Annualized return on average common equity ("ROACE") of 17.0% and annualized operating ROACE of 17.7%
Combined ratio of 89.8%
Underwriting income of $187 million, an increase of $24 million, or 15%, compared to the first quarter of 2025
Book value per diluted common share of $78.19, an increase of $0.99, or 1.3%, compared to December 31, 2025
PEMBROKE, Bermuda, April 29, 2026 (GLOBE NEWSWIRE) -- AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE:AXS) today announced financial results for the first quarter ended March 31, 2026.
Commenting on the first quarter 2026 financial results, Vince Tizzio, President and CEO of AXIS Capital said:
"AXIS began 2026 building on the profitable growth that has defined our performance over the past three years. In the quarter, we produced gross premiums written of $3.1 billion, which represents an 11% increase year-over-year, with an 89.8% combined ratio. This translates to a 17.7% annualized operating return on average common equity, with 17.6% diluted book value per share growth over the past twelve months.
"Our Insurance business generated strong results with $1.9 billion gross premiums written and an 86.3% combined ratio, continuing to benefit from our expanded business classes and recently launched AXIS Capacity Solutions capability. AXIS Re continues to produce very solid underwriting profits, generating a 92.7% combined ratio while leaning into attractive short tail lines which comprised more than 60% of total reinsurance premiums.
"This performance highlights the sustained strength of our operating model. Our investments in products, distribution, innovation and talent are unlocking new opportunities to drive profitable growth as we execute on our specialty strategy."
First Quarter Consolidated Results*
Net income available to common shareholders for the first quarter of 2026 was $247 million, an increase of $60 million, or 33%, compared to the first quarter of 2025.
Operating income(1) for the first quarter of 2026 was $257 million, a decrease of $5 million, or 2%, compared to the first quarter of 2025.
Underwriting income(2) for the first quarter of 2026 was $187 million, an increase of $24 million, or 15%, compared to the first quarter of 2025.
Net investment income for the first quarter of 2026 was $185 million, a decrease of $23 million, or 11%, primarily attributable to lower income from cash following the loss portfolio transfer reinsurance agreement ("LPT transaction") completed with Enstar in the second quarter of 2025.
Fees related to arrangements with strategic capital partners for the first quarter of 2026 of $23 million, compared to $16 million in the prior year.
Book yield of fixed maturities was 4.7% at March 31, 2026, compared to 4.5% at March 31, 2025. The market yield was 5.1% at March 31, 2026.
The effective tax rate of 18.0% for the quarter was principally due to pre-tax income in our U.S. and U.K. operations, compared to 18.6% for the first quarter of 2025 principally due to pre-tax income in our Bermuda, U.K., U.S., and European operations.
Reorganization expenses for the first quarter of 2026 were $23 million, primarily related to costs attributable to streamlining our reinsurance operations and costs attributable to transitions in executive leadership.
Total capital returned to common shareholders of $93 million, including common share repurchases of $60 million pursuant to our Board-authorized share repurchase program, and common share dividends of $33 million in the quarter.
Book value per diluted common share was $78.19 at March 31, 2026, an increase of $0.99, or 1.3%, compared to December 31, 2025.
Book value per diluted common share increased by $11.71, or 17.6%, over the past twelve months, driven by net income, and a reduction in net unrealized investment losses, partially offset by common share repurchases, and common share dividends of $1.76 per share.
* Amounts may not reconcile due to rounding differences.1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release.2 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is provided later in this press release.
First Quarter Consolidated Underwriting Highlights3
Three months ended March 31,
KEY RATIOS
2026
2025
Change
Current accident year loss ratio, excluding catastrophe and weather-related losses(4) (5)
56.6
%
56.3
%
0.3 pts
Catastrophe and weather-related losses ratio(5)
3.2
%
3.7
%
(0.5 pts)
Current accident year loss ratio(5)
59.8
%
60.0
%
(0.2 pts)
Prior year reserve development ratio
(1.2
%)
(1.4
%)
0.2 pts
Net losses and loss expenses ratio
58.6
%
58.6
%
— pts
Acquisition cost ratio
20.5
%
19.7
%
0.8 pts
General and administrative expense ratio
10.7
%
11.9
%
(1.2 pts)
Combined ratio
89.8
%
90.2
%
(0.4 pts)
Current accident year combined ratio(5)
91.0
%
91.6
%
(0.6 pts)
Current accident year combined ratio, excluding catastrophe and weather-related losses(5)
87.8
%
87.9
%
(0.1 pts)
Gross premiums written increased by $303 million, or 11% ($244 million, or 9%, on a constant currency basis(6)), to $3.1 billion with an increase of $328 million, or 20% in the insurance segment, partially offset by a decrease of $25 million, or 2% in the reinsurance segment.
Net premiums written increased by $157 million, or 9% ($101 million, or 6%, on a constant currency basis), to $1.9 billion with an increase of $248 million, or 24% in the insurance segment, partially offset by a decrease of $92 million, or 13% in the reinsurance segment.
Pre-tax, catastrophe and weather-related losses, net of reinsurance, were $48 million ($38 million after-tax), or 3.2 points, related to the Insurance segment, including natural catastrophe losses of $33 million or 2.2 points, primarily attributable to U.S. winter storms and other weather-related events. The remaining losses of $15 million or 1.0 point were attributable to the Middle East conflict.
Net favorable prior year reserve development was $18 million (Insurance: $15 million; Reinsurance: $3 million), compared to $18 million in 2025.
The underwriting-related general and administrative expense ratio decreased by 1.2 points, mainly driven by an increase in net premiums earned and efficiencies gained from investments in underwriting platforms.
3 All comparisons are with the same period of the prior year, unless otherwise stated. 4 The current accident year loss ratio, excluding catastrophe and weather-related losses is calculated by dividing the current accident year losses less pre-tax catastrophe and weather-related losses, net of reinsurance, by net premiums earned less reinstatement premiums.5 Current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, and current accident year combined ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net losses and loss expenses ratio and combined ratio are provided above and a discussion of the rationale for the presentation of these items is provided later in this press release.6 Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures are provided above/later in this press release, and a discussion of the rationale for the presentation of these items is provided later in this press release. Variances that are unchanged on a constant currency basis are omitted from the narrative.
Segment Highlights
Insurance Segment
Three months ended March 31,
($ in thousands)
2026
2025
Change
Gross premiums written
$
1,983,742
$
1,655,903
19.8
%
Net premiums written
1,293,077
1,044,580
23.8
%
Net premiums earned
1,141,753
1,010,086
13.0
%
Underwriting income
157,353
134,541
17.0
%
Underwriting ratios:
Current accident year loss ratio, excluding catastrophe and weather-related losses
53.3
%
52.3
%
1.0 pts
Catastrophe and weather-related losses ratio
4.2
%
4.7
%
(0.5 pts)
Current accident year loss ratio
57.5
%
57.0
%
0.5 pts
Prior year reserve development ratio
(1.4
%)
(1.4
%)
— pts
Net losses and loss expenses ratio
56.1
%
55.6
%
0.5 pts
Acquisition cost ratio
19.6
%
19.2
%
0.4 pts
Underwriting-related general and administrative expense ratio
10.6
%
11.9
%
(1.3 pts)
Combined ratio
86.3
%
86.7
%
(0.4 pts)
Current accident year combined ratio
87.7
%
88.1
%
(0.4 pts)
Current accident year combined ratio, excluding catastrophe and weather-related losses
83.5
%
83.4
%
0.1 pts
Gross premiums written increased by $328 million, or 20% ($309 million, or 19%, on a constant currency basis), primarily attributable to property, professional lines and accident and health lines. Our AXIS Capacity Solutions capability contributed $173 million, or 10% of the increase with approximately half attributable to discrete Funds at Lloyds ("FAL") transactions.
Net premiums written increased by $248 million, or 24% ($232 million, or 22%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, together with a decreased cession rate in liability lines, partially offset by an increased cession rate in property lines.
The current accident year loss ratio, excluding catastrophe and weather-related losses increased by 1.0 point, principally due to increased competition in property and cyber lines.
The acquisition cost ratio increased by 0.4 points, primarily related to increases in gross acquisition costs in property lines and changes in business mix.
The underwriting-related general and administrative expense ratio decreased by 1.3 points, mainly driven by an increase in net premiums earned.
Reinsurance Segment
Three months ended March 31,
($ in thousands)
2026
2025
Change
Gross premiums written
$
1,114,225
$
1,138,749
(2.2
%)
Net premiums written
613,959
705,459
(13.0
%)
Net premiums earned
338,713
330,734
2.4
%
Underwriting income
30,010
28,913
3.8
%
Underwriting ratios:
Current accident year loss ratio, excluding catastrophe and weather-related losses
67.7
%
68.4
%
(0.7 pts)
Catastrophe and weather-related losses ratio
—
%
0.5
%
(0.5 pts)
Current accident year loss ratio
67.7
%
68.9
%
(1.2 pts)
Prior year reserve development ratio
(0.9
%)
(1.2
%)
0.3 pts
Net losses and loss expenses ratio
66.8
%
67.7
%
(0.9 pts)
Acquisition cost ratio
23.8
%
21.3
%
2.5 pts
Underwriting-related general and administrative expense ratio
2.1
%
3.3
%
(1.2 pts)
Combined ratio
92.7
%
92.3
%
0.4 pts
Current accident year combined ratio
93.6
%
93.5
%
0.1 pts
Current accident year combined ratio, excluding catastrophe and weather-related losses
93.6
%
93.0
%
0.6 pts
Gross premiums written decreased by $25 million, or 2% ($65 million, or 6%, on a constant currency basis), primarily attributable to non-renewals and decreased line sizes in liability and motor lines, partially offset by increased line sizes and new business in credit and surety lines.
Net premiums written decreased by $92 million or 13% ($131 million, or 19%, on a constant currency basis), reflecting the decrease in gross premiums written in the quarter, together with increased cession rates in motor, professional lines and liability lines.
The current accident year loss ratio, excluding catastrophe and weather-related losses is consistent with recent quarters.
The acquisition cost ratio increased by 2.5 points, primarily related to increases in gross acquisition costs associated with changes in business mix attributable to credit and surety, and motor lines.
The underwriting-related general and administrative expense ratio decreased by 1.2 points, mainly driven by an increase in fees related to arrangements with strategic capital partners.
Investments
Three months ended March 31,
($ in thousands)
2026
2025
Net investment income
$
184,740
$
207,713
Net investment gains (losses)
(27,224
)
(30,005
)
Change in net unrealized gains (losses) on fixed maturities, pre-tax(7)
(159,243
)
135,560
Interest in income of equity method investments
2,430
2,291
Total
$
703
$
315,559
Average cash and investments(8)
$
17,335,191
$
18,019,104
Pre-tax, total return on average cash and investments:
Including investment related foreign exchange movements
—
%
1.8
%
Excluding investment related foreign exchange movements(9)
0.1
%
1.5
%
Net investment income decreased by $23 million, or 11%, compared to the first quarter of 2025, primarily attributable to lower income from cash following the LPT transaction completed in the second quarter of 2025.
Net investment gains (losses) recognized in net income (loss) for the quarter was primarily related to net unrealized losses on equity securities and net realized gains on the sale of equities and fixed maturities.
Change ...
