by an increase in net premiums earned.

68

Reinsurance Segment

Results for the reinsurance segment were as follows:

Year ended December 31,

2025

% Change

2024

% Change

2023

Revenues:

Gross premiums written

$

2,465,308 

3%

$

2,390,304 

8%

$

2,215,761 

Net premiums written

1,494,432 

(1%)

1,506,806 

12%

1,343,605 

Net premiums earned

1,423,124 

3%

1,380,199 

(15%)

1,622,081 

Other insurance related income

22,539 

(26%)

30,627 

35%

22,693 

Expenses:

Current accident year net losses and loss expenses

(971,302)

(921,181)

(1,077,572)

Prior year reserve development

19,988 

8,114 

(235,529)

Acquisition costs

(316,145)

(303,636)

(352,482)

Underwriting-related general and administrative expenses

(50,111)

(50,513)

(79,373)

Underwriting income (loss)

$

128,093 

$

143,610 

$

(100,182)

Ratios:

% Point

Change

% Point

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses

68.1

%

2.1

66.0

%

1.2

64.8

%

Catastrophe and weather-related losses ratio

0.2

%

(0.5)

0.7

%

(0.9)

1.6

%

Current accident year loss ratio

68.3

%

1.6

66.7

%

0.3

66.4

%

Prior year reserve development ratio

(1.5

%)

(1.0)

(0.5

%)

(15.1)

14.6

%

Net losses and loss expenses ratio

66.8

%

0.6

66.2

%

(14.8)

81.0

%

Acquisition cost ratio

22.2

%

0.2

22.0

%

0.3

21.7

%

Underwriting-related general and administrative expense ratio

3.6

%

—

3.6

%

(1.3)

4.9

%

Combined ratio

92.6

%

0.8

91.8

%

(15.8)

107.6

%

69

Gross Premiums Written:

Gross premiums written by line of business were as follows:

% Change

Year ended December 31,

2025

2024

2023

2024 to 2025

2023 to 2024

Liability

$

667,626 

27

%

$

616,333 

26

%

$

642,801 

29

%

8

%

(4

%)

Professional lines

415,266 

17

%

421,846 

18

%

379,222 

17

%

(2

%)

11

%

Motor

268,080 

11

%

238,961 

10

%

201,466 

9

%

12

%

19

%

Accident and health

366,159 

15

%

436,296 

18

%

396,668 

18

%

(16

%)

10

%

Credit and surety

510,094 

21

%

417,717 

17

%

351,083 

16

%

22

%

19

%

Agriculture

161,151 

7

%

150,373 

6

%

126,300 

6

%

7

%

19

%

Marine and aviation

64,870 

2

%

82,274 

3

%

62,260 

3

%

(21

%)

32

%

Run-off lines

Catastrophe

677 

—

%

10,823 

1

%

30,175 

1

%

(94

%)

(64

%)

Property

3,715 

—

%

3,130 

—

%

21,513 

1

%

19

%

(85

%)

Engineering

7,670 

—

%

12,551 

1

%

4,273 

—

%

(39

%)

nm

Total run-off lines

12,062 

—

%

26,504 

2

%

55,961 

2

%

(54

%)

(53

%)

Total

$

2,465,308 

100

%

$

2,390,304 

100

%

$

2,215,761 

100

%

3

%

8

%

nm – not meaningful

Gross premiums written in 2025 increased by $75 million, or 3%, ($94 million, or 4%, on a constant currency basis) compared to 2024. The increase was primarily attributable to new business and premium adjustments.

The increase in credit and surety lines was driven by new credit and political risk business, new surety business, and a higher level of positive premium adjustments attributable to credit business, partially offset by a lower level of positive premium adjustments related to mortgage business.

The increase in liability lines was due to a higher level of positive premium adjustments, new general liability business including business at Lloyd's, new workers compensation business, the restructuring of a contract at Lloyds and the timing of renewals, partially offset by non-renewals and decreased line sizes.

The decrease in accident and health lines was driven by decreased line sizes and non-renewals attributable to increased competition and clients retaining more business, a lower level of premiums associated with a short-term medical program, and negative premium adjustments in 2025, compared to positive premium adjustments in 2024 associated with a short-term medical program.

Ceded Premiums Written

Ceded premiums written in 2025 were $971 million, or 39%, of gross premiums written, compared to $883 million, or 37%, in 2024. The increase in ceded premiums written of $87 million, or 10%, was primarily driven by increases in liability, credit and surety, motor, and agriculture lines, partially offset by a decrease in accident and health lines.

The increases in liability, credit and surety, and motor lines reflected the increase in gross premiums written in 2025, compared to 2024. The increases in liability, credit and surety, and motor lines also reflected the restructuring of quota share retrocession treaties with strategic capital partners that decreased our retentions of these lines of business. The increases in liability lines was also due to the restructuring of a quota share retrocession treaty that decreased our retention of this line of business.

The decrease in accident and health lines reflected the decrease in gross premiums written in 2025, compared to 2024.

70

Net Premiums Earned

Net premiums earned by line of business were as follows:

% Change

Year ended December 31,

2025

2024

2023

2024 to 2025

2023 to 2024

Liability

$

314,003 

22

%

$

309,265 

22

%

$

403,239 

25

%

2

%

(23

%)

Professional lines

198,457 

14

%

169,074 

12

%

205,404 

13

%

17

%

(18

%)

Motor

126,233 

9

%

123,545 

9

%

155,942 

10

%

2

%

(21

%)

Accident and health

303,690 

21

%

322,932 

23

%

341,806 

21

%

(6

%)

(6

%)

Credit and surety

273,702 

19

%

231,780 

17

%

236,408 

15

%

18

%

(2

%)

Agriculture

137,367 

10

%

126,549 

9

%

121,628 

7

%

9

%

4

%

Marine and aviation

57,667 

4

%

64,609 

5

%

65,658 

4

%

(11

%)

(2

%)

Run-off lines

Catastrophe

406 

—

%

13,412 

2

%

33,963 

1

%

(97

%)

(61

%)

Property

3,845 

—

%

6,266 

—

%

44,508 

3

%

(39

%)

(86

%)

Engineering

7,754 

1

%

12,767 

1

%

13,525 

1

%

(39

%)

(6

%)

Total run-off lines

12,005 

1 

%

32,445 

3 

%

91,996 

5 

%

(63

%)

(65

%)

Total

$

1,423,124 

100

%

$

1,380,199 

100

%

$

1,622,081 

100

%

3

%

(15

%)

Net premiums earned in 2025 increased by $43 million, or 3%, compared to 2024 primarily driven by an increase in gross premiums earned in credit and surety lines, partially offset by an increase in ceded premiums earned in credit and surety lines attributable to the restructuring of existing quota share treaties that decreased our retentions of this business. In addition, gross premiums earned increased in professional lines.

These increases were partially offset by decreases in gross premiums earned in run-off lines and accident and health lines.

Loss Ratio

The components of the loss ratio were as follows:

Year ended December 31,

2025

% Point

Change

2024

% Point

Change

2023

Current accident year loss ratio

68.3

%

1.6 

66.7

%

0.3 

66.4

%

Prior year reserve development ratio

(1.5

%)

(1.0)

(0.5

%)

(15.1)

14.6

%

Loss ratio

66.8

%

0.6 

66.2

%

(14.8)

81.0

%

Current Accident Year Loss Ratio

The current accident year loss ratio increased to 68.3% in 2025 from 66.7% in 2024.

During 2025, catastrophe and weather-related losses, net of reinsurance, were $3 million, or 0.2 points, primarily attributable to California Wildfires.

Comparatively, in 2024, catastrophe and weather-related losses, net of reinsurance, were $10 million, or 0.7 points, primarily attributable to Hurricanes Milton and Helene and other weather-related events.

Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 68.1% in 2025 from 66.0% in 2024, principally due to the impact of rate and trend, partially offset by changes in business mix.

71

Prior Year Reserve Development

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses' for details of prior year reserve development by segment, reserve class and accident year.

Acquisition Cost Ratio

The acquisition cost ratio of 22.2% in 2025 was comparable to 22.0% in 2024, primarily related to an increase in gross acquisition costs attributable to credit and surety, and professional lines, partially offset by lower adjustments attributable to loss-sensitive features in credit and surety lines including mortgage business, and liability lines and the benefit of retrocessional contracts driven by credit and surety, and liability lines.

72

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:

Year ended December 31,

2025

% Change

2024

% Change

2023

Fixed maturities

$

612,198 

(1%)

$

620,704 

21%

$

514,842 

Other investments

69,275 

42%

48,666 

nm

20,411 

Equity securities

13,593 

5%

12,922 

7%

12,088 

Mortgage loans

23,587 

(31%)

34,028 

(4%)

35,312 

Cash and cash equivalents

75,092 

26%

59,600 

19%

50,261 

Short-term investments

3,136 

(75%)

12,569 

41%

8,924 

Gross investment income

796,881 

1%

788,489 

23%

641,838 

Investment expense

(29,978)

2%

(29,260)

(3%)

(30,096)

Net investment income

$

766,903 

1%

$

759,229 

24%

$

611,742 

Pre-tax yield:(1)

Fixed maturities

4.8

%

4.5

%

3.9

%

nm – not meaningful

(1)Pre-tax yield is calculated by dividing net investment income by the average month-end amortized cost balances for the periods indicated.

Fixed Maturities

2025 versus 2024: Net investment income in 2025 decreased by $9 million or 1%, compared to 2024 due to the decrease in average fixed maturities principally driven by the sale and redemption of securities used to fund the consideration paid for the LPT transaction with Enstar.

Other Investments

Other investments include multi-strategy funds, direct lending funds, private equity funds, real estate funds, other privately held investments and a final distribution from CLO-Equities. These investments are recorded at fair value, with changes in fair value and income distributions reported in net investment income. The pre-tax return on other investments may vary materially year over year, particularly during volatile equity and credit markets.

Net investment income from other investments was as follows:

Year ended December 31,

2025

2024

2023

Multi-strategy, direct lending, private equity and real estate funds

$

49,077 

$

41,277 

$

20,867 

Other privately held investments

19,614 

6,502 

(2,875)

CLO-Equities

584 

887 

2,419 

Total net investment income from other investments

$

69,275 

$

48,666 

$

20,411 

2025 versus 2024: Net investment income in 2025 increased by $21 million or 42%, compared to 2024 due to higher returns from direct lending funds and other privately held investments.

Mortgage Loans

2025 versus 2024: Net investment income in 2025 decreased $10 million or 31%, compared to 2024 due to loan repayments during the year.

73

Net Investment Gains (Losses)

Fixed maturities classified as available for sale are reported at fair value. Realized gains (losses) on fixed maturities are reported in net investment gains (losses) when these securities are sold or impaired.

Equity securities are reported at fair value. Realized gains (losses) on equity securities are also reported in net investment gains (losses) when securities are sold or impaired. In addition, changes in the fair values of equity securities are reported in net investment gains (losses).

Changes in the fair value of investment derivatives, mainly foreign exchange forward contracts are recorded in net investment gains (losses).

Net investment gains (losses) were as follows:

Year ended December 31,

2025

2024

2023

On sale of investments:

Fixed maturities, short-term investments, and cash and cash equivalents

$

(24,571)

$

(153,249)

$

(125,160)

Equity securities

28,512 

17,041 

16,208 

Mortgage loans

(4,950)

(7,215)

— 

(1,009)

(143,423)

(108,952)

(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale

2,103 

6,821 

974 

(Increase) decrease in allowance for expected credit losses, mortgage loans

(6,364)

(17,159)

(6,220)

Impairment losses (1)

(2,268)

(408)

(12,757)

Change in fair value of investment derivatives

(1,275)

1,783 

(1,456)

Net unrealized gains (losses) on equity securities

67,763 

13,852 

53,781 

Net investment gains (losses)

$

58,950 

$

(138,534)

$

(74,630)

(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.

2025 versus 2024: Net investment gains in 2025 were $59 million compared to net investment losses of $139 million in 2024. Net investment gains reported in 2025 mainly reflected net realized and unrealized gains on equities, partially offset by net realized losses on the sale of corporate debt and Agency RMBS.

Net investment losses reported in 2024 mainly reflected net realized losses on the sale of corporate debt, Agency RMBS and U.S. government, partially offset by net realized and unrealized gains on equity securities.

(Increase) Decrease in Allowance for Expected Credit Losses, Fixed Maturities, Available for Sale

Refer to Item 8, Note 5(i) to the Consolidated Financial Statements 'Investments'.

(Increase) Decrease in Allowance for Expected Credit Losses, Mortgage Loans

2025 versus 2024: The allowance for expected credit losses increased by $6 million in 2025 compared to $17 million in 2024, primarily related to commercial mortgage loans exposed to the office sector. Refer to Item 8, Note 5(d) to the Consolidated Financial Statements 'Investments'.

74

Impairment Losses

Refer to 'Critical Accounting Estimates – Impairment losses' for further details).

Change in Fair Value of Investment Derivatives

We economically hedge residual foreign exchange exposure with derivative contracts.

Our derivative instruments are not designated as hedges. Therefore, net unrealized gains (losses) on the hedged securities were recorded in accumulated other comprehensive income (loss) in total shareholders’ equity.

Total Return

Our investment strategy is to take a long-term view by actively managing our investment portfolio to maximize total return within certain guidelines and constraints. In assessing returns under this approach, we include net investment income, net investment gains (losses), the change in unrealized gains (losses) on fixed maturities, and interest in income (loss) of equity method investments generated by our investment portfolio. 

Total return on cash and investments was as follows:

Year ended December 31,

2025

2024

2023

Net investment income

$

766,903 

$

759,229 

$

611,742 

Net investment gains (losses)

58,950 

(138,534)

(74,630)

Change in net unrealized gains (losses) on fixed maturities(1)

344,991 

125,742 

448,477 

Interest in income of equity method investments

9,452 

17,953 

4,163 

Total

$

1,180,296 

$

764,390 

$

989,752 

Average cash and investments(2)

$

17,052,541 

$

17,409,516 

$

16,155,418 

Pre-tax, total return on average cash and investments:

Including investment related foreign exchange movements

6.9

%

4.4

%

6.1

%

Excluding investment related foreign exchange movements(3)

6.2

%

4.8

%

5.8

%

(1)Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at year end less net unrealized gains (losses) at the prior year end.

(2)The average cash and investments balance is the average of the monthly fair value balances.

(3)Pre-tax total return on 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 cash and investments, the most comparable GAAP financial measure, included foreign exchange (losses) gains of $130 million, $(63) million and $51 million for the years ended December 31, 2025, 2024 and 2023, respectively.

75

OTHER EXPENSES (REVENUES), NET

The following table provides a summary of other expenses (revenues), net:

Year ended December 31,

2025

% Change

2024

% Change

2023

Corporate expenses

$

116,262 

(10%)

$

129,760 

(2%)

$

132,979 

Foreign exchange losses (gains)

141,983 

nm

(50,822)

nm

58,115 

Interest expense and financing costs

66,659 

(2%)

67,766 

(1%)

68,421 

Income tax expense (benefit)

216,732 

nm

(55,595)

nm

26,316 

Total

$

541,636 

$

91,109 

$

285,831 

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 decreased to 2.0% in 2025 from 2.4% in 2024 due to a decrease in corporate expenses and an increase in net premiums earned. The decrease in corporate expenses in 2025 was mainly driven by a decrease in professional fees.

Foreign Exchange Losses (Gains)

Foreign exchange losses in 2025 were primarily related to the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro and pound sterling.

Foreign exchange gains in 2024 were primarily related to the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro and Canadian dollar, partially offset by the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling.

Interest Expense and Financing Costs

Interest expense and financing costs are related to interest due on the senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2025 and 2024.

Interest expense and financing costs of $67 million in 2025 was comparable to $68 million in 2024.

Income Tax Expense (Benefit)

Income tax expense (benefit) primarily results from income (loss) generated by 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 17.7%, (5.4%), and 6.5% in 2025, 2024, and 2023, respectively. This effective rate can vary between years depending on the distribution of net income (loss) across jurisdictions, as well as other factors.

The tax expense of $217 million in 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S. and European operations, partially offset by a Bermuda deferred tax benefit of $19 million associated with the write off Bermuda deferred tax liabilities, following amendments to Bermuda's Corporate Income Tax Act 2023, effective December 2025.

The tax benefit of $56 million in 2024 was principally due to the recognition of an income tax benefit of $177 million related to Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023 and adjustments related to certain deferred tax assets and deferred tax liabilities that are no longer required, partially offset by pre-tax income in our U.S., U.K. and European operations.

76

Valuation allowance (refer to Item 8, Note 20 to the Consolidated Financial Statements 'Income taxes').

In 2025, the valuation allowance decreased by $12 million. The net gain incurred by AXIS Re Europe, the Swiss branch of the Irish reinsurance company, resulted in the release of a valuation allowance of $8 million against the net deferred tax assets of which $4 million was released in net income (loss) and $4 million was released in other comprehensive income (loss). The remaining valuation allowance of $0.3 million was fully released against foreign tax credits held by AXIS Specialty Europe.

In 2024, the valuation allowance decreased by $19 million. The net gain incurred by AXIS Re SE, the Irish reinsurance company, resulted in the release of a valuation allowance of $13 million against the net deferred tax assets of AXIS Re SE and AXIS Re Europe, the Swiss branch of the Irish reinsurance company, of which $8 million was released to net income (loss) and $5 million was released in other comprehensive income (loss). A valuation allowance of $7 million was also released against U.S. foreign tax credits held by AXIS Specialty Europe SE.

At December 31, 2025 and 2024, the U.S. operations had a deferred tax asset of $1 million and $19 million, respectively, for the unrealized losses on its fixed maturities that were recorded in other comprehensive income (loss). We examined the need for a valuation allowance and after considering all positive and negative evidence concluded a valuation allowance against its net unrealized investment losses in the U.S was not required.

At December 31, 2025 and 2024, the Bermuda operations had a deferred tax liability of $11 million and a deferred tax asset of $17 million, respectively, for the unrealized losses on its fixed maturities that were recorded in other comprehensive income (loss). Due to the net unrealized investment gains in Bermuda, a valuation allowance was not required.

At December 31, 2025 and 2024, the Company’s Bermuda operations had a deferred tax asset of $177 million related to the Bermuda ETA. We examined the need for a valuation allowance and after considering all positive and negative evidence concluded a valuation allowance against this asset in Bermuda was not required.

77

FINANCIAL MEASURES

We believe that the following financial indicators are important in evaluating performance and measuring the overall growth in value generated for common shareholders:

Year ended and at December 31,

2025

2024

2023

Return on average common equity(1)

17.3

%

20.5

%

7.9

%

Operating return on average common equity(2)

18.1

%

18.6

%

11.0

%

Book value per diluted common share(3)

$

77.20 

$

65.27 

$

54.06 

Cash dividends declared per common share

$

1.76 

$

1.76 

$

1.76 

(1)    Return on average common equity ("ROACE") is calculated by dividing net income (loss) available (attributable) to common shareholders for the year by the average common shareholders' equity determined using the common shareholders' equity balances at the beginning and end of the year.

(2)    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, 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 common shareholders’ equity divided by the number of diluted common share outstanding, determined using the treasury stock method.

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 decrease in ROACE in 2025, compared to 2024, was primarily driven by an increase in average common shareholders' equity, and to a lesser extent, a decrease in net income available to common shareholders.

The decrease in operating ROACE in 2025, compared to 2024, was primarily driven by an increase in average common shareholders' equity, partially offset by an increase in operating income.

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.

In 2025, book value per diluted common share increased by 18%, driven by net income for the year, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common share repurchases, and common dividends declared.

In 2024, book value per diluted common share increased by 21%, driven by net income for the year, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common dividends declared.

Cash Dividends Declared per Common Share

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 two consecutive years.

78

NON-GAAP FINANCIAL MEASURES RECONCILIATION

Year ended December 31,

2025

2024

2023

Net income available to common shareholders

$

978,648

$

1,051,536 

$

346,042 

Net investment (gains) losses

(58,950)

138,534 

74,630 

Foreign exchange losses (gains)

141,983

(50,822)

58,115 

Reorganization expenses

—

26,312 

28,997 

Interest in income of equity method investments

(9,452)

(17,953)

(4,163)

Bermuda deferred tax asset(1)

(18,782)

(176,923)

— 

Income tax benefit(2)

(9,235)

(18,649)

(17,488)

Operating income

$

1,024,212

$

952,035 

$

486,133 

Earnings per diluted common share

$

12.35

$

12.35

$

4.02

Net investment (gains) losses

(0.74)

1.63

0.87

Foreign exchange losses (gains)

1.79

(0.60)

0.68

Reorganization expenses

—

0.31

0.34

Interest in income of equity method investments

(0.12)

(0.21)

(0.05)

Bermuda deferred tax asset

(0.24)

(2.08)

—

Income tax benefit

(0.12)

(0.22)

(0.21)

Operating income per diluted common share

$

12.92

$

11.18

$

5.65

Weighted average diluted common shares outstanding(3)

79,266

85,176 

86,012 

Average common shareholders' equity

$

5,672,907

$

5,126,288

$

4,401,553

Return on average common equity

17.3%

20.5%

7.9%

Operating return on average common equity

18.1%

18.6%

11.0%

(1)Bermuda deferred tax benefit in 2025 is due to the derecognition of deferred tax liabilities related to Bermuda corporate income tax. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax.

(2)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.

(3)Refer to Item 8, Note 14 to the Consolidated Financial Statements 'Earnings Per Common Share' for further details.

79

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), 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).

80

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in '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, interest in income (loss) of equity method investments and Bermuda deferred tax asset.

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

81

(gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).

Bermuda deferred tax benefit in 2025 is due to the derecognition of deferred tax liabilities related to Bermuda corporate income tax, pursuant to the Corporate Income Tax Act amendment (No. 2) 2025 that is effective December 11, 2025. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities, pursuant to the Corporate Income Tax Act 2023 that is effective for fiscal years beginning on or after January 1, 2025. Bermuda deferred tax benefits are not related to the underwriting process. Therefore, this income is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax asset in order to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax asset 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 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 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)'.

82

CASH AND INVESTMENTS

Details of cash and investments are as follows:

December 31, 2025

December 31, 2024

Fair value

Fair value

Fixed maturities, available for sale

$

13,018,027 

$

12,152,753 

Fixed maturities, held to maturity(1)

395,942 

436,751 

Equity securities

707,569 

579,274 

Mortgage loans

356,840 

505,697 

Other investments

1,027,798 

930,278 

Equity method investments

227,181 

206,994 

Short-term investments

20,298 

223,666 

Total investments

$

15,753,655 

$

15,035,413 

Cash and cash equivalents(2)

$

1,321,185 

$

3,063,621 

(1)Presented at net carrying value of $397 million (2024: $443 million) in the consolidated balance sheets.

(2)Includes restricted cash and cash equivalents of $501 million and $920 million for 2025 and 2024, respectively.

Overview

The fair value of total investments increased by $718 million in 2025, driven by the reinvestment of interest income and income from operations, and the increase in market value of fixed maturities due to the decline in yields.

Cash and Cash equivalents

At December 31, 2025, cash and cash equivalents were $1.3 billion compared to $3.1 billion at December 31, 2024, a decrease of $1.7 billion. Cash and cash equivalents at December 31, 2024 were higher than usual in anticipation of premiums to be paid for the LPT agreement on receipt of regulatory approval.

83

An analysis of our investment portfolio by asset class is detailed below:

Fixed Maturities

Details of our fixed maturities portfolio are as follows:

December 31, 2025

December 31, 2024

Fair value

% of total

Fair value

% of total

Fixed maturities:

U.S. government and agency

$

2,417,901 

18

%

$

2,802,986 

22

%

Non-U.S. government

810,544 

6

%

729,939 

6

%

Corporate debt

5,365,509 

41

%

4,957,807 

39

%

Agency RMBS

2,035,352 

15

%

1,184,845 

9

%

CMBS

801,511 

6

%

819,608 

7

%

Non-agency RMBS

190,124 

1

%

122,536 

1

%

ABS

1,740,933 

13

%

1,860,966 

15

%

Municipals(1)

52,095 

—

%

110,817 

1

%

Total

$

13,413,969 

100

%

$

12,589,504 

100

%

Credit ratings:

U.S. government and agency

$

2,417,901 

18

%

$

2,802,986 

22

%

AAA(2)

2,577,512 

19

%

2,665,334 

21

%

AA

3,182,165 

24

%

2,354,372 

19

%

A

2,331,459 

17

%

2,090,516 

17

%

BBB

1,339,101 

10

%

1,190,381 

9

%

Below BBB(3)

1,565,831 

12

%

1,485,915 

12

%

Total

$

13,413,969 

100

%

$

12,589,504 

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 December 31, 2025, fixed maturities had a weighted average credit rating of A+ (2024: A+), a book yield of 4.6% (2024: 4.5%), and an average duration of 3.1 years (2024: 2.8 years).

At December 31, 2025, fixed maturities together with short-term investments, and cash and cash equivalents (i.e., total investments of $14.8 billion) had a weighted average credit rating of AA- (2024: AA-) and an average duration of 2.8 years (2024: 2.5 years).

Our methodology for assigning credit ratings to fixed maturities is in line with the methodology used for the Barclays U.S. Aggregate Bond index. This methodology uses the midpoint of Standard & Poor's (S&P), Moody's and Fitch ratings. When ratings from only two of these agencies are available, the lower rating is used. When only one agency rates a security, that rating is used. When ratings provided by S&P, Moody's and Fitch are not available, ratings from other nationally recognized agencies are used.

To calculate the weighted average credit rating for fixed maturities, we assign points to each rating with the highest points assigned to the highest rating (AAA) and the lowest points assigned to the lowest rating (D) and then calculate the weighted average based on the fair values of the individual securities. Securities that are not rated are excluded from weighted average calculations. At December 31, 2025, the fair value of fixed maturities not rated was $1 million (2024: $3 million).

In addition to managing credit risk exposure within our fixed maturities portfolio, we also monitor the aggregation of country risk exposure on a group-wide basis. Country risk exposure is the risk that events in a country, such as currency crises, regulatory changes and other political events, will adversely affect the ability of obligors in the country to honor their obligations. For corporate debt and structured securities, we measure the country of risk exposure based on a number of factors, including but not limited to location of management, principal operations and country of revenues.

84

An analysis of our fixed maturities portfolio by major asset classes is detailed below:

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).

Details of exposures to governments in the eurozone and other non-U.S. government concentrations by fair value are as follows:

December 31, 2025

December 31, 2024

Country

Fair value

% of total

Weighted

average

credit rating

Fair value

% of total

Weighted

average

credit rating

Eurozone countries:

Supranationals(1)

$

36,859 

5

%

AA+

$

43,494 

6

%

AAA

Germany

18,125 

2

%

AAA

25,126 

3

%

AAA

Luxembourg

7,762 

1

%

BBB

— 

—

%

—

France

4,153 

1

%

A-

6,127 

1

%

A

Netherlands

2,169 

—

%

AAA

6,584 

1

%

AAA

Total eurozone

69,068 

9

%

AA

81,331 

11

%

AA+

Other concentrations:

Canada

421,535 

52

%

AA+

322,111 

44

%

AA+

United Kingdom

265,617 

33

%

AA-

259,282 

36

%

AA-

Mexico

6,270 

1

%

BBB

3,303 

—

%

BBB

Other

48,054 

5

%

AA

63,912 

9

%

BBB

Total other concentrations

741,476 

91

%

AA

648,608 

89

%

AA

Total non-U.S. government

$

810,544 

100

%

AA

$

729,939 

100

%

AA

(1)Includes supranationals only in the eurozone.

At December 31, 2025, net unrealized losses on non-U.S. government securities were $12 million (2024: $23 million) which included gross unrealized foreign exchange losses of $1 million (2024: $19 million), mainly related to Canada and U.K. government bonds.

85

Corporate Debt

Corporate debt securities consist primarily of investment grade debt of a wide variety of corporate issuers and industries.

Details of our corporate debt securities portfolio by sector are as follows:

December 31, 2025

December 31, 2024

Fair value

% of total

Weighted

average

credit rating

Fair value

% of total

Weighted

average

credit rating

Financial institutions:

U.S. banks

$

623,817 

12

%

A

$

679,827 

14

%

A

Corporate/commercial finance

720,965 

13

%

BBB

558,577 

11

%

BBB

Non-U.S. banks

394,037 

7

%

A

411,074 

8

%

A

Insurance

242,309 

5

%

A-

223,503 

5

%

A-

Investment brokerage

154,770 

3

%

BBB

132,237 

3

%

BBB

Total financial institutions

2,135,898 

40

%

A-

2,005,218 

41

%

A-

Consumer non-cyclicals

543,440 

10

%

BBB-

515,072 

10

%

BBB-

Consumer cyclical

526,340 

10

%

BB

506,912 

10

%

BB

Communications

391,897 

7

%

BBB-

336,192 

7

%

BB+

Industrials

568,203 

11

%

BB+

533,401 

11

%

BB

Technology

397,522 

7

%

BB+

299,938 

6

%

BB+

Utilities

284,196 

5

%

A-

253,756 

5

%

A-

Energy

286,713 

5

%

BBB-

252,851 

5

%

BBB-

Other

231,300 

5

%

A+

254,467 

5

%

A

Total

$

5,365,509 

100

%

BBB

$

4,957,807 

100

%

BBB

Credit quality summary:

Investment grade

$

3,803,562 

71

%

A-

$

3,477,840 

70

%

A-

Non-investment grade

1,561,947 

29

%

B+

1,479,967 

30

%

B+

Total

$

5,365,509 

100

%

BBB

$

4,957,807 

100

%

BBB

At December 31, 2025, our non-investment grade portfolio had a fair value of $1,562 million (2024: $1,480 million), a weighted average credit rating of B+ (2024: B+) and duration of 1.8 years (2024: 2.2 years). At December 31, 2025, our corporate debt portfolio, including non-investment grade securities, had a duration of 3.2 years (2024: 3.2 years).

Mortgage-Backed Securities

Details of the fair values of our RMBS and CMBS portfolios by credit rating are as follows:

December 31, 2025

December 31, 2024

RMBS

CMBS

RMBS

CMBS

Government agency

$

2,035,352 

$

166,392 

$

1,184,845 

$

142,214 

AAA

184,093 

571,618 

115,115 

614,801 

AA

4,451 

44,408 

5,280 

51,411 

A

207 

17,578 

250 

7,439 

BBB

57 

868 

81 

2,732 

Below BBB(1)

1,316 

647 

1,810 

1,011 

Total

$

2,225,476 

$

801,511 

$

1,307,381 

$

819,608 

(1)Non-investment grade securities and non-rated securities.

86

Residential MBS

Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association, which are primarily AA+ rated and are supported by loans which are diversified across geographical areas. At December 31, 2025, agency RMBS had an average duration of 5.2 years (2024: 5.2 years).

Non-agency RMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2025, 99% (2024: 98%) of our non-agency RMBS were rated AA or better. At December 31, 2025, non-agency RMBS had an average duration of 3.5 years (2024: 4.3 years) and weighted average life of 2.3 years (2024: 5.4 years).

Commercial MBS

CMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2025, 98% (2024: 99%) of our CMBS were rated AA or better. At December 31, 2025, the weighted average estimated subordination percentage of the portfolio was 32% (2024: 34%), which represents the current weighted average estimated percentage of the capital structure subordinated to the investment holding that is available to absorb losses before the security incurs the first dollar loss of principal. At December 31, 2025, CMBS had an average duration of 2.7 years (2024: 2.7 years) and weighted average life of 3.3 years (2024: 3.7 years).

Asset-Backed Securities

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.

Details of the fair value of our ABS portfolio by underlying collateral and credit rating are as follows:

Asset-backed securities

AAA

AA

A

BBB

Below BBB

Total

At December 31, 2025

CLO - debt tranches

$

635,695 

$

220,572 

$

65,367 

$

23,842 

$

— 

$

945,476 

Auto loans

305,265 

— 

307 

— 

— 

305,572 

Student loans

94,039 

11,164 

— 

— 

— 

105,203 

Credit card receivables

89,379 

239 

— 

— 

— 

89,618 

Other

216,558 

4,450 

65,206 

6,925 

1,925 

295,064 

Total

$

1,340,936 

$

236,425 

$

130,880 

$

30,767 

$

1,925 

$

1,740,933 

% of total

76%

14%

8%

2%

—%

100%

At December 31, 2024

CLO - debt tranches

$

599,224 

$

303,480 

$

54,712 

$

29,861 

$

— 

$

987,277 

Auto loans

447,594 

— 

— 

— 

— 

447,594 

Student loans

56,995 

11,968 

— 

— 

— 

68,963 

Credit card receivables

71,390 

577 

— 

— 

— 

71,967 

Other

262,632 

674 

16,747 

3,527 

1,585 

285,165 

Total

$

1,437,835 

$

316,699 

$

71,459 

$

33,388 

$

1,585 

$

1,860,966 

% of total

77%

17%

4%

2%

—%

100%

At December 31, 2025, the average duration of our ABS portfolio was 1.1 years (2024: 1.0 year) and the weighted average life was 3.8 years (2024: 3.1 years).

87

Municipals

Municipals comprise revenue bonds and general obligation bonds issued by U.S. domiciled state and municipal entities and are primarily held in the taxable portfolios of our U.S. subsidiaries.

At December 31, 2025, our municipals had a fair value of $52 million (2024: $111 million), a weighted average credit rating of AA- (2024: AA-) and duration of 3.7 years (2024: 3.3 years).

Gross Unrealized Losses

At December 31, 2025, the gross unrealized losses on our fixed maturities, available for sale portfolio were $99 million (2024: $311 million).

Investment grade fixed maturities, available for sale

The severity of the unrealized loss position as a percentage of amortized cost for all investment grade fixed maturities in an unrealized loss position including any impact of foreign exchange losses (gains) was as follows:

December 31, 2025

December 31, 2024

Severity of

Unrealized Loss

Fair value

Gross

unrealized

losses

% of

total gross

unrealized

losses

Fair value

Gross

unrealized

losses

% of

total gross

unrealized

losses

0-10%

$

2,545,441 

$

(55,806)

62

%

$

5,564,985 

$

(147,136)

50

%

10-20%

252,267 

(33,835)

38

%

866,342 

(138,082)

46

%

20-30%

712 

(216)

—

%

43,062 

(11,696)

4

%

30-40%

— 

— 

—

%

183 

(89)

—

%

40-50%

— 

— 

—

%

— 

— 

—

%

 50%

— 

— 

—

%

132 

(41)

—

%

Total

$

2,798,420 

$

(89,857)

100

%

$

6,474,704 

$

(297,044)

100

%

The decrease in gross unrealized losses on investment grade fixed maturities primarily reflected the impact of the decline in yields and the tightening of credit spreads on investment grade corporate debt securities.

Non-investment grade fixed maturities, available for sale

The severity of the unrealized loss position as a percentage of amortized cost for all non-investment grade fixed maturities in an unrealized loss position including any impact of foreign exchange losses (gains) was as follows:

December 31, 2025

December 31, 2024

Severity of

Unrealized Loss

Fair value

Gross

unrealized

losses

% of

total gross

unrealized

losses

Fair value

Gross

unrealized

losses

% of

total gross

unrealized

losses

0-10%

$

263,445 

$

(4,087)

46

%

$

643,929 

$

(11,655)

82

%

10-20%

13,103 

(1,773)

20

%

12,210 

(1,601)

11

%

20-30%

3,927 

(761)

9

%

1,387 

(354)

2

%

30-40%

297 

(102)

1

%

1,557 

(602)

4

%

40-50%

1,053 

(478)

5

%

289 

(75)

1

%

 50%

1,165 

(1,680)

19

%

4 

(4)

—

%

Total

$

282,990 

$

(8,881)

100

%

$

659,376 

$

(14,291)

100

%

The decrease in gross unrealized losses on non-investment grade fixed maturities reflected the impact of the tightening of credit spreads on non-investment grade high yield corporate debt securities.

88

Equity Securities

At December 31, 2025, net unrealized gains on equity securities were $126 million (2024: $59 million). The increase was driven by the rally in global equity markets.

Mortgage Loans

During 2025, investment in commercial mortgage loans decreased to $357 million from $506 million, a decrease of $149 million, mainly due to the repayment 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 December 31, 2025, the allowance for expected credit loss of $30 million (2024: $23 million) was primarily related to commercial properties exposed to the office sector.

Other Investments

Details of our other investments portfolio are as follows:

December 31, 2025

December 31, 2024

Multi-strategy funds

$

11,577 

1

%

$

24,919 

3

%

Direct lending funds

186,747 

18

%

171,048 

18

%

Private equity funds

364,376 

36

%

320,690 

35

%

Real estate funds

291,491 

28

%

291,640 

31

%

Total multi-strategy, direct lending, private equity and real estate funds

854,191 

83

%

808,297 

87

%

Other privately held investments

173,607 

17

%

121,981 

13

%

Total other investments

$

1,027,798 

100

%

$

930,278 

100

%

Refer to Item 8, Note 5(e) to the Consolidated Financial Statements 'Investments'.

Equity Method Investments

Our ownership interests in Harrington Reinsurance Holdings Limited ("Harrington") and Monarch Point Re (ISAC) Ltd., Monarch Point Re (ISA 2023) Ltd., Monarch Point Re (ISA 2024) Ltd., and Monarch Point Re (ISA 2025) Ltd. (collectively "Monarch Point Re") are reported in interest in income (loss) of equity method investments. Refer to Note 5(f) to the Consolidated Financial Statements 'Investments'.

Restricted Assets

Refer to Item 8, Note 5(j) to the Consolidated Financial Statements 'Investments'.

89

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of its business operations. We manage liquidity at the holding company and operating subsidiary level.

Holding Company

As a holding company, AXIS Capital has no operations of its own and its assets consist primarily of investments in its subsidiaries. Accordingly, AXIS Capital’s future cash flows depend on the availability of dividends or other statutorily permissible distributions, such as returns of capital, from its subsidiaries.

The ability to pay such dividends and/or distributions is limited by the applicable laws and regulations of the various countries and states in which AXIS Capital’s subsidiaries operate (refer to Item 8, Note 22 to the Consolidated Financial Statements 'Statutory Financial Information' for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies.

During 2025, AXIS Capital received $1.0 billion (2024: $459 million) of distributions from its subsidiaries. AXIS Capital’s primary uses of funds are dividend payments to common and preferred shareholders, interest and principal payments on debt, capital investments in subsidiaries, and payment of corporate operating expenses. We believe the dividend/distribution capacity of AXIS Capital’s subsidiaries, that was $1.2 billion at December 31, 2025 (2024: $1.4 billion), will provide AXIS Capital with sufficient liquidity for the foreseeable future.

Operating Subsidiaries

AXIS Capital’s operating subsidiaries primarily derive cash from the net inflow of premiums less claim payments related to underwriting activities and from net investment income. Historically, these cash receipts have been sufficient to fund the operating expenses of these subsidiaries, as well as to fund dividend payments to AXIS Capital. The subsidiaries’ remaining cash flows are generally invested in our investment portfolio and have also been used to fund common share repurchases in recent years.

The insurance and reinsurance business of our operating subsidiaries inherently provide liquidity, as premiums are received in advance (sometimes substantially in advance) of the time losses are paid. However, the amount of cash required to fund loss payments can fluctuate significantly from period to period, due to the low frequency/high severity nature of certain types of business we write.

Consolidated cash flows from operating, investing and financing activities in the last three years were as follows:

Total cash provided by (used in)(1)

2025

2024

2023

Operating activities

$

(40,932)

$

1,844,813 

$

1,255,559 

Investing activities

(628,725)

280,452 

(855,610)

Financing activities

(1,087,258)

(417,294)

(202,371)

Effect of exchange rate changes on cash

14,479 

(28,335)

11,754 

Increase (decrease) in cash and cash equivalents

$

(1,742,436)

$

1,679,636 

$

209,332 

(1) Refer to Item 8, 'Consolidated Statements of Cash Flows' for further details.

90

Operating activities

•Net cash used in operating activities was $41 million in 2025 compared to net cash provided by operating activities of $1,845 million in 2024. Cash inflows from insurance and reinsurance operations typically include premiums, net of acquisition costs, and reinsurance recoverables. Cash outflows principally include payments of losses and loss expenses, payments of premiums to reinsurers and operating expenses. Cash provided by operating activities can fluctuate due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss expenses, and the payment of premiums to reinsurers.

•Operating cash outflows increased in 2025 compared to 2024, primarily attributable to increases in payments of premiums to reinsurers including payment for the LPT agreement with Enstar completed April 24, 2025 and payments of losses and loss expenses, partially offset by increases in premiums received and reinsurance recoverables received.

Investing activities

•Investing cash outflows in 2025 were principally related to the net purchases of fixed maturities of $710 million, loan advances made to Monarch Point Re reinsurers of $139 million, net purchases of other assets of $51 million, equity securities of $32 million, other investments of $30 million, and equity method investments of $11 million, partially offset by net proceeds from the sale and redemption of short-term investments of $206 million and the repayment of mortgage loans of $138 million.

•Investing cash inflows in 2024 were principally related to the net proceeds from the sale and redemption of fixed maturities of $281 million, unsettled payable for reverse repurchase agreements included in cash and cash equivalents of $247 million, net proceeds from the sales of other investments of $66 million, and equity securities of $40 million, and the net proceeds from the sales and repayment of mortgage loans of $81 million, partially offset by net purchases of short-term investments of $204 million and loan advances made to Monarch Point Re of $199 million.

Financing activities

•Financing cash outflows in 2025 were principally due to the repurchase of common shares of $914 million and dividends paid to common and preferred shareholders of $173 million.

•Financing cash outflows in 2024 were principally due to the repurchase of common shares of $216 million dividends paid to common and preferred shareholders of $182 million, and the repayment of the Federal Home Loan Bank advances of $19 million.

•The declaration and payment of future dividends and share repurchases is at the discretion of our Board of Directors and will depend on many factors including, but not limited to, our net income, financial condition, business needs, capital and surplus requirements of our operating subsidiaries and regulatory and contractual restrictions, including those detailed in our credit facilities (refer to 'Capital Resources – Share Repurchases' below for further details).

We have generated positive operating cash flows in all years since 2003, with the exception of 2025 which was impacted by payment for the LPT agreement with Enstar completed April 24, 2025. These positive cash flows were generated notwithstanding the impacts of the global financial crisis and the recognition of significant catastrophe and weather-related losses including the impact of the COVID-19 pandemic in 2020 and 2021.

Net losses and loss expenses, gross of reinstatement premiums, included estimates of ultimate losses for catastrophe and weather-related losses of $159 million in 2025, $226 million in 2024 and $138 million in 2023. There remains significant uncertainty associated with estimates of ultimate losses for certain of these events (refer to 'Underwriting Results – Insurance segment – Current Accident Year Loss' and 'Underwriting Results – Reinsurance segment – Current Accident Year Loss Ratio' for further details), as well as the timing of the associated cash outflows.

Should claim payment obligations accelerate beyond our ability to fund payments from operating cash flows, we would utilize cash and cash equivalent balances and/or liquidate a portion of our investment portfolio.

For context, at January 1, 2026, our largest 1-in-100 year return period, single occurrence, single-zone modeled probable maximum loss (Southeast U.S. Hurricane) was approximately $225 million, net of reinsurance. Claim payments pertaining to such an event would be paid out over a period spanning many months. Our internal risk tolerance framework aims to limit the loss of capital due to a single event and the loss of capital that would occur from multiple but perhaps smaller events, in any year (refer to Item 1 'Risk and Capital Management' for further details).

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Our investment portfolio is heavily weighted towards conservative, high quality and highly liquid securities. We expect that, if necessary, cash and invested assets of approximately $14.4 billion at December 31, 2025 (2024 $15.2 billion) could be available in one to three business days under normal market conditions. Of this amount, $7.3 billion (2024 $6.9 billion) related to restricted assets, which primarily support our obligations in regulatory jurisdictions where we operate as a non-admitted carrier (refer to Item 8, Note 5(j) to the Consolidated Financial Statements 'Investments' for further details).

We expect that cash flows generated from operations, combined with the liquidity provided by our investment portfolio, to be sufficient to cover required cash outflows and other contractual commitments through the foreseeable future (refer to 'Contractual Obligations and Commitments' below for further details).

Capital Resources

In addition to common equity, we have utilized other external sources of financing, including debt, preferred shares, and letter of credit facilities to support our business operations. We believe that we hold sufficient capital to allow us to take advantage of market opportunities and to maintain our financial strength ratings, as well as to comply with various local statutory regulations. We monitor capital adequacy on a regular basis and adjust our capital base according to the needs of our business (refer to Item 1 'Risk and Capital Management' for further details).

The following table summarizes consolidated capital:

At December 31,

2025

2024

Debt

$

1,316,710 

$

1,315,179 

Preferred shares

550,000 

550,000 

Common equity

5,806,435 

5,539,379 

Shareholders’ equity

6,356,435 

6,089,379 

Total capital

$

7,673,145 

$

7,404,558 

Ratio of debt to total capital

17.2

%

17.8

%

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.

Debt

Debt represents the 5.150% Senior Notes issued in 2014, which will mature in 2045, the 4.000% Senior Notes issued in 2017, which will mature in 2027, the 3.900% Senior Notes issued in 2019, which will mature in 2029, and the 4.900% Junior Subordinated Notes issued in 2019, which will mature in 2040 (refer to Item 8, Note 10(a) to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details).

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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").

Members may borrow from the FHLB at competitive rates subject to certain conditions. At December 31, 2025, the companies had admitted assets of approximately $3.6 billion (2024: $3.2 billion) which provides borrowing capacity of up to approximately $888 million (2024: $798 million) (refer to Item 8, Note 11 to the Consolidated Financial Statements 'Federal Home Loan Bank Advances').

At December 31, 2025, the Company had borrowings under the FHLB program of $66 million (2024: $66 million).

The FHLB advances have maturities in 2026 and interest payable at interest rates between 3.9% and 4.6% (2024: 4.5% and 5.5%). For the year ended December 31, 2025, the Company incurred interest expense of $3 million (2024: $4 million). The borrowings under the FHLB program are secured by cash and investments with a fair value of $74 million (2024: $72 million).

Preferred Shares

Series E Preferred Shares

On November 7, 2016, we issued $550 million of 5.50% Series E preferred shares with a liquidation preference of $2,500 per share (equivalent to $25 per depositary share). Dividends on the Series E preferred shares are non-cumulative. To the extent declared, dividends accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum (equivalent to $137.50 per Series E preferred share and $1.375 per depositary share). We could redeem these shares on or after November 7, 2021 at a redemption price of $2,500 per Series E preferred share (equivalent to $25 per depositary share) (refer to Item 8, Note 15 to the Consolidated Financial Statements 'Shareholders' Equity' for further details).

Secured Letter of Credit Facilities

We routinely enter into agreements with financial institutions to obtain secured letter of credit facilities.

At December 31, 2025, certain of AXIS Capital’s operating subsidiaries had a committed letter of credit facility up to a maximum aggregate amount of $300 million and an uncommitted secured letter of credit facility up to a maximum aggregate amount of $200 million available from Citibank Europe plc ("Citibank"). At December 31, 2025, letters of credit outstanding were $226 million (2024: $235 million).

These facilities are primarily used for the issuance of letters of credit, in the normal course of operations, to certain insurance and reinsurance entities that purchase reinsurance protection from us. These letters of credit allow those operations to take credit, under local insurance regulations, for reinsurance obtained in jurisdictions where AXIS Capital’s subsidiaries are not licensed or otherwise admitted as an insurer. The value of our letters of credit outstanding is driven by, among other factors, the amount of unearned premiums, development of loss reserves, the payment patterns of loss reserves, the expansion of our business and the loss experience of that business (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details).

At December 31, 2025, AXIS Corporate Capital UK II Limited, acting through AXIS Managing Agency Limited, as managing agent of AXIS Syndicate 1686 and AXIS Syndicate 2050 (collectively, the "Syndicates") had an uncommitted unsecured letter of credit facility up to a maximum aggregate amount of $90 million available from Citibank. At December 31, 2025, letters of credit outstanding were $80 million.

This letter of credit facility is intended to support obligations in connection with the Syndicates’ participation in the Lloyd’s insurance market, specifically its Funds at Lloyd’s requirements (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details).

At December 31, 2025, AXIS Specialty Limited had an uncommitted bilateral short-term line of credit facility up to a maximum aggregate amount of $150 million available from Wells Fargo Bank National Association. At December 31, 2025, the $150 million Facility was not drawn. The line of credit facility is intended to support the Borrower's working capital requirements and general corporate expenses (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details).

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Common Equity

During the year ended December 31, 2025, common equity increased by $267 million. The following table reconciles opening and closing common equity positions:

Year ended December 31,

2025

2024

Common equity - opening

$

5,539,379 

$

4,713,196 

Share-based compensation expense

43,184 

40,487 

Change in unrealized gains on available for sale investments, net of tax

281,607 

122,042 

Foreign currency translation adjustment

14,381 

(23,763)

Net income

1,008,898 

1,081,786 

Preferred share dividends

(30,250)

(30,250)

Common share dividends

(138,518)

(150,495)

Treasury shares repurchased

(914,276)

(215,868)

Treasury shares reissued

2,030 

2,244 

Common equity - closing

$

5,806,435 

$

5,539,379 

Share Repurchases

During 2025, we repurchased 10 million common shares for a total of $914 million, including $888 million repurchased pursuant to our Board-authorized share repurchase programs, and $27 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units granted under our 2017 Long-Term Equity Compensation Plans.

At June 30, 2024, authorization under our share repurchase program approved in December 2023 was exhausted.

On May 16, 2024, our Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares. The new share repurchase program was 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. On February 6, 2025, authorization under this plan was exhausted.

On February 19, 2025, our 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 was 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. On September 3, 2025, authorization under this plan was exhausted.

On September 17, 2025, our 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 December 31, 2025, we had $112 million of remaining authorization under our open-ended Board-authorized share repurchase program for common share repurchases.

Refer to Item 5 'Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities' and Item 8, Note 15 to the Consolidated Financial Statements 'Shareholders' Equity' for further details.

Shelf Registrations

On November 4, 2025, we filed an unallocated universal shelf registration statement with the SEC, which became effective on filing. Pursuant to the shelf registration, we may issue an unlimited amount of equity, debt, warrants, purchase contracts or a combination of these securities. Our intent and ability to issue securities pursuant to this registration statement will depend on market conditions at the time of any proposed offering.

94

Financial Strength Ratings

Operating subsidiaries

Our principal insurance and reinsurance operating subsidiaries are assigned financial strength ratings from internationally recognized rating agencies, including Standard & Poor’s, A.M. Best, and Moody’s Investors Service. These ratings are publicly announced and are available directly from the agencies, and on our website.

Financial strength ratings represent the opinions of the rating agencies on the overall financial strength of a company and its capacity to meet the obligations of its insurance and reinsurance contracts. Independent ratings are one of the important factors that establish a competitive position in insurance and reinsurance markets. The rating agencies consider many factors in determining the financial strength rating of an insurance company, including the relative level of statutory surplus necessary to support the business operations of the company. These ratings are based on factors considered by the rating agencies to be relevant to policyholders, agents and intermediaries and are not directed toward the protection of investors. Ratings are not recommendations to buy, sell or hold securities.

The following are the most recent financial strength ratings from internationally recognized agencies in relation to our principal insurance and insurance operating subsidiaries:

Rating agency

Agency’s description of rating

Rating and outlook

Agency’s rating

definition

Ranking of rating

Standard & Poor’s

An "opinion about the financial security characteristics of an insurance organization, with respect to its ability to pay under its insurance policies and contracts, in accordance with their terms".

A+

(Stable)

"Strong capacity to meet its financial commitments"

The 'A' category is the third highest out of ten major rating categories. The second through eighth major rating categories may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

A.M. Best

An "opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations".

A

(Stable)

"Excellent ability to meet ongoing insurance obligations"

The 'A' category is the third highest rating out of fourteen. Ratings outlooks ('Positive', 'Negative' and 'Stable') are assigned to indicate a rating’s potential direction over an intermediate term, generally defined as 36 months.

Moody’s Investors Service

"Opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations."

A2

(Stable)

"Offers good financial security"

The 'A' category is the third highest out of nine rating categories. Each of the second through seventh categories are subdivided into three subcategories, as indicated by an appended numerical modifier of '1', '2' and '3'. The '1' modifier indicates that the obligation ranks in the higher end of the rating category, the '2' modifier indicates a mid-category ranking and the '3' modifier indicates a ranking in the lower end of the rating category.

Non-operating holding companies

On January 29, 2024, Standard and Poor's affirmed the Issuer Credit Rating of AXIS Capital Holding Company at A- (Stable). In addition, Standard & Poor's also reaffirmed the A+ Financial Strength and issuer credit ratings on all core operating subsidiaries (Stable).

The stable outlook reflects Standard and Poor's expectation that AXIS will sustain its strong competitive position supported by solid, less-volatile underwriting performance, and will maintain capital adequacy at the 99.99% (or extreme stress) level in 2023-2025.

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Contractual Obligations and Commitments

At December 31, 2025, contractual obligations and commitments by period due were:

Payment due by period

Contractual obligations and commitments

Total

Less than 1

year

1-3 years

3-5 years

More than

5 years

Operating activities

Estimated gross losses and loss expenses payments(1)

$

18,122,256 

$

5,140,504 

$

6,168,334 

$

3,218,486 

$

3,594,932 

Operating lease obligations(2)

136,320 

16,937 

30,719 

29,950 

58,714 

Investing activities

Unfunded investment commitments(3)

1,089,367 

278,196 

282,558 

218,414 

310,199 

Financing activities

Debt (principal payments)(4)

1,325,000 

— 

350,000 

300,000 

675,000 

Debt (interest payments)(4)(5)

408,714 

61,002 

106,811 

54,918 

185,983 

Total

$

21,081,657 

$

5,496,639 

$

6,938,422 

$

3,821,768 

$

4,824,828 

(1)We are obligated to pay claims for specified loss events covered by the insurance and reinsurance contracts that we write. Loss payments represent our most significant future payment obligation. In contrast to our other contractual obligations, cash payments are not determinable from the terms specified within the underlying contracts. Our best estimate of reserve for losses and loss expenses is reflected in the table above. Actual amounts and timing may differ materially from our best estimate (refer to ‘Critical Accounting Estimates – Reserve for Losses and Loss Expenses’ for further details). We have not taken into account corresponding reinsurance recoverable on unpaid amounts that would be due to us.

(2)In the ordinary course of business, we renew and enter into new leases for office space that expire at various dates. Operating lease obligations further includes $26 million of unamortized discount expenses (refer to Item 8, Note 13 to the Consolidated Financial Statements 'Leases' for further details).

(3)We have $683 million of unfunded investment commitments related to our other investments portfolio, which are callable by our investment managers (refer to Item 8, Note 5(e) to the Consolidated Financial Statements 'Investments' and Note 12(e) to the Consolidated Financial Statements 'Commitment and Contingencies' for further details). In addition, we have $3 million of unfunded commitments related to our commercial mortgage loans portfolio and $403 million of unfunded commitments related to our corporate debt portfolio.

(4)Refer to Item 8, Note 10(a) to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details.

(5)Debt (interest payments) further includes $8 million of unamortized discount and debt issuance expenses (refer to Item 8, Note 10(a) to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details).

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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 to determine the reported values. We consider an accounting estimate to be critical if: (1) it requires that significant assumptions be made 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 that 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 credit losses associated with fixed maturities, available for sale.

Significant accounting policies are also important to understanding the consolidated financial statements (refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details).

We believe that the amounts included in the consolidated financial statements reflect management's best judgment. However, factors such as those described in Item 1A 'Risk Factors' could cause actual events or results to differ materially from the underlying assumptions and estimates which could lead to a material adverse impact on our results of operations, financial condition, or liquidity.

Reserve for Losses and Loss Expenses

Overview

We believe the most significant accounting judgment we make is the estimate of reserve for losses and loss expenses ("loss reserves"). Loss reserves represent management’s estimate of the unpaid portion of our ultimate liability for losses and loss expenses ("ultimate losses") for insured and reinsured events that have occurred at or before the balance sheet date. Loss reserves reflect claims that have been reported ("case reserves") to us and claims that have been incurred but not reported ("IBNR") to us. Loss reserves represent our best estimate of what the ultimate settlement and administration of claims will cost, based on our assessment of facts and circumstances known at that particular point in time.

Loss reserves are not an exact calculation of the liability but instead are complex estimates. The process of estimating loss reserves involves a number of variables (refer to 'Selection of Reported Reserves – Management's Best Estimate' below for further details). We review estimates of loss reserves each reporting period and consider all significant facts and circumstances known at that particular point in time. As additional experience and other data become available and/or laws and legal interpretations change, we may adjust previous estimates of loss reserves. Adjustments are recognized in the period in which they are determined. Therefore, they can impact that period's underwriting results either favorably, indicating that current estimates are lower than previous estimates, or adversely, indicating that current estimates are higher than previous estimates.

Case Reserves

With respect to insurance business, we are generally notified of losses by our insureds and/or their brokers. Based on this information, our claims personnel estimate ultimate losses arising from the claim, including the cost of administering the claims settlement process. These estimates reflect the judgment of our claims personnel based on general reserving practices, the experience and knowledge of such personnel regarding the nature of the specific claim and, where appropriate, the advice of legal counsel, loss adjusters and other relevant consultants.

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With respect to reinsurance business, we are generally notified of losses by ceding companies and/or their brokers. For excess of loss contracts, we are typically notified of insured losses on specific contracts and record a case reserve for the estimated ultimate liability arising from the claim. For contracts written on a proportional basis, we typically receive aggregated claims information and record a case reserve for the estimated ultimate liability arising from the claim based on that information. Proportional reinsurance contracts typically require that losses in excess of pre-defined amounts be separately notified so we can adequately evaluate them. Our claims department evaluates each specific loss notification we receive and records additional case reserves when a ceding company’s reserve for a claim is not considered adequate. We also undertake an extensive program of cedant audits, using outsourced legal and industry experience where necessary. This allows us to review cedants’ claims administration practices to ensure that reserves are consistent with exposures, adequately established, and properly reported in a timely manner.

IBNR

The estimation of IBNR is necessary due to potential development on reported claims and the time lag between when a loss event occurs and when it is actually reported, which is referred to as a reporting lag. Reporting lags may arise from a number of factors, including but not limited to the nature of the loss, the use of intermediaries and complexities in the claims adjusting process. As we do not have specific information on IBNR, it must be estimated. IBNR is calculated by deducting incurred losses (i.e., paid losses and case reserves) from management’s best estimate of ultimate losses. In contrast to case reserves, which are established at the contract level, IBNR reserves are generally estimated at an aggregate level and cannot be identified as reserves for a particular loss event or contract (refer to 'Reserving for Catastrophic Events' below for further details).

Reserving Methodology

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Sources of Information' for a description of the collection and analysis of data used in our quarterly loss reserving process.

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Actuarial Analysis' for a description of the reserve estimation methods, Expected Loss Ratio Method ("ELR Method"), Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method") and Bornhuetter-Ferguson Method ("BF Method") which are commonly employed by our actuaries together with a discussion of their strengths and weaknesses.

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Key Actuarial Assumptions', which notes that the most significant assumptions used in our quarterly loss reserving process are expected loss ratios ("ELRs") and loss development patterns.

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Gross Loss Reserves by Reserve Class

Gross loss reserves for each of the reportable segments, segregated between case reserves and IBNR, by reserve class are shown below:

2025

2024

At December 31,

Case reserves

IBNR

Total

Case reserves

IBNR

Total

Insurance segment:

Property

$

628,961 

$

888,753 

$

1,517,714 

$

571,477 

$

732,266 

$

1,303,743 

Casualty

1,840,499 

6,117,060 

7,957,559 

1,531,924 

6,127,417 

7,659,341 

Specialty other

566,990 

1,114,259 

1,681,249 

543,963 

992,656 

1,536,619 

Total Insurance

3,036,450 

8,120,072 

11,156,522 

2,647,364 

7,852,339 

10,499,703 

Reinsurance segment:

Casualty

2,129,777 

3,085,382 

5,215,159 

2,040,947 

2,918,011 

4,958,958 

Specialty

326,296 

824,243 

1,150,539 

328,094 

714,320 

1,042,414 

Run-off

304,629 

295,407 

600,036 

417,498 

300,356 

717,854 

Total Reinsurance

2,760,702 

4,205,032 

6,965,734 

2,786,539 

3,932,687 

6,719,226 

Total

$

5,797,152 

$

12,325,104 

$

18,122,256 

$

5,433,903 

$

11,785,026 

$

17,218,929 

In order to capture the key dynamics of loss reserve development and potential volatility, reserve classes should be considered according to their potential expected length of loss emergence and settlement, generally referred to as the "tail". Favorable development on prior accident year reserves indicates that current estimates are lower than previous estimates, while adverse development on prior accident year reserves indicates that current estimates are higher than previous estimates.

Although estimates of ultimate losses for shorter tail business are inherently more certain than for longer tail business, significant judgment is still required. For example, much of our excess insurance and excess of loss reinsurance business has high attachment points. Therefore, it is often difficult to estimate whether claims will exceed those attachment points. In addition, the inherent uncertainties relating to catastrophe events further add to the complexity of estimating potential exposure. Further, we use managing general agents ("MGAs") and other producers for certain business in the insurance segment, which can delay the reporting of loss information. For short-tail business, we expect the majority of development for an accident year or underwriting year to be recognized in the subsequent one to three years.

Factors that contribute additional uncertainty to estimates for longer tail business include, but are not limited to:

•potential volatility of actuarial estimates, the number of years of development it takes to produce a significant incurred loss as a percentage of ultimate losses;

•inherent uncertainties about loss trends, claims inflation (e.g., medical, judicial, social) and general economic conditions; and

•the possibility of future litigation, legislative or judicial change that may impact future loss experience relative to prior industry loss experience relied on in reserve estimation.

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserve for Losses and Loss Expenses – Prior Year Reserve Development' for a discussion of prior year reserve development by segment, reserve class and accident year.

Reserving for Credit and Political Risk Business

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserve for Losses and Loss Expenses – Prior Year Reserve Development' for further details of prior year reserve development for the insurance specialty other and reinsurance specialty reserve classes which include insurance and reinsurance credit and political risk lines of business.

99

Reserving for Catastrophic Events

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Reserving for Catastrophic Events' for further details.

In addition to those noted in Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Reserving for Catastrophic Events' there are additional risks that affect our ability to accurately estimate ultimate losses for catastrophic events. For example, the estimates of loss reserves related to hurricanes and earthquakes can be affected by factors including, but not limited to, the inability to access portions of impacted areas, infrastructure disruptions, the complexity of factors contributing to losses, legal and regulatory uncertainties, complexities involved in estimating business interruption losses and additional living expenses, the impact of demand surge, fraud and the limited nature of information available. For hurricanes, additional complex coverage factors may include determining whether damage was caused by flooding or wind, evaluating general liability and pollution exposures, and mold damage. The timing of a catastrophe, for example, near the end of a reporting period, can also affect the level of information available to us to estimate loss reserves for that reporting period.

Results of operations for 2025 were impacted by natural and man-made catastrophe activity (refer to 'Underwriting Results – Insurance segment – Current Accident Year Loss Ratio' and 'Underwriting Results – Reinsurance segment – Current Accident Year Loss Ratio' for further details).

Selection of Reported Reserves – Management’s Best Estimate

Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Selection of Reported Reserves – Management’s Best Estimate' for further details.

Independent Actuarial Review

On an annual basis, we engage an independent actuarial firm to provide an actuarial opinion on the reasonableness of loss reserves for each of our operating subsidiaries and statutory reporting entities as these actuarial opinions are required to meet various insurance regulatory requirements. The actuarial firm also discusses its conclusions from the annual review with management and presents its findings to the Audit Committee of the Board of Directors.

Sensitivity Analysis

While we believe that loss reserves at December 31, 2025 are adequate, new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in our loss reserves. As previously noted, there are many factors that may cause reserves to increase or decrease, particularly those related to catastrophe losses and longer tail lines of business.

Expected loss ratios are a key assumption in estimates of ultimate losses for business at an early stage of development. A higher expected loss ratio results in a higher ultimate loss estimate, and vice versa.

Assumed loss development patterns are another significant assumption in estimating loss reserves. Accelerating a loss reporting pattern (i.e., shortening the claim tail) results in lower ultimate losses, as the estimated proportion of losses already incurred would be higher.

100

The effect on estimates of gross loss reserves of reasonably likely changes in the two key assumptions used to estimate gross loss reserves at December 31, 2025 was as follows:

INSURANCE

Loss development pattern

Expected loss ratio

Higher Loss Reserves (Lower Loss Reserves)

Property

5% lower

Unchanged

5% higher

3 months shorter

$

(122,477)

$

(70,443)

$

(17,383)

Unchanged

(54,360)

— 

48,945 

3 months longer

41,430 

99,402 

147,125 

Casualty

10% lower

Unchanged

10% higher

3 months shorter

$

(898,647)

$

(315,997)

$

224,599 

Unchanged

(600,107)

— 

590,283 

3 months longer

(202,845)

380,597 

1,003,380 

Specialty other

5%-10% lower

Unchanged

5%-10% higher

3 months shorter

$

(137,987)

$

(80,919)

$

(21,262)

Unchanged

(60,063)

— 

61,051 

3 months longer

29,783 

92,799 

157,056 

REINSURANCE

Loss development pattern

Expected loss ratio

Higher Loss Reserves (Lower Loss Reserves)

Casualty

10% lower

Unchanged

10% higher

3 months shorter

$

(521,338)

$

(224,696)

$

74,027 

Unchanged

(307,601)

— 

312,528 

3 months longer

(53,072)

260,925 

588,309 

Specialty

5%-10% lower

Unchanged

5%-10% higher

3 months shorter

$

(130,820)

$

(57,777)

$

15,461 

Unchanged

(75,290)

— 

74,237 

3 months longer

(4,235)

72,667 

150,998 

Run-off

5% lower

Unchanged

5% higher

3 months shorter

$

(23,147)

$

(4,315)

$

14,516 

Unchanged

(18,832)

— 

18,832 

3 months longer

(16,466)

2,367 

21,200 

The results show the cumulative increase (decrease) in loss reserves across all accident years.

For example, if assumed loss development pattern for insurance property business was three months shorter with no accompanying change in ELR assumption, loss reserves may decrease by approximately $70 million. Each of the impacts detailed in the tables is estimated individually, without consideration for any correlation among key assumptions or among lines of business. Therefore, it would be inappropriate to take each of the amounts and add them together in an attempt to estimate total volatility. Additionally, it is noted that in some instances, for example the projection of catastrophe estimates or credit and political risks estimates, development patterns are not appropriate as more bespoke techniques are used. While we believe the variations in the expected loss ratios and loss development patterns presented could be reasonably expected, our historical loss data regarding variability is generally limited and actual variations may be greater or less than these amounts.

It is also important to note that the variations are not meant to be a "best-case" or "worst-case" series of scenarios and, therefore, it is possible that future variations in loss reserves may be more or less than the amounts presented. While we believe that these are reasonably likely scenarios, we do not believe this sensitivity analysis should be considered an actual reserve range.

101

Reinsurance Recoverable on Unpaid Losses and Loss Expenses

In the normal course of business, we purchase facultative and treaty reinsurance protection to limit ultimate losses and to reduce loss aggregation risk. To the extent that reinsurers do not meet their obligations under the reinsurance agreements, we remain liable. Consequently, we are exposed to credit risk associated with reinsurance recoverable on unpaid and paid losses and loss expenses to the extent that any of our reinsurers are unable or unwilling to pay claims.

Reinsurance recoverables on unpaid losses and loss expenses ("reinsurance recoverables") for each of the reportable segments, segregated between case reserves and IBNR, by reserve class are shown below:

2025

2024

At December 31,

Case

reserves

IBNR

Total

Case

reserves

IBNR

Total

Insurance segment:

Property

$

203,976 

$

322,431 

$

526,407 

$

206,654 

$

269,708 

$

476,362 

Casualty

1,022,883 

2,895,540 

3,918,423 

851,597 

3,075,267 

3,926,864 

Specialty other

157,049 

281,751 

438,800 

134,308 

258,621 

392,929 

Total Insurance

1,383,908 

3,499,722 

4,883,630 

1,192,559 

3,603,596 

4,796,155 

Reinsurance segment:

Casualty

1,470,825 

1,826,463 

3,297,288 

484,220 

1,122,586 

1,606,806 

Specialty

171,994 

230,580 

402,574 

75,482 

155,906 

231,388 

Run-off

188,393 

179,878 

368,271 

112,288 

94,260 

206,548 

Total Reinsurance

1,831,212 

2,236,921 

4,068,133 

671,990 

1,372,752 

2,044,742 

Total

$

3,215,120 

$

5,736,643 

$

8,951,763 

$

1,864,549 

$

4,976,348 

$

6,840,897 

At December 31, 2025, reinsurance recoverables as a percentage of loss reserves was 49% (2024: 40%).

The recognition of reinsurance recoverables requires two key estimates as follows:

•The first estimate is the amount of loss reserves to be ceded to our reinsurers. This amount consists of amounts related to case reserves and amounts related to IBNR. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details.

•The second estimate is the amount of the reinsurance recoverable balance that we believe ultimately will not be collected from reinsurers. We are selective in choosing reinsurers, buying reinsurance principally from reinsurers with a strong financial condition and industry ratings. The amount we ultimately collect may differ from our estimate due to the ability and willingness of reinsurers to pay claims, which may be negatively impacted by factors such as insolvency, contractual disputes over contract language or coverage and/or other reasons. In addition, economic conditions and/or operational performance of a particular reinsurer may deteriorate, and this could also affect the ability and willingness of a reinsurer to meet their contractual obligations.

We review reinsurance recoverables at least quarterly to estimate an allowance for expected credit losses. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details.

At December 31, 2025, the allowance for expected credit losses was $40 million (2024: $43 million). We have not written off any significant reinsurance recoverable balances in the last three years.

At December 31, 2025, the use of different assumptions could have a material effect on the allowance for expected credit losses. To the extent the creditworthiness of our reinsurers deteriorates due to an adverse event affecting the reinsurance industry, such as a large number of catastrophes, uncollectible amounts could be significantly greater than the allowance for expected credit losses. Given the various considerations used to estimate the allowance for expected credit losses, we cannot precisely quantify the effect a specific industry event may have on the allowance for expected credit losses.

At December 31, 2025, the three largest balances by reinsurer accounted for 20%, 8% and 4% (2024: 12%, 7% and 5%) of reinsurance recoverable on unpaid and paid losses and loss expenses.

102

At December 31, 2025, amounts recoverable from reinsurers included 31% that is fully collateralized, 65% that is recoverable from reinsurers rated A- or higher by A.M. Best and 4% that is recoverable from reinsurers rated lower than A- by A.M. Best (2024: 17%, 81% and 2%, respectively).

Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitments and Contingencies' for an analysis of the credit risk associated with reinsurance recoverables.

Gross Premiums Written

Revenues primarily relate to premiums generated by our underwriting operations. The basis for recognizing gross premiums written varies by policy or contract type. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details.

Insurance Segment

For the majority of our insurance business, a fixed premium that is identified in the policy is recorded at the inception of the policy. This premium is adjusted if underlying insured values change. We actively monitor underlying insured values, and any adjustments to premiums are recognized in the period in which they are determined. Gross premiums written on a fixed premium basis accounted for 94% of the segment’s gross premiums written for the years ended December 31, 2025 and 2024. Some of this business is written through MGAs, third parties granted authority to bind risks on our behalf in accordance with our underwriting guidelines. For this business, premiums are recorded based on monthly or quarterly statements received from MGAs or best estimates based on historical experience.

The remainder of our insurance business is written on a line slip or proportional basis, where we assume an agreed proportion of the premiums and losses of a particular risk or group of risks along with other unrelated insurers. As premiums for this business are not identified in the policy, premiums are recognized at the inception of the policy based on estimates provided by clients through brokers (refer to 'Reinsurance Segment' below for further details). We review these premium estimates on a quarterly basis and any adjustments to premium estimates are recognized in the period in which they are determined. Gross premiums written on a line slip or proportional basis accounted for 6% of the segment’s gross premiums written for the years ended December 31, 2025 and 2024.

For the credit and political risk line of business, we write certain policies on a multi-year basis. Premiums in respect of these policies are recorded at the inception of the policy based on management’s best estimate of premiums to be received, including assumptions relating to prepayments/refinancing. At December 31, 2025, the average duration of unearned premiums for credit and political risk line of business was 5.5 years (2024: 5.6 years).

Reinsurance Segment

The reinsurance segment provides cover to cedants (i.e., insurance companies) on an excess of loss or on a proportional basis. In most cases, cedants seek protection from us for business that they have not yet written at the time they enter into agreements with us. Therefore, cedants must estimate their underlying premiums when purchasing reinsurance cover from us.

Excess of loss reinsurance contracts with cedants typically include minimum or deposit premium provisions. For excess of loss reinsurance contracts, minimum or deposit premiums are generally considered to be the best estimate of premiums at the inception of the contract. The minimum or deposit premium is normally adjusted at the end of the contract period to reflect changes in the underlying risks in force during the contract period. Any adjustments to minimum or deposit premiums are recognized in the period in which they are determined. Gross premiums written for excess of loss reinsurance contracts accounted for 35% and 40% of the reinsurance segment’s gross premiums written for the years ended December 31, 2025 and 2024, respectively.

For proportional reinsurance contracts, premiums are recognized at the inception of the contract based on estimates to be received from ceding companies. We review these premium estimates on a quarterly basis and evaluate their reasonability in light of premiums reported by cedants. Factors contributing to changes in initial premium estimates may include:

•changes in renewal rates or rates of new business accepted by cedants (changes could result from changes in the relevant insurance market that could affect more than one of our cedants or could be a consequence of changes in the marketing strategy or risk appetite of an individual cedant);

•changes in underlying exposure values; and/or

•changes in rates being charged by cedants.

103

As a result of this review process, any adjustments to premium estimates are recognized in the period in which they are determined. Changes in premium estimates could be material to gross premiums written in the period. Changes in premium estimates could also be material to net premiums earned in the period in which they are determined, as any adjustment may be substantially or fully earned. Gross premiums written for proportional reinsurance contracts, including adjustments to premium estimates established in prior years, accounted for 65% and 60% of the reinsurance segment’s gross premiums written for the years ended December 31, 2025 and 2024, respectively.

Gross premiums written for proportional reinsurance contracts incepting during the year were as follows:

Year ended December 31,

2025

2024

2023

Liability

$

426,345 

$

365,854 

$

356,022 

Professional lines

371,089 

343,208 

280,381 

Motor

101,232 

40,848 

68,136 

Accident and health

243,550 

310,907 

298,577 

Credit and surety

263,395 

205,393 

169,297 

Agriculture

154,367 

140,714 

99,806 

Marine and aviation

28,236 

30,916 

19,839 

Run-off lines

Catastrophe

— 

— 

1,343 

Property

293 

297 

3,000 

Engineering

— 

— 

— 

Total run-off lines

293 

297 

4,343 

Total estimated premiums

$

1,588,507 

$

1,438,137 

$

1,296,401 

Gross premiums written (reinsurance segment)

$

2,465,308 

$

2,390,304 

$

2,215,761 

As a % of total gross premiums written

64 

%

60 

%

59 

%

Historical experience has shown that cumulative adjustments to initial premium estimates for proportional reinsurance contracts have ranged from (3%) to 10% over the last 5 years.

We believe that a reasonably likely change to 2025 initial premium estimates for proportional reinsurance contracts would be 2% in either direction. A change in initial premium estimates of this magnitude would result in a change in gross premiums written of approximately $32 million. A change in initial premium estimates of this magnitude would not have a material impact on pre-tax net income. Larger variations, positive or negative, are possible.

Net Premiums Earned

Premiums are earned over the period during which we are exposed to the underlying risk. Changes in circumstances subsequent to the inception of contracts can impact the earning periods. For example, when exposure limits for a contract are reached, any associated unearned premiums are fully earned. This can have a significant impact on net premiums earned, particularly for multi-year contracts such as those in the credit and political risk line of business.

Fixed premium insurance policies and excess of loss reinsurance contracts are generally written on a "losses occurring" or "claims made" basis over the term of the contract. Consequently, premiums are earned evenly over the contract term, which is generally 12 months.

Line slip or proportional insurance policies and proportional reinsurance contracts are generally written on a "risks attaching" basis, covering claims that relate to the underlying policies written during the terms of these contracts. As the underlying business incepts throughout the contract term which is typically one year, and the underlying business typically has a one year coverage period, these premiums are generally earned evenly over a 24-month period.

104

Fair Value Measurements of Financial Assets and Liabilities

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. Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for information on the valuation techniques, including significant inputs and assumptions generally used in estimating the fair values of our financial instruments.

Fixed Maturities and Equity Securities

At December 31, 2025, the fair values of 95% (2024: 94%) of total fixed maturities and equity securities were based on prices provided by globally recognized independent pricing services where we have a current and detailed understanding of how their prices were derived. The remaining securities were priced by either non-binding broker quotes or internal valuation models.

Generally, we obtain quotes directly from broker-dealers who are active in the corresponding markets when prices are unavailable from independent pricing services. This may also be the case if the pricing from pricing services is not reflective of current market levels, as detected by our pricing control tolerance procedures. Generally, broker-dealers value securities through their trading desks based on observable market inputs. Their pricing methodologies include mapping securities based on trade data, bids or offers, observed spreads and performance on newly issued securities. They may also establish pricing through observing secondary trading of similar securities.

At December 31, 2025 and 2024, we did not adjust any pricing provided by independent pricing services.

Management Pricing Validation

While we obtain pricing from independent pricing services and/or broker-dealers, management is ultimately responsible for determining the fair value measurements of all securities. To ensure fair value measurement is applied consistently and in accordance with U.S. GAAP, annually, we update our understanding of the pricing methodologies used by the pricing services and broker-dealers.

We also challenge any prices we believe may not be representative of fair value under current market conditions. Our review process includes, but is not limited to:

•initial and ongoing evaluation of the pricing methodologies and valuation models used by outside parties to calculate fair value;

•quantitative analysis;

•a review of multiple quotes obtained in the pricing process and the range of resulting fair values for each security, if available; and

•randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates provided by the independent pricing sources and broker-dealers.

Other Investments

Multi-strategy Funds, Direct Lending Funds, Private Equity Funds and Real Estate Funds

The fair values of multi-strategy funds, direct lending funds, private equity funds and real estate funds are estimated using net asset values (NAVs) as advised by external fund managers or third-party administrators. At December 31, 2025, the estimated fair value of our investments in these funds was $854 million (2024: $808 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

105

Other Privately Held Investments

Other privately held investments include common shares, preferred shares, convertible notes, convertible preferred shares, investments in limited partnerships (refer to "private company investment funds" below), and a variable yield security.

These investments are initially valued at cost, which approximates fair value. In subsequent measurement periods, the fair values of these investments are 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 was determined using an externally developed discounted cash flow model.

At December 31, 2025, the estimated fair value of these investments was $124 million (2024: $92 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

Other privately held investments includes investments in private company investment funds focusing on financial services technology companies with an emphasis on insurance technology companies ("private company investment funds").

The fair values of private company investment funds are estimated using NAVs as advised by external fund managers or third-party administrators. At December 31, 2025, the estimated fair value of our investments in these funds was $50 million (2024: $30 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

Impairment Losses and the Allowance for Expected Credit Losses - Fixed Maturities, Available for Sale

Fixed maturities classified as available for sale are reported at fair value at the balance sheet date and are presented net of an allowance for expected credit losses. Our available for sale ("AFS") investment portfolio is the largest component of total assets, and it is a multiple of shareholders’ equity. As a result, impairment losses could be material to our results of operations and financial condition particularly during periods of dislocation in financial markets.

A fixed maturity, available for sale security is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company evaluates all fixed maturities, available for sale for impairment losses.

Details regarding our processes for the identification of impairments of fixed maturities, available for sale and the recognition of the related impairment losses are disclosed in Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies'.

In addition, the methodologies and significant inputs used to estimate the allowance for expected credit losses are disclosed in Item 8, Note 5(i) to the Consolidated Financial Statements 'Investments'.

At December 31, 2025, we recorded an allowance for expected credit losses of $2 million (2024: $4 million) and for the year ended December 31, 2025, we recorded impairment losses of $2 million (2024: $nil) (refer to 'Net Investment Income and Net Investment Gains (Losses)' for further details). The allowance for expected credit loss is charged to net income (loss) and is included in net investment gains (losses) in the consolidated statements of operations.

Intent or Requirement to Sell

From time to time, we may sell fixed maturities, available for sale subsequent to the balance sheet date that we did not intend to sell at the balance sheet date. Conversely, we may not sell fixed maturities, available for sale that we intended to sell at the balance sheet date. These changes in intent may arise due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the specific issuer, changes in liquidity needs, or changes in tax laws or the regulatory environment.

U.S. Treasury Securities and Other Highly Rated Debt Instruments

Our credit impairment review process excludes fixed maturities, available for sale guaranteed, either explicitly or implicitly, by the U.S. government and its agencies (U.S. Government, U.S. Agency and U.S. Agency RMBS) because we anticipate these securities will not be settled below amortized cost. These securities are evaluated for intent or requirement to sell at a loss.

106

RECENT ACCOUNTING PRONOUNCEMENTS

At December 31, 2025, 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.