10q10k10q10k.net

What changed in AXIS CAPITAL HOLDINGS LTD's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of AXIS CAPITAL HOLDINGS LTD's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+567 added−626 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-26)

Top changes in AXIS CAPITAL HOLDINGS LTD's 2025 10-K

567 paragraphs added · 626 removed · 475 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

133 edited+20 added−47 removed159 unchanged
Biggest changeFirst, we take a vigilant and cautious approach on claims cost trends, and we review these assumptions regularly and frequently. Second, in some of our contracts we include loss and/or exposure adjustment features that flex premium and/or acquisition costs in response to higher-than-expected exposures and/or claim costs.
Biggest changeWe mitigate premium risk in our portfolio through four main levers by: • Taking a vigilant and cautious approach on claims cost trends, and we review these assumptions frequently. • Including loss and/or exposure adjustment features that flex premium and/or acquisition costs in response to higher-than-expected exposures and/or claim costs in some of our contracts. • Employing underwriting action and reinsurance protection to minimize volatility in our claims experience by managing aggregation of limits and by maintaining balance between portfolio margin and limits deployed. • Enhancing our processes including refining our models to ensure we grow the portfolio at times when pricing is in surplus and we shrink the portfolio at times when pricing is in deficit.
We attract, develop, retain and motivate teams of experts: We aim to attract and retain top talent in the industry and to motivate our employees to make decisions that are in the best interest of our clients and shareholders. We foster a culture that prioritizes ethics, risk awareness and achievement, while also promoting inclusion, professionalism, responsibility, integrity, discipline and entrepreneurship.
We attract, develop, retain and motivate teams of experts: We aim to attract and retain top talent in the industry and to motivate our employees to make decisions that are in the best interest of our clients and shareholders. We foster a culture that prioritizes ethics, risk awareness and achievement, while also promoting professionalism, responsibility, integrity, discipline, inclusion and entrepreneurship.
Target industry sectors include construction, manufacturing, transportation and trucking, and other services. • Cyber : provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability.
Target industry sectors include construction, manufacturing, transportation and trucking, and other services. • Cyber : provides cover for cyber liability, technology errors and omissions, media and miscellaneous professional liability.
The Risk Committee meets with the Chief Risk Officer in separate executive sessions on a regular basis. The Finance Committee of the Board of Directors oversees the Group’s investment of funds and adequacy of financing facilities. This includes approval of the Group’s strategic asset allocation plan.
The Risk Committee meets with the Chief Risk Officer in separate executive sessions on a regular basis. The Finance Committee of the Board of Directors ("Finance Committee") oversees the Group’s investment of funds and adequacy of financing facilities. This includes approval of the Group’s strategic asset allocation plan.
In addition to the RMC, there is an established framework of separate yet complementary management committees and sub-committees, focusing on particular aspects of ERM including the following: Management Committees • The Underwriting Committee oversees the integrity and effectiveness of our Underwriting Governance Framework ensuring our underwriting activities are consistent with that framework. • The Investment & Finance Committee oversees the Group’s investment activities, which includes monitoring market risks, the performance of our investment managers and the Group’s asset-liability management, liquidity positions and investment policies and guidelines.
In addition to the RMC, there is an established framework of separate yet complementary management committees and sub-committees, focusing on particular aspects of ERM including the following: Management Committees and Councils • The Underwriting & Governance Committee oversees the integrity and effectiveness of our Underwriting Governance Framework ensuring our underwriting activities are consistent with that framework. • The Investment & Finance Committee oversees the Group’s investment activities, which includes monitoring market risks, the performance of our investment managers and the Group’s asset-liability management, liquidity positions and investment policies and guidelines.
Our comprehensive benefits packages include health and welfare plans for employees and their families, retirement savings plans with employer contributions and work-life benefits, including parental leave policies, flexible work arrangements for eligible teammates and charitable matching programs. At AXIS, we are committed to fair pay and delivering equal pay for equal work regardless of gender, race or other personal characteristics.
Our comprehensive benefits packages include health and welfare plans for teammates and their families, retirement savings plans with employer contributions and work-life benefits, including parental leave policies, flexible work arrangements for eligible teammates and charitable matching programs. At AXIS, we are committed to fair pay and delivering equal pay for equal work regardless of gender, race or other personal characteristics.
Where we do not find sufficiently attractive opportunities and returns for our excess capital, we may return capital to our shareholders through share repurchases and/or dividends. In doing so, we seek to maintain an appropriate balance between higher returns for our shareholders and the security provided by a sound capital position.
Where we do not find sufficiently attractive opportunities and returns for our excess capital, we may return capital to our shareholders through share repurchases and/or dividends. In doing so, we seek to maintain an appropriate balance between higher returns for our shareholders and the security provided by a sound capital position. 29
Refer also 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. 26 Claims Handling Risk In accepting risk, we are committing to the payment of claims and therefore these risks must be understood and controlled.
Refer also 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. Claims Handling Risk In accepting risk, we are committing to the payment of claims and therefore these risks must be understood and controlled.
We are headquartered in Bermuda and have operations in the U.S., Canada, and Europe including Dublin, London, Zurich and Brussels, and Singapore. We service the Latin America specialty insurance and facultative reinsurance market through London and our other locations. In addition, we provide specialty insurance and reinsurance solutions to the Asia Pacific region through our London, Zurich and Bermuda offices.
We are headquartered in Bermuda and have operations in the U.S., Canada, and Europe including Dublin, London, Zurich and Brussels, and Singapore. We service the Latin America specialty insurance and reinsurance market through London and our other locations. In addition, we provide specialty insurance and reinsurance solutions to the Asia Pacific region through our London, Zurich and Bermuda offices.
Individual limits are established through an iterative process to ensure that the overall framework complies with our group-wide requirements on capital adequacy and risk accumulation. We monitor risks against our documented risk appetite and defined limits and report any deviations through our risk reporting framework.
Individual limits are established through an iterative annual process to ensure that the overall framework complies with our group-wide requirements on capital adequacy and risk accumulation. We monitor risks against our documented risk appetite and defined limits and report any deviations through our risk reporting framework.
Reinsurance Segment Lines of Business and Distribution Our reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis, written on an excess of loss or a proportional basis. For excess of loss business, we typically indemnify the reinsured for a portion of losses, individually and in the aggregate, in excess of a specified individual or aggregate loss deductible.
Reinsurance Segment Lines of Business and Distribution Our reinsurance segment provides reinsurance to insurance companies on a worldwide basis, written on an excess of loss or a proportional basis. For excess of loss business, we typically indemnify the reinsured for a portion of losses, individually and in the aggregate, in excess of a specified individual or aggregate loss deductible.
For example, we reflect important features of our liabilities, such as maturity patterns and foreign currency structures, on the asset side of the balance sheet by acquiring investments with similar characteristics. 27 We supplement our asset-liability management with various internal policies and limits.
For example, we reflect important features of our liabilities, such as maturity patterns and foreign currency structures, on the asset side of the balance sheet by acquiring investments with similar characteristics. We supplement our asset-liability management with various internal policies and limits.
Group Risk is responsible for developing methods and processes for identifying, assessing, managing, monitoring, and reporting risk. This forms the basis for informing the Risk Committee and RMC of the Group’s risk profile. Group Risk develops our ERM framework and oversees the adherence to this framework at the Group and legal entity level.
Group Risk is responsible for developing methods and processes for identifying, assessing, managing, monitoring, and reporting risk. This forms the basis for informing the Risk Committee and RMC of the Group’s risk profile. The Group Risk function develops our ERM framework and oversees the adherence to this framework at the Group and legal entity level.
We make available free of charge, through our internet website, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. 19 RISK AND CAPITAL MANAGEMENT Risk Management Framework – Overview Mission and Objectives The mission of Enterprise Risk Management ("ERM") is to promptly identify, assess, manage, monitor, and report risks that affect the achievement of our strategic, operational, and financial objectives.
We make available free of charge, through our internet website, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. 18 RISK AND CAPITAL MANAGEMENT Risk Management Framework – Overview Mission and Objectives The mission of Enterprise Risk Management ("ERM") is to promptly identify, assess, manage, monitor, and report risks that affect the achievement of our strategic, operational, and financial objectives.
As part of this oversight, we facilitate the identification, assessment and management of key operational risks through several processes, risk assessments, operational risk events and various stress testing exercises. 29 We manage transaction type operational risks through the application of process controls throughout our business.
As part of this oversight, we facilitate the identification, assessment and management of key operational risks through several processes, risk assessments, operational risk events and various stress testing exercises. We manage transaction type operational risks through the application of process controls throughout our business.
AXIS Specialty U.S. is licensed to transact insurance and reinsurance throughout the U.S., except California, Iowa, Maine, New Mexico, New York and Wyoming. AXIS Surplus is eligible to write insurance on a surplus lines basis throughout the U.S., Puerto Rico and the U.S. Virgin Islands. 11 Our U.S.
AXIS Specialty U.S. is licensed to transact insurance and reinsurance throughout the U.S., except California, Iowa, Maine, New Mexico, New York and Wyoming. AXIS Surplus is eligible to write insurance on a surplus lines basis throughout the U.S., Puerto Rico and the U.S. Virgin Islands. Our U.S.
The Investment & Finance Committee also prepares the Group’s strategic asset allocation ranges and presents it to the Finance Committee of the Board of Directors for approval. • The Capital Management Committee oversees the integrity and effectiveness of our capital management policy, including the capital management policies of our legal entities and branches, and oversees the availability of capital within the Group. • The Group Reserving Committee ensures appropriate oversight and validation of the Group reserves for losses and loss expenses ("loss reserves"). • Enterprise Portfolio and Project Management Group ("EPPG") is responsible for governing project investments across the Group.
The Investment & Finance Committee also prepares the Group’s strategic asset allocation ranges and presents it to the Finance Committee for approval. • The Capital Management Committee oversees the integrity and effectiveness of our capital management policy, including the capital management policies of our legal entities and branches, and oversees the availability of capital within the Group. • The Group Reserving Committee ensures appropriate oversight and validation of the Group reserves for losses and loss expenses ("loss reserves"). • Enterprise Portfolio and Project Management Group ("EPPG") is responsible for governing project investments across the Group.
As indicated in the table above, our modeled single occurrence 1-in-100-year return period PML for a Southeast U.S. hurricane, net of reinsurance, is approximately $160 million. According to our modeling, there is a one percent chance that on an annual basis losses incurred from a Southeast U.S. hurricane event could be in excess of $160 million.
As indicated in the table above, our modeled single occurrence 1-in-100-year return period PML for a Southeast U.S. hurricane, net of reinsurance, is approximately $225 million. According to our modeling, there is a one percent chance that on an annual basis losses incurred from a Southeast U.S. hurricane event could be in excess of $225 million.
For these risks we couple commercially available vendor models with our bespoke modeling and underwriting judgment and expertise. This allows us to take advantage of business opportunities related to man-made catastrophe exposures particularly where we can measure and limit the risk sufficiently as well as obtain risk-adequate pricing.
For these risks we supplement commercially available vendor models with our bespoke modeling, and underwriting judgment and expertise. This allows us to take advantage of business opportunities related to man-made catastrophe exposures particularly where we can measure and limit the risk sufficiently as well as obtain risk-adequate pricing.
Our key financial metrics for performance measurement of the Company include operating return on average common equity ("operating ROACE"), which is reconciled to the most comparable GAAP financial measure, return on average common equity ("ROACE"), in Item 7 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation ', on an annual basis, as well as relative total shareholder return and adjusted book value per diluted common share ("Adjusted DBVPS") over the long term.
Our key financial metrics for measurement of performance based compensation include operating return on average common equity ("operating ROACE"), which is reconciled to the most comparable GAAP financial measure, return on average common equity ("ROACE"), in Item 7 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation ', on an annual basis, as well as relative total shareholder return and adjusted book value per diluted common share ("Adjusted DBVPS") over the long term.
Conversely, there is a 99% chance that on an annual basis the loss from a Southeast U.S. hurricane will fall below $160 million. PMLs are based on results of stochastic models that consider a wide range of possible events, their losses and probabilities.
Conversely, there is a 99% chance that on an annual basis the loss from a Southeast U.S. hurricane will fall below $225 million. PMLs are based on results of stochastic models that consider a wide range of possible events, their losses and probabilities.
We have been successful in adding new underwriting teams, extending our product lines, finding new distribution channels and entering new geographies. When we do not find sufficiently attractive uses for our capital, we may return excess capital to our shareholders through share repurchases and dividends.
We have been successful in adding new underwriting teams, extending our product lines, finding new distribution channels and entering new markets. When we do not find sufficiently attractive uses for our capital, we may return excess capital to our shareholders through share repurchases and dividends.
Additionally, we have included our estimate of non-modeled perils and other factors, that we believe provides us with a more complete view of catastrophe risk. 25 Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies.
Additionally, we have included our estimate of non-modeled perils and other factors, that we believe provides us with a more complete view of catastrophe risk. 24 Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies.
Per-risk treaties are an effective means of risk mitigation against large single losses (e.g., a large fire claim). • Catastrophe excess of loss – provides annual aggregate or per loss occurrence loss cover for our insurance portfolio against the accumulation of losses incurred from a single event (e.g., windstorm).
Per-risk treaties are an effective means of risk mitigation against large single losses (e.g., a large fire claim). • Catastrophe excess of loss – provides annual per loss occurrence loss cover for our insurance portfolio against the accumulation of losses incurred from a single event (e.g., windstorm).
AXIS Managing Agency Ltd. is authorized and regulated by the PRA and regulated by the FCA to conduct insurance and reinsurance business and is a Lloyd's managing agent authorized by Lloyd's to manage our syndicates, Syndicate 1686 and AXIS Energy Transition Syndicate 2050 ("Syndicate 2050"). Syndicate 2050 commenced underwriting business on April 1, 2024.
AXIS Managing Agency Ltd. is authorized and regulated by the PRA and regulated by the FCA to conduct insurance and reinsurance business and is a Lloyd's of London ("Lloyd's") managing agent authorized by Lloyd's to manage our syndicates, Syndicate 1686 and AXIS Energy Transition Syndicate 2050 ("Syndicate 2050"). Syndicate 2050 commenced underwriting business on April 1, 2024.
Facultative reinsurance is monitored by the Risk Funding team. 24 Natural Catastrophes Natural catastrophes such as hurricanes, windstorms, earthquakes, floods, tornados, hail and fire represent a challenge for risk management due to their accumulation potential and occurrence volatility.
Facultative reinsurance is monitored by the Risk Funding team. 23 Natural Catastrophes Natural catastrophes such as hurricanes, windstorms, earthquakes, floods, tornados, hail and fire represent a challenge for risk management due to their accumulation potential and occurrence volatility.
We recognize that our strength lies in our people, and therefore, one of our core strategies is to invest in and support our employees, including in the following areas of focus: Talent Development At AXIS, investing in our people is a top priority.
We recognize that our strength lies in our people, and therefore, one of our core strategies is to invest in and support our teammates, including in the following areas of focus: Talent Development At AXIS, investing in our people is a top priority.
The internal capital model is subject to regular updates and validations. 20 Risk Diversification As a global insurer and reinsurer with a wide product offering across different businesses, diversification is a key component of our business model and risk framework.
The internal capital model is subject to regular updates and validations. 19 Risk Diversification As a global insurer and reinsurer with a wide product offering across different businesses, diversification is a key component of our business model and risk framework.
Reinsurance Purchasing Another key component of our mitigation of insurance risk is the purchase of reinsurance to protect our business on a treaty (covering a portfolio of risks) and facultative (single risk) basis. For treaty reinsurance, we purchase proportional and non-proportional cover.
Reinsurance Purchasing Another key component of our mitigation of insurance risk is the purchase of reinsurance to reduce volatility and protect our business on a treaty (covering a portfolio of risks) and facultative (single risk) basis. For treaty reinsurance, we purchase proportional and non-proportional cover.
The table below shows our net PML to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at January 1, 2025 and 2024: Estimated Net Exposures (millions of U.S. dollars) January 1, 2025 January 1, 2024 Territory Peril 50 Year Return Period 100 Year Return Period 250 Year Return Period 50 Year Return Period 100 Year Return Period 250 Year Return Period Single zone, single event Southeast U.S.
The table below shows our net PML to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at January 1, 2026 and 2025: Estimated Net Exposures (millions of U.S. dollars) January 1, 2026 January 1, 2025 Territory Peril 100 Year Return Period 250 Year Return Period 100 Year Return Period 250 Year Return Period Single zone, single event Southeast U.S.
We maintain excellent financial strength, characterized by financial discipline and transparency: Our total capital of $7.4 billion at December 31, 2024 as well as our high-quality and liquid investment portfolio and our operating subsidiary ratings of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by the A.M. Best Company, Inc. ("A.M. Best") are key indicators of our financial strength.
We maintain excellent financial strength, characterized by financial discipline and transparency: Our total capital of $7.7 billion at December 31, 2025 as well as our high-quality and liquid investment portfolio and our operating subsidiary ratings of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by the A.M. Best Company, Inc. ("A.M. Best") are key indicators of our financial strength.
Credit Risk Aggregation Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Credit Risk Aggregation Credit Risk Relating to Cash and Investments Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Cash and Investments Credit Risk Relating to Reinsurance Recoverables Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Reinsurance Recoverable on Unpaid and Paid Losses and Loss Expenses 28 Credit Risk Relating to Premium B alances Receivable Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Insurance and Reinsurance Premium Balances Receivable Credit Risk Relating to our Underwriting Portfolio We provide credit insurance primarily for lenders (financial institutions) and commodity traders seeking to mitigate the risk of non-payment from their borrowers and trading counterparties.
Credit Risk Aggregation Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Credit Risk Aggregation Credit Risk Relating to Cash and Investments Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Cash and Investments Credit Risk Relating to Reinsurance Recoverables Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Reinsurance Recoverable on Unpaid and Paid Losses and Loss Expenses Credit Risk Relating to Premium Balances Receivable Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitment and Contingencies' – Concentration of Credit Risk – Insurance and Reinsurance Premium Balances Receivable 27 Credit Risk Relating to our Underwriting Portfolio We provide credit insurance primarily for lenders (financial institutions) and commodity traders seeking to mitigate the risk of non-payment from their borrowers and trading counterparties.
Our Chief Risk Officer regularly reports risk matters to the Chief Financial Officer, Executive Committee, RMC, and the Risk Committee. Internal Audit, an independent, objective function, reports to the Audit Committee of the Board of Directors on the effectiveness of our ERM framework.
Our Chief Risk Officer regularly reports risk matters to the Chief Financial Officer, Executive Committee, RMC, and the Risk Committee. Internal Audit, an independent, objective function, reports to the Audit Committee on the effectiveness of our ERM framework.
While the Executive Committee is responsible overall for risk management, it has delegated some authority to the executive level Risk Management Committee ("RMC") consisting of the President and Chief Executive Officer, Chief Financial Officer, Group Chief Underwriting Officer, Chief Risk Officer, Chief Actuary - Reserving and Capital, and Chief Administrative and Legal Officer.
While the Executive Committee has overall responsibility for risk management, it has delegated some authority to the executive level Risk Management Committee ("RMC") consisting of the President and Chief Executive Officer, Chief Financial Officer, Group Chief Underwriting Officer, Chief Risk Officer, Chief Actuary - Reserving and Capital, and Chief Administrative and Legal Officer.
The Risk Register is used as a detailed repository of each of the key drivers of risk the company is exposed to, along with the key controls and Key Risk Indicators ("KRIs") that are in place to maintain the level of risk within the defined risk appetite.
The Risk Register is a detailed repository of the key drivers of risk that the Company is exposed to, along with the Key Controls and Key Risk Indicators ("KRIs") that are in place to maintain the level of risk within the defined risk appetite.
A Bermuda company may not declare or pay a dividend or make a distribution out of contributed surplus if there are reasonable grounds for believing that: (a) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realizable value of the company’s assets would thereby be less than its liabilities.
A Bermuda company may not declare or pay a dividend or make a distribution out of contributed surplus if there are reasonable grounds for believing that: (a) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realizable value of the company’s assets would thereby be less than its liabilities. 10 United States U.S.
Examples include access to mental health resources, back-up child and elder care and on-demand fertility, maternity, postpartum and return-to-work assistance. We offer a hybrid working model that provides flexibility to our teammates. We strive to be an employer of choice and we expect this approach will help us recruit and retain talent.
Examples include access to mental health resources, back-up child and elder care and on-demand fertility, maternity, postpartum and return-to-work assistance. We offer a hybrid working model that provides flexibility to our teammates. We strive to be an employer of choice and we believe this approach helps us recruit and retain talent.
We have developed our PML estimates by combining judgment and experience with the outputs from the catastrophe model, commercially available from Verisk Analytics, Inc., that we also use for pricing catastrophe risk. This model covers the major peril regions where we face potential exposure.
We have developed our PML estimates by combining judgment and experience with the outputs from a commercially available catastrophe model, that we also use for pricing catastrophe risk. This model covers the major peril regions where we face potential exposure.
Competitive Environment In our reinsurance segment, competition tends to be focused on availability, service, financial strength and price. We compete with major North American and other reinsurers and reinsurance departments of numerous multi-line insurance organizations.
Competitive Environment In our reinsurance segment, competition tends to be focused on availability, service, financial strength and price. We compete with major North American and other reinsurers and reinsurance departments of numerous multi-line insurance organizations in our targeted specialty reinsurance lines of business.
We underwrite a balanced portfolio of risks, including complex and volatile lines, deploying capital within risk limits, diversification and risk management: Risk management is a strategic priority embedded in our organizational structure and we are continuously monitoring, reviewing, and refining our enterprise risk management practices. We combine judgment and experience with data-driven analysis, enhancing our overall risk selection process.
We underwrite a balanced portfolio of risks deploying capital within risk limits, diversification criteria and risk management strategy: Risk management is a strategic priority embedded in our organizational structure and we are continuously monitoring, reviewing, and refining our enterprise risk management practices. We combine judgment and experience with data-driven analysis, enhancing our overall risk selection process.
BUSINESS In this Form 10-K, references to "AXIS Capital" refer to AXIS Capital Holdings Limited and references to "we", "us", "our", "AXIS", the "Group" or the "Company" refer to AXIS Capital Holdings Limited and its direct and indirect subsidiaries and branches, including: AXIS Specialty Holdings Bermuda Limited, AXIS Specialty Limited ("AXIS Specialty Bermuda"), AXIS Specialty Limited (Singapore Branch), AXIS Specialty Insurance Limited ("AXIS Specialty Insurance Bermuda"), AXIS Specialty Investments Limited, AXIS Specialty Investments II Limited, AXIS Specialty UK Holdings Limited, AXIS Managing Agency Ltd., AXIS Corporate Capital UK Limited (corporate member that provided 70% capital support to AXIS Syndicate 1686 ("Syndicate 1686") through December 31, 2024), Novae Group Limited, AXIS UK Services Limited, AXIS UK Services Limited (Irish Branch), AXIS Underwriting Limited, AXIS Corporate Capital UK II Limited (corporate member that provided 30% capital support to Syndicate 1686 through December 31, 2024 and 100% capital support to Syndicate 1686 effective January 1, 2025 and 100% capital support to AXIS Energy Transition Syndicate 2050 ("Syndicate 2050")), AXIS ILS, Ltd., AXIS Reinsurance Managers Limited ("AXIS Reinsurance Managers"), AXIS Specialty Holdings Ireland Limited, AXIS Specialty Europe SE ("AXIS Specialty Europe"), AXIS Specialty Europe SE (UK Branch), AXIS Specialty Europe SE (Belgium Branch), AXIS Re SE, AXIS Re SE, Dublin (Zurich Branch) ("AXIS Re Europe"), AXIS Re SE Escritório de Representação No Brasil Ltda., AXIS Specialty Global Holdings Limited, AXIS Specialty U.S.
BUSINESS In this Form 10-K, references to "AXIS Capital" refer to AXIS Capital Holdings Limited and references to "we", "us", "our", "AXIS", the "Group" or the "Company" refer to AXIS Capital Holdings Limited and its direct and indirect subsidiaries and branches, including: AXIS Specialty Holdings Bermuda Limited, AXIS Specialty Limited ("AXIS Specialty Bermuda"), AXIS Specialty Limited (Singapore Branch), AXIS Specialty Insurance Limited ("AXIS Specialty Insurance Bermuda"), AXIS Specialty Investments Limited, AXIS Specialty Investments II Limited, AXIS Specialty UK Holdings Limited, AXIS Managing Agency Ltd., AXIS Corporate Capital UK Limited, Novae Group Limited, AXIS UK Services Limited, AXIS UK Services Limited (Irish Branch), AXIS Underwriting Limited, AXIS Corporate Capital UK II Limited (sole corporate member of AXIS Syndicate 1686 ("Syndicate 1686") effective January 1, 2025 and sole corporate member of AXIS Energy Transition Syndicate 2050 ("Syndicate 2050")), AXIS ILS, Ltd., AXIS Reinsurance Managers Limited ("AXIS Reinsurance Managers"), AXIS Specialty Holdings Ireland Limited, AXIS Specialty Europe SE ("AXIS Specialty Europe"), AXIS Specialty Europe SE (UK Branch), AXIS Specialty Europe SE (Belgium Branch), AXIS Re SE, AXIS Re SE, Dublin (Zurich Branch) ("AXIS Re Europe"), AXIS Re SE Escritório de Representação No Brasil Ltda., AXIS Specialty Global Holdings Limited, AXIS Specialty U.S.
Our credit reinsurance exposures are concentrated within developed economies, our political risk exposures are concentrated in developing economies and our surety bond exposures are concentrated in Latin America and developed economies.
Our credit reinsurance exposures are concentrated within developed economies, our political risk exposures are concentrated in developing economies and our surety bond exposures are diversified mostly between developed economies and Latin America.
Intermediating contracts of insurance requires authorization by the FCA. Under the Financial Services Act 2012, the FCA is a conduct regulator for all U.K. firms carrying on regulated activity in the U.K. while the PRA is the prudential regulator for U.K. banks, building societies, credit unions, insurers and major investment firms.
Intermediating contracts of insurance requires authorization by the FCA. 13 The FCA is a conduct regulator for all U.K. firms carrying on regulated activity in the U.K. while the PRA is the prudential regulator for U.K. banks, building societies, credit unions, insurers and major investment firms.
The following are the lines of business in our insurance segment: • Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers.
The following are the lines of business in our insurance segment: • Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice, environmental liability risks predominantly in the U.S. wholesale markets and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers.
As a resident insurance producer in Arizona, AXIS Group Benefits LLC is subject to regulation and supervision by the Arizona Department of Insurance and is also subject to the regulation and supervision of the other states in which AXIS Group Benefits LLC transacts business.
As a resident insurance producer in Arizona, AXIS Group Benefits LLC is subject to regulation and supervision by the Arizona Department of Insurance and is also subject to the regulation and supervision of the other states in which AXIS Group Benefits LLC transacts business. U.S. Authorizations of our Non-U.S.
We distinguish between various forms of credit exposure including the risk of issuer default from instruments in which we invest, such as corporate bonds, counterparty exposure in a direct contractual relationship, such as reinsurance or loss portfolio transfers, the credit risk related to our premium balances receivable, including those from brokers and other intermediaries, and the risk we assume through our insurance contracts, such as our credit and political risk, and credit and surety lines of business.
We distinguish between various forms of credit exposure including the risk of issuer default from instruments in which we invest, such as corporate bonds (refer to ' Market Risk' above for a discussion of credit risk as it relates to the investment portfolio), counterparty exposure in a direct contractual relationship, such as reinsurance or loss portfolio transfers, the credit risk related to our premium balances receivable, including those from brokers and other intermediaries, and the risk we assume through our insurance contracts, such as our credit and political risk, and credit and surety lines of business.
The Company exited this line of business in 2020. 8 Gross premiums written by broker, shown individually where premiums by broker were 10% or more of the total in any of the last three years, were as follows: Year ended December 31, 2024 2023 2022 Aon plc $ 589,324 25 % $ 595,587 27 % $ 659,811 25 % Marsh & McLennan Companies Inc. 561,906 24 % 594,287 27 % 739,380 28 % Arthur J.
The Company exited this line of business in 2020. 8 Gross premiums written by broker, shown individually where premiums by broker were 10% or more of the total in any of the last three years, were as follows: Year ended December 31, 2025 2024 2023 Marsh & McLennan Companies Inc. $ 627,507 25 % $ 561,906 24 % $ 594,287 27 % Aon plc 583,418 24 % 589,324 25 % 595,587 27 % Arthur J.
Succession Planning We have a robust talent and succession planning process. On an annual basis, management conducts talent reviews for all AXIS teammates, focusing on high performing and high potential talent, emerging talent, and diverse talent. This information is used to drive both employee development plans and succession planning.
Succession Planning We have a robust talent and succession planning process. Each year, management conducts talent reviews for all AXIS teammates, focusing on high performing and high potential talent, emerging talent, and diverse talent. This information is used to drive both teammate development plans and succession planning.
We develop and maintain deep, trusting and mutually beneficial relationships with clients and distribution partners, offering high levels of service and effective solutions for risk management needs: Our management team has extensive industry experience, deep product knowledge, long-standing market relationships and a top caliber claims capability.
We develop and maintain deep, trusting and mutually beneficial relationships with clients and distribution partners, offering high levels of service and effective solutions for risk management needs: Our management team has extensive industry experience, deep product knowledge, long-standing market relationships and a top caliber claims capability. We primarily transact in specialty markets, where risks are complex.
Bermuda Our Bermuda insurance operating subsidiary, AXIS Specialty Bermuda, is a Class 4 general business insurer subject to the Insurance Act 1978, amendments thereto and related regulations of Bermuda ("Insurance Act").
Bermuda Our Bermuda insurance operating subsidiary, AXIS Specialty Bermuda, is a Class 4 general business insurer subject to the Insurance Act 1978, amendments thereto and related regulations of Bermuda ("Insurance Act"). AXIS Specialty Bermuda has reinsurance permissions in China and the Netherlands.
State Insurance Regulation AXIS Re U.S. is licensed to transact insurance and reinsurance throughout the U.S. and in Puerto Rico. AXIS Re U.S. is also authorized to transact insurance and reinsurance throughout Canada through its Canadian branch and has reinsurance permissions in Argentina, Brazil, and Ecuador. AXIS Insurance Co. is licensed to transact insurance and reinsurance throughout the U.S.
State Insurance Regulation AXIS Re U.S. is licensed to transact insurance and reinsurance throughout the U.S. and in Puerto Rico, as well as throughout Canada through its Canadian branch and has reinsurance permissions in Brazil and Ecuador. AXIS Insurance Co. is licensed to transact insurance and reinsurance throughout the U.S and has reinsurance permissions in China and Mexico.
The capital requirement must be computed using the Solvency II standard formula unless the Central Bank of Ireland ("CBI") has previously authorized a company to use its own internal model. Certain of our European legal entities are subject to Solvency II.
The capital requirement must be computed using the Solvency II standard formula unless the Central Bank of Ireland ("CBI") has previously authorized a company to use its own internal model.
AXIS Corporate Capital UK Limited AXIS Corporate Capital UK Limited is a corporate member of Syndicate 1686, providing 70% capital support. It ceased providing capital support to Syndicate 1686 on December 31, 2024. AXIS Corporate Capital UK II Limited AXIS Corporate Capital UK II Limited is a corporate member of Syndicate 1686, providing 30% capital support.
AXIS Corporate Capital UK Limited AXIS Corporate Capital UK Limited was a corporate member of Syndicate 1686, previously providing 70% capital support. It ceased providing capital support to Syndicate 1686 on December 31, 2024.
During 2024, the number of employees decreased by approximately 8% and our voluntary turnover rate was 11.9% compared to 10.9% in 2023. 18 TRADEMARKS We use our trademarks, including among others, our "AXIS" trademarks for the global marketing of our products and services, and we believe that we sufficiently safeguard our trademark portfolio to protect our rights.
During 2025, the number of employees increased by approximately 5% and our voluntary turnover rate was 9.6% compared to 11.9% in 2024. 17 TRADEMARKS We use our trademarks, including among others, our "AXIS" trademarks for the global marketing of our products and services, and we believe that we sufficiently safeguard our trademark portfolio to protect our rights.
The table below presents gross premiums written in each of our reportable segments for each of the most recent three years: Year ended December 31, 2024 2023 2022 Insurance $ 6,615,584 $ 6,140,764 $ 5,585,581 Reinsurance 2,390,304 2,215,761 2,629,014 Total $ 9,005,888 $ 8,356,525 $ 8,214,595 Insurance Segment Lines of Business and Distribution Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis.
The table below presents gross premiums written in each of our reportable segments for each of the most recent three years: Year ended December 31, 2025 2024 2023 Insurance $ 7,179,206 $ 6,615,584 $ 6,140,764 Reinsurance 2,465,308 2,390,304 2,215,761 Total $ 9,644,514 $ 9,005,888 $ 8,356,525 Insurance Segment Lines of Business and Distribution Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis.
AXIS Specialty Europe AXIS Specialty Europe is a European public limited liability company incorporated as a non-life insurer under the laws of Ireland. It is a Societas Europaea (SE), or European society company, and has been registered in accordance with EU law.
Certain of our European legal entities are subject to Solvency II. 12 AXIS Specialty Europe AXIS Specialty Europe is a European public limited liability company incorporated as a non-life insurer under the laws of Ireland. It is a Societas Europaea (SE), or European society company, and has been registered in accordance with EU law.
The CBI remains responsible for the prudential supervision of the branch. The Swiss Financial Market Supervisory Authority does not impose additional regulation upon a Swiss branch of a company exclusively engaged in providing reinsurance.
The Swiss Financial Market Supervisory Authority does not impose additional regulation upon a Swiss branch of a company exclusively engaged in providing reinsurance.
Th is line of business includes primary and excess risks, some of which are catastrophe-exposed. • Liability: provides cover for primary and low to mid-level excess and umbrella commercial liability, and environmental liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability business predominately in the U.K.
Th is line of business includes primary and excess risks, some of which are catastrophe-exposed. • Liability: provides cover for primary and low to mid-level excess and umbrella commercial liability, life sciences excess liability, and primary and excess of loss employers, public, and U.K. products liability business.
The detailed and analytical reserving approach that follows is designed to absorb and understand the latest information on reported and unreported claims, to recognize the resultant exposure as quickly as possible, and to record appropriate loss reserves in our consolidated financial statements. Reserving for longer tail lines of business represents a significant component of reserving risk.
The detailed and analytical reserving approach that follows is designed to absorb and understand the latest information on reported and unreported claims, to recognize the resultant exposure as quickly as possible, and to record appropriate loss reserves in our consolidated financial statements.
We believe that the achievement of our objectives will position us as a global specialty underwriting leader, enabling us to deliver sustained profitable growth and increased shareholder value. 4 We aim to execute on our business strategy through the following multi-pronged approach: We offer a diversified range of products and services across market segments and geographies: Our position as a global specialty underwriter and provider of insurance and reinsurance solutions gives us insight into the opportunities and challenges in a variety of markets.
We aim to execute on our business strategy through the following multi-pronged approach: We offer a diversified range of products and services across market segments and geographies: Our position as a global specialty underwriter and provider of insurance and reinsurance solutions gives us insight into the opportunities and challenges in a variety of markets.
Gross premiums written by broker, shown individually where premiums by broker were 10% or more of the total in any of the last three years, were as follows: Year ended December 31, 2024 2023 2022 AmWINS Group Inc. $ 787,703 12 % $ 719,651 12 % $ 605,727 11 % Ryan Specialty Group 690,825 10 % 606,583 10 % 486,639 9 % Marsh & McLennan Companies Inc. 658,638 10 % 610,186 10 % 630,085 11 % Aon plc 633,297 10 % 677,930 11 % 697,103 12 % Other brokers 2,592,262 39 % 2,471,284 40 % 2,276,962 41 % Other managing general agencies and underwriters (1) 1,252,859 19 % 1,055,130 17 % 889,065 16 % Total $ 6,615,584 100 % $ 6,140,764 100 % $ 5,585,581 100 % (1) Includes gross premiums written by MGAs and MGUs that are not affiliated to brokers who produced 10% or more of the total gross premiums written in any of the last three years.
Gross premiums written by broker, shown individually where premiums by broker were 10% or more of the total in any of the last three years, were as follows: Year ended December 31, 2025 2024 2023 AmWINS Group Inc. $ 831,009 12 % $ 787,703 12 % $ 719,651 12 % Ryan Specialty Group 784,743 11 % 690,825 10 % 606,583 10 % Marsh & McLennan Companies Inc. 666,079 9 % 658,638 10 % 610,186 10 % Aon plc 664,704 9 % 633,297 10 % 677,930 11 % Other brokers 2,779,228 39 % 2,592,262 39 % 2,471,284 40 % Other managing general agencies and underwriters (1) 1,453,443 20 % 1,252,859 19 % 1,055,130 17 % Total $ 7,179,206 100 % $ 6,615,584 100 % $ 6,140,764 100 % (1) Includes gross premiums written by MGAs and MGUs that are not affiliated to brokers who produced 10% or more of the total gross premiums written in any of the last three years.
Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability. • Marine and Aviation : Marine provides cover for a range of exposures including offshore energy, offshore renewable energy, cargo, liability including kidnap and ransom, fine art, specie, and hull war.
Cover is provided for a range of risks including data security breach and privacy liability, cyber-crime, liability and regulatory actions, business interruption, cyber extortion and reputational harm, and liability covers for media and miscellaneous professional matters. • Marine and Aviation : Marine provides cover for a range of exposures including offshore energy, offshore renewable energy, ocean marine, liability including kidnap and ransom, fine art, specie, and hull war.
In 2024, we hosted a variety of internal learning events, offered activities for our teammates focused on Mental Health Awareness month and World Mental Health Day, and promoted broader internal and external advocacy initiatives to promote mental health and well-being.
In 2025, we hosted a variety of internal learning events, offered activities for our teammates focused on Mental Health Awareness month and World Mental Health Day, introduced a dedicated Wellbeing Day as part of paid time-off, and promoted broader internal and external advocacy initiatives to promote mental health and wellbeing.
The following are the lines of business in our reinsurance segment: • Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs.
The following are the lines of business in our reinsurance segment: • Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, environmental liability, and excess casualty.
Across the Group, we are focused on realizing our goal of delivering sustained profitable growth and increased shareholder value. 5 Segment Information Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re. We have determined that we have two reportable segments, insurance and reinsurance.
Across the Group, we are focused on realizing our ambition to be the leading specialty underwriter, while continuing to consistently deliver profitable growth and increased shareholder value. 5 Segment Information Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re. We have determined that we have two reportable segments, insurance and reinsurance.
In addition, our investment in building an agile business model is expected to enable us to more quickly bring innovative products and services to market while delivering value to our customers and driving profitable growth.
In addition, our investment in building an agile business model is expected to enable us to more quickly bring innovative products and services to market while delivering value to our customers and driving profitable growth, as evidenced by the sustained positive momentum behind AXIS’ new and expanded businesses.
Our packages are also regularly benchmarked against similarly-sized specialty insurance, reinsurance and financial services companies in our talent markets. Compensation components include market competitive salaries and short-term annual incentive programs (i.e., bonus payments) and, for senior level teammates, long-term incentives such as equity grants.
Our compensation packages align with our pay-for-performance philosophy and are assessed on an annual basis following year-end performance reviews. Our packages are also regularly benchmarked against similarly-sized specialty insurance, reinsurance and financial services companies in our talent markets. Compensation components include market competitive salaries and short-term annual incentive programs and, for senior level teammates, long-term incentives such as equity grants.
Gallagher & Co 512,000 21 % 398,093 18 % 379,822 14 % Other brokers 374,313 15 % 343,130 16 % 231,200 9 % Direct 194,809 8 % 163,073 7 % 444,930 17 % Managing general agencies and underwriters 157,952 7 % 121,591 5 % 173,871 7 % Total $ 2,390,304 100 % $ 2,215,761 100 % $ 2,629,014 100 % No cedant accounted for more than 10% of the gross premiums written in the reinsurance segment.
Gallagher & Co. 570,384 23 % 512,000 21 % 398,093 18 % Other brokers 461,483 19 % 374,313 15 % 343,130 16 % Direct 134,556 5 % 194,809 8 % 163,073 7 % Managing general agencies and underwriters 87,960 4 % 157,952 7 % 121,591 5 % Total $ 2,465,308 100 % $ 2,390,304 100 % $ 2,215,761 100 % No cedant accounted for more than 10% of the gross premiums written in the reinsurance segment.
Specifically, the Federal Insurance Office ("FIO") has limited authority to collect information and report on the business of insurance to Congress. In addition, Dodd-Frank contains the Non-Admitted and Reinsurance Reform Act of 2010 ("NRRA"). NRRA facilitates the payment of surplus lines taxes, simplifies the granting of alien insurers to become surplus lines authorized and coordinates the credit for certain reinsurance.
Specifically, the Federal Insurance Office ("FIO") has limited authority to collect information and report on the business of insurance to Congress. In addition, Dodd-Frank contains the Non-Admitted and Reinsurance Reform Act of 2010 ("NRRA").
AXIS Group Benefits LLC, a provider of voluntary, limited benefit, affordable health plans and other employee benefits coverage for hourly and part-time workers and their families, is an authorized insurance producer in all U.S. states except Hawaii.
NRRA facilitates the payment of surplus lines taxes, simplifies the granting of alien insurers to become surplus lines authorized and coordinates the credit for certain reinsurance. 11 AXIS Group Benefits LLC, a provider of voluntary, limited benefit, affordable health plans and other employee benefits coverage for hourly and part-time workers and their families, is an authorized insurance producer in all U.S. states except Hawaii.
Effective January 1, 2016, the BMA was granted full "equivalence" under Solvency II (refer to ' Ireland' below) for Bermuda’s commercial insurance sector, including Class 4 insurers. The BMA acts as group supervisor of AXIS Capital and has designated AXIS Specialty Bermuda as the 'designated insurer' of the Group.
The BMA has been granted full "equivalence" under Solvency II for Bermuda’s commercial insurance sector, including Class 4 insurers, and this recognition still applied under Solvency UK. The BMA acts as group supervisor of AXIS Capital and has designated AXIS Specialty Bermuda as the 'designated insurer' of the Group.
RMC Sub-Committees • The Exposure Management Committee oversees the Group's exposure management framework for catastrophe and non-catastrophe business, including the validation of modeling, threats framework, accumulation practices and monitoring of management appetites. • The Reinsurance Security Committee ("RSC") sets out the financial security requirements of our reinsurance counterparties and approves counterparties, as needed. • The Internal Model Committee oversees the Group's internal model framework, including the key model assumptions, methodology and validation framework. • The Operational Risk Committee oversees the Group's operational risk framework for identifying, assessing, managing, monitoring, and reporting of operational risk and facilitates the embedding of effective operational risk management practices throughout the Group. • The Emerging Risks Working Group oversees the processes for identifying, assessing, managing, monitoring, and reporting current and potential emerging risks and opportunities. • The Environmental Working Group replaced the Climate Change Working Group and focuses specifically on climate-related risks and opportunities and oversees climate risk initiatives. 22 Group Risk Management As a general principle, management in each of the lines of business and corporate functions is responsible in the first instance for the risks and returns of its decisions.
RMC Sub-Committees and Working Groups • The Exposure Management Committee oversees the Group's exposure management framework for catastrophe and non-catastrophe business, including the validation of modeling, threats framework, accumulation practices and monitoring of management appetites. • The Reinsurance Security Committee ("RSC") sets out the financial security requirements of our reinsurance counterparties and approves counterparties, as needed. • The Internal Model Committee oversees the Group's internal model framework, including the key model assumptions, methodology and validation framework. • The Operational Risk Committee oversees the Group's operational risk framework for identifying, assessing, managing, monitoring, and reporting of operational risk and facilitates the embedding of effective operational risk management practices throughout the Group. • The Emerging Risks Working Group oversees the processes for identifying, assessing, managing, monitoring, and reporting current and potential emerging risks and opportunities. 21 • The AI Underwriting Working Group discusses and monitors any AI related activities potentially impacting Underwriting, such as regulatory updates, market initiatives and new claim developments. • The Environmental Working Group focuses specifically on climate-related risks and opportunities and oversees climate risk initiatives.
Strategic Risk Strategic risks affect or are created by an organization’s business strategy and strategic objectives. Our review of strategic risk evaluates not only internal and external challenges that might cause our chosen strategy to fail but also evaluates major risks that could affect our long-term performance and position.
Our review of strategic risk evaluates not only internal and external challenges that might cause our chosen strategy to fail but also evaluates major risks that could affect our long-term performance and position. We believe it is imperative that we consider the business risks associated with, and mitigated by, each strategy.
AXIS Re SE has reinsurance permissions in Argentina, Bolivia, Brazil, China, Chile, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, and Peru.
AXIS Re SE has reinsurance permissions in Argentina, Bolivia, Brazil, China, Chile, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, and Peru. Other AXIS Entities AXIS Specialty Bermuda may write reinsurance under Solvency II equivalence granted to Bermuda by the EU.
As an insurer and reinsurer, our core business generates liquidity primarily through premiums, investment income and the maturity/sale of investments. Our exposure to liquidity risk stems mainly from the need to pay claims on potential extreme loss events and regulatory constraints that limit the flow of funds within the Group.
Our exposure to liquidity risk stems mainly from the need to pay claims on potential extreme loss events and regulatory constraints that limit the flow of funds within the Group.
As an SE company, AXIS Specialty Europe can more easily merge with companies in European member states and also transfer its domicile to other Member States of the EU AXIS Specialty Europe is authorized and regulated by the CBI pursuant to the Insurance Acts 1909 to 2000, as amended, repealed or replaced, the Central Bank Acts 1942 to 2014, as amended, repealed or replaced, and EU regulation relating to general insurance and statutory instruments made thereunder.
AXIS Specialty Europe is authorized and regulated by the CBI pursuant to the Insurance Acts 1909 to 2000, as amended, repealed or replaced, the Central Bank Acts 1942 to 2014, as amended, repealed or replaced, and EU regulation relating to general insurance and statutory instruments made thereunder.
In addition, we have well established processes in place for determining loss reserves, which we ensure are consistently applied. Our loss reserving process demands data quality and reliability and requires a quantitative and qualitative review of overall reserves and individual large claims.
We have well established processes in place for determining loss reserves and we calculate loss reserves in accordance with actuarial best practice based on substantiated methodologies and assumptions. Our loss reserving process demands data quality and reliability and requires a quantitative and qualitative review of overall loss reserves and individual large claims.
The PRA rules require financial firms to hold sufficient capital and have adequate risk controls in place. 14 The FCA's statutory strategic objective is to ensure that relevant markets function well and have operational objectives to protect consumers and protect financial markets and to promote competition.
The FCA's statutory strategic objective is to ensure that relevant markets function well and have operational objectives to protect consumers and protect financial markets and to promote competition.
Traditional non-proportional and proportional reinsurance as well as structured solutions are offered predominantly relating to European exposures. • Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations.
These entities seek to manage their credit risk exposure emanating from defined pools of mortgage loans. • Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop or livestock yield and/or price deviations.
It provides 100% capital support to Syndicate 1686 with effect from January 1, 2025. AXIS Corporate Capital UK II Limited is also a corporate member of Syndicate 2050, providing 100% capital support. AXIS Underwriting Limited AXIS Underwriting Limited is authorized and regulated by the FCA as an insurance intermediary.
AXIS Corporate Capital UK II Limited AXIS Corporate Capital UK II Limited is a corporate member of Syndicate 1686, providing 100% capital support to Syndicate 1686 with effect from January 1, 2025. It previously provided 30% capital support. AXIS Corporate Capital UK II Limited is also a corporate member of Syndicate 2050, providing 100% capital support.

… 120 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

112 edited+35 added−29 removed237 unchanged
Biggest changeThe responses to Pillar 2 by various jurisdictions in which we operate (including the interpretation of domestic legislation by local tax authorities) will result in a material compliance burden with ongoing monitoring and filing requirements.
Biggest changeThe responses to Pillar 2 by various jurisdictions in which we operate (including the interpretation of domestic legislation by local tax authorities) will result in a material compliance burden with ongoing monitoring and filing requirements. 49 BEPS Project Developments Further, on October 15, 2025, the G20/OECD Inclusive Framework on BEPS published "A Decade of the BEPS Initiative: an Inclusive Framework Stocktake Report to G20 Finance Ministers and Central Bank Governors" which reaffirmed the G20/OECD Inclusive Framework’s agreement (as of April 2025) to continue to prioritize efforts to progress the implementation of the BEPS package of 15 Actions.
In some instances, the effects of these changes may not become apparent until after we have issued the impacted insurance or reinsurance contracts. In addition, actual losses may vary materially from the current estimate of losses based on a number of factors (refer to ' If actual claims exceed our loss reserves, our financial results could be adversely affected' below).
In some instances, the effects of these changes may not become apparent until after we have issued the impacted insurance or reinsurance contracts. In addition, actual losses may vary materially from the current estimate of losses based on a number of factors (refer to ' If actual claims exceed loss reserves, our financial results could be adversely affected' below).
As a result, the occurrence of one or more catastrophe events could have a material adverse effect on our results of operations, financial condition or liquidity. Risks from cybersecurity threats and other data security incidents are dynamic and fast evolving, and could be exacerbated by geopolitical tensions, including hostile actions taken by nation-states and terrorist organizations.
As a result, the occurrence of one or more catastrophe events could have a material adverse effect on our results of operations, financial condition or liquidity. 30 Risks from cybersecurity threats and other data security incidents are dynamic and fast evolving, and could be exacerbated by geopolitical tensions, including hostile actions taken by nation-states and terrorist organizations.
This guidance may cause a portion of the Bermuda corporate income tax to not be regarded as a covered tax for purposes of Pillar Two in other jurisdictions, this may have a material impact on our future effective tax rate. Our non-U.S. companies may be subject to U.S. tax that may have an adverse effect on our results of operations.
This guidance may cause a portion of the Bermuda corporate income tax to not be regarded as a covered tax for purposes of Pillar Two in other jurisdictions, which may have a material impact on our future effective tax rate. Our non-U.S. companies may be subject to U.S. tax that may have an adverse effect on our results of operations.
Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts, including those involving nuclear, biological, chemical or radiological events, cyberattacks and other data security incidents, explosions and infrastructure failures. The incidence and severity of catastrophes are inherently unpredictable and losses from catastrophes could be substantial.
Catastrophes can also be man-made, such as war, terrorist attacks and other intentionally destructive acts, including those involving nuclear, biological, chemical or radiological events, cyberattacks and other data security incidents, explosions and infrastructure failures. The incidence and severity of catastrophes are inherently unpredictable and losses from catastrophes could be substantial.
In our view, the accuracy of the models depends heavily on the availability of detailed insured loss data from actual recent large catastrophes. Due to the limited number of events, there is significant potential for substantial differences between the modeled loss estimate and actual company experience for a single large catastrophe event.
In our view, the accuracy of the models depends heavily on the availability of detailed insured loss data from actual recent large catastrophes. Due to the limited number of events, there is significant potential for substantial differences between the modeled loss estimate and actual experience for a single large catastrophe event.
Even if we are entitled to collateral in circumstances of default, such collateral may be illiquid or proceeds from such collateral when liquidated may not be sufficient to recover the full amount of the obligation. 40 Our operating results may be adversely affected by currency fluctuations. Our reporting currency is the U.S. dollar.
Even if we are entitled to collateral in circumstances of default, such collateral may be illiquid or proceeds from such collateral when liquidated may not be sufficient to recover the full amount of the obligation. Our operating results may be adversely affected by currency fluctuations. Our reporting currency is the U.S. dollar.
Given the ongoing global economic uncertainties, evolving market conditions may continue to affect our results of operations, financial condition, and capital resources. In the event that there is additional deterioration or volatility in financial markets or general economic conditions, our results of operations, financial condition, capital resources, and competitive landscape could be materially and adversely affected.
Given the ongoing global economic uncertainties, evolving market conditions may continue to affect our results of operations, financial condition, and capital resources. In the event that there is deterioration or volatility in financial markets or general economic conditions, our results of operations, financial condition, capital resources, and competitive landscape could be materially and adversely affected.
In addition, there remains a risk that our financial condition or operating performance may be impacted by changes in our business model arising from climate change transition and by the performance of strategies we put in place to manage this transition.
In addition, there remains a risk that our financial condition or operating performance may be impacted by changes in our 32 business model arising from climate change transition and by the performance of strategies we put in place to manage this transition.
Future changes in the basis or rate of U.K. corporation tax could materially adversely affect the operations of these companies. Our non-Irish companies may be subject to Irish tax that may have an adverse effect on our results of operations.
Future changes in the basis or rate of U.K. corporation tax could materially adversely affect the operations of these companies. 51 Our non-Irish companies may be subject to Irish tax that may have an adverse effect on our results of operations.
In addition, our brokers also have, or may in the future acquire, ownership interests in insurance and reinsurance companies that may compete with us. These brokers may then favor their own insurers and reinsurers over other companies.
In addition, our brokers also have, or may in the future acquire, ownership interests in insurance and reinsurance companies that may compete with us. These brokers may then favor their own insurers and reinsurers over us.
If we are unable to achieve our objectives relating to 33 climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.
If we are unable to achieve our objectives relating to climate change or our current response to climate change is perceived to be ineffective or insufficient, or the way we respond is perceived negatively, our business and reputation may suffer.
These data protection laws require compliance by all companies that process data of EU, U.K., and Swiss citizens, regardless of the company’s location, and also impose obligations on companies processing data of non-E. citizens.
These data protection laws require compliance by all companies that process data of EU, U.K., and Swiss citizens, regardless of the company’s location, and also impose obligations on companies processing data of non-EU citizens.
We cannot predict whether our business decisions, business strategy and disclosures relating to ESG issues will meet the expectations or requirements of relevant stakeholders, including certain key institutional shareholders.
We cannot predict whether our business decisions, strategy and disclosures relating to ESG issues will meet the expectations or requirements of relevant stakeholders, including key institutional shareholders.
The definition of shareholder controller is set out in the Insurance Act but generally refers to a person who; (i) holds 10% or more of the shares carrying rights to vote at a shareholders’ meeting of the registered insurer or reinsurer or its parent; (ii) is entitled to exercise, or control the exercise of, 10% or more of the voting power at any shareholders meeting of the registered insurer or reinsurer or its parent; or 48 (iii) is able to exercise significant influence over the management of the registered insurer or reinsurer or its parent by virtue of its shareholding or its entitlement to exercise, or control the exercise of, the voting power at any shareholders’ meeting of the registered insurer or reinsurer or its parent company.
The definition of shareholder controller is set out in the Insurance Act but generally refers to a person who; (i) holds 10% or more of the shares carrying rights to vote at a shareholders’ meeting of the registered insurer or reinsurer or its parent; (ii) is entitled to exercise, or control the exercise of, 10% or more of the voting power at any shareholders meeting of the registered insurer or reinsurer or its parent; or 47 (iii) is able to exercise significant influence over the management of the registered insurer or reinsurer or its parent by virtue of its shareholding or its entitlement to exercise, or control the exercise of, the voting power at any shareholders’ meeting of the registered insurer or reinsurer or its parent company.
Geopolitical uncertainty regarding a variety of domestic and international matters, such as the U.S. political and regulatory environment and the potential for default by U.S., Canadian or by one or more European sovereign debt issuers, could have a material adverse effect on our results of operations, investment portfolio, financial condition or liquidity. 32 We may be adversely impacted by economic and social inflation.
Geopolitical uncertainty regarding a variety of domestic and international matters, such as the U.S. political and regulatory environment and the potential for default by U.S., Canadian or by one or more European sovereign debt issuers, could have a material adverse effect on our results of operations, investment portfolio, financial condition or liquidity. 31 We may be adversely impacted by economic and social inflation.
Therefore, if our Irish tax resident companies have an effective tax rate of less than 15%, the QDMTT may adversely affect our results. 52 Changes in Irish tax law could adversely affect us.
Therefore, if our Irish tax resident companies have an effective tax rate of less than 15%, the QDMTT may adversely affect our results. Changes in Irish tax law could adversely affect us.
Such events could also result in negative publicity and damage to our reputation, distract our management and technical personnel, adversely affect the demand for our products and services and cause us to lose business, which could therefore have a material adverse effect on our results of operations or financial condition. 44 Our insurance and reinsurance subsidiaries are subject to supervision and regulation.
Such events could also result in negative publicity and damage to our reputation, distract our management and technical personnel, adversely affect the demand for our products and services and cause us to lose business, which could therefore have a material adverse effect on our results of operations or financial condition. 43 Our insurance and reinsurance subsidiaries are subject to supervision and regulation.
A Bermuda court may, however, impose civil liability, including the possibility of monetary damages, on us or our directors and officers in a suit brought in the Supreme Court of Bermuda if the Bermuda court considers that it has jurisdiction to hear and decide any such claim. 47 There are provisions in our organizational documents that may reduce or increase the voting rights of our shares.
A Bermuda court may, however, impose civil liability, including the possibility of monetary damages, on us or our directors and officers in a suit brought in the Supreme Court of Bermuda if the Bermuda court considers that it has jurisdiction to hear and decide any such claim. 46 There are provisions in our organizational documents that may reduce or increase the voting rights of our shares.
These laws may discourage potential acquisition proposals and may delay, deter or prevent a change of control of the Company, including transactions that some or all of our shareholders might consider to be desirable. 49 Anti-takeover provisions in our bye-laws could impede an attempt to replace our directors or to effect a change in control, which could diminish the value of our common shares.
These laws may discourage potential acquisition proposals and may delay, deter or prevent a change of control of the Company, including transactions that some or all of our shareholders might consider to be desirable. 48 Anti-takeover provisions in our bye-laws could impede an attempt to replace our directors or to effect a change in control, which could diminish the value of our common shares.
This could result in adverse publicity, reputational harm, or loss of customer and/or investor confidence, which could adversely affect our business and results of operations. Pandemics or other outbreaks of contagious diseases and efforts to mitigate their spread have had, and could in the future have, widespread impacts on the way we operate.
This could result in adverse publicity, reputational harm, or loss of customer and/or investor confidence, which could adversely affect our business, financial condition, and results of operations. Pandemics or other outbreaks of contagious diseases and efforts to mitigate their spread have had, and could in the future have, widespread impacts on the way we operate.
Thus, an actual event does not necessarily resemble one of the stochastic events, and the specific characteristics of the actual event can lead to substantial differences between actual and modelled losses. 35 With respect to the evaluation of our catastrophe risk, our modeling utilizes a mix of historical data, scientific theory and mathematical methods.
Thus, an actual event does not necessarily resemble one of the stochastic events, and the specific characteristics of the actual event can lead to substantial differences between actual and modelled losses. 34 With respect to the evaluation of our catastrophe risk, our modeling utilizes a mix of historical data, scientific theory and mathematical methods.
Investors, customers, regulators, policymakers and other stakeholders have placed increased importance on environmental, social and governance ("ESG") practices and disclosures. Certain institutional investors, investor advocacy groups, investment funds, creditors and other influential financial markets participants have become increasingly focused on companies' ESG practices and disclosures in evaluating their investments and business relationships.
Investors, customers, regulators, policymakers and other stakeholders have placed increased importance on environmental, social and governance ("ESG") practices and disclosures. Certain institutional investors, investor advocacy groups, investment funds, creditors and other influential financial markets participants have become increasingly focused on companies' ESG practices and disclosures when evaluating their investments and business relationships.
In addition, our ability to receive services from third-party providers could be impacted by political instability or unanticipated regulatory requirements which in turn could materially adversely affect our ability to conduct our business. 43 Regulatory Risk Regulatory risk represents the risk arising from our failure to comply with legal, statutory or regulatory obligations.
In addition, our ability to receive services from third-party providers could be impacted by political instability or unanticipated regulatory requirements which in turn could materially adversely affect our ability to conduct our business. 42 Regulatory Risk Regulatory risk represents the risk arising from our failure to comply with legal, statutory or regulatory obligations.
All of the foregoing could have a material adverse effect on our financial condition and operating results. 46 Risks Related to the Ownership of our Securities In addition to the risks to our business listed above, there are certain other risks related to the ownership of our securities. The price of our common shares may be volatile.
All of the foregoing could have a material adverse effect on our financial condition and operating results. 45 Risks Related to the Ownership of our Securities In addition to the risks to our business listed above, there are certain other risks related to the ownership of our securities. The price of our common shares may be volatile.
If we are unable to renew our current reinsurance or retrocessional reinsurance or purchase new or replacement coverage on favorable terms or at all, the amount of business we are willing to write may be limited or our protection from losses due to large loss events may be materially reduced.
If we are unable to renew our current reinsurance or retrocessional reinsurance or purchase new or replacement coverage on favorable terms or at all, the amount of business we are willing to write may be limited or our protection from large loss events may be materially reduced.
While we believe that loss reserves at December 31, 2024 are adequate, new information, events or circumstances, may lead to future developments in ultimate losses being significantly greater or less than the loss reserves currently provided.
While we believe that loss reserves at December 31, 2025 are adequate, new information, events or circumstances, may lead to future developments in ultimate losses being significantly greater or less than the loss reserves currently provided.
The data protection laws also impose requirements regarding the processing of personal data and confers rights on data subjects, including rights of access to their personal data, deletion of their personal data, the "right to be forgotten" and the right to "portability" of personal data. We also need to comply with data protection laws in the U.S and Canada.
The data protection laws also impose requirements regarding the processing of personal data and confer rights on data subjects, including rights of access to their personal data, deletion of their personal data, the "right to be forgotten" and the right to "portability" of personal data. We also need to comply with data protection laws in the U.S and Canada.
In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws, such as the Irish Criminal Justice (Corruption Offences) Act, the Bermuda Bribery Act and the U.K. Bribery Act, which generally bar corrupt payments or unreasonable gifts.
In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws, such as the Irish Criminal Justice (Corruption Offences) Act, the Bermuda Bribery Act and the U.K. Bribery Act, which generally prohibit corrupt payments or unreasonable gifts.
When establishing our single point best estimate of loss reserves at December 31, 2024, management considered actuarial estimates and applied informed judgment regarding qualitative factors that may not be fully captured in actuarial estimates.
When establishing our single point best estimate of loss reserves at December 31, 2025, management considered actuarial estimates and applied informed judgment regarding qualitative factors that may not be fully captured in actuarial estimates.
Through its fossil fuel policy, AXIS Capital has committed to fully phasing out thermal coal from its insurance and facultative reinsurance portfolios no later than 2030 in OECD countries and 2040 globally.
Through its fossil fuel policy, AXIS Capital has committed to fully phasing out thermal coal from its insurance and facultative reinsurance portfolios no later than 2030 in OECD countries and the EU, and no later than 2040 globally.
Although we manage our exposure to such events through the use of underwriting controls and the purchase of third-party reinsurance protection, catastrophe events are inherently unpredictable and the actual nature of such events when they occur could be more frequent or severe than contemplated in our pricing and risk management expectations.
Although we manage our exposure to such events through the use of underwriting controls, including modelled analysis, and the purchase of third-party reinsurance protection, catastrophe events are inherently unpredictable and the actual nature of such events when they occur could be more frequent or severe than contemplated in our pricing and risk management expectations.
If any such adverse developments do occur, our results of operations may be materially adversely affected. 51 Our non-U.K. companies may be subject to U.K. tax that may have an adverse effect on our results of operations.
If any such adverse developments do occur, our results of operations may be materially adversely affected. 50 Our non-U.K. companies may be subject to U.K. tax that may have an adverse effect on our results of operations.
There are many factors that would cause loss reserves to increase or decrease, which include, but are not limited to, changes in claim severity, changes in the expected level of reported claims, judicial action changing the scope and/or liability of coverage, changes in the legislative, regulatory, social and economic environment and unexpected changes in loss inflation.
There are many factors that would cause ultimate loss estimates to increase or decrease, which include, but are not limited to, changes in claim severity, changes in the expected level of reported claims, judicial action changing the scope and/or liability of coverage, changes in the legislative, regulatory, social and economic environment and unexpected changes in loss inflation.
Solvency II covers three main areas: i. the valuation of assets and liabilities on a Solvency II economic basis and risk-based solvency and capital requirements; ii. governance requirements including requirements relating to the key functions of compliance, internal audit, actuarial and risk management; and iii. new supervisory legal entity and group reporting and disclosure requirements including public disclosures.
Solvency II covers three main areas: i. the valuation of assets and liabilities on a Solvency II economic basis and risk-based solvency and capital requirements; ii. governance requirements including requirements relating to the key functions of compliance, internal audit, actuarial, and risk management; and iii. legal entity and group reporting and disclosure requirements including public disclosures, and group supervision.
While we do not believe that we are systemically important, as defined in Dodd-Frank or additional federal or state regulation that is adopted in the future could impose significant burdens on us, impact the ways in which we conduct our business and govern our subsidiaries, increase compliance costs, increase the levels of capital required to operate our subsidiaries, duplicate state regulation and/or result in a competitive disadvantage.
While we do not believe that we are 'systemically important', as defined in Dodd-Frank, additional federal or state regulation that is adopted in the future could impose significant burdens on us, impact the ways in which we conduct our business and govern our subsidiaries, increase compliance costs, increase the levels of capital required to operate our subsidiaries, duplicate state regulation and/or result in a competitive disadvantage.
Increased competition could result in fewer submissions, lower premium rates, less favorable policy terms and conditions and greater costs of customer acquisition and retention. If industry pricing does not meet our hurdle rate, we may reduce our future underwriting activities. These factors could have a material adverse effect on our growth and profitability.
Increased competition could result in fewer submissions, lower premium rates, less favorable policy terms and conditions leading to more claims and greater costs of customer acquisition and retention. If industry pricing does not meet our hurdle rate, we may reduce our future underwriting activities. These factors could have a material adverse effect on our growth and profitability.
We will be liable to tax under the Corporate Income Tax Act 2023 of Bermuda, which may have an adverse effect on our results of operations.
We will be liable for tax under the Corporate Income Tax Act 2023 of Bermuda, which may have an adverse effect on our results of operations.
Consequently, the insolvency, inability or unwillingness of any of our present or future reinsurers to make timely payments to us under the terms of our reinsurance or retrocessional agreements or portfolio transactions contracts could have a material adverse effect on our results of operations, financial condition, or liquidity.
Consequently, the insolvency, inability or unwillingness of any of our present or future reinsurers to make timely payments to us under the terms of our reinsurance or retrocessional agreements could have a material adverse effect on our results of operations, financial condition, or liquidity.
The actual final cost of settling claims outstanding at December 31, 2024, as well as claims expected to arise from the unexpired period of risk, is uncertain.
The actual final cost of settling claims outstanding at December 31, 2025, as well as claims expected to arise from the unexpired period of risk, is uncertain.
During 2022 and the first half of 2023, inflation reached and stayed unusually high in many parts of the world, and central banks in the U.S. and other countries raised interest rates to counter inflation by slowing economic activity.
During 2022 and the first half of 2023, inflation reached and stayed unusually high in many parts of the world, and central banks in the U.S. and other countries raised interest rates to counter inflation by slowing economic activity. While during 2024 and 2025 the U.S.
Further increases in interest rates would decrease unrealized gains and/or increase unrealized losses on our debt securities portfolio, partially offset by our ability to earn higher rates of return on reinvested funds. Higher inflation could lead to even higher interest rates, which would continue to negatively impact the value of our existing fixed income or other investments.
Increases in interest rates would decrease unrealized gains and/or increase unrealized losses on our debt securities portfolio, partially offset by our ability to earn higher rates of return on reinvested funds. A higher inflation environment could lead to even higher interest rates, which would negatively impact the value of our existing fixed income or other investments.
An increase in premium rates is often followed by an increased supply of insurance and reinsurance capacity, via capital driven by new entrants, new capital market instruments and structures and/or the commitment of additional capital by existing insurers and reinsurers.
An increase in premium rates is often followed by an increased supply of insurance and reinsurance capacity, via capital from new entrants, innovative capital market instruments and structures and/or the commitment of additional capital by existing insurers and reinsurers.
We market our insurance and reinsurance products worldwide primarily through insurance and reinsurance brokers and derive a significant portion of our business from a limited number of brokers. Aon plc, Marsh & McLennan Companies, Inc. and Arthur J. Gallagher & Co., provided 38% of gross premiums written in 2024.
We market our insurance and reinsurance products worldwide primarily through insurance and reinsurance brokers and derive a significant portion of our business from a limited number of brokers. Marsh & McLennan Companies, Inc., Aon plc., and Arthur J. Gallagher & Co. provided 37% of gross premiums written in 2025.
Stock markets in the U.S. continue to experience volatile price and volume fluctuations. Such fluctuations, as well as the general political situation, current economic conditions or interest rate or currency rate fluctuations, could materially adversely affect the market price of our stock.
Stock markets in the U.S. continue to experience volatile price and volume fluctuations. Such fluctuations, as well as the general political situation, current economic conditions, the rise in the use of artificial intelligence, or interest rate or currency rate fluctuations, could materially adversely affect the market price of our stock.
As a result, the full extent of liability under an insurance or reinsurance contract may not be known for many years after the contract is issued and a loss occurs. If actual claims exceed loss reserves, our financial results could be adversely affected.
As a result, the full extent of liability under an insurance or reinsurance contract may not be known for many years after the contract is issued and a loss occurs and may result in reserve increases over time. If actual claims exceed loss reserves, our financial results could be adversely affected.
Uncertainty and market turmoil has affected and may in the future affect, among other aspects of our business, the demand for and claims made under our products, the ability of customers, counterparties and others to establish or maintain their relationships with us, our ability to access and efficiently use internal and external capital resources and our investment performance and portfolio.
Federal Reserve slowly lowered interest rates, uncertainty and market turmoil has affected and may in the future affect, among other aspects of our business, the demand for and claims made under our products, the ability of customers, counterparties and others to establish or maintain their relationships with us, our ability to access and efficiently use internal and external capital resources and our investment performance and portfolio.
The insurance industry is undergoing extensive technological change. There is increasing focus by traditional insurance industry participants, technology companies, including new insurance technology companies ("InsurTech") and others, on using technology and innovation (including artificial intelligence, digital platforms, data analytics, and robotics) to disrupt and/or enhance current business models and operations.
Our business depends on keeping pace with technological developments. The insurance industry is undergoing extensive technological change. There is increasing focus by traditional insurance industry participants, technology companies, including new insurance technology companies ("InsurTech") and others, on using technology and innovation (including artificial intelligence, digital platforms, data analytics, and robotics) to disrupt and/or enhance current business models and operations.
The Model Rules included a set of rules, principally the income inclusion rule and undertaxed payments rules, which together have the intended effect of imposing a minimum tax rate of 15% on multinational groups with revenues in excess of €750 million. Additionally, the Model Rules anticipated the implementation of qualifying domestic top-up taxes ("QDMTT") in local jurisdictions.
The Model Rules included a set of rules, principally the income inclusion rule and undertaxed payments rules, which together have the intended effect of imposing a minimum tax rate of 15% on multinational groups with revenues in excess of €750 million. Additionally, the Model Rules anticipated that jurisdictions would adopt qualifying domestic top‑up taxes ("QDMTTs").
If net income is insufficient to absorb a required increase in loss reserves, we would incur a net loss and could incur a reduction in capital. 34 The failure of our loss limitation strategy could have a material adverse effect on our results of operations, financial condition or liquidity. We seek to mitigate loss exposure through multiple methods.
If net income is insufficient to absorb a required increase in loss reserves, we would incur a net loss and could incur a reduction in capital. 33 The failure of our loss limitation strategy could have a material adverse effect on our results of operations, financial condition, or liquidity.
We face counterparty risk whenever we purchase reinsurance or retrocessional reinsurance, or enter into loss portfolio transactions. Inflation and industry catastrophic losses have heightened this risk as counterparties experience economic strains and uncertainty.
We face counterparty risk whenever we purchase reinsurance or retrocessional reinsurance. Inflation and industry catastrophic losses have heightened this risk as counterparties experience economic strains and uncertainty.
The 'How We Work' program is driving and overseeing the changes being made across the organization to build momentum and establish AXIS as an efficient and sustainable organization. These changes could result in heightened operational risk as the business adapts to new ways of working.
The 'How We Work' program is driving and overseeing the changes being made across the organization to build momentum and establish AXIS as an efficient and sustainable organization. We may not be successful in implementing these changes and, if implemented, they could result in heightened operational risk as the business adapts to new ways of working.
There has been significant volatility in the market for equity securities in recent years. During 2024, 2023, and 2022, the closing price of our common shares fluctuated from a low of $54.27 to a high of $94.05, a low of $51.68 to a high of $63.47, and a low of $48.77 to a high of $60.66, respectively.
There has been significant volatility in the market for equity securities in recent years. During 2025, 2024, and 2023, the closing price of our common shares fluctuated from a low of $85.54 to a high of $109.18, a low of $54.27 to a high of $94.05, and a low of $51.68 to a high of $63.47, respectively.
Over time, and particularly recently, the sophistication and frequency of these threats continues to increase, and may be difficult to detect for long periods of time.
Over time, and particularly recently, the sophistication and frequency of these threats continues to increase, including through the use of artificial intelligence, and may be difficult to detect for long periods of time.
Fixed maturities, which represent 84% of our total investments and 70% of total cash and investments at December 31, 2024, may be adversely impacted by changes in interest rates or credit spreads.
Fixed maturities, which represent 85% of our total investments and 78% of total cash and investments at December 31, 2025, may be adversely impacted by changes in interest rates or credit spreads.
The heightened and sometimes conflicting stakeholder focus on ESG issues related to our business requires the continuous monitoring of various and evolving laws, regulations, standards and expectations and the associated reporting requirements. 39 In addition, regulators have adopted and likely will continue to adopt pro- or anti-ESG-related rules and guidance, which may conflict with one another and impose additional costs on us.
The heightened and sometimes conflicting stakeholder focus on ESG issues requires the continuous monitoring of evolving laws, regulations, standards and expectations, as well as associated reporting requirements. In addition, regulators have adopted and likely will continue to adopt pro- or anti-ESG-related rules and guidance, which may conflict and impose additional compliance costs.
Over the longer term, climate change may have an impact on the economic viability of certain lines of business if suitable adjustments in price and coverage cannot be achieved.
Over the longer term, climate change may have an impact on the economic viability of certain lines of business if suitable adjustments in price and coverage cannot be achieved, as our insureds cannot sustain paying higher premiums.
There has been a large amount of merger and acquisition activity in the insurance/reinsurance sector in recent years, which may continue. We may experience increased competition as a result of that consolidation with consolidated entities having enhanced market power.
There is also a continued large amount of merger and acquisition activity in the insurance/reinsurance sector, and we may experience increased competition as a result of that consolidation with consolidated entities having enhanced market power.
Pressure from key stakeholders to comply with additional voluntary ESG-related initiatives or frameworks could also require us to make substantial investments in ESG matters, which could impact the results of our operations. ESG encompasses a wide range of issues, including climate change and other environmental risks, inclusion and governance standards.
Pressure from key stakeholders to comply with voluntary ESG initiatives or frameworks could also require substantial investments, which could negatively impact our operating results. ESG encompasses a wide range of issues, including climate change, environmental risks, inclusion and governance standards.
We could be adversely affected by turnover of senior management, the loss of one or more key executives, an inability to attract and retain qualified personnel or by the inability of an executive to obtain a Bermuda work permit. Our success depends on our ability to retain our existing key executives and to attract, hire and retain additional qualified personnel.
We could be adversely affected by turnover of senior management, the loss of one or more key executives, an inability to attract and retain qualified personnel or by the inability of an executive to obtain a Bermuda work permit. Our ability to execute our strategy depends on attracting, developing, and retaining highly qualified talent.
We could face losses from war, terrorism, political unrest, and geopolitical uncertainty, and these or other unanticipated losses could have an adverse effect on our results of operations, financial condition or liquidity.
We could face losses from war, terrorism, political unrest, and geopolitical uncertainty, and these or other unanticipated losses could have an adverse effect on our results of operations, financial condition or liquidity. We have exposure to losses, both through underwriting and investments, resulting from acts of terrorism, political unrest and geopolitical instability.
The global economic environment continues to be impacted by inflationary pressures; fiscal or monetary policies; uncertainty concerning the future path of interest rates; the effect of social, economic, and political conditions and geopolitical events, including as a result of changes in U.S. presidential administrations or Congress; the implementation of tariffs and other protectionist trade policies; and the possibility of a recession, government shutdowns, debt ceilings, and funding.
The global economic environment could be impacted by inflationary pressures; fiscal or monetary policies; uncertainty concerning the future path of interest rates; the effect of social, economic, and political conditions and geopolitical events; the implementation of tariffs and other protectionist trade policies; and the possibility of a recession, government shutdowns, debt ceilings, and funding.
Over the past number of years, various EU. member states have, from time to time, called for harmonization of the corporate tax base within the EU Ireland, along with other member states, has consistently resisted any movement towards standardized corporate tax rates or tax base in the EU The Government of Ireland has also made clear its commitment to retain the 12.5% rate of corporation tax.
Ireland, along with other member states, has consistently resisted any movement towards standardized corporate tax rates or tax base in the EU. The Government of Ireland has also made clear its commitment to retain the 12.5% rate of corporation tax.
Government, regulatory and judicial actions across multiple jurisdictions in relation to business interruption insurance have exacerbated the uncertainty by altering the interpretation of our contracts or extending or changing coverage (beyond the obligations set forth within those contracts or beyond what was intended by the parties). 45 Certain U.S. and non-U.S. judicial and regulatory authorities, including U.S.
In the past, we saw government, regulatory and judicial actions across multiple jurisdictions in relation to business interruption insurance exacerbate the uncertainty by altering the interpretation of our contracts or extending or changing coverage (beyond the obligations set forth within those contracts or beyond what was intended by the parties).
In the event that we publicly disclose, voluntarily or otherwise, certain goals or initiatives regarding ESG matters, we could fail, or we could be perceived to fail, in our achievement of such initiatives or goals, or we could be criticized for the scope of such initiatives or goals.
If we publicly disclose goals or initiatives regarding ESG matters, we could fail, or we could be perceived to fail, in our achievement of such goals or initiatives, or we could be criticized for their scope.
A downgrade, withdrawal or negative watch/outlook could also result in a substantial loss of business for us, as ceding companies and brokers that place such business may move to other insurers and reinsurers with higher ratings. We would also be required to post collateral under the terms of certain of our policies of reinsurance.
A downgrade, withdrawal or negative watch/outlook could also result in a substantial loss of business for us, as ceding companies and brokers that place such business may move to other insurers and reinsurers with higher ratings.
A number of jurisdictions in which we operate have implemented the Model Rules into domestic legislation, including the implementation of QDMTTs, with effect for accounting periods starting on or after 31 December 2023. 50 Although domestic legislation implemented to affect the Model Rules is not expected to have a material effect on our global effective tax rate in the current accounting period, these taxes remain subject to a multilateral review process which is subject to ongoing development and the interpretation of these rules by tax authorities remains uncertain.
Although domestic legislation implemented to affect the Model Rules is not expected to have a material effect on our global effective tax rate in the current accounting period, these taxes remain subject to a multilateral review process which is subject to ongoing development and the interpretation of these rules by tax authorities remains uncertain.
It is possible that our approach to transfer pricing may become subject to greater scrutiny from the tax authorities in the jurisdictions in which we operate, which may lead to transfer pricing audits in the future. General Risk Factors Future changes in current accounting practices may adversely impact our reported financial results.
It is possible that our approach to transfer pricing may become subject to greater scrutiny from the tax authorities in the jurisdictions in which we operate, which may lead to transfer pricing audits in the future.
Although the law is unsettled and depends upon the facts and circumstances of the particular case, in some jurisdictions, if a broker fails to make such a payment, we might remain liable to the insured or ceding insurer for the deficiency. 41 Conversely, in certain jurisdictions, when the insured or ceding insurer pays premiums for these policies to brokers for payment to us, these premiums might be considered to have been paid to us and the insured or ceding insurer will no longer be liable to us for those amounts, whether or not we have actually received the premiums from the broker.
Conversely, in certain jurisdictions, when the insured or ceding insurer pays premiums for these policies to brokers for payment to us, these premiums might be considered to have been paid to us and the insured or ceding insurer will no longer be liable to us for those amounts, whether or not we have actually received the premiums from the broker.
In addition, various provisions of our insurance policies and reinsurance contracts, such as limitations or exclusions from coverage or choice of forum negotiated to limit our risks, may not be enforceable in the manner we intend.
In addition, various provisions of our insurance policies and reinsurance contracts, such as limitations or exclusions from coverage or choice of forum negotiated to limit our risks, may not be enforceable in the manner we intend. These reinsurance loss limitation techniques are applicable on a retrocessional basis, where we also seek to limit losses coming through our reinsurance segment.
Any of these eventualities could result in a material and adverse effect on our business, results of operations and financial condition. 42 Like other global companies, we are regularly the target of attempted cyberattacks and other data security threats and must continuously monitor and develop our information technology systems, networks and infrastructure to prevent, detect, address and mitigate the risk of threats to our data, systems, and networks.
Like other global companies, we are regularly the target of attempted cyberattacks and other data security threats and must continuously monitor and develop our information technology systems, networks and infrastructure to prevent, detect, address and mitigate the risk of threats to our data, systems, and networks.
Secondary perils, for example severe convective storms, may also become increasingly impactful. Similarly, changes in global political and economic conditions may increase both the frequency and severity of man-made catastrophe events. Our business also has exposure to global or nationally occurring pandemics caused by highly infectious and potentially fatal diseases.
Secondary perils, for example severe convective storms, may also become increasingly impactful. Similarly, changes in global political and economic conditions may increase both the frequency and severity of man-made catastrophe events.
Any transfer pricing adjustment could materially adversely impact the tax charge suffered by the relevant tax-paying company. Effective January 1, 2016, Bermuda implemented country by country reporting ("CBCR") whereby multinational groups are required to report details of their operations and intra-group transactions in each jurisdiction.
Effective January 1, 2016, Bermuda implemented country by country reporting ("CBCR") whereby multinational groups are required to report details of their operations and intra-group transactions in each jurisdiction.
These models may turn out to be inadequate representations of the underlying subject matter, including as a result of inaccurate inputs or application thereof (whether due to data error, human error or otherwise). Further, to the extent we incorporate automation and machine learning as part of our modeling process, this may lead to heightened risk.
These models may turn out to be inadequate representations of the underlying subject matter, including as a result of inaccurate inputs or application thereof (whether due to data error, human error or otherwise).
Further, Dodd-Frank gives the Federal Reserve supervisory authority over certain U.S. financial services companies, including insurance companies, if they are designated as 'systemically important' by a two-thirds vote of a Financial Stability Oversight Council.
Congress or the current presidential administration and what the impact of any such changes will be upon our business, financial condition, and results of operations. Further, Dodd-Frank gives the Federal Reserve supervisory authority over certain U.S. financial services companies, including insurance companies, if they are designated as 'systemically important' by a two-thirds vote of a Financial Stability Oversight Council.
Once a program/coverholder commences, we must rely on the underwriting, operational and claims controls of these entities to write business within the authorities provided by us. Although we monitor our programs/coverholders on an ongoing basis, our monitoring efforts may not be adequate or these entities may exceed their underwriting or claims settlement authorities or otherwise breach obligations owed to us.
Although we monitor and audit our programs/coverholders on an ongoing basis, our efforts may not be adequate or these entities may exceed their underwriting or claims settlement authorities or otherwise breach obligations owed to us.
Expatriate workers can, subject to the above, continue to be employed in Bermuda indefinitely by reapplying for work permits. All executives who periodically work in our Bermuda office and who require work permits have obtained them.
Expatriate workers can, subject to the above, continue to be employed in Bermuda indefinitely by reapplying for work permits.
Neither AXIS Specialty Bermuda nor AXIS Re SE is licensed or admitted as an insurer or reinsurer in any jurisdiction other than Bermuda, Ireland, Singapore and Brazil.
Our inability to obtain the necessary credit could adversely affect our ability to offer reinsurance in certain markets. Neither AXIS Specialty Bermuda nor AXIS Re SE is licensed or admitted as an insurer or reinsurer in any jurisdiction other than Bermuda, Ireland, Singapore and Brazil.
As industry practices and legal, judicial, social, political, technological and other environmental conditions change, unexpected issues related to systemic risks, claims and coverage may emerge. These issues may adversely affect our business by either extending coverage beyond our underwriting intent or by increasing the frequency and/or severity of claims.
The effects of emerging claim and/or coverage issues on our business are uncertain. As industry practices and legal, judicial, social, political, technological and other environmental conditions change, unexpected issues related to systemic risks, claims and coverage may emerge.
There can be no assurance that we will be successful in identifying, hiring or retaining successors on terms acceptable to us. With few exceptions, generally only Bermudians, spouses of Bermudians or Permanent Resident Certificate holders (collectively, "Residents") may engage in any gainful occupation in Bermuda without an appropriate governmental work permit.
With few exceptions, generally only Bermudians, spouses of Bermudians or Permanent Resident Certificate holders (collectively, "Residents") may engage in any gainful occupation in Bermuda without an appropriate governmental work permit.

… 96 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+2 added−1 removed13 unchanged
Biggest changeThe Company has an enterprise risk management function that oversees the identification, prioritization, and mitigation of the Company’s enterprise risks, and cybersecurity is a risk category addressed by that function. The Company uses governance, risk and compliance tools to assess, identify and manage its cybersecurity risks.
Biggest changeThese updates include reports regarding items such as cybersecurity strategies, program effectiveness, key risks and performance metrics related to the Company’s information security program and the Company’s mitigating controls. The Company has an enterprise risk management function that oversees the identification, prioritization, and mitigation of the Company’s enterprise risks, and cybersecurity is a risk category addressed by that function.
In the event of a severe cyber incident, the CISO will escalate to the relevant subcommittee to determine the course of action. All relevant roles are trained on their responsibilities regularly. The Board, along with the Risk and Audit Committees of the Board, oversees our information security program.
In the event of a severe cyber incident, the CISO will escalate to the relevant subcommittee to determine the course of action. All relevant roles are trained on their responsibilities regularly. The Board, together with the Risk and Audit Committees of the Board, oversees our information security program.
Removed
In 2024, our Board and Risk and Audit Committees received periodic updates throughout the year on cybersecurity matters, and these updates are part of their standing agendas. These updates include reports regarding items such as cybersecurity strategies, program effectiveness, key risks and performance metrics related to the Company’s information security program and the Company’s mitigating controls.
Added
In 2025, our Risk Committee received quarterly updates from the CISO on cybersecurity matters, and our Board and Audit Committee received updates from the CISO at least annually, as part of their standing agendas.
Added
The Company uses governance, risk and compliance tools to assess, identify and manage its cybersecurity risks.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeITEM 2. PROPERTIES We maintain leased office facilities in Bermuda, the U.S., Europe, Singapore, and Canada. We renew and enter into leases in the ordinary course of business as required. Our global headquarters is located at AXIS House, 92 Pitts Bay Road, Pembroke HM 08, Bermuda.
Biggest changeITEM 2. PROPERTIES We maintain leased office facilities in Bermuda, the U.S., Europe, Singapore, and Canada. We renew and enter into leases in the ordinary course of business as required. Our global headquarters is located at 29 Richmond Road, 3rd Flr, Pembroke HM 08, Bermuda.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−0 removed4 unchanged
Biggest change(d) On May 16, 2024, the Company's Board of Directors approved a new share repurchase program for up to $300 million of common shares.
Biggest change(d) On September 3, 2025, authorization under our Board-authorized share repurchase program for common share repurchases approved and announced in February 2025 was exhausted. (e) On September 17, 2025, the Company's Board of Directors approved and announced 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 us to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. 56 Performance Graph Set forth below is a line graph comparing the dollar change in the cumulative total shareholder return on the Company's Common Shares from December 31, 2019, through December 31, 2024, as compared to the cumulative total return of the Standard & Poor's 500 Stock Index and the cumulative total return of the Standard & Poor's Property-Casualty Insurance Index.
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. 56 Performance Graph Set forth below is a line graph comparing the dollar change in the cumulative total shareholder return on the Company's Common Shares from December 31, 2020, through December 31, 2025, as compared to the cumulative total return of the Standard & Poor's 500 Stock Index and the cumulative total return of the Standard & Poor's Property-Casualty Insurance Index.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares are listed on the New York Stock Exchange under the symbol "AXS". On February 21, 2025, the number of holders of record of our common shares was 17.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares are listed on the New York Stock Exchange under the symbol "AXS". On February 23, 2026, the number of holders of record of our common shares was 19.
(b) Includes shares repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units under our 2017 Long-Term Equity Compensation Plans. (c) At June 30, 2024, authorization under the Company's share repurchase program approved in December 2023 was exhausted.
(b) Includes shares repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units under our 2017 Long-Term Equity Compensation Plans. (c) On February 6, 2025, authorization under our Board-authorized share repurchase program for common share repurchases approved and announced in May 2024 was exhausted.
Issuer Purchases of Equity Securities Common Shares The following table shows information regarding the number of common shares repurchased in the quarter ended December 31, 2024: Period Total number of shares purchased (a) (b) Average price paid per share Total number of shares purchased as part of publicly announced programs (a) Maximum number (or approximate dollar value) of shares that may yet be purchased under the programs (c) (d) October 1-31, 2024 4 $79.72 — $260 million November 1-30, 2024 418 $85.45 413 $225 million December 1-31, 2024 271 $92.45 268 $200 million Total 693 681 $200 million (a) In thousands.
Issuer Purchases of Equity Securities Common Shares The following table shows information regarding the number of common shares repurchased in the quarter ended December 31, 2025: Period Total number of shares purchased (a) (b) Average price paid per share Total number of shares purchased as part of publicly announced programs (a) Maximum number (or approximate dollar value) of shares that may yet be purchased under the programs (c) (d) (e) October 1-31, 2025 2 $94.20 — $400 million November 1-30, 2025 2,915 $98.85 2,911 $112 million December 1-31, 2025 3 $102.20 — $112 million Total 2,920 2,911 $112 million (a) In thousands.
The chart depicts the value on December 31, 2020, 2021, 2022, 2023, and 2024 of a $100 investment made on December 31, 2019, with all dividends reinvested. 12/31/2019 12/31/2020 12/31/2021 12/30/2022 12/29/2023 12/31/2024 AXIS Capital Holdings Limited $100.00 $88.10 $98.50 $101.10 $106.70 $174.90 S&P 500 P&C Index $100.00 $106.96 $127.58 $151.65 $168.05 $227.67 S&P 500 Index $100.00 $118.40 $152.39 $124.79 $157.59 $197.02
The chart depicts the value on December 31, 2021, 2022, 2023, 2024 and 2025 of a $100 investment made on December 31, 2020, with all dividends reinvested. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 AXIS Capital Holdings Limited $100.00 $111.80 $114.75 $105.40 $198.52 $244.07 S&P 500 P&C Index $100.00 $119.28 $141.79 $157.12 $212.86 $234.32 S&P 500 Index $100.00 $128.71 $105.40 $133.10 $166.40 $196.16

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

211 edited+31 added−73 removed131 unchanged
Biggest changeUnderwriting-Related General and Administrative Expense Ratio The underwriting-related general and administrative expense ratio decreased to 12.4% in 2024 from 13.7% in 2023, mainly driven by increases in net premiums earned, partially offset by an increase in performance-related compensation costs. 68 Reinsurance Segment Results for the reinsurance segment were as follows: Year ended December 31, 2024 % Change 2023 % Change 2022 Revenues: Gross premiums written $ 2,390,304 8% $ 2,215,761 (16%) $ 2,629,014 Net premiums written 1,506,806 12% 1,343,605 (29%) 1,885,150 Net premiums earned 1,380,199 (15%) 1,622,081 (20%) 2,026,171 Other insurance related income 30,627 35% 22,693 81% 12,514 Expenses: Current accident year net losses and loss expenses (921,181) (1,077,572) (1,465,739) Prior year reserve development 8,114 (235,529) 9,183 Acquisition costs (303,636) (352,482) (444,179) Underwriting-related general and administrative expenses (50,513) (79,373) (106,585) Underwriting income (loss) $ 143,610 $ (100,182) $ 31,365 Ratios: % Point Change % Point Change Current accident year loss ratio, excluding catastrophe and weather-related losses 66.0 % 1.2 64.8 % 2.2 62.6 % Catastrophe and weather-related losses ratio 0.7 % (0.9) 1.6 % (8.1) 9.7 % Current accident year loss ratio 66.7 % 0.3 66.4 % (5.9) 72.3 % Prior year reserve development ratio (0.5 %) (15.1) 14.6 % 15.0 (0.4 %) Net losses and loss expenses ratio 66.2 % (14.8) 81.0 % 9.1 71.9 % Acquisition cost ratio 22.0 % 0.3 21.7 % (0.2) 21.9 % Underwriting-related general and administrative expense ratio 3.6 % (1.3) 4.9 % (0.4) 5.3 % Combined ratio 91.8 % (15.8) 107.6 % 8.5 99.1 % 69 Gross Premiums Written : Gross premiums written by line of business were as follows: % Change Year ended December 31, 2024 2023 2022 2023 to 2024 2022 to 2023 Liability $ 616,333 26 % $ 642,801 29 % $ 719,831 27 % (4 %) (11 %) Accident and health 436,296 18 % 396,668 18 % 411,891 16 % 10 % (4 %) Professional lines 421,846 18 % 379,222 17 % 400,807 15 % 11 % (5 %) Credit and surety 417,717 17 % 351,083 16 % 298,565 11 % 19 % 18 % Motor 238,961 10 % 201,466 9 % 239,794 9 % 19 % (16 %) Agriculture 150,373 6 % 126,300 6 % 128,012 5 % 19 % (1 %) Marine and aviation 82,274 3 % 62,260 3 % 93,371 4 % 32 % (33 %) Run-off lines Catastrophe 10,823 1 % 30,175 1 % 222,810 9 % (64 %) (86 %) Property 3,130 — % 21,513 1 % 103,492 4 % (85 %) (79 %) Engineering 12,551 1 % 4,273 — % 10,441 — % nm (59 %) Total run-off lines 26,504 2 % 55,961 2 % 336,743 13 % (53 %) (83 %) Total $ 2,390,304 100 % $ 2,215,761 100 % $ 2,629,014 100 % 8 % (16 %) nm – not meaningful Gross premiums written in 2024 increased by $175 million, or 8% , compared to 2023.
Biggest changeUnderwriting-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.
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 cash and investments excluding foreign exchange movements, which are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K.
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.
General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses. The reconciliation of 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' .
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' .
Operating Income (Loss) Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses and interest in income (loss) of equity method investments and Bermuda net deferred tax asset.
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.
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 net deferred tax asset reflects the underlying fundamentals of our business.
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.
Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movements Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances.
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.
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) (2) "Offers good financial security" The 'A' category is the third highest out of nine rating categories.
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.
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). Our investment portfolio is heavily weighted towards conservative, high quality and highly liquid securities.
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). 91 Our investment portfolio is heavily weighted towards conservative, high quality and highly liquid securities.
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. With respect to reinsurance business, we are generally notified of losses by ceding companies and/or their brokers.
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. 97 With respect to reinsurance business, we are generally notified of losses by ceding companies and/or their brokers.
(5) Debt (interest payments) includes $10 million of unamortized discount and debt issuance expenses (refer to Item 8, Note 10(a) to the Consolidated Financial Statements ' Debt and Financing Arrangement s' for further details). CRITICAL ACCOUNTING ESTIMATES The consolidated financial statements include certain amounts that are inherently uncertain and judgmental in nature.
(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 Arrangement s' for further details). 96 CRITICAL ACCOUNTING ESTIMATES The consolidated financial statements include certain amounts that are inherently uncertain and judgmental in nature.
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. Consequently, we review reinsurance recoverables at least quarterly to estimate an allowance for expected credit losses.
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.
A+ (Stable) (1) "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.
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.
Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details. 104 • The second estimate is the amount of the reinsurance recoverable balance that we believe ultimately will not be collected from reinsurers.
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.
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 statements received from MGAs or best estimates based on historical experience.
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.
At June 30, 2024, authorization under the Company's share repurchase program approved in December 2023 was exhausted. On May 16, 2024, the Company's Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares.
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.
Foreign Exchange Losses (Gains) 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.
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.
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 disasters, man-made catastrophes, other catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development.
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 disasters, man-made catastrophes, other catastrophe events and other weather-related events.
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.
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. 107 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.
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.
However, we manage our investment portfolio in such a way 82 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.
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.
(3) Refer to Item 8, Note 14 to the Consolidated Financial Statements 'Earnings Per Common Share' for further details. 80 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.
(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.
Our intent and ability to issue securities pursuant to this registration statement will depend on market conditions at the time of any proposed offering. 95 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.
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.
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 $63 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.
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.
While we believe that these are reasonably likely scenarios, we do not believe this sensitivity analysis should be considered an actual reserve range. 103 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.
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.
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. 85 An analysis of our fixed maturities portfolio by major asset classes is detailed below: Non-U.S.
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.
At December 31, 2024, 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.
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.
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, 2024 and 2023, we did not adjust any pricing provided by independent pricing services.
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.
Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details. 108 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.
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.
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, 2024 and 2023.
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.
(3) We have $526 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).
(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).
Sensitivity Analysis While we believe that loss reserves at December 31, 2024 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.
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.
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, corporate citizenship and the achievement of superior risk-adjusted returns for our shareholders.
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.
(Increase) Decrease in Allowance for Expected Credit Losses, Mortgage Loans 2024 versus 2023 : The allowance for expected credit losses increased by $17 million in 2024 compared to $6 million in 2023, primarily related to commercial mortgage loans exposed to the office sector.
(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.
Equity Method Investments Our ownership interests in Harrington Reinsurance Holdings Limited ("Harrington") and Monarch Point Re (ISAC) Ltd. and Monarch Point Re (ISA 2023) Ltd. (collectively "Monarch Point Re") are reported in interest in income (loss) of equity method 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.
Results of operations for 2024 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).
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).
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 esti mate of premiums to be received, including assumptions relating to prepayments/refinancing.
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.
Changes in premium estimates could be also material to net premiums earned in the period in which they are determined, as any adjustment may be substantially or fully earned.
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.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Form 10-K, which was filed with the SEC on February 27, 2024, 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.
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.
The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $130 million, $133 million, and $130 million for 2024, 2023, and 2022, 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.
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.
Hurricane) was approximately $228 million , net of reinsurance. Claim payments pertaining to such an event would be paid out over a period spanning many months.
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.
Fixed Maturities and Equity Securities At December 31, 2024, the fair values of 94% (2023: 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.
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.
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 9, 2022, we filed an unallocated universal shelf registration statem ent with the SEC, which became effective on filing.
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 statem ent with the SEC, which became effective on filing.
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, 2024 and 2023, and our financial condition at December 31, 2024 and 2023.
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.
For discussion of our results of operations and changes in financial condition for year ended December 31, 2023, compared to year ended December 31, 2022, refer to Part II, Item 7.
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.
A valuation allowance of $7 million was also released against foreign tax credits held by AXIS Specialty Europe SE. At December 31, 2024, the U.S. operations had a deferred tax asset of $19 million for the unrealized losses on its fixed maturities that were recorded 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).
Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details. At December 31, 2024, the allowance for expected credit losses was $43 million (2023: $37 million ). We have not written off any significant reinsurance recoverable balances in the last three years.
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.
Securities that are not rated are excluded from weighted average calculations. At December 31, 2024, the fair value of fixed maturities not rated was $3 million (2023: $17 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.
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.
The borrowings under the FHLB program are secured by cash and investments with a fair value of $72 million (2023: $95 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).
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).
These securities are evaluated for intent or requirement to sell at a loss. 109 RECENT ACCOUNTING PRONOUNCEMENTS At December 31, 2024, 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.
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.
At December 31, 2024, agency RMBS had an average duration of 5.2 years (2023: 5.2 years). Non-agency RMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2024, 98% (2023: 98 % ) of our non-agency RMBS were rated AA or better.
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.
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, 2024, we had $200 million of remaining authorization under our open-ended Board-authorized share repurchase program for common share repurchases.
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.
The fair value of the variable yield security was determined using an externally developed discounted cash flow model. At December 31, 2024, the estimated fair value of these investments was $92 million (2023: $87 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.
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.
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. 92 For context, at January 1, 2024, our largest 1-in-250 year return period, single occurrence, single-zone modeled probable maximum loss (Southeast U.S.
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.
We believe the dividend/distribution capacity of AXIS Capital’s subsidiaries, that was $1.4 billion at December 31, 2024 (2023: $0.9 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.
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.
In addition, we have $9 million of unfunded commitments related to our commercial mortgage loans portfolio and $94 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 Arrangement s' 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 Arrangement s' for further details.
Combined Ratio The components of the combined ratio were as follows: Year ended December 31, 2024 % Point Change 2023 % Point Change 2022 Current accident year loss ratio, excluding catastrophe and weather-related losses (1) 55.7 % (0.2) 55.9 % 0.4 55.5 % Catastrophe and weather-related losses ratio (1) 4.3 % 1.6 2.7 % (5.1) 7.8 % Current accident year loss ratio (1) 60.0 % 1.4 58.6 % (4.7) 63.3 % Prior year reserve development ratio (0.5 %) (8.6) 8.1 % 8.6 (0.5 %) Net losses and loss expenses ratio 59.5 % (7.2) 66.7 % 3.9 62.8 % Acquisition cost ratio 20.2 % 0.5 19.7 % (0.1) 19.8 % General and administrative expense ratio (2) 12.6 % (0.9) 13.5 % 0.3 13.2 % Combined ratio 92.3 % (7.6) 99.9 % 4.1 95.8 % (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.
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.
(2) The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.4%, 2.6% and 2.5% for 2024, 2023 and 2022, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details.
(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.
At December 31, 2024, the weighted average estimated subordination percentage of the portfolio was 34% (2023: 37%), 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, 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.
Bermuda Corporate Income Tax Act of 2023 On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which will apply a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025.
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.
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 40% and 39% of the reinsurance segment’s gross premiums written for the years ended December 31, 2024 and 2023, respectively.
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.
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, line of business and accident year.
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.
At December 31, 2024, the estimated fair value of our investments in these funds was $30 million (2023: $21 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.
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.
In 2023, book value per diluted common share increased by 15% , 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. 78 Cash Dividends Declared per Common Share We believe in returning excess capital to shareholders by way of dividends.
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.
At December 31, 2024, non-agency RMBS had an average duration of 4.3 years (2023: 4.0 years) and weighted average life of 5.4 years (2023: 5.6 years). Commercial MBS CMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2024, 99% (2023: 98%) of our CMBS 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.
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.
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).
Financing activities • 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. • Financing cash outflows in 2023 were principally due to dividends paid to common and preferred shareholders of $184 million, and the repurchase of common shares of $24 million, partially offset by the receipt of the Federal Home Loan Bank advances of $5 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).
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).
(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, 2024, fixed maturities had a weighted average credit rating of A+ (2023: AA-), a book yield of 4.5% (2023: 4.2%), and an average duration of 2.8 years (2023: 3.0 years).
(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).
This effective rate can vary between years depending on the distribution of net income (loss) among tax jurisdictions, as well as other factors.
This effective rate can vary between years depending on the distribution of net income (loss) across jurisdictions, as well as other factors.
At December 31, 2024, our corporate debt portfolio, including non-investment grade securities, had a duration of 3.2 years (2023: 3.4 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).
The commercial mortgage loans are high quality, and 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, 2024, the allowance for expected credit loss of $23 million (2023: $6 million) was primarily related to commercial properties exposed to the office sector.
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.
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). 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).
Loss Ratio The components of the loss ratio were as follows: Year ended December 31, 2024 % Point Change 2023 % Point Change 2022 Current accident year loss ratio 66.7 % 0.3 66.4 % (5.9) 72.3 % Prior year reserve development ratio (0.5 %) (15.1) 14.6 % 15.0 (0.4 %) Loss ratio 66.2 % (14.8) 81.0 % 9.1 71.9 % Current Accident Year Loss Ratio The current accident year loss ratio increased to 66.7% in 2024 from 66.4% in 2023.
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.
Foreign exchange losses in 2023 were primarily related to the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling, euro and Canadian dollar.
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 .
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.
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.
At December 31, 2024 , we recorded an allowance for expected credit losses of $4 million (2023: $11 million) and for the year ended December 31, 2024, we recorded impairment losses of $nil ( 2023: $13 million) (refer to 'Net Investment Income and Net Investment Gains (Losses)' for further details).
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).
Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments and Bermuda net deferred tax asset in order to understand the profitability of recurring sources of income.
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.
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.
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.
We may also sell securities to re-balance our investment portfolio in order to change exposure to particular asset classes or sectors. 2024 versus 2023 : Net investment losses in 2024 were $139 million compared to net investment losses of $75 million in 2023.
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.
At December 31, 2024, CMBS had an average duration of 2.7 years (2023: 2.2 years) and weighted average life of 3.7 years (2023: 2.8 years).
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).
During 2024, AXIS Capital received $459 million (2023 : $375 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.
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.

… 235 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

10 edited+4 added−1 removed11 unchanged
Biggest changeForeign Currency Risk The following table presents a sensitivity analysis of total net foreign currency exposures: AUD CAD EUR GBP JPY Other Total At December 31, 2024 Net managed assets (liabilities), excluding derivatives $ 87,511 $ 366,541 $ (344,739) $ 15,836 $ (38,893) $ 88,887 $ 175,143 Foreign currency derivatives, net (69,834) (356,150) 290,800 36,430 35,648 (112,409) (175,515) Net managed foreign currency exposure 17,677 10,391 (53,939) 52,266 (3,245) (23,522) (372) Other net foreign currency exposure — 55 (607) 19 — 1 (532) Total net foreign currency exposure $ 17,677 $ 10,446 $ (54,546) $ 52,285 $ (3,245) $ (23,521) $ (904) Net foreign currency exposure as a percentage of total shareholders’ equity 0.3 % 0.2 % (0.9 %) 0.9 % (0.1 %) (0.4 %) — % Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement (1) $ 1,768 $ 1,045 $ (5,455) $ 5,229 $ (325) $ (2,352) $ (90) At December 31, 2023 Net managed assets (liabilities), excluding derivatives $ 38,348 $ 430,256 $ (452,726) $ (145,992) $ (43,047) $ 56,012 $ (117,149) Foreign currency derivatives, net (23,240) (403,952) 401,195 127,122 24,317 (114,294) 11,148 Net managed foreign currency exposure 15,108 26,304 (51,531) (18,870) (18,730) (58,282) (106,001) Other net foreign currency exposure — 175 (555) (59) — — (439) Total net foreign currency exposure $ 15,108 $ 26,479 $ (52,086) $ (18,929) $ (18,730) $ (58,282) $ (106,440) Net foreign currency exposure as a percentage of total shareholders’ equity 0.3 % 0.5 % (1.0 %) (0.4 %) (0.4 %) (1.1 %) (2.0 %) Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement (1) $ 1,511 $ 2,648 $ (5,209) $ (1,893) $ (1,873) $ (5,828) $ (10,644) (1) Assumes 10% appreciation in underlying currencies relative to the U.S. dollar.
Biggest changeForeign Currency Risk The following table presents a sensitivity analysis of total net foreign currency exposures on total shareholders' equity: AUD CAD EUR GBP JPY Other Total At December 31, 2025 Net managed assets (liabilities), excluding derivatives $ 135,286 $ 413,949 $ 9,895 $ 56,488 $ (15,568) $ 131,181 $ 731,231 Foreign currency derivatives, net (101,675) (406,676) 55,158 (52,193) 9,947 (157,982) (653,421) Net managed foreign currency exposure 33,611 7,273 65,053 4,295 (5,621) (26,801) 77,810 Other net foreign currency exposure — 263 116 147 — 1 527 Total net foreign currency exposure $ 33,611 $ 7,536 $ 65,169 $ 4,442 $ (5,621) $ (26,800) $ 78,337 Net foreign currency exposure as a percentage of total shareholders’ equity 0.5 % 0.1 % 1.0 % 0.1 % (0.1 %) (0.4 %) 1.2 % Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement (1) $ 3,361 $ 754 $ 6,517 $ 444 $ (562) $ (2,680) $ 7,834 At December 31, 2024 Net managed assets (liabilities), excluding derivatives $ 87,511 $ 366,541 $ (344,739) $ 15,836 $ (38,893) $ 88,887 $ 175,143 Foreign currency derivatives, net (69,834) (356,150) 290,800 36,430 35,648 (112,409) (175,515) Net managed foreign currency exposure 17,677 10,391 (53,939) 52,266 (3,245) (23,522) (372) Other net foreign currency exposure — 55 (607) 19 — 1 (532) Total net foreign currency exposure $ 17,677 $ 10,446 $ (54,546) $ 52,285 $ (3,245) $ (23,521) $ (904) Net foreign currency exposure as a percentage of total shareholders’ equity 0.3 % 0.2 % (0.9 %) 0.9 % (0.1 %) (0.4 %) — % Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement (1) $ 1,768 $ 1,045 $ (5,455) $ 5,229 $ (325) $ (2,352) $ (90) (1) Assumes 10% appreciation in underlying currencies relative to the U.S. dollar.
However, this exposure is largely mitigated by the short duration of the underlying securities. Equity Price Risk Our portfolio of equity securities, excluding the bond mutual funds, has exposure to equity price risk. This risk is defined as the potential loss in fair value resulting from adverse changes in stock prices.
However, this exposure is largely mitigated by the duration of the underlying securities. Equity Price Risk Our portfolio of equity securities, excluding the bond mutual funds, has exposure to equity price risk. This risk is defined as the potential loss in fair value resulting from adverse changes in stock prices.
Sensitivity Analysis The following is a sensitivity analysis of our primary market risk exposures at December 31, 2024 and 2023. Our policies to address these risks in 2024 were not materially different from 2023.
Sensitivity Analysis The following is a sensitivity analysis of our primary market risk exposures at December 31, 2025 and 2024. Our policies to address these risks in 2025 were not materially different from 2024.
At December 31, 2024, 96% (2023: 95%) of fixed maturities are classified as available for sale, therefore changes in fair values caused by changes in interest rates and foreign currency exchange rates have an immediate impact on other comprehensive income (loss), total shareholders’ equity and book value per common share but do not have an immediate impact on net income (loss).
At December 31, 2025, 97% (2024: 96%) of fixed maturities are classified as available for sale, therefore changes in fair values caused by changes in interest rates and foreign currency exchange rates have an immediate impact on other comprehensive income (loss), total shareholders’ equity and book value per common share but do not have an immediate impact on net income (loss).
At December 31, 2024 and 2023, we also invested in alternative investments including multi-strategy funds, direct lending funds, private equity funds, real estate funds, CLO-Equities and other privately held investments. These investments are also exposed to market risks, with the changes in fair values immediately reported in net income (loss).
At December 31, 2025 and 2024, we also invested in alternative investments including multi-strategy funds, direct lending funds, private equity funds, real estate funds and other privately held investments. These investments are also exposed to market risks, with the changes in fair values immediately reported in net income (loss).
At December 31, 2024, the fair value of multi-strategy funds was $25 million (2023: $25 million). At December 31, 2024, the impact of an instantaneous 15% decline in the fair value of our investment in multi-strategy funds woul d be $4 million (2023 : $4 million ), on a pre-tax basis.
At December 31, 2025, the fair value of multi-strategy funds was $12 million (2024: $25 million). At December 31, 2025, the impact of an instantaneous 15% decline in the fair value of our investment in multi-strategy funds woul d be $2 million (2024 : $4 million ), on a pre-tax basis.
At December 31, 2024, the impact of a 20% decline in the overall market prices of our equity exposures would be $65 million (2023: $59 million), on a pre-tax basis. 111 Our investment in multi-strategy funds has significant exposure to equity strategies with net long positions.
At December 31, 2025, the impact of a 20% decline in the overall market prices of our equity exposures would be $87 million (2024: $65 million), on a pre-tax basis. 108 Our investment in multi-strategy funds has significant exposure to equity strategies with net long positions.
The global equity portfolio is managed to a benchmark composite index, which consists of a blend of the S&P 500 and MSCI World indices. Changes in the underlying indices have a corresponding impact on the overall portfolio. At December 31, 2024, the fair value of equity securities was $323 million (2023: $295 million).
The global equity portfolio is managed to a benchmark composite index, which consists of a blend of the S&P 500 and MSCI World indices. Changes in the underlying indices have a corresponding impact on the overall portfolio. At December 31, 2025, the fair value of equity securities, excluding the bond mutual funds was $436 million (2024: $323 million).
Other Net Foreign Currency Exposure In 2024, other net foreign currency exposure primarily consisted of residual foreign currency exposure from externally managed portfolios where the external manager hedges the foreign currency exposure. During 2023, other net foreign currency exposure primarily consisted of residual foreign currency exposure from externally managed portfolios where the external manager hedges the foreign currency exposure. 112
Other Net Foreign Currency Exposure In 2025 and 2024, other net foreign currency exposure primarily consisted of residual foreign currency exposure from externally managed portfolios where the external manager hedges the foreign currency exposure. 110
The analysis is performed at the security level and aggregated to the asset category levels. 110 The following table presents the estimated pre-tax impact on the fair value of fixed maturities classified as available for sale due to an instantaneous increase in the U.S. yield curve of 100 basis points and an additional 100 basis point credit spread widening for corporate debt, non-agency commercial MBS and residential MBS, ABS and municipal bond securities: Fair value Potential adverse change in fair value Increase in interest rate by 100 basis points Widening of credit spreads by 100 basis points Total At December 31, 2024 U.S. government and agency $ 2,802,986 $ (60,634) $ — $ (60,634) Non-U.S. government 729,939 (22,143) — (22,143) Agency RMBS 1,184,845 (61,576) — (61,576) Securities exposed to credit spreads: Corporate debt 4,842,190 (154,058) (166,011) (320,069) CMBS 819,608 (21,745) (24,749) (46,494) Non-agency RMBS 122,536 (5,287) (5,090) (10,377) ABS 1,539,832 (17,343) (35,727) (53,070) Municipals 110,817 (3,675) (3,751) (7,426) $ 12,152,753 $ (346,461) $ (235,328) $ (581,789) At December 31, 2023 U.S. government and agency $ 3,007,528 $ (81,945) $ — $ (81,945) Non-U.S. government 723,959 (22,534) — (22,534) Agency RMBS 1,634,661 (84,719) — (84,719) Securities exposed to credit spreads: Corporate debt 4,474,172 (151,894) (158,759) (310,653) CMBS 839,696 (18,120) (21,917) (40,037) Non-agency RMBS 153,396 (6,158) (5,849) (12,007) ABS 1,242,971 (10,436) (36,132) (46,568) Municipals 158,359 (6,234) (6,336) (12,570) $ 12,234,742 $ (382,040) $ (228,993) $ (611,033) U.S. government agencies have a limited range of spread widening.
The analysis is performed at the security level and aggregated to the asset category levels. 107 The following table presents the estimated pre-tax impact on the fair value of fixed maturities classified as available for sale due to an instantaneous increase in the U.S. yield curve of 100 basis points and an additional 100 basis point credit spread widening for corporate debt, non-agency commercial MBS and residential MBS, ABS and municipal bond securities: Fair value Potential adverse change in fair value Increase in interest rate by 100 basis points Widening of credit spreads by 100 basis points Total At December 31, 2025 U.S. government and agency $ 2,417,901 $ (64,341) $ — $ (64,341) Non-U.S. government 810,544 (25,922) — (25,922) Agency RMBS 2,035,352 (105,934) — (105,934) Securities exposed to credit spreads: Corporate debt 5,222,433 (164,934) (180,586) (345,520) CMBS 801,511 (22,024) (26,484) (48,508) Non-agency RMBS 190,124 (6,723) (6,660) (13,383) ABS 1,488,067 (18,842) (41,886) (60,728) Municipals 52,095 (1,934) (1,971) (3,905) $ 13,018,027 $ (410,654) $ (257,587) $ (668,241) At December 31, 2024 U.S. government and agency $ 2,802,986 $ (60,634) $ — $ (60,634) Non-U.S. government 729,939 (22,143) — (22,143) Agency RMBS 1,184,845 (61,576) — (61,576) Securities exposed to credit spreads: Corporate debt 4,842,190 (154,058) (166,011) (320,069) CMBS 819,608 (21,745) (24,749) (46,494) Non-agency RMBS 122,536 (5,287) (5,090) (10,377) ABS 1,539,832 (17,343) (35,727) (53,070) Municipals 110,817 (3,675) (3,751) (7,426) $ 12,152,753 $ (346,461) $ (235,328) $ (581,789) U.S. government agencies have a limited range of spread widening.
Removed
Net Managed Foreign Currency Exposure Our net managed foreign currency exposure is subject to internal risk tolerance standards.
Added
The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The functional currency of the Company and the majority of its subsidiaries is the U.S. dollar.
Added
Monetary assets and liabilities under insurance and reinsurance contracts denominated in foreign currency are remeasured to the functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign exchange losses (gains) recognized in net income (loss).
Added
Foreign currency losses (gains) related to available for sale investment securities denominated in foreign currency represents an unrealized appreciation (depreciation) in the market value of the securities and are recognized in accumulated other comprehensive income (loss) ("AOCI") in total shareholders’ equity.
Added
The recognition treatment of foreign losses (gains) related to our net insurance liabilities and investments can create volatility in net income (loss) that is largely offset by foreign losses (gains) included in AOCI in total shareholders’ equity. 109 Net Managed Foreign Currency Exposure Our net managed foreign currency exposure is subject to internal risk tolerance standards.

Other AXS 10-K year-over-year comparisons