Axis Combined Ratio Widens as Underwriting Profit Falls

The Tip Desk · November 2, 2026 · 4 min read

The specialty insurer posted $134 million of third-quarter underwriting income and a 94.0% combined ratio while gross premiums written rose 11%.

AXIS Capital Holdings Limited (AXS) reported third-quarter net income available to common shareholders of $202 million, or $2.75 a share, down 32% from $294 million a year earlier; gross premiums written rose 11%.

Operating income was $229 million, or $3.12 a share, down 10% from $255 million a year earlier. Underwriting income fell to $134 million from $189 million. The combined ratio widened to 94.0% from 89.4%. Annualized operating return on average common equity was 15.7%.

Gross premiums written increased $234 million, or 11%, to $2.4 billion. Insurance gross premiums written rose $217 million, or 13%, to $1.91 billion. Reinsurance gross premiums written rose $17 million, or 4%, to $449.5 million. Net premiums written increased $132 million, or 10%, to $1.5 billion.

President and Chief Executive Officer Vince Tizzio said the company leaned into attractive underwriting opportunities while practicing disciplined cycle management in a transitioning market, and that the insurance business produced a 13% increase in gross premiums with a 92.0% combined ratio and an 87.2% current accident year ex-cat combined ratio. He said AXIS Re generated its 11th consecutive profitable quarter.

Pre-tax catastrophe and weather-related losses, net of reinsurance, were $75 million, or 4.6 points, including $44 million, or 2.7 points, attributable to the Middle East conflict and the Russia-Ukraine war, and $31 million, or 1.9 points, from weather-related events. Net favorable prior year reserve development was $15 million, compared with $19 million in 2025. The current accident year combined ratio, excluding catastrophe and weather-related losses, rose to 90.3% from 87.7%.

The acquisition cost ratio increased 2.8 points, which the company said was primarily related to new property and professional lines business associated with AXIS Capacity Solutions and a greater mix of short-tail lines, including marine war business, which have relatively higher acquisition cost ratios. The general and administrative expense ratio was 10.8%.

Insurance underwriting income fell to $103.9 million from $153.3 million a year earlier. The insurance combined ratio worsened to 92.0% from 85.9%. The company said the current accident year loss ratio, excluding catastrophe and weather-related losses, increased 1.9 points, principally due to an acceleration in property market softening and increasingly competitive conditions in casualty lines. Insurance gross premiums written were attributed to marine and aviation lines due to higher premiums mainly related to marine war business, property and professional lines due to new business associated with AXIS Capacity Solutions, and accident and health lines due to higher renewals and new business.

Reinsurance underwriting income declined to $29.8 million from $35.0 million a year earlier. The reinsurance combined ratio was 92.4%. Net premiums written in reinsurance fell $12 million, or 5%, to $255.9 million, reflecting increased cession rates in liability and motor lines. Gross premiums written in reinsurance were primarily attributable to a higher level of premiums associated with two contracts in agriculture lines, partially offset by decreased line sizes and non-renewals in liability lines.

Net investment income increased $26 million, or 14%, to $211.4 million, primarily attributable to higher income from fixed maturities on an increase in average fixed maturity assets and an increase in yields on the portfolio. Book yield of fixed maturities was 4.9% at September 30, 2026, compared with 4.6% a year earlier. The market yield was 5.8%. A pre-tax $361 million decrease in net unrealized gains on fixed maturities was recognized in other comprehensive income, versus a $46 million gain in the year-ago quarter, as sovereign yields rose and credit spreads widened.

Book value per diluted common share was $79.06 at September 30, 2026, down $1.61, or 2.0%, from $80.67 at June 30, 2026. Book value excluding accumulated other comprehensive income was $84.33, up $2.20, or 2.7%, from $82.13 at June 30. Total capital returned to common shareholders was $141 million in the quarter, including $109 million of share repurchases and $32 million of dividends. Reorganization expenses were $nil in the third quarter.

Tizzio said that as the company looks ahead to the remainder of 2026 and to 2027, AXIS is well-positioned, and that the strength of the balance sheet provides flexibility to make investments spanning products, platforms, and talent.