AXS 10-K & 10-Q changes, risk factors and insider trading

The insurance and reinsurance business historically has been a cyclical industry characterized by periods of intense price competition due to excess underwriting capacity, as well as periods when shortages of capacity permit favorable premium levels. An increase in premium rates is often followed by an increased supply of insurance and reinsurance capacity, via capital driven byfrom new entrants, newinnovative capital market instruments and structures and/or the commitment of additional capital by existing insurers and reinsurers. Any of these factors could lead to a significant reduction in premium rates, less favorable policy terms, and conditions leading to changes in the frequency and severity of losses, increased expenses for customer acquisition and retention, and fewerless submissionsdemand for our underwriting services. InAll addition toof these considerations,factors changes in the frequency and severity of losses suffered by insureds and insurers may affect the cycles of the insurance and reinsurance business significantly, whichcould in turn could affect our business, results of operationsoperations, or financial condition.

Our results of operations, financial condition or liquidity could be adversely affected by the occurrence of natural and man-made disasters, as well as outbreaks of pandemic or contagious diseases.diseases, which might not have been factored in for the original pricing due to uncertain return periods of these losses.

We have exposure to unexpected losses resulting from natural disasters,catastrophes, man-made catastrophesdisasters and other significant catastrophe events predominantly in our insurance business. Catastrophes can be caused by various events, including hurricanes, typhoons, earthquakes, tsunamis, hailstorms, floods, severe winter weather, fires, drought and other natural disastersdisasters, andas well as outbreaks of pandemic or contagious diseases. 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.

Increases in the values and concentrations of insured property, particularly in coastal regions, and increases in the cost of construction materials required to rebuild affected properties, may continue to increase the impact of natural catastrophe events. Changes in global climate conditions may further increase the frequency and severity of natural catastrophe activity and losses. 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. The impact of catastrophe events in years 2024,2025, 20232024 and 20222023 included the recognition of the net losses and loss expenses of:

•$226$159 million, in the aggregate, primarily related to HurricanesCalifornia Milton,Wildfires, Helene,Hurricane and Beryl,Melissa and the RedMiddle SeaEast Conflict in 20242025;

•$138$226 million, in the aggregate, primarily related to CycloneHurricanes GabrielleMilton, Helene, and otherBeryl, weather-relatedand eventsthe Red Sea Conflict in 20232024; and

•$403$138 million, in the aggregate, primarily related to HurricaneCyclone Ian, the Russia-Ukraine war, Winter Storm Elliot, June European Convective Storms,Gabrielle and theother COVID-19weather-related pandemicevents in 2022.2023.

These events materially reduced net income in the years noted. Although we manage our exposure to such events through the use of underwriting controlscontrols, 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. 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.

We have exposure to losses, both through underwriting and investments, resulting from acts of terrorism, political unrest and geopolitical instability, including, but not limited to, events related to Russia’s invasion of Ukraine, the conflict in the Middle East and in many regions of the world. Russia’s invasion of Ukraine is having a profound impact on energy markets, particularly in Europe, which is impacting and may continue to impact economic conditions and investment returns. In certain instances, we specifically insure and reinsure risks resulting from acts of terrorism. Even in cases where we attempt to exclude losses from terrorism and certain other similar risks from some coverages written by us, there can be no assurance that a court or arbitration panel will interpret policy language or otherwise issue a ruling favorable to us. Accordingly, we can offer no assurance that our loss reserves will be adequate to cover losses should they materialize beyond expectation.

Physical risks include weather-related events and longer-term shifts in climate patterns and emanate primarily from the underwriting of property insurance and reinsurance. Climate change has added to the unpredictability and frequency of natural disasters in certain parts of the world and has created additional uncertainty as to future trends and exposures. Although the loss experience of catastrophe insurers and reinsurers has historically been characterized as low frequency, in recent years, the frequency of severe weather-related events has increased, and this trend may continue in the future. Climate change is likely to expose us to an increased frequency and/or severity of weather-related losses, and there is a risk that our pricing of these perils or our management of the associated aggregations does not appropriately allow for changes in climate.

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.achieved, as our insureds cannot sustain paying higher premiums.

There is additionally a risk that certain elements of our business cease to be viable as a result of climate change transition risks, which relate to losses driven by policy, legal, technological, and market changes to address climate risks and include changes in consumer behavior, shareholder preferences, and any additional regulatory and legislative requirements, such as carbon taxes. 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. Additionally, by the end of 2025, AXIS Capital has committed to phasing out any existing investments in companies in the thermal coal or oil sands industries that exceed its policy thresholds in its fossil fuel policy. 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. 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.

We are also subject to complex and changing laws, regulations and public policy debates relating to climate change and other environmental risks, including overlapping, yet distinct, climate change-related disclosure requirements in multiple jurisdictions. These are difficult to predict and quantify, may conflict with one another, and may impose additional costs on us, which in turn could have an adverse impact on our business. The introduction of the Corporate Sustainability Reporting Directive ("CSRD") together with the EU Taxonomy Regulation, albeit postponed, are the central components of the sustainability reporting requirements underpinning the EU’s sustainable finance strategy. CSRDThis requiresdirective, disclosuresalong againstwith theother Europeancurrent Sustainabilityor Reportingproposed Standardsregulations, ("ESRS")could significantly increase compliance burdens and EUassociated Taxonomy.regulatory We are required to collect a substantial amount of data across the organization to enable our reporting against CSRD requirementscosts and this is likely to incur additional costs.complexity.

While the Securities and Exchange Commission (SEC) Climate Regulations (issued March 6th6, 2024) have been paused,paused and the SEC voted on March 27, 2025 to end its defense of climate disclosure rules, there is potential for additional disclosure requirements should these or similar regulations be implemented. There is also a risk that, should the SEC move forward with its additional climate disclosure requirements, that regulators in certain states may develop their own enhanced reporting requirements. Changes in regulations relating to climate change or our own leadership decisions implemented as a result of assessing the impact of climate change on our business may result in an increase in the cost of doing business or a decrease in premiums.

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. For example, the 2008 global financial crisis resulted in a higher level of claim activity on professional lines insurance and reinsurance business. Moreover, legislative, regulatory, judicial or social influences may impose new obligations on insurers or reinsurers that extend coverage beyond the intended contractual obligations, or result in an increase in the frequency or severity of claims beyond expected levels, for example as described in the climate change risk factor. 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). 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.occurs and may result in reserve increases over time.

While we believe that loss reserves at December 31, 20242025 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 actual final cost of settling claims outstanding at December 31, 2024,2025, as well as claims expected to arise from the unexpired period of risk, is uncertain. There are many factors that would cause ultimate loss reservesestimates 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.

The failure of our loss limitation strategy could have a material adverse effect on our results of operations, financial conditioncondition, or liquidity.

We seek to mitigate loss exposure through multiple methods.methods and review our compliance with management's and the Board of Directors' risk limits on a quarterly basis. For example, we write a number of reinsurance contracts on an excess of loss basis. Excess of loss reinsurance indemnifies the reinsured for losses in excess of a specified amount. We generally limit the line size for each client and line of business on our insurance business and purchase both proportional and non-proportional reinsurance for many of our lines of business. In the case of proportional reinsurance treaties, we seek per occurrence limitations or losses and loss expenses ratio caps to limit the impact of losses from any one event. In proportional reinsurance, the reinsurer shares a proportional part of the premiums and losses of the reinsured. On an account by account basis, we may also put in place facultative reinsurance to limit specific exposures. We also seek to limit our loss exposure through geographic diversification. Geographic zone limitations involve significant underwriting judgments, including the determination of the area of the zones and the inclusion of a particular policy within a particular zone’s limits. 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. We cannot be sure that these loss limitation methods will effectively prevent a material loss exposure, which could have a material adverse effect on our results of operations, financial condition or liquidity.

We purchase reinsurance for our insurance and reinsurance operations in order to mitigate the volatility of losses on our financial results. From time to time, market conditions have limited, and in some cases have prevented, insurers and reinsurers from obtaining the types and amounts of reinsurance that they consider adequate for their business needs. There is no guarantee that our desired amounts of reinsurance or retrocessional reinsurance will be available in the marketplace in the future. In the current environment, our ability to renew our current reinsurance or retrocessional reinsurance arrangements or obtain desired amounts of new or replacement coverage on favorable terms may be substantially reduced as a result of the impact of inflation, industry catastrophic losses to reinsurer capital and the appetite for certain lines of business. In addition to capacity risk, the remaining capacity may not be on terms we deem appropriate or acceptable or with companies with whom we want to do business. 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.

We employ various modeling techniques (for example, scenarios, predictive, stochastic and/or forecasting) to analyze and estimate exposures and risks associated with our assets and liabilities. We utilize modeled outputs and related analyses to assist us in decision-making, for example, related to underwriting and pricing, reserving, investment, capital assessment, risk management, reinsurance purchasing and the evaluation of our catastrophe risk through estimates of probable maximum losses, or "PMLs". The modeled outputs and related analyses, both from proprietary and third-party models, are subject to various assumptions, professional judgment, uncertainties and the inherent limitations of any statistical analysis, including the use and quality of historical internal and industry data. 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.risk as the outputs may be unintentionally deficient, inaccurate or misleading. Consequently, actual losses from loss events, whether from individual components (for example, wind, flood, earthquake, etc.) or in the aggregate, may differ materially from modeled results. If, based upon these models or other factors, we misprice our products or underestimate the frequency and/or severity of loss events, our results of operations, financial condition or liquidity may be adversely affected. In addition, PMLs are based on results of stochastic models that consider a wide range of possible events, their losses and probabilities. It is important to consider that stochastic events are not an exact representation of actual events. 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.

With respect to the evaluation of our catastrophe risk, our modeling utilizes a mix of historical data, scientific theory and mathematical methods. Output from multiple commercially available vendor models serves as a key input in our PML estimation process. We believe that there is considerable inherent uncertainty in the data and parameter inputs for these vendor models. In that regard, there is no universal standard in the preparation of insured data for use in the models and the running of modeling software. 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. This potential difference could be even greater for perils with limited or no modeled annual frequency. We perform our own vendor model validation (including sensitivity analysis and backtesting, where possible) and supplement model output with historical loss information and analysis and management judgment. In addition, we derive our own estimates for non-modeled perils. Despite this, our PML estimates are subject to a high degree of uncertainty, and actual losses from catastrophe events may differ materially.

We could be materially adversely affected if managing general agents, general agents, coverholders, other producersproducers, and third-party administrators in our program business exceed their underwriting and/or claims settlement authorities or otherwise breach obligations owed to us.

In program business conducted by the insurance segment, following our underwriting, financial, claims and information technology due diligence reviews, we authorize managing general agents, general agents, coverholders and other producers to write business and settle claims on our behalf within prescribed authorities. 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 and audit 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. To the extent that these entities exceed their authorities or otherwise breach obligations owed to us in the future, our results of operations or financial condition could be materially adversely affected.

The insurance/reinsurance industry is highly competitive. We compete on an international and regional basis with major U.S., Bermuda, European and other international insurers and reinsurers, including Lloyd's syndicates, some of which have greater financial, marketing and management resources. We also compete with new companies that enter the insurance/reinsurance markets. In addition, capital market participants have created alternative products that are intended to compete with insurance and reinsurance products. New and alternative capital inflows in the insurance/reinsurance industry and the retention by insured and cedants of more business may cause an excess supply of insurance and reinsurance capital. There hasis beenalso a continued large amount of merger and acquisition activity in the insurance/reinsurance sectorsector, inand recent years, which may continue. Wewe may experience increased competition as a result of that consolidation with consolidated entities having enhanced market power. 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.

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. ThisIn includesparticular, market-wideimplementation enablingof technologyartificial initiativesintelligence (e.g.,to Blueprintenhance 2efficiency is perceived as a top factor for insurance companies to maintain or increase their market position in the London Market).long-term. If we do not adapt to these technological changes, it could harm our ability to compete, which could have a material adverse impact on our growth or profitability. However, the extensive use of technology and artificial intelligence can also bring risks such as operational failures due to these technologies not operating as expected, as well as reputational and compliance issues if we do not embed controls and comply with regulations to manage new innovations. Innovation and technological change could also result in increasing expenses as we make investments to innovate our products and services. Third-party or partner use of AI models could also heighten our vulnerability to data breaches, regulatory issues, and operational disruptions.

The global economic environment continues tocould 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 Congressevents; the implementation of tariffs and other protectionist trade policies; and the possibility of a recession, government shutdowns, debt ceilings, and funding. 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. UncertaintyWhile during 2024 and 2025 the U.S. 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. We also provide coverage to the mortgage industry through insurance and reinsurance of mortgage insurance companies and U.S. government sponsored entity credit risk sharing transactions, and deteriorating economic conditions could cause mortgage insurance losses to increase and adversely affect our results of operations or financial condition.

In addition, steps taken by central banks to control inflation and/or governments to stabilize financial markets and improve economic conditions may be ineffective, and actual or anticipated efforts to continue to unwind some of such steps could disrupt financial markets and/or could adversely impact the value of our investment portfolio. Further increasesIncreases 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. HigherA higher inflation environment could lead to even higher interest rates, which would continue to negatively impact the value of our existing fixed income or other investments.

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.

NewRegulators’ regulationsconcerns relating to thecorporate U.K.'ssubstance withdrawalmay fromhave thean EUadverse couldimpact adversely affecton us.

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.Inc., Aon plc., and Arthur J. Gallagher & Co.,Co. provided 38%37% of gross premiums written in 2024.2025. Our relationships with our brokers are based on the quality of our underwriting and claims services, as well as our financial strength ratings. Any deterioration in these factors could result in the brokers advising our clients to place their business with other insurers and reinsurers. 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.us. Loss of all or a substantial portion of the business provided by one or more of these brokers could have a material adverse effect on our business.

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. Work permits may be granted or extended by the Bermuda government only upon showing that, after proper public advertisement (in most cases), no Residents who meet the minimum standard requirements for the advertised position have applied for the position. Work permits are generally granted for one-, three- or five-year durations. Expatriate workers can, subject to the above, continue to be employed in Bermuda indefinitely by reapplying for work permits. AllWhile all executives who periodically work in our Bermuda office and who require work permits have obtained them.them, there is no guarantee that we will be able to obtain them in the future.

Increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters may adversely affect our reputation or otherwise adversely impact our share price, demand for our securities and business and results of operations.

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 inwhen evaluating their investments and business relationships. 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 expectationsexpectations, andas thewell 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 with one another and impose additional costscompliance on us.costs. Pressure from key stakeholders to comply with additional voluntary ESG-relatedESG initiatives or frameworks could also require us to make substantial investments in ESG matters,investments, which could negatively impact the results of our operations.operating results. ESG encompasses a wide range of issues, including climate change and otherchange, environmental risks, inclusion and governance standards. 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. In the event thatIf we publicly disclose, voluntarily or otherwise, certaindisclose goals or initiatives regarding ESG matters, we could fail, or we could be perceived to fail, in our achievement of such initiativesgoals or goals,initiatives, or we could be criticized for thetheir scope of such initiatives or goals.scope. This could result in adverse publicity, reputational harm, or loss of customer and/or investor confidence, which could adversely affect our businessbusiness, financial condition, and results of operations.

Fixed maturities, which represent 84%85% of our total investments and 70%78% of total cash and investments at December 31, 2024,2025, may be adversely impacted by changes in interest rates or credit spreads. Increases in yields could cause the fair value of our investment portfolio to decrease, resulting in a lower book value (refer to Item 7A 'Quantitative and Qualitative Disclosure About Market Risk' for further details) and capital resources. A decline in yields may result in reductions in our investment income as new funds and proceeds from sales and maturities of fixed income securities are reinvested at lower rates. This reduces our overall future profitability. Interest rates and credit spreads are highly sensitive to many factors, including governmental and central bank monetary policies, inflation, domestic and international economic and political conditions, corporate profitability and other factors beyond our control. Our portfolios of "other investments" and equity securities expose us to market price variability, driven by a number of factors outside of our control including, but not limited to, global equity market performance. Given our reliance on external investment managers, we are also exposed to operational risks, which may include, but are not limited to, a failure to follow our investment guidelines, technological and staffing deficiencies and inadequate disaster recovery plans.

A reinsurer’s insolvency, or inability or refusal to make payments under the terms of its reinsurance agreement with us, could have a material adverse effect on our business because we remain liable to the insured. We face counterparty risk whenever we purchase reinsurance or retrocessional reinsurance, or enter into loss portfolio transactions.reinsurance. Inflation and industry catastrophic losses have heightened this risk as counterparties experience economic strains and uncertainty. 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. Collateralization ofCertain reinsurance obligations are collateralized, typically when the counterparty is anunrated importantor toolin thatthe weevent employof torating mitigatedowngrade. creditIn risk,most howevercases residualthe riskCompany remains.relies on its governance of approved counterparties based on financial ratings and required surplus of approved counterparties.

Further, we have launched a strategic initiative aimed at improving our operating model. 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. TheseWe 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.

While technology can streamline many business processes and ultimately reduce the cost of operations, technology initiatives present certain risks. Our business is dependent upon our employees’ and outsourcers’ ability to perform, in an efficient and uninterrupted fashion, necessary business functions such as processing policies and paying claims. A shutdown or inability to access one or more of our outsourcers' facilities, a power outage, or a failure of one or more of our outsourcers' information technology, telecommunications or other systems and networks could significantly impair our ability to perform such functions on a timely basis. If sustained or repeated, such a business interruption, system failure or service denial could result in a deterioration of our ability to write and process business, provide customer service, pay claims in a timely manner or perform other necessary business functions. Our robust business continuity plan, which addresses the risk of such business interruption, system or network failure or service denial, with input from both internal and external stakeholders, may be inadequate and our systems and networks may still be impacted. Unauthorized access to our systems and networks, computer viruses, deceptive communications (such as phishing attacks), malware, hackers and other cybersecurity threats and external hazards, including catastrophe events, could expose us to data loss, damages, interruptions or delays in our business, remediation costs, claims, and damage to our reputation. Our operations also depend on complex, cloud‑based information systems, and as cyber threats grow more sophisticated and our reliance on cloud providers increases, security incidents or outages could adversely impact our ability to operate and protect sensitive data. Any of these eventualities could result in a material and adverse effect on our business, results of operations and financial condition.

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. For example, cyberattacks may be conducted by organized groups and individuals with a wide range of motives and expertise, including organized criminal groups, “hacktivists,”"hacktivists", terrorists, nation states, nation-state supported actors and othersothers. While administrative and technical controls, along with other preventive actions, may reduce the risk of cyberattacks and other data security incidents and protect our information technology, they may be insufficient to thwart cyberattacks and/or prevent other data security breaches to our systems or networks. Moreover, we may be unable to anticipate these threats or react in a timely manner. As these threats continually evolve, we may be required to devote substantial additional resources to modify or enhance our information security systems and networks and our cybersecurity program.

In Europe, the U.K., and Switzerland, there are data protection laws that have extra-territorial effect. 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.non-EU citizens. The data protection laws also impose requirements regarding the processing of personal data and confersconfer 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.

Our insurance and reinsurance subsidiaries conduct business globally and are subject to varying degrees of regulation and supervision in multiple jurisdictions. In particular, in the U.K., Lloyd's has supervisory powers that pose unique regulatory risks. The laws and regulations of the jurisdictions and markets, including Lloyd's, in which our insurance and reinsurance subsidiaries are domiciled or operate require, among other things, that our subsidiaries maintain minimum levels of statutory capital and liquidity, meet solvency standards, participate in guaranty funds and submit to periodic examinations of their financial condition and compliance with underwriting and other regulations. These laws and regulations also limit or restrict payments of dividends and reductions in capital. Statutes, regulations and policies may also restrict the ability of these subsidiaries to write insurance and reinsurance contracts, make certain investments and distribute funds. The purpose of insurance laws and regulations generally is to protect insureds and ceding insurance companies, not our shareholders. We may not be able to comply fully with, or obtain appropriate exemptions from, these laws and regulations, which could result in restrictions on our ability to do business or undertake activities that are regulated in one or more of the jurisdictions in which we conduct business and could subject us to fines and other sanctions. In addition, changes in the laws or regulations to which our insurance and reinsurance subsidiaries are subject or in the interpretation thereof by enforcement or regulatory agencies could impact the competitive market, as well as the way we conduct our business and manage our capital, resulting in lower revenues and higher costs. This in turn could have a material adverse effect on our business, results of operations and financial condition. The rate of legal and regulatory change, particularly in the U.K. and Ireland, has been increasing in recent years, with initiatives such as Consumerthose Dutybeing undertaken in the U.K. to revamp its regulatory framework as it moves away from Solvency II, and the Individualchanges Accountabilityto FrameworkSolvency II, Resolution Frameworks, and enhanced rules on AI governance in Irelandthe EU is adding to the regulatory burden on our operating entities. Further to this, increased regulatory scrutiny in the form of reviews and inspections can put a strain on our resources. FurtherA supervisory challenge we may face is the potential designation of AXIS as an Internationally Active Insurance Group ("IAIG") due to this,its wegrowth. areIf seeingAXIS anreceives increasesuch ina bothdesignation, the paceexpectation of,is that compliance will involve higher capital requirements and severity of, regulatory change in Bermuda. The Bermuda Monetary Authority ("BMA") has indicated that it intends to change how it supervises insurance groups, which would result in a fundamental change to how the Group is supervised. At present, the BMA regulates the Group as its group supervisor, through AXIS Specialty Limited ("ASL") as Designated Insurer. The proposed new regime would see the BMA instead directly supervise the Group, doing away with the Designated Insurer regime that is currently in place. While this may not have a material impact on the Group on a day-to-day basis, it could lead to increasedenhanced governance requirements.standards, including more robust risk management and group-wide oversight.

Government intervention and the possibility of future government intervention have created uncertainty in insurance and reinsurance markets. Government and regulators generally require insurers and reinsurers to have high solvency ratios and localized capital to ensure the protection of policyholders to the possible detriment of other constituents, including shareholders of insurers and reinsurers. Government,In the past, we saw government, regulatory and judicial actions across multiple jurisdictions in relation to business interruption insurance have exacerbatedexacerbate 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). There is a risk that should another global event occur, we will see a recurrence of this stance by governments, regulators, and the judiciary.

Certain U.S. and non-U.S. judicial and regulatory authorities, including U.S. Attorneys offices and certain state attorneys general, occasionally commence investigations into business practices in the insurance industry. In addition, although the U.S. federal government has not historically regulated insurance, there have been proposals from time to time to impose federal regulation on the U.S. insurance industry. As a result, we are unable to predict what, if any, changes to laws and regulations impacting the U.S. insurance industry may be enacted by the U.S. Congress or the newcurrent 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. While we do not believe that we are systemically'systemically important,important', as defined in Dodd-Frank orDodd-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.

ii.governance requirements including requirements relating to the key functions of compliance, internal audit, actuarialactuarial, and risk management; and iii.new supervisory legaliii.legal entity and group reporting and disclosure requirements including public disclosures.disclosures, and group supervision.

While the package is prudential in nature, aimed at capital calibration, proportionality, cross-border supervision and macro-prudential tools, we cannot predict the exact nature, timing or scope of possiblefuture governmental initiatives,or suchregulatory proposalsinitiatives at the EU or national level. Such initiatives could materially adversely affect our business by, among other things:

•Requiring our furtherChanging participation requirements in national industry pools andor guarantyguarantee associationsschemes;

•Net income available to common shareholders of $1.1$979 billion,million, or $12.49$12.52 per common share, and $12.35 per diluted common share

•Operating income(1) of $952$1.0 million,billion, or $11.18$12.92 per diluted common share(1)

•Pre-tax catastrophe and weather-related losses, net of reinsurance, ofwere $226$159 million ($182$127 million, after-tax), (Insurance: $216$156 million; Reinsurance: $10$3 million), or 4.32.8 pointspoints, including $111natural catastrophe and weather-related losses of $137 million or 2.12.4 pointspoints, primarily attributable to HurricanesCalifornia Milton,Wildfires, HeleneHurricane Melissa and Beryl,other togetherweather-related withevents. $13The million,remaining losses of $22 million or 0.30.4 points were attributable to the RedMiddle SeaEast Conflict.

•Net investment lossesgains of $139$59 million

•Foreign exchange gainslosses of $51$142 million

•Income tax benefitexpense of $56$217 million, inclusive of a netBermuda deferred tax benefit of $177$19 million attributable to Bermuda's Corporate Income Tax Act 2023.million. Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments – Bermuda Corporate Income Tax Act 2023 for further details.

•Total common shares repurchased were 3.110 million shares for a total of $216$914 million, including $200$888 million repurchased pursuant to our Board-authorized share repurchase program,programs, and $16$27 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units

We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, corporate citizenshipsustainability and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy in 20242025 included the following:

•growing in a number of attractivetargeted specialty lines insurance and treaty reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business;

•re-balancingcycle-managing our portfolio towards less volatileattractive lines of business, that carry attractivepremium adequate returns while deploying capital within risk limit tolerance,limits, diversification criteria and risk management strategy;

•investing in data and technology, andtogether exploringwith AI capabilities and tools, to empower our underwriters and enhance the service that we provide to our customers;

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

•Following multiple years of rate increases outpacing loss cost trends across the specialty sector, overall pricing has moderated and in some sectors is nowsoftening. moreCasualty moderate,lines withcontinue theto exceptionsee ofpositive casualtyrate lines,achievement while property rates are deteriorating due to the emergenceinflux of newcapital capitalbeing deployed in areas where the market has performed particularly well.space. We will continue to lean into sectors, and sub sectors,sectors where premium adequacy metrics remain strongstrong, where market dislocations arise and where we see market dislocations creating opportunity fororganic profitable growth.growth opportunities exist.

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

•PricingOverall momentumpricing inremains non-proportionalrobust but is moderating for our reinsurance continues while our proportional reinsurance business is benefiting from rate increases in the underlying business. WhileWe we expect these market conditionscontinue to persist, we are seeingsee nuances by line of business with motor and marineexpect linesthese underconditions theto most pressure.persist. We continue to focus on underwriting discipline and targeted profitable growth.profitability.

Across the business, we will continue to pursue attractive opportunities by employing a focused underwriting strategy and selective appetite. Where price continues to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strengthenedstrong and balanced book of business, and an expanding footprint in attractiveour chosen specialty markets, we believe AXIS remains well positioned to drive profitable growth in 2025 and beyond.2026.

On December 13, 2024, we entered into a loss portfolio transfer reinsurance agreement ("LPT agreement") with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years (refer to Item 8, Note 18 to the Consolidated Financial Statements 'Related Party Transactions' for further details).years. The transaction iswas subject to regulatory approvals and other customary conditions and is expected to close during the first half of 2025.conditions.

The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $3.1$2,060 billion at September 30, 2024million and provides cover up to a policy limit of approximately $940 million. The transaction iswas deemed to have met the established criteria for retroactive reinsurance accountingaccounting. (refer to Item 8, Note 9 toUnder the Consolidatedterms Financialof Statementsthe 'Reinsurance'LPT agreement we retained responsibility for furtherthe details).management of claims.

Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the loss portfolio transfer reinsuranceLPT agreement will protectprovide ussignificant protection from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreements.agreement.

On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which will applyapplies a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment ("Bermuda ETA"), which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, wethe Company recorded a Bermuda ETA net deferred tax asset of $177 million during the year ended December 31,in 2024. Initially, we expected to utilize mainly over a ten-year period. We expect to incur increased taxes in Bermuda beginning in 2025. The Bermuda net deferred tax benefit is excluded from operating income (loss).

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

Gross premiums written in 20242025 increased by $475$564 million, or 8%9% ($457$553 million, or 7%,8%, on a constant currency basis(1)), compared to 2023. The increase was primarily2024, attributable to property,all accidentlines andof health,business creditwith andthe politicalexception risk, marine and aviation, and professional lines, partially offset by decreases inof cyber and liability lines.

The increase in accident and healthprofessional lines was primarilyalso driven by new pet insurance business, a higher level of premiums andassociated with transactional liability business, increased rate associated with renewed petenvironmental insurance businessbusiness, and premiumhigher adjustmentsrenewals relatedof toprogram several contracts at Lloyds,business, partially offset by non-renewals.reduced opportunities in Europe associated with competitive market conditions.

The increase in professionalliability lines was attributablealso todriven by a higher level of activitypremiums inand transactionalincreased liabilityrate associated with renewed U.S. excess casualty business, and higher renewals of program business, partially offset by a decreaselower level of premiums in U.S. publicprimary D&Ocasualty business reflectingprincipally weakerdue pricingto inunderwriting thatactions market.taken to reposition the portfolio.

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

Ceded premiums written in 20242025 were $2,365$2,552 million, or 36% of gross premiums written, compared to $2,382$2,365 million, or 39%36% in 2023.2024. The decreaseincrease in ceded premiums written of $17$187 million, or 1%8% was primarily driven by decreases in cyber and professional lines, partially offset by increases in accident and health, property, credit and political risk, professional lines, and marine and aviation lines, partially offset by decreases in property, liability, and liabilitycyber lines.

The increase in accident and health lines was drivenattributable byto a new quota share treaty covering pet insurance business effective July 2024 and reflected the increase in gross premiums written for 2024,2025, compared to 2023.2024. The increases in credit and political risk, professional lines, and marine and aviation lines reflected the increases in gross premiums written for 2025, compared to 2024.

Net premiums earned in 20242025 increased by $464$365 million, or 13%,9%, compared to 2023. The increase was2024, primarily driven by increasesan increase in gross premiums earned in property,property accident and health, marine and aviation, and credit and political risk lines,lines together with decreasesa decrease in ceded premiums earned inattributable professionalto linesthe andrestructuring cyberof lines.an Theseexisting amountsquota wereshare partiallytreaty offsetthat byincreased increasesour inretention cededof property business. In addition, gross premiums earned increased in property,professional lines, credit and political risk, accident and health,liability, and marine and aviation lines together with decreases in gross premiums earned in professional lines and cyber lines.

The following is a discussion and analysis of our results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025 and our financial condition at MarchJune 31,30, 2026 and December 31, 2025. This should be read in conjunction with Item 1 'Consolidated Financial Statements' of this report and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts in tables may not reconcile due to rounding differences.

FIRSTSECOND QUARTER 2026 FINANCIAL HIGHLIGHTS

FirstSecond Quarter 2026 Consolidated Results of Operations

•Pre-tax, catastrophe and weather-related losses, net of reinsurance, of $48$80 million ($38$63 million, after-tax), (Insurance: $48$78 million; Reinsurance: $nil$3 million), or 3.25.3 points, including natural catastrophe losses of $33$49 million, or 2.23.2 points, primarily attributable to U.S. winter storms and other weather-related events.points. The remaining losses of $15$31 million, or 1.02.1 point,points, were attributable to the Middle East Conflict

•Net investment lossesgains of $27$47 million

•Reorganization expenses of $23$6 million primarily related to coststhe attributablecontinued implementation of initiatives undertaken to streamliningstreamline our reinsuranceoperations, operations and costs attributable to transitionsinitiated in executivethe leadershipfirst quarter of 2026.

FirstSecond Quarter 2026 Consolidated Financial Condition

•Total common shares repurchased were 0.8 million978,000 shares for a total of $82$97 million, including $60$89 million repurchased pursuant to our Board-authorized share repurchase programs, and $23$8 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units

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

We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and inclusive culture that promotes outstanding client service, intelligent risk taking, operating efficiency, sustainability and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy for the first threesix months of 2026 included the following:

•growing in a number of targeted specialty lines insurance and reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business with a focus on short-tail lines;

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

AXIS is executing with clarity and conviction onin our strategy to be a leading global specialty underwriter, delivering durable, profitable growth across market cycles. Our differentiated market positioning— – anchored by a diversified specialty portfolio, deep underwriting expertise, a global operating platform, strong claims and risk management capabilities, and long‑standingglobal multivariate distribution partnerships—model – provides a powerful foundation for continued value creation. This is reinforced by a conservative, high‑quality investment portfolio that enhances earnings resilience and capital flexibility.

The global trade and geopolitical landscape remainsremain fluid, introducing uncertainty across economic conditions, loss costs, and capital deployment. AXIS is built to operate effectively in preciselydynamic theserisk environments. We proactively assess evolving risks and translate uncertainty into underwritingspecialized advantageinsurance solutions through disciplined pricing, portfolio management, and rigorous risk selection. Our underwriting framework is designed to protect outsized downside outcomes while positioning the business to capitalize on market dislocations as they emerge.

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

•Pricing dynamics are evolving following multiple years of rate increases that exceeded loss cost trends. WhileMarket pricingconditions hasare moderatedsoftening overall—andwith softenedvariances inacross selectthe classes—various "micro markets" where AXIS competes: casualty lines continue to achieve positive rate momentum, financial lines pricing remains stable, and property markets arecontinue experiencingto experience pressure from increased capital inflows.inflows that are fueling global market competition. We are deliberately concentratingmanaging capacitycapital deployment where premium adequacy remains compelling,compelling. whereThis approach includes ensuring volatility is appropriately priced,priced while seeking additional market dislocations and where dislocations create opportunities to deploy capital at attractivetarget returns.

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

Across AXIS, we are actively deploying capital in areas where pricing supports our return thresholds and scaling back where it does not. Growth is a consequence of disciplined underwriting— – not an objective in isolation. With a strengthened portfolio, improved mix, and expanding presence in our chosen specialty markets, AXIS is well positioned to generate attractive, risk‑adjusted returns and drive profitable growth through 2026.

nm – not meaningful is defined as a variance greater than +/-100% (1)Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $31$33 million and $29$26 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively and $64 million and $55 million for the six months ended June 30, 2026 and 2025, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details.

(1) Current accident year loss ratio, catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measure,measures, net losses and loss expenses ratio isare provided above and a discussion of the rationale for the presentation of these items are provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation'.

(2) The general and administrative expense ratio includedincludes corporate expenses not allocated to underwriting segments of 2.1% and 1.9% for the three months ended MarchJune 31,30, 2026 and 2025.2025, respectively, and 2.1% and 2.0% for the six months ended June 30, 2026 and 2025, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details.

Gross premiums written for the three months ended MarchJune 31,30, 2026 increased by $328$296 million, or 20% ($309 million, or 19%, on a constant currency basis(1)),15%, compared to the three months ended MarchJune 31,30, 2025, primarily attributable to newall lines of business inwith property,the professionalexception linesof and accident and healthcyber lines. In addition, ourOur AXIS Capacity Solutions ("ACS") capability contributed approximately $173$165 million to the increase in gross premiums written in three months ended MarchJune 31,30, 2026, compared to the three months ended MarchJune 31,30, 2025, including $59 million attributable to discrete Funds at Lloyds ("FAL") transactions. The FAL transactions were written on a proportional basis therefore, annual estimated premium income was recognized at inception of the contracts.2025.

The increase in professional lines was also driven by athe higher leveltiming of premiumsrenewals and increased rate associated withof transactional liability business and higher renewals of design professional liability business.

Ceded premiums written for the three months ended MarchJune 31,30, 2026 was $691$857 million, or 35%,39%, of gross premiums written, compared to $611$642 million, or 37%,33%, of gross premiums written for the three months ended MarchJune 31,30, 2025. The decreaseincrease in ceded premiums written toas a percentage of gross premiums written ofwas 2% was5% primarily due to a decreased cession rate in liability lines, partially offset by an increased cession rate in property lines.

Net premiums earned for the three months ended MarchJune 31,30, 2026 increased by $132$154 million, or 13%,15% ($147 million, or 14%, on a constant currency basis(1)), compared to the three months ended MarchJune 31,30, 2025, primarily driven by increases in professional lines, property,marine and aviation, and liability lines.

The increases in professional lines and propertymarine and aviation lines waswere due to increases in gross premiums earned. The increase in liability lines was due to an increase in gross premiums earned, together with a decrease in ceded premiums earned attributable to the restructuring of an existing quota share treatiestreaty that increased our retentionsretention on this line of business.

The current accident year loss ratio increased to 57.5%60.5% for the three months ended MarchJune 31,30, 2026, from 57.0%55.9% for the three months ended MarchJune 31,30, 2025.

The increase in the current accident year loss ratio was impacted by a higher level of catastrophe and weather-related losses. During the three months ended MarchJune 31,30, 2026, catastrophe and weather-related losses, net of reinsurance, were $48$78 million, or 4.26.5 points, including natural catastrophe losses of $33$49 million, or 2.94.1 points, primarily attributable to U.S. winter storms and other weather-related events.points. The remaining losses of $15$29 million, or 1.42.4 points, were attributable to the Middle East conflict. Comparatively, during the three months ended June 30, 2025, catastrophe and weather-related losses, net of reinsurance, were $36 million, or 3.6 points, primarily attributable to weather-related events.

Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 53.3%54.0% for the three months ended MarchJune 31,30, 2026, from 52.3% for the three months ended MarchJune 31,30, 2025, principally due toan increased competitionacceleration in property linesmarket softening and cyberthe recognition of increasingly competitive conditions in casualty lines.

Refer to Item 1, Note 6 to the Consolidated Financial Statements 'Reserve for losses and loss expenses' for details on prior year reserve development by segment,segment and reserve class and accident year.class.

The acquisition cost ratio increased to 19.6%20.1% and 19.9% for the three and six months ended MarchJune 31,30, 2026, from 19.2%18.9% and 19.0% for the three and six months ended MarchJune 31,30, 2025, primarily related to an increase in gross variable acquisition costs in property lines. In addition, gross acquisition costs increased due to changes in business mix attributable to increases in pet insurance business written in accident and health lines, and program business written in property and professional lineslines, allwhich are associated with relatively higher gross acquisition cost ratios. The acquisition cost ratio for the three months ended MarchJune 31,30, 2026 benefited from increases in ceding commission in accident and health, and cyber lines.

The underwriting-related general and administrative expense ratio decreased to 10.6%10.4% for the three months ended MarchJune 31,30, 2026, from 11.9%12.0% for the three months ended MarchJune 31,30, 2025, mainly driven by an increase in net premiums earned.earned and fees related to opportunities associated with our ACS initiatives.

Gross premiums written for the three months ended MarchJune 31,30, 2026, decreased by $25$144 million, or 2% ($65 million, or 6%, on a constant currency basis),25%, compared to the three months ended MarchJune 31,30, 2025 primarily attributable to non-renewals and decreased line sizes.sizes in professional lines and liability lines.

The decrease in liabilityprofessional lines was duedriven by to non-renewals andof cyber business attributable to client retentions, together with decreased line sizes primarilyon relatedseveral tounder-performing generalcyber liability business.contracts.

The decrease in motorliability lines was drivendue byto decreased line sizes and non-renewals ofprimarily non-proportionalrelated U.Kto general liability business attributable to increased competition and unfavorablethe markettiming conditions,of partially offset by new non-U.K. proportional and non-proportional business.renewals.

Ceded premiums written for the three months ended MarchJune 31,30, 2026, was $500$205 million, or 45%,47%, of gross premiums written, compared to $433$239 million, or 38%,41%, of gross premiums written for the three months ended MarchJune 31,30, 2025. The increase in ceded premiums written toas a percentage of gross premiums written ofwas 7% was6% primarily due to increased cession rates in motor, professional lines and liability lines.