AXIS CAPITAL HOLDINGS LTD 10-K

axs-20251231 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31 , 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-31721 AXIS CAPITAL HOLDINGS LIMITED (Exact name of registrant as specified in its charter) Bermuda (State or other jurisdiction of incorporation or organization) 98-0395986 (I.R.S. Employer Identification No.) 29 Richmond Road , 3rd Flr , Pembroke , Bermuda HM 08 (Address of principal executive offices and zip code) ( 441 ) 496-2600 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common shares, par value $0.0125 per share AXS New York Stock Exchange Depositary shares, each representing a 1/100th interest in a 5.50% Series E preferred share AXS PRE New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☒ No ☐ If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒ The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, computed by reference to the closing price at the last business day of the registrant’s most recently completed second fiscal quarter, June 30, 2025, was approximately $ 8.1 billion. At February 23, 2026, there were 73,965,939 common shares outstanding, $0.0125 par value per share, of the registrant. DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the annual meeting of shareholders to be held on May 14, 2026 are incorporated by reference in response to items 10, 11, 12, 13 and 14 in Part III of this Form 10-K. The definitive proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant's fiscal year ended December 31, 2025. AXIS CAPITAL HOLDINGS LIMITED TABLE OF CONTENTS Page PART I Item 1. Business 4 Item 1A. Risk Factors 30 Item 1B. Unresolved Staff Comments 54 Item 1C. Cybersecurity 54 Item 2. Properties 55 Item 3. Legal Proceedings 55 Item 4. Mine Safety Disclosures 55 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 56 Item 6. Reserved 57 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 58 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 107 Item 8. Financial Statements and Supplementary Data 111 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 219 Item 9A. Controls and Procedures 219 Item 9B. Other Information 221 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 221 PART III Item 10. Directors, Executive Officers and Corporate Governance 221 Item 11. Executive Compensation 221 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 222 Item 13. Certain Relationships and Related Transactions, and Director Independence 222 Item 14. Principal Accounting Fees and Services 222 PART IV Item 15. Exhibits and Financial Statement Schedules 222 Item 16. Form 10-K Summary 227 Cautionary Note Regarding Forward-Looking Statements 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. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This Annual Report on Form 10-K or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements, other than statements of historical fact included in or incorporated by reference in this report are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar statements of a future or forward-looking nature or their negative or similar terminology. Forward-looking statements made in this report, such as those related to our performance, pricing, growth prospects, the outcome of our strategic initiatives, our expectations relating to our ability to successfully implement and manage technology initiatives – including artificial intelligence, our expectations about the current trade and geopolitical environment on our business, economic and market conditions, and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation: Summary of Risk Factors Insurance Risk Insurance risk is the inherent uncertainty as to the occurrence, amount and timing of insurance and reinsurance liabilities transferred to us through the underwriting process. • The insurance and reinsurance business is historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates. • We may be adversely impacted by a wide variety of natural catastrophes or man-made disasters. The incidence and severity of catastrophes are inherently unpredictable and losses from catastrophes could be substantial. Our exposure to natural catastrophe losses may be increased by climate change, where we may have exposure to physical, transition, and liability risks, as well as increasing regulation in the area of climate change. Other man-made catastrophes, such as cyber-attacks and other data security incidents, remain relatively new and therefore incorporate high degrees of uncertainty around their impact. • We may be adversely affected by losses related to the war in Ukraine, tensions in the Middle East, instability in Latin America, terrorism and political unrest, the imposition of tariffs or other trade restrictions and/or unanticipated losses. • We may be adversely impacted by economic and social inflation. Our operations, like those of other insurers and reinsurers, are susceptible to the effects of economic and social inflation because premiums are established before actual losses and loss expenses are known • We may be adversely affected by the effects of emerging claims, systemic risks, and coverage issues and/or if actual claims exceed our reserves for losses and loss expenses ("loss reserves"). The actual final cost of settling claims outstanding, as well as claims expected to arise from the unexpired period of risk, is uncertain. There are many factors that would cause ultimate loss estimates to increase or decrease, which include, but are not limited to, emerging claims, systemic risks, and coverage issues such as changes in claim severity. • We may be adversely affected by the failure of our loss limitation strategy, including the use of reinsurance. • We may be adversely affected by the failure of models used to support key decisions. 1 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. • We may be adversely affected by competition and consolidation in the insurance and reinsurance industry. Increased competition could result in fewer submissions, lower premium rates, less favorable policy terms and conditions, and greater costs of customer acquisition and retention. • We may be adversely affected by our failure to keep the pace or manage technology developments, including artificial intelligence. • We have been and may continue to be adversely affected by a deterioration in global economic conditions. Economic 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 may be adversely affected by changes in the political environment of certain countries in which we operate or underwrite business. • We may be adversely affected by loss of business provided by a major broker. • We may be adversely affected by a downgrade in our financial strength or credit rating. If we experience a credit rating downgrade, withdrawal or negative watch/outlook in the future, we could incur higher borrowing costs and may have more limited means to access capital. It could also result in a substantial loss of business. • We may be adversely affected by the increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters. Market Risk Market risk is the risk that our financial instruments, which include derivatives, may be negatively impacted by movements in financial market prices or rates such as interest rates, credit spreads, equity securities' prices and foreign currency exchange rates. • Our operating results, investment and derivative instrument portfolios may be adversely impacted by capital markets risk related to changes in interest rates, foreign currency exchange rates, credit spreads, equity securities' prices and other factors. Liquidity Risk Liquidity risk is the risk that we may not have sufficient cash to meet our obligations when they are due, or would have to incur excessive costs to do so. • Our underwriting activities may expose us to liquidity risks. This 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. Credit Risk Credit risk represents the risk of incurring financial loss due to the diminished creditworthiness (reduced financial strength and, ultimately, possibly default) and concentration of our third-party counterparties. • We may be adversely impacted if we are unable to collect amounts due to us from our counterparties – most materially reinsurers, but also including brokers, agents, and customers. 2 Operational Risk Operational risk represents the risk of loss as a result of inadequate processes, system and network failures, human error or external events, including but not limited to direct or indirect financial loss, reputational damage, customer dissatisfaction, and legal and regulatory penalties. • We may be adversely impacted by failure of the processes, people, or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties. Regulatory Risk Regulatory risk represents the risk arising from our failure to comply with legal, statutory or regulatory obligations. • Our insurance and reinsurance subsidiaries conduct business globally and are subject to varying degrees of regulation, including data protection, privacy, and cybersecurity laws, in multiple jurisdictions. We may be adversely affected if we inadvertently fail to comply fully with, or obtain exemption from, relevant regulations. 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, for example relating to our holding company structure or provisions in our organizational documents and bye-laws. Risks Related to Taxation • We may be adversely impacted by changes in tax rules or changes in the interpretation of existing tax rules in the multiple jurisdictions in which we operate. Readers should carefully consider the risks noted above together with the risks detailed in Item 1A, 'Risk Factors' of this Annual Report, all of the other information included in this report, and in subsequent filings available at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Website and Social Media Disclosure We use our website ( www.axiscapital.com ) and our corporate LinkedIn (AXIS Capital) and X Corp. (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program, which can be found in the Investor Information section of our website ( www.axiscapital.com ). The contents of our website and social media channels are not part of this Annual Report on Form 10-K. 3 PART I ITEM 1. 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. Holdings, Inc., AXIS Reinsurance Company ("AXIS Re U.S."), AXIS Reinsurance Company (Canadian Branch), AXIS Specialty U.S. Services, Inc., AXIS Specialty U.S. Services, Inc. (U.K. Branch), AXIS Specialty Canada Services, ULC, AXIS Group Services, Inc., AXIS ILS, Inc., AXIS Insurance Company ("AXIS Insurance Co."), AXIS Surplus Insurance Company ("AXIS Surplus"), AXIS Group Benefits LLC, AXIS Specialty Insurance Company ("AXIS Specialty U.S."), AXIS Specialty Finance LLC and AXIS Specialty Finance PLC, unless the context suggests otherwise. Unless otherwise noted, tabular dollars are in thousands. Amounts may not reconcile due to rounding differences. General AXIS is a global specialty underwriter and provider of insurance and reinsurance solutions with operations in Bermuda, the United States ("U.S."), Europe, Singapore, and Canada. Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re. The markets in which we operate have historically been cyclical. During periods of reduced underwriting capacity, pricing, and policy terms and conditions are generally more favorable for insurers and reinsurers. Conversely, during periods of excess underwriting capacity, defined by the availability of capital, competition can result in lower pricing and less favorable policy terms and conditions for insurers and reinsurers. Historically, underwriting capacity has been impacted by a range of factors, including systemic risks such as industry losses and catastrophes, as well as changes in legal, regulatory and rating agency guidelines, investment results, and the financial strength and ratings of competitors. In 2025, we grew in a number of attractive specialty lines insurance and reinsurance markets and we continued to re-balance our portfolio towards highly targeted specialty lines. At December 31, 2025, we had common shareholders’ equity of $5.8 billion, total capital of $7.7 billion and total assets of $34.5 billion. 4 Our Business Strategy We are a global specialty underwriter and provider of insurance and reinsurance solutions and are a leader in many of the markets where we choose to compete. 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 balance 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 and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will further position us as a global specialty underwriting leader, enabling us to deliver sustained profitable growth and increased shareholder value. 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 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. 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. We modulate our risk appetite and deployment of capital across the underwriting cycle, commensurate with available market opportunities and returns: In response to market dynamics, we recognize opportunities as they develop and react quickly as new trends emerge. Our risk analytics provide important and continuous feedback, further assisting with the ongoing assessment of our risk appetite and strategic capital deployment. 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. 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. We invest in data and technology and are leveraging AI capabilities and tools to empower our underwriters and enhance the service that we provide to our customers. Our intellectual capital and proven client-service capability attracts customers and distribution partners looking for solutions. 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. 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. As a result, we believe that our staff is well-positioned to make the best underwriting and strategic decisions for AXIS. 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. Adjusted DBVPS represents average annual growth in book value per diluted common share, generally adjusted for dividends, unrealized investment gains (losses) recognized in accumulated other comprehensive income (loss) and share repurchases. 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. We do not allocate assets by segment, with the exception of goodwill and intangible assets. Refer to Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations' for further details on our reportable segments and Item 8, Note 3 to the Consolidated Financial Statements 'Segment Information' for further details on our reportable segments and a description of the geographic distribution of gross premiums written based on the location of our subsidiaries. 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. 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. This business is predominantly written on a claims-made basis. • Property : provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projec ts, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. 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. 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. 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. Offshore energy coverages include physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. Aviation provides hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers. • Accident and Health: includes personal accident, travel insurance and specialty health products for employer and affinity groups, and pet insurance. 6 • Credit and Political Risk: provides credit and political risk insurance products for banks, commodity traders, corporations, and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign and corporate credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. Surety bonds are also provided to large corporate and commercial clients, and to mid to large sized construction clients. We produce business primarily through wholesale and retail brokers worldwide. Some of our insurance products are also distributed through managing general agents ("MGAs") and managing general underwriters ("MGUs"). In the U.S., we have the ability to write business on an admitted basis using forms and rates filed with state insurance regulators and on a non-admitted or surplus lines basis, which provides flexibility in forms and rates, as these are not filed with state regulators. Our ability to write business on a non-admitted basis in the U.S. provides us with the pricing flexibility needed to write non-standard coverages. Substantially all of our insurance business is subject to aggregate limits, in addition to event limits. 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. No insured accounted for more than 10% of the gross premiums written in the insurance segment. Competitive Environment In our insurance segment, where competition is focused on price, service, availability of capacity, appetite and distribution, among other considerations, we compete globally and locally with North American and other carriers. We believe we can achieve positive differentiation through underwriting expertise in our chosen lines of business and market segments, providing customized solutions for our strategic partners and top caliber claims service levels to our customers. 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. 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 proportional business, we assume an agreed percentage of the underlying premiums and accept liability for the same percentage of losses and loss expenses. Our business is primarily produced through reinsurance brokers worldwide. 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. This business is written on a proportional and excess of loss basis. 7 • Professional Lines: provides protection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis. • Motor: provides protection to insurers for motor liability and motor property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. Traditional non-proportional and proportional reinsurance as well as structured solutions are offered predominantly relating to European exposures. • Accident and Health: includes personal accident, specialty health, accidental death, travel, life, disability and pet reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis. • Credit and Surety: Credit reinsurance provides protection for trade credit insurance, and credit and political risk insurance. Trade credit insurance protects sellers of goods and services in the event of a non-payment by the buyer of those goods and services. Credit and political risk insurance covers a range of risks predominantly corporate and sovereign non-payment. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands, contract, and commercial obligations in a variety of jurisdictions around the world. Mortgage reinsurance is provided to mortgage guaranty insurers, U.S. government-sponsored entities and other mortgage market participants. 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. This business is written on a proportional and aggregate stop loss reinsurance basis. • Marine and Aviation: Marine includes specialty marine exposures such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis. Aviation provides cover for air line, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023. Run-off lines • Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis. The Company exited this line of business in June 2022. • Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, flood, industrial explosions, fire, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company exited this line of business in June 2022. • Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. 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. 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. 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. In addition to traditional market participants, we also compete with new market entrants supported by alternative capital sources offering risk transfer solutions on a collateralized or other non-traditional basis. Our clients may also acquire reinsurance protection through capital market products such as catastrophe bonds and insurance loss warranties. We believe that we achieve a competitive advantage through our diversified global product offerings, responsiveness to customer needs and ability to provide sophisticated and innovative products. We offer excellent claims management, strong financial strength ratings and an ability to leverage our balance sheet and relationships with strategic capital partners to provide strong capacity. Cash and Investments We seek to balance the investment portfolio's objectives of increasing book value with the generation of relatively stable investment income, while providing sufficient liquidity to meet our claims and other obligations. Liquidity needs arising from potential claims are of primary importance and are considered in asset class participation and the asset allocation process. A significant portion of our investment portfolio is dedicated to investment grade fixed maturities that will generate cash flows that match expected claim payouts. To diversify risk and optimize the growth in book value, we may invest in other asset classes such as equity securities, high yield securities and alternative investments (e.g., private equity funds), which provide higher potential total rates of return. These individual investment classes involve varying degrees of risk, including the potential for more volatile returns and reduced liquidity. However, as part of a balanced portfolio, they also provide diversification from interest rate and credit risk. With regard to our investment portfolio, we primarily utilize third-party investment managers for security selection and trade execution functions, subject to guidelines and objectives for each asset class. This enables us to actively manage our investment portfolio with access to top performers specializing in various products and markets. We select managers based on various criteria including investment style, performance history and corporate governance. In addition, we monitor approved investment asset classes for each subsidiary through analysis of our operating environment, including expected volatility of cash flows, overall capital position, regulatory and rating agency considerations. The Finance Committee of our Board of Directors approves overall group asset allocation ranges and investment policy to ensure that they are consistent with our overall goals, strategies and objectives. We also have an Investment and Finance Committee, comprised of members of our senior management team, which oversees the implementation of our investment strategy. Refer to Item 7 ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Cash and Investments' and Item 8, Note 5 to the Consolidated Financial Statements ' Investments' for further details on our investment portfolio. Refer to ' Risk and Capital Management' for further details on management of investment risk. 9 REGULATION General Our insurance and reinsurance entities are regulated in most countries, although the degree and type of regulation varies significantly from one jurisdiction to another. We may become subject to regulation in new jurisdictions or to additional regulations in existing jurisdictions . To the extent we are aware of impending changes in regulation, our project teams prepare us to comply with such anticipated changes on a timely basis. The following describes the current material regulations under which the Company operates. 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. In addition, AXIS Specialty Insurance Bermuda was incorporated on August 19, 2024 as a Bermuda exempt company, and was licensed on December 17, 2024 as a Class 4 insurer under the Insurance Act. The Insurance Act provides that no person may carry on any insurance or reinsurance business in or from within Bermuda unless registered as an insurer by the Bermuda Monetary Authority ("BMA") under the Insurance Act. The Insurance Act imposes upon Bermuda insurance companies' solvency and liquidity standards, and auditing and reporting requirements, and grants the BMA powers to supervise, investigate, require information and demand the production of documents and intervene in the affairs of insurance companies. Significant requirements pertaining to Class 4 insurers include the appointment of an independent auditor, the appointment of a loss reserve specialist, the appointment of a principal representative in Bermuda, the filing of annual Statutory Financial Returns together with annual GAAP financial statements and an annual Capital and Solvency Return, compliance with minimum and enhanced capital requirements, together with certain restrictions on reductions of capital and the payment of dividends and distributions as well as group solvency and supervision rules, if applicable, and compliance with the Insurance Code of Conduct. 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. In accordance with the group supervision and insurance group solvency rules, AXIS Capital is required to prepare and submit an annual group Statutory Financial Return, annual audited group GAAP financial statements, an annual group capital and solvency return and quarterly group unaudited GAAP financial statements, and to appoint a group actuary and a group auditor. AXIS Capital also files an annual capital and solvency return and must ensure compliance with minimum and enhanced capital requirements. AXIS Reinsurance Managers is registered with, and regulated by, the BMA as an insurance manager pursuant to the Insurance Act. AXIS Reinsurance Managers is also required to comply with the Insurance Manager Code of Conduct. Insurance managers in Bermuda are responsible for the regulatory compliance, financial reporting, and operational management of the insurers they act for. AXIS Capital, AXIS Specialty Bermuda, AXIS Specialty Insurance Bermuda, AXIS Specialty Holdings Bermuda Limited, AXIS Specialty Investments Limited, AXIS ILS Ltd., AXIS Specialty Investments II Limited and AXIS Reinsurance Managers must comply with provisions of the Bermuda Companies Act 1981 of Bermuda, as amended ("Companies Act"), regulating the payment of dividends and distributions. 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. Insurance Holding Company Regulation of AXIS Capital’s Insurance Subsidiaries As members of an insurance holding company system, each of AXIS Insurance Co., AXIS Re U.S., AXIS Specialty U.S. and AXIS Surplus (collectively the "U.S. Insurance Subsidiaries") are subject to the insurance holding company laws and regulations of the states in which they do business. These laws generally require each of the U.S. Insurance Subsidiaries to register with its domestic state insurance department and to furnish financial and other information which may materially affect the operations, management or financial condition within the holding company system. All transactions within a holding company system that involve an insurance company must be fair and equitable. Notice to the applicable insurance department is required prior to the consummation of transactions affecting the ownership or control of an insurer and of certain material transactions between an insurer and an entity in its holding company system, and certain transactions may not be consummated without the department’s prior approval. 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. 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. Insurance Subsidiaries are subject to regulation and supervision by their respective states of domicile and by other jurisdictions in which they do business. The regulations generally are derived from statutes that delegate regulatory and supervisory powers to an insurance official. The regulatory framework varies from state to state, but generally relates to approval of policy forms and rates, the standards of solvency that must be met and maintained, including risk-based capital standards, material transactions between an insurer and its affiliates, the licensing of insurers, agents and brokers, restrictions on insurance policy terminations, and limitations on the amount and nature of certain investments, limitations on the net amount of insurance of a single risk compared to the insurer’s surplus, deposits of securities for the benefit of policyholders, methods of accounting, periodic examinations of the financial condition and market conduct of insurance companies, the form and content of reports of financial condition required to be filed, and reserves for unearned premiums, losses, expenses and other obligations. Our U.S. Insurance Subsidiaries are required to file detailed quarterly statutory financial statements with state insurance regulators in each of the states in which they conduct business. In addition, the U.S. Insurance Subsidiaries’ operations and accounts are subject to financial condition and market conduct examination at regular intervals by state regulators. Regulators and rating agencies use statutory surplus as a measure to assess our U.S. Insurance Subsidiaries’ ability to support business operations and pay dividends. Our U.S. Insurance Subsidiaries are subject to various state statutory and regulatory restrictions that limit the amount of dividends that may be paid from earned surplus without prior approval from regulatory authorities. These restrictions differ by state, but generally are based on calculations using statutory surplus, statutory net income and investment income. In addition, many state regulators use the National Association of Insurance Commissioners promulgated risk-based capital requirements as a means of identifying insurance companies that may be under-capitalized. Although generally the insurance industry is not directly regulated by the federal government, federal legislation and initiatives can affect the industry and our business. Certain sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank") pertain to the regulation and business of insurance. 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. 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. 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. Insurance Subsidiaries The insurance laws of each U.S. state regulate or prohibit the sale of insurance and reinsurance by insurers and reinsurers that are not admitted to do business within their jurisdictions or otherwise conduct business pursuant to exemptions. AXIS Specialty Europe is eligible to write surplus lines business throughout the U.S. and in Puerto Rico. AXIS Managing Agency Ltd. is eligible to use Lloyd's licenses to (i) write surplus lines business throughout the U.S. and in all U.S. territories, and (ii) write non-life reinsurance business throughout the U.S. and in all U.S. territories, except for accident and health reinsurance in New York. In addition to the regulatory requirements imposed by the jurisdictions in which they are licensed, reinsurers’ business operations are affected by regulatory requirements in various states of the U.S. governing "credit for reinsurance" that are imposed on their ceding companies. In general, a ceding company obtaining reinsurance from a reinsurer that is licensed or approved by the jurisdiction or state in which the ceding company files statutory financial statements is permitted to reflect in its statutory financial statements a credit in an aggregate amount equal to the ceding company’s liability for unearned premiums (which is that portion of premiums written which applies to the unexpired portion of the policy period), loss reserves and loss expense reserves ceded to the reinsurer. The great majority of states, however, permit a credit to statutory surplus to be recognized resulting from reinsurance obtained from a non-licensed or non-accredited reinsurer to the extent that the reinsurer provides a letter of credit, trust fund or other acceptable security arrangement. A few states do not allow credit for reinsurance ceded to non-licensed reinsurers except in certain limited circumstances, and others impose additional requirements that make it difficult to become accredited. In connection with the establishment of a Multi-Beneficiary Reinsurance Trust, AXIS Specialty Bermuda obtained accredited or trusted reinsurer status in all U.S. jurisdictions except for New York. During 2022, AXIS Specialty Bermuda obtained reciprocal jurisdiction reinsurer status with Missouri as its lead state. Reinsurers licensed in reciprocal jurisdictions (which include EU member states, Bermuda, Japan and Switzerland) are not required to post reinsurance collateral if approved as reciprocal jurisdiction reinsurers. With its approval from Missouri, AXIS Specialty Bermuda applied for and received passporting approvals from California, Connecticut, Delaware, Florida, Illinois, New York, Ohio, Rhode Island, and Texas. "Passporting" refers to the process by which a state has the discretion to defer to the determination by another state that a reinsurer is a reciprocal jurisdiction reinsurer, thereby excusing the approved reinsurer from collateral requirements in such state. Ireland Our Ireland domiciled insurer and reinsurer are subject to the Solvency II Directive (Directive 2009/138/EC), as amended ("Solvency II"). Solvency II represents a consolidation and modernization of existing European Commission Solvency I insurance and reinsurance regulation and supervision and includes a harmonized risk-based solvency and reporting regime for the insurance/reinsurance sector. Solvency II covers three main areas: (i) the valuation of assets and liabilities and related solvency capital requirements; (ii) governance requirements including key functions of compliance, internal audit, actuarial and risk management; and (iii) legal entity and EU group reporting and disclosure requirements including public disclosures. 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. 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. 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 to conduct business in 16 non-life insurance classes throughout the EU and the European Economic Area ("EEA"), which includes each of the Member States of the EU with the addition of Iceland, Liechtenstein and Norway. AXIS Specialty Europe may also write reinsurance business within the classes of insurance business for which it is authorized. AXIS Specialty Europe is subject to Solvency II. In accordance with Solvency II, AXIS Specialty Europe is permitted to provide insurance services to clients located in any EEA Member State ("Freedom of Services"), subject to compliance with any "general good requirements" as may be established by the applicable EEA Member State regulator. AXIS Specialty Europe has notified the CBI of its intention to provide insurance services on a Freedom of Services basis in all EEA countries. Solvency II also permits AXIS Specialty Europe to carry on insurance business in any EEA Member State under the principle of "Freedom of Establishment" subject to the prior approval of the CBI. AXIS Specialty Europe operates under Freedom of Establishment in Belgium through its branch established in this jurisdiction. AXIS Specialty Europe has local regulatory permission to carry on insurance business in Jersey, and has permission to write surplus lines business in all 50 U.S. states, Puerto Rico, and Washington D.C. It also has a U.K. branch that transacts general insurance business in the U.K. and trades as AXIS Specialty London. The UK Branch of AXIS Specialty Europe is fully regulated by both the PRA and the Financial Conduct Authority ("FCA"). AXIS Specialty Europe also has reinsurance permissions in India, China, Argentina, Mexico, Panama, Paraguay, Honduras, Ecuador, Colombia and Guatemala. AXIS Re SE AXIS Re SE is a European public limited liability company incorporated as a reinsurer under the laws of Ireland. AXIS Re SE is also a Societas Europaea (SE), or European society company, registered in accordance with EU law. AXIS Re SE is authorized by the CBI as a composite reinsurer (non-life and life) in accordance with 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 applicable to reinsurance and statutory instruments made thereunder. AXIS Re SE is authorized to transact reinsurance throughout the EU and the EEA and is subject to Solvency II. AXIS Re SE conducts business through its branch in Zurich, Switzerland, trading as AXIS Re Europe (see ' Switzerland' below). AXIS Re SE Escritório de Representação No Brasil Ltda. was established in Brazil as a subsidiary of AXIS Re SE to facilitate the Brazilian Superintendence of Private Insurance ("SUSEP") regulatory requirements for approval of a representative office of AXIS Re SE and for the registration of AXIS Re SE with SUSEP as an admitted reinsurer. 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. AXIS Managing Agency Ltd. is eligible to write insurance (except permanent health) and reinsurance business in Ireland through Lloyd's Europe. U.K. and Lloyd's of London In the U.K., under the Financial Services and Markets Act 2000 ("FSMA"), no person may carry on a regulated activity unless authorized or exempt. Effecting or intermediating contracts of insurance or reinsurance are regulated activities requiring authorization. Effecting contracts of insurance requires authorization by the PRA and is regulated by the FCA. 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. As a prudential regulator, the PRA's general objective is to promote the safety and soundness of the firms it regulates. The PRA rules require financial firms to hold sufficient capital and have adequate risk controls in place. 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. It makes rules covering how the firm must be managed and requirements relating to the firm’s systems and controls, how business must be conducted and the firm’s arrangements to manage financial crime risk. The PRA and the FCA require regular and ad hoc reporting and monitor compliance with their respective rule books through a variety of means including the collection of data, industry reviews and site visits. AXIS Managing Agency Ltd. 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. Lloyd’s is a society of corporate and individual members that underwrite insurance and reinsurance as members of syndicates. A syndicate is made up of one or more members that form a group to accept insurance and reinsurance risks. Each syndicate is managed by a managing agent that writes insurance business on behalf of the members of the syndicate. Syndicate members receive profits or bear losses in proportion to their respective shares in the syndicate for each underwriting year of account. Lloyd’s is subject to U.K. law and is authorized under the FSMA. The Lloyd’s Act 1982 defines the governance structure and rules under which the society operates. Under the Lloyd's Act 1982, the Council of Lloyd’s is responsible for managing, supervising and supporting the Lloyd's market. Lloyd's agrees to syndicates' business plans and evaluates performance against those plans. Syndicates are required to underwrite only in accordance with their agreed business plans. If they fail to do so, Lloyd’s can take a range of actions including, as a last resort, prohibiting a syndicate from underwriting. Lloyd’s has a global network of licenses and authorizations, and underwriters at Lloyd's may write business in countries where Lloyd’s has authorized status or exemptions available to non-admitted insurers or reinsurers. Lloyd’s licenses can only be used if the Syndicate Business Forecast, agreed annually with Lloyd’s, names those countries. Lloyd’s also manages and protects the Lloyd’s network of international licenses, monitors syndicates’ compliance with Lloyd’s Principles for doing business and is responsible for setting both member and central capital levels. 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. 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. AXIS Underwriting Limited AXIS Underwriting Limited is authorized and regulated by the FCA as an insurance intermediary. AXIS Underwriting Limited underwrites insurance on behalf of AXIS Specialty Europe and at Lloyd's on behalf of Syndicate 1686. Reinsurance AXIS Managing Agency Ltd. remains able to conduct non-life facultative, proportional and excess of loss reinsurance throughout the EEA via Lloyd’s Europe. AXIS Re SE currently transacts reinsurance business in the EEA pursuant to European law. 14 Switzerland AXIS Re SE's branch in Zurich, Switzerland trades as AXIS Re Europe and is registered in Zurich as AXIS Re SE, Dublin (Zurich Branch). 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. AXIS Managing Agency Ltd. is eligible to use Lloyd's licenses to write all classes of insurance business, except life, sickness and legal expenses in Switzerland, and is authorized to write the same classes of reinsurance business in Switzerland. Singapore AXIS Specialty Bermuda historically conducted insurance and reinsurance business from its branch in Singapore, AXIS Specialty Limited (Singapore Branch), subject to the supervision of the BMA and the MAS. The BMA and the MAS impose significant regulations relating to capital adequacy, risk management, governance and audit and actuarial requirements. AXIS Specialty Limited (Singapore Branch) is registered by ACRA as a foreign company in Singapore and is also regulated by ACRA pursuant to the Singapore Companies Act. AXIS Specialty Limited (Singapore Branch) has separate reinsurance permissions in China. AXIS Specialty Bermuda ceased writing new business through its branch in Singapore, effective January 1, 2024, and plans to close this branch, subject to meeting all regulatory and legal requirements. AXIS Managing Agency Ltd. is eligible to use Lloyd's licenses to write insurance from Singapore with the exception of certain compulsory classes and life business. Canada AXIS Re U.S. conducts insurance and reinsurance business from its branch in Canada, AXIS Reinsurance Company (Canadian Branch), subject to the supervision of the New York State Department of Financial Services and the Office of the Superintendent of Financial Institutions Canada ("OSFI"), the federal regulatory authority that supervises federal Canadian and non-Canadian insurance companies operating in Canada pursuant to the Insurance Companies Act (Canada). The branch is authorized by OSFI to transact insurance and reinsurance. In addition, the branch is subject to the laws and regulations of each of the provinces and territories in which it is licensed. AXIS Managing Agency Ltd. is eligible to use Lloyd's licenses to write insurance in and from Canada, subject to the laws and regulations of each of the provinces and territories in which it is licensed, with certain exceptions. AXIS Managing Agency Ltd., through Lloyd's, is authorized to write reinsurance in and from Canada subject to certain restrictions. Belgium AXIS Specialty Europe conducts insurance from its Belgium branch, AXIS Specialty Europe SE (Belgium Branch), which is subject to CBI prudential supervision and limited regulation by the National Bank of Belgium. Non-Admitted Insurance and Reinsurance The Company also insures and reinsures risks in many countries, including the above countries, pursuant to regulatory permissions and exemptions available to non-admitted insurers and reinsurers. AXIS Managing Agency Ltd. is eligible to use Lloyd's licenses to write insurance and reinsurance business where Lloyd's has authorized status or pursuant to regulatory exemptions available to non-admitted insurers and reinsurers. 15 HUMAN CAPITAL MANAGEMENT AXIS Capital’s mission is not only to deliver strong financial results, but also to help our clients, brokers and partners navigate the challenges of a volatile world. We believe our teammates distinguish us from our competitors and are critical to our success as a specialty underwriter that leads with purpose and lives our values every day. Our workforce’s strength is grounded in our values: Excellence, Stronger Together, Decisiveness and People. These values represent behaviors that we hold ourselves and others accountable for every day. 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. We offer a comprehensive suite of professional development tools, resources, and training to support career growth across our global organization. Our online learning and development hub reflects our investment in upskilling and is complemented by financial assistance for external professional development, as well as tuition reimbursement for eligible part-time, business-related degree and certificate programs. To strengthen our pipeline of future leaders, we have expanded manager resources and introduced new leadership development programs tailored to various stages in the career journey. Health, Safety and Wellness We are committed to the health, safety and wellness of our workforce and offer our teammates a variety of tools to support their physical, emotional and financial wellbeing. 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. Additionally, we are promoting sustainable performance through 1:1 wellness coaching and programming targeted at the senior leadership team. Mental Health and Wellbeing Supporting the mental health and wellbeing of our teammates has long been a priority for AXIS. 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. Inclusion AXIS is committed to fostering an inclusive workplace that values diverse perspectives. In 2025, we advanced our inclusion strategy through initiatives that strengthen engagement across our global workforce. We expanded education programs to enhance cultural competency and inclusive leadership. We also partnered with industry organizations to promote inclusion within AXIS and the communities where we operate. These actions underscore our commitment to a workplace where all employees can contribute at their highest potential. Teammate Engagement AXIS recognizes that engagement is critical to creating a fulfilling workplace and enabling employees to perform at their best. In 2025, we advanced engagement through initiatives focused on listening, connection, and recognition. We launched our annual People Engagement Survey, supplemented by pulse surveys throughout the year, to capture real-time feedback and inform action. To further strengthen our culture, we also refreshed our values and behaviors with direct employee input to ensure they reflect our identity and support evolving business priorities. 16 Compensation and Benefits To attract and retain our industry's top talent, we offer teammates a total rewards program that is designed to incentivize exceptional performance. 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. To provide share ownership throughout all levels of our organization, we recently awarded an equity grant for all AXIS teammates who do not receive equity as part of their annual compensation. This ownership award reinforces our "Stronger Together" value and the ownership mentality that defines our culture. 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. In support of our commitment to equal pay practices, all compensation offers are reviewed against internal peers to ensure equal pay at the job level, while year-end incentive awards are reviewed for bias based on gender and ethnic diversity. Furthermore, regular pay equity audits are conducted with action taken to address any areas of concern. 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. Annually, succession plans are completed for each member of the Executive Committee and the other critical roles across AXIS. The Board exercises oversight of succession planning by reviewing a comprehensive annual succession plan for key Executive Committee roles, including the CEO. Employees At December 31, 2025, we had 1,966 employees. 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. AVAILABLE INFORMATION Our Internet website address is www.axiscapital.com . Information contained in our website is not part of this report. 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. The key objectives of our ERM framework are to: • Protect our capital base and earnings by monitoring risks against our stated risk appetite and limits; • Promote a sound risk management culture through disciplined and informed risk taking; • Enhance value creation and contribute to an optimal risk-return profile by providing the basis for efficient capital deployment; • Support our group-wide decision-making process by providing reliable and timely risk information; and • Safeguard our reputation. The ERM framework applies to all lines of business and corporate functions. Risk Governance At the heart of our ERM framework is a governance process with responsibilities for identifying, assessing, managing, monitoring, and reporting risks. We articulate roles and responsibilities for risk management throughout the organization, from the Board of Directors and the Chief Executive Officer to our business and corporate functions, thus embedding risk management throughout the Company (refer to ' Risk Governance and Risk Management Organization ' below). Our risk policies are a formal set of documents that outline key drivers of risk and responsibilities for managing individual and aggregate risks. Our qualitative and quantitative risk reporting framework provides transparency and early warning indicators to senior management with regard to our overall risk profile, adherence to risk appetite and limits, and management actions at the Group and legal entity level. Various governance and control bodies coordinate to help ensure that objectives are being achieved, risks are identified, and appropriately managed, and internal controls are in place and operating effectively. Internal Capital Model An important aspect of our ERM framework is our internal capital model. Utilizing this modeling framework provides us with a holistic view of the capital we put at risk in any year by allowing us to understand the relative interaction among the known risks impacting us. This integrated approach recognizes that a single risk factor can affect different sub-portfolios and that different risk factors can have different mutual dependencies. We continuously review and update our model and its parameters as our risk landscape and external environment continue to evolve. As well as being used to measure internal risk capital (refer to ' Capital Management' below), our internal capital model is used as a tool in managing our business, specifically to help allocate capital to the businesses that will provide the best returns. We also use the internal model to support portfolio monitoring, reinsurance and retrocession (collectively referred to as "reinsurance") purchasing, and investment asset allocations. Our internal capital model is an integral part of the business planning process which provides an assessment as to whether our prospective business and investment strategies are in line with our defined risk appetite and objectives at the Group and legal entity level. The model also provides a basis for optimizing our risk-return profile by providing consistent risk measurement across the Group. The model outputs are reviewed and supplemented with management’s judgment and business experience and expertise. 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. Diversification enhances our ability to manage our risks by limiting the impact of a single event and contributing to relatively stable long-term results and our general risk profile. The degree to which the diversification effect can be realized depends not only on the correlation between risks but also the level of relative concentration of those risks. Therefore, our aim is to maintain a balanced risk profile without any disproportionately large risks. Our internal capital model considers the level of correlation and diversification between individual risks, and we measure concentration risk consistently across our business in terms of pre/post diversified internal risk capital requirements. Risk Appetite and Limit Framework Our integrated ERM framework considers material risks that arise both internally and externally, that could impact our business. Material risks that might accumulate and have the potential to produce substantial losses are subject to our group-wide risk appetite and limit framework. Our risk appetite, as authorized by the Board of Directors, represents the amount of risk that we are willing to accept in pursuit of our strategic objectives, within the constraints imposed by our capital resources as well as the expectations of our stakeholders as to the type of risks we hold within our business. At an annual aggregated level, we also monitor and manage the potential financial loss from the accumulation of risk exposure in any one year. Specific risk limits are defined and translated into a consistent framework across our identified risk categories and across our legal entities and are intended to limit the impact of individual risk types or accumulations of risk. 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. External Perspectives Various external stakeholders, among them regulators, rating agencies, investors and accounting bodies, place emphasis on the importance of sound risk management in the insurance and reinsurance industry. We monitor developments in the external environment and evolve our ERM framework and risk management practices accordingly. Risk Governance and Risk Management Organization The key elements of our governance framework, as it relates specifically to risk management, are described below: Board of Directors The Risk Committee of the Board of Directors ("Risk Committee") assists the directors in overseeing the integrity and effectiveness of our ERM framework and ensuring that our risk mitigation activities are consistent with that framework. The Risk Committee reviews, approves and monitors our overall risk strategy, risk appetite, and key risk limits, and receives regular reports from the Group Risk Management function ("Group Risk") to ensure any significant risk issues are being addressed by management. The Risk Committee further reviews, with management and Internal Audit, the Group’s risk policies and satisfies itself that effective systems of risk management and controls are established and maintained. Among its other responsibilities, the Risk Committee reviews and approves our annual Own Risk and Solvency Assessment ("ORSA") report. The Risk Committee also assesses the independence and objectivity of our Group Risk function, approves its terms of reference, and reviews its ongoing activities. In addition, the Risk Committee conducts a review and provides a recommendation to the Board of Directors regarding the appointment and/or removal of the Chief Risk Officer. 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, the Finance Committee is responsible for monitoring and recommending to the Board on the Group’s capital management activities, encompassing dividend policy, share repurchase authorizations and the optimal deployment of capital to support shareholder value creation. 20 The Audit Committee of the Board of Directors ("Audit Committee"), which is supported by Internal Audit, is responsible for overseeing internal controls and compliance procedures, and also reviews with management and the Chair of the Risk Committee the Group’s policies regarding risk assessment and risk management. Group Executives The Executive Committee formulates our business objectives and risk strategy within the overall risk appetite set by the Board of Directors. It allocates capital resources and sets limits across the Group, with the objective of balancing return and risk. 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 RMC is responsible for overseeing the integrity and effectiveness of the Group's ERM framework and ensuring that the Group's risk mitigation activities are consistent with that framework, including a review of the annual business plan relative to our risk limits. 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. 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. It ensures that our investments align with our business strategies and that projects can be executed effectively and efficiently. • The Artificial Intelligence (AI) Governance Council ensures appropriate regular oversight of AI-related products and activities, such as approval of policies surrounding AI usage, and is a key decision taking party. The AI Council is supported by the AI Working Group, which acts as a filter and has the power to decide on the low risk/more obvious cases. 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. 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. Management is the 'owner' of risk management processes and is responsible for managing our business within defined risk limits. The Chief Risk Officer, who reports to the Chief Financial Officer and the Chair of the Risk Committee leads our independent Group Risk function, and is responsible for oversight and implementation of the Group's ERM framework, as well as providing guidance and support for risk management practices. 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. 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. This includes assurance that key business risks have been adequately identified and managed appropriately and that our system of internal control is operating effectively. Internal Audit also coordinates risk-based audits, compliance reviews and other specific initiatives to evaluate and address risk within targeted areas of our business. Our risk governance structure is further complemented by our legal team which seeks to mitigate legal and regulatory compliance risks with support from other teams. This includes ensuring that significant developments in law and regulation are observed and that we react appropriately to impending legislative and regulatory changes and applicable court rulings. Risk Landscape Our risk landscape comprises insurance, strategic, market, liquidity, credit, and operational risks that arise as a result of undertaking our business activities. We provide definitions of these risk categories as well as descriptions of management of these risks below. 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. There is a quarterly certification process, whereby control owners confirm the performance of the controls and identify any issues to be followed up. In addition, we undertake ongoing risk assessments of all enterprise risks, the output of which is captured in our Risk Register that is reviewed and reported through our governance structure. Our risk landscape is reviewed and reported on a regular basis to ensure that it remains up-to-date based on the evolving risk profile of the Company. In addition, we undertake ongoing risk assessments across all enterprise risks, the output of which is captured in our Risk Register that is reviewed and reported through our governance structure. Insurance Risk Insurance risk is the inherent uncertainty as to the occurrence, amount and timing of insurance and reinsurance liabilities transferred to us through the underwriting process. Since our inception in 2001, we have expanded our international presence, with underwriting offices in Bermuda, the U.S., Europe, and Canada. Our disciplined underwriting approach coupled with a peer review process has enabled us to manage this growth in a controlled and consistent manner. A key component of the Group's underwriting risk governance is our peer review processes, which allow for a collaborative review of risk and pricing, and ensure that underwriting is within established guidelines and procedures. Underwriting guidelines are in place to provide a framework for consistent pricing and risk analysis and to ensure alignment to the Group's risk appetite. Limits are set on underwriting capacity and cascade authority to individuals based on their specific roles and expertise and are established on a tiering basis which is differentiated by the type of loss. Loss scenario and subject exposure have been specified with increasing level of granularity for lower tiers. Tiered appetites have been set for each line of business, with considerations of exposure from each line on the basis of (1) Aggregate (2) Occurrence and (3) Risk and Clash 22 losses. The risk management team monitors both management and board limits to ensure effective management and oversight. We also have significant audit coverage across our lines of business, including Management Initiated Audits ("MIAs"). MIAs are audits of underwriting and claims files performed by teams independent of those who originated the transactions, the purpose of which is to test the robustness of our underwriting and claims processes and to recognize any early indicators of future trends in our operational risk environment. Pricing Premiums for insurance and reinsurance contracts are intended to cover expected claim costs, claim associated expenses, acquisition costs, operating costs, and an adequate level of profit margin commensurate to the risk being assumed. Premium amounts are typically agreed upfront, but may not cover the actual future costs due to unexpected factors such as social, economic and legal environments, as well as uncertainty surrounding frequency and severity of claims. We 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. 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. Under proportional reinsurance, we cede an agreed percentage of the premiums and the losses and loss expenses on the policies we underwrite, where we protect against higher loss frequency rather than specific events. We use non-proportional reinsurance, whereby losses up to a certain amount (i.e., our retention) are borne by us. By using non-proportional reinsurance, we can limit our liability with a retention, which reflects our willingness and ability to bear risk, and is therefore in line with our risk appetite. We primarily purchase the following forms of non-proportional reinsurance: • Excess of loss per risk – our reinsurer(s) indemnify us for loss amounts in excess of our retention, for all individual policies effected, as defined in the treaty terms and conditions. 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). We have a centralized Risk Funding team which coordinates external treaty reinsurance purchasing (including retrocession) across the Group and a separate AXIS ILS (Insurance Linked Securities) team, which coordinates the sourcing and structuring of third-party capital to support our underwriting. Risk Funding and AXIS ILS teams are overseen by our Reinsurance Purchasing Group ("RPG"). The RPG, which includes, among others, our President and Chief Executive Officer, Chief Financial Officer, Chief Risk Officer, Group Chief Underwriting Officer and representatives from the business leadership, approves each treaty placement and aims to ensure that appropriate diversification exists within our RSC approved counterparty panels. Facultative reinsurance provides risk transfer on a case by case basis. In certain circumstances, we use facultative reinsurance to complement treaty reinsurance by covering additional risks over and above what is already covered by treaties. 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. In managing natural catastrophe risk, our internal risk limit framework aims to limit the loss of capital due to a single event and the loss of capital which would occur from multiple (but perhaps smaller) events in any year. Within this framework, we have an established risk limit for single event, single zone probable maximum loss ("PML") within defined zones. For example, at the 1-in-100-year return period, we are not willing to expose more than 10% of common equity to a single event within a single zo ne. 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. Hurricane $ 225 $ 365 $ 160 $ 228 Mid-Atlantic U.S. Hurricane 124 158 105 127 Gulf of Mexico U.S. Hurricane 178 204 139 158 California U.S. Earthquake 190 227 162 194 The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur. In managing zonal concentrations, we aim to ensure that the geography of single events is suitably captured, but distinct enough that they track specific types of events. For example, our definition of Southeast wind encompasses five states, including Florida, while our definition of Gulf of Mexico windstorm encompasses four states, including Texas. Our PMLs take into account the fact that an event may trigger claims in a number of lines of business. For instance, our U.S. hurricane modeling includes the estimated pre-tax impact to our financial results arising from our property lines of business including energy business, and our marine and aviation lines of business. Our PMLs include assumptions regarding the location, size and magnitude of an event, the frequency of events, a property's construction type and susceptibility to damage, and the cost of rebuilding the property. Loss estimates for non-U.S. zones will be subject to foreign currency exchange rates, although we may mitigate this currency variability from a book value perspective. 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. 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. It is important to consider that an actual event does not necessarily resemble one of the stochastic events and the specific characteristics of an actual event can lead to substantial differences between actual and modeled losses. 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. 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. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, the most important of which is by ensuring that management’s judgment supplements the model outputs. Models are continuously validated at the line of business and at a group level by our Exposure Management Center of Excellence. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results. Estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, that include but are not limited to, updates to vendor catastrophe models, changes to internal view of risk, underwriting portfolios, reinsurance purchasing strategy and foreign currency exchange rates. Man-Made Catastrophes Consistent with our management of natural peril catastrophe exposures, we take a similarly focused and analytical approach to the management of man-made catastrophes. Man-made catastrophes, which include such risks as train collisions, airplane crashes or terrorism, and other intentionally destructive acts, including cyber-attacks, are harder to model in terms of assumptions regarding intensity and frequency. 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. As an example of our approach, our assessment of terrorism risk is based on a mixture of qualitative and quantitative data (e.g., for estimating property damage, business interruption, mortality and morbidity subsequent to an attack of a predefined magnitude), which we use to limit and manage our aggregate terrorism exposure. We use commercially available vendor modeling and bespoke modeling tools to measure accumulations around potential terrorism accumulation zones on a deterministic and probabilistic basis. We supplement the results of our modeling with underwriting judgment. Reserving Risk The estimation of loss reserves is subject to uncertainty as the settlement of claims is dependent on future events and developments. 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. Within a structured control framework, claims information is communicated on a regular basis throughout our organization, including to senior management, to provide an increased awareness of losses that have occurred throughout the insurance markets. 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. Another significant component of reserving risk relates to the estimation of losses in the aftermath of a major catastrophe event. Refer to Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates – Reserves for Losses and Loss Expenses' for further details. 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 have claims teams dedicated to our main lines of business. Our claim teams include a diverse group of experienced professionals, including claims adjusters and attorneys. We also use approved external service providers, such as independent adjusters and appraisers, surveyors, accountants, investigators, and specialist attorneys, as appropriate. 25 We maintain claims handling guidelines, which include details on claims reporting controls and claims reporting escalation procedures, for all our claims teams. Large claims matters are reported on a weekly basis in claims summaries that are circulated to our underwriters, senior management and others involved in the reserving process. To maintain communication between underwriting and claims teams, claims personnel regularly report at underwriting meetings and frequently attend client meetings. We foster a strong culture of review among our claims teams. This includes MIAs whereby senior claims handlers and/or external audit resources audit a sample of claim files. The process is designed to ensure consistency between the claims teams and to develop group-wide best practices. When we receive notice of a claim, regardless of size, it is recorded in our claims and financial systems. In addition, we produce alerts regarding significant events and potential losses, regardless of whether we have exposure. These alerts allow a direct notification to be communicated to underwriters and senior management worldwide. Similarly, for natural peril catastrophes, we have developed a catastrophe database, along with catastrophe coding in certain systems, that allows for the gathering, analyzing, and reporting of loss information as it develops from early modeled results to fully adjusted and paid losses. 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. We believe it is imperative that we consider the business risks associated with, and mitigated by, each strategy. We also view strategic risk not only as the negative impact of risk but also the sub-optimization of gain. Fundamentally, we believe that we are set up for success if we analyze both value protection and value creation. Environmental risk and sustainability have become major topics that encompass a wide range of issues, including climate change and other environmental risks. In line with our strategy, we have put in place several measures to identify, assess, manage, and monitor potential exposure to climate risks, for example physical, transition and liability risks. At least on a quarterly basis, the Executive Committee meets and receives holistic information about execution against strategy and makes decisions to adjust and/or advance strategy. In addition, strategies employed throughout our business in support of the broader enterprise strategy are reviewed in the context of a broader governance structure by business leadership and are ultimately approved by the Board of Directors. Market Risk Market risk is the risk that our financial instruments, which include derivatives, may be negatively impacted by movements in financial market prices or rates, such as interest rates, credit spreads, equity securities' prices and foreign currency exchange rates. Fluctuations in market prices or rates primarily affect our investment portfolio. Through asset-liability management, we aim to ensure that market risks influence the economic value of our investments and our loss reserves and other liabilities in the same way, thus mitigating the effect of market fluctuations. 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. As part of our strategic asset allocation process, different strategic asset classes are simulated and stressed to evaluate the 'optimal' frontier, given return objectives and risk constraints. Our investments team manages asset classes to control aggregation of risk and provide a consistent approach to constructing portfolios and the selection process of external asset managers. We have limits on the concentration of investments by single issuers and certain asset classes, and we limit the level of illiquid investments (refer to ' Liquidity Risk' below). We stress test our investment portfolios using historical and hypothetical scenarios to analyze the impact of unusual market conditions and to ensure potential investment losses remain within our risk appetite. At an annual aggregated level, we manage the total risk exposure of our investment portfolio so that the 'total return' investment loss in any one year is unlikely to exceed a defined percentage of our common equity at a defined return period. 26 We mitigate foreign currency risk by seeking to match our estimated insurance and reinsurance liabilities payable in foreign currencies with assets, including cash and investments that are denominated in the same foreign currencies. Where necessary, we use derivative financial instruments for economic hedging purposes. For example, in certain circumstances, we use foreign exchange forward contracts to economically hedge portions of our unmatched foreign currency exposures. Liquidity Risk Liquidity risk is the risk that we may not have sufficient cash to meet our obligations when they are due or would have to incur excessive costs to do so. 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. To manage these risks, we have a range of liquidity policies and procedures in place which are described below: • We maintain cash and cash equivalents and a high quality, liquid investment portfolio to meet expected outflows, as well as those that could result from a range of potential stress events. We place limits on the maximum percentage of cash and investments that may be in an illiquid form as well as on the minimum percentage of unrestricted cash and liquid investment grade fixed maturity securities. • We maintain committed borrowing facilities, as well as access to diverse funding sources, to cover contingencies. Funding sources include liquid cash and invested assets, external debt issuances and lines of credit. Credit Risk Credit risk represents the risk of incurring financial loss due to the diminished creditworthiness (reduced financial strength and, ultimately, possibly default) of our third-party counterparties. 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. 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. This product complements our traditional political risk insurance business. For the credit insurance contracts, it is necessary for the buyer of the insurance, most often a bank or commodity trader, to hold an insured asset, most often an underlying loan, or sale and purchase contract in order to claim compensation under the insurance contract. The majority of the credit insurance provided is for single-name illiquid risks that can be individually analyzed and underwritten, primarily in the form of senior secured bank loans but also unsecured payment obligations in the case of shorter term trade credit. As part of the underwriting process, an evaluation of creditworthiness and reputation of the obligor is critical. We also provide loan portfolio coverage of Significant Risk Transfer securitizations and other structured portfolio solutions. We generally require our clients to retain a share of each transaction that we insure. A key element to our underwriting analysis is the assessment of recovery in the event of default, and, accordingly, the strength of the collateral and the enforceability of rights to the collateral are paramount. Generally, we do not underwrite insurance for structured finance products that would expose us to mark-to-market losses. In addition, our credit insurance contracts typically do not include terms which would introduce liquidity risk, most notably in the form of a collateralization requirement upon a ratings downgrade. We also provide protection against sovereign default or sovereign actions that result in impairment of cross-border investments for banks and corporations. Our contracts generally include conditions precedent to our liability relating to the enforceability of the insured transaction and restricting amendments to the transaction documentation, obligations on the insured to prevent and minimize losses, subrogation rights, including rights to have the insured asset transferred to us, and waiting periods. Under most of our policies, a loss payment is made in the event that the debtor failed to pay our client when payment is due subject to a waiting period of up to 180 days. In addition, we provide surety bonds to large corporate and commercial clients, and to mid to large sized construction clients. We provide reinsurance of credit, political risk and surety bond insurers exposed to the risks of financial loss arising from non-payment of trade receivables or other credit obligations covered by a policy (credit insurance) or non-performance of obligations (surety). 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. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands, contract and commercial obligations in a variety of jurisdictions around the world. We provide coverage to the mortgage industry through insurance and reinsurance of mortgage insurance companies, U.S. government-sponsored entity credit risk sharing transactions, and other mortgage market participants. We focus on credit risk transfer from Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, in the single-family, fixed rate, conforming mortgage space. We also provide this cover globally in a select number of developed countries. These entities seek to manage their credit risk exposure emanating from defined pools of mortgage loans. Our exposure to credit risk (credit, surety and mortgage) is monitored and managed through robust underwriting within defined parameters for credit quality and concentration, continuous monitoring of the housing and credit markets, as well as limits on our PML resulting from a severe economic downturn. Operational Risk Operational risk represents the risk of loss as a result of inadequate processes, system and network failures, human error or external events, including but not limited to direct or indirect financial loss, reputational damage, customer dissatisfaction, and legal and regulatory penalties. Group Risk is responsible for coordinating and overseeing a group-wide framework for monitoring operational risk management. 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. We also maintain an operational risk event database (containing both actual events as well as near misses) to help us monitor and analyze potential operational risk issues, identify any trends, and, where necessary, put in place improvement actions to avoid occurrence or recurrence of operational events. We supplement this with thematic deep dive reviews to identify the key drivers of risk and review and challenge the appropriateness of current mitigation strategies and make recommendations for improvement. 28 We have specific processes and systems in place to focus on high priority operational matters which are described below: • Major failures and disasters that could cause a severe disruption to working environments, facilities, and personnel, represent a significant operational risk to our business. Our Business Continuity Management framework strives to protect critical business services and the functions that support these business services from these effects to enable us to carry out our core tasks on time and at the quality required. • We have developed a number of Information Technology ("IT") platforms, applications and security controls to support our business activities worldwide. Dedicated security standards are in place for our IT systems to ensure the proper use, availability and protection of our information assets. • We have enhanced our governance processes for the prioritization of projects, to ensure greater transparency of the decision-making process, the alignment of teams working on the same projects, consistency of approach and alignment to strategy. • We have enhanced our operational resilience to business interruption events, to anticipate, prepare for, respond to, and recover from disruptions while maintaining essential functions and services. This is achieved by identifying the important business services to the company and defining impact tolerances. A regular testing cycle is in place for continuous improvement and identifying potential vulnerabilities. • Our use of third-party vendors exposes us to a number of increased operational risks, including the risk of security breaches, fraud, non-compliance with laws and regulations or internal guidelines and inadequate service. We manage material third-party vendor risk, by, among other things, performing a thorough due diligence of potential large vendors and maintaining a dedicated vendor management office that oversees an established framework of approved policies, procedures, and performance‑monitoring practices throughout the lifecycle of engagements. Capital Management Our capital management goal is to maximize long-term shareholder value by, among other things, optimizing capital allocation and minimizing our cost of capital. We manage our capital in accordance with our Capital Management Policy. We hold an adequate level of capital for business and investment opportunities as well as risk and shock events. We ensure our capital levels satisfy our minimum solvency targets including our own view of risk from our internal capital model and regulatory and rating agency capital requirements, which are described below: • Internal risk capital - We use our internal capital model to assess the capital consumption of our business, measuring and monitoring the potential aggregation of risk at extreme return periods. • Regulatory capital requirements - In each country in which we operate, the local regulator specifies the minimum amount and type of capital that each of the regulated entities must hold in support of their liabilities and business plans. We target to hold, in addition to the minimum capital required to comply with the solvency requirements, an adequate buffer to ensure that each of our regulated entities meets its local capital requirements. Refer to Item 8, Note 22 to the Consolidated Financial Statements 'Statutory Financial Information' for further details. • Rating agency capital requirements - Rating agencies apply their own models to evaluate the relationship between the required risk capital of a company and its available capital resources. The assessment of capital adequacy is usually an integral part of the rating agency process. Meeting rating agency capital requirements and maintaining strong credit ratings are strategic business objectives of the Company. Refer to Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources ' for further details. Our capital management strategy identifies the point at which management needs to consider raising capital, amending our business plan or executing capital management activities well before capital approaches the minimum requirements ("early warning indicator"). This allows us to take appropriate measures to ensure the continued strength and appropriateness of our capital and solvency positions, and enables us to take advantage of opportunities as they arise. Such measures are performed as and when required and include traditional capital management tools (e.g., dividends, share buy-backs, issuance of shares or debt) or through changes to our risk exposure (e.g., recalibration of our investment portfolio or changes to our reinsurance purchasing strategy). We also consider an amount of capital beyond which capital could be considered "excess". 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 ITEM 1A. RISK FACTORS Insurance Risk Insurance risk is the inherent uncertainty as to the occurrence, amount and timing of insurance and reinsurance liabilities transferred to us through the underwriting process. The insurance and reinsurance business is historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates. 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 from new entrants, innovative 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 less demand for our underwriting services. All of these factors could in turn affect our business, results of operations, 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, 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 catastrophes, man-made disasters 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 disasters, as 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. The impact of catastrophe events in years 2025, 2024 and 2023 included the recognition of the net losses and loss expenses of: • $159 million, in the aggregate, primarily related to California Wildfires, Hurricane Melissa and the Middle East Conflict in 2025; • $226 million, in the aggregate, primarily related to Hurricanes Milton, Helene, and Beryl, and the Red Sea Conflict in 2024; and • $138 million, in the aggregate, primarily related to Cyclone Gabrielle and other weather-related events in 2023. 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. 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. There is a risk that increases in the frequency and severity of cybersecurity incidents affecting us, our clients, or our third-party service providers could materially adversely affect our results of operations, financial condition or liquidity. The losses incurred from these risks are also dependent on our clients’ and our third-party service providers' cybersecurity practices and defenses, as well as how policy terms and conditions interact with the evolving threat landscape. In addition, our exposure to cybersecurity incidents potentially includes exposure through "non-affirmative" coverages, meaning risks and potential losses associated with policies where cybersecurity risk is not explicitly included or excluded in the policy terms and conditions. As this is a relatively new risk, even in cases where losses from cybersecurity incidents are explicitly excluded, there can be no assurance that a court or arbitration panel will interpret policy language in line with the intention of the exclusion. 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. Rising United States-China decoupling, trade restrictions, and tariff unpredictability create uncertainty. The shift from tariffs to choke-points (e.g., supply chain bottlenecks) is reshaping global trade. Many European countries face ongoing fiscal challenges, raising concerns about debt sustainability, and political instability. Other disputes including the war in Ukraine and tensions in the Middle East are expected to continue into 2026. In Latin America, political instability in certain countries, including Venezuela, may further amplify regional uncertainty and affect the global credit and political risk environment. Uncertainty over tariffs could lead to increasing cost of claims, such as rebuild costs in property damage or the value of cargo in marine. 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. We have limited terrorism coverage in our own reinsurance program for our exposure to catastrophe losses related to acts of terrorism. On December 20, 2019, the President of the United States signed the Terrorism Risk Insurance Program Reauthorization Act of 2019 ("TRIP"), extending the program through December 31, 2027. Although TRIP provides benefits in the event of certain acts of terrorism, those benefits are subject to a deductible and to other limitations. Under TRIP, once losses attributable to certain acts of terrorism exceed 20% of direct commercial property and liability insurance premiums for the preceding calendar year, the federal government will reimburse insurers for 80% of losses in excess of this deductible. Notably, TRIP does not provide coverage for reinsurance losses. Given the unpredictable frequency and severity of terrorism losses, as well as the limited terrorism coverage in our own reinsurance program, future losses from acts of terrorism could materially and adversely affect our results of operations, financial condition or liquidity in future periods. Our credit and political risk insurance line of business protects insureds with interests in foreign jurisdictions in the event that governmental action prevents them from exercising their contractual rights, and may also protect their assets against physical damage perils. The insurance provided may include cover for losses arising from expropriation, forced abandonment, license cancellation, trade embargo, contract frustration, non-payment, war on land or political violence (including terrorism, revolution, insurrection and civil unrest). Our credit and political risk line of business also provides non-payment coverage on specific loan obligations. We insure sovereign non-payment and corporate non-payment as a result of commercial as well as political risk events. The vast majority of the corporate non-payment credit insurance provided is for single-named illiquid risks, primarily in the form of senior bank loans that can be individually analyzed and underwritten. Generally, we do not underwrite insurance for structured finance products that would expose us to mark-to-market losses. In addition, our credit insurance contracts typically do not include terms which would introduce liquidity risk, most notably in the form of a collateralization requirement upon a ratings downgrade. We also manage our exposure by, among other things, setting credit limits by country, region, industry and individual counterparty, and regularly reviewing our aggregate exposures. However, due to globalization, political instability in one region can spread to other regions. 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. Our operations, like those of other insurers and reinsurers, are susceptible to the effects of economic and social inflation because premiums are established before actual losses and loss expenses are known. Although we consider the potential effects of economic and social inflation when setting premium rates, premiums may not fully offset the effects of inflation and thus may not adequately underwrite the risks we insure and reinsure. Loss reserves include assumptions about future payments for settlement of claims and claims-handling expenses. To the extent economic and social inflation causes costs to increase above loss reserves established for claims, we will be required to increase loss reserves with a corresponding reduction in net income in the period in which the deficiency is identified, which may have a material adverse effect on our results of operations or financial condition. Unanticipated higher economic inflation could also lead to higher interest rates, which would negatively impact the value of our fixed income securities and potentially other investments. In addition, to the extent that unanticipated higher economic inflation in different geographies leads to currency fluctuations, we may also experience increased volatility on foreign exchange gains and losses. Global climate change, and increasing regulation relating to climate change, may have an adverse effect on our results of operations, financial condition or liquidity. We are potentially exposed to different aspects of climate risk, specifically, physical, credit, investment, liability and transition risks, as a result of climate change. 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. 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, as our insureds cannot sustain paying higher premiums. Additionally, catastrophic events and the effects of climate change could result in increased credit exposure to reinsurers and other counterparties with whom we transact business, declines in the value of investments we hold and disruptions to our physical infrastructure, systems, networks and operations. Changes in security asset prices such as real estate, stocks and long-term bonds may impact the value of our investments, resulting in realized or unrealized losses on our invested assets. Climate-related risks to security asset prices can include, but are not limited to: (i) changes in supply/demand characteristics for fossil fuels (e.g., coal, oil, natural gas); (ii) advances in low-carbon technology and renewable energy development; (iii) effects of extreme weather events on the physical and operational exposure of issuers; and the (iv) transition that these companies make towards addressing climate risk in their own businesses. We may also be exposed to liability risks. Liability risks relate to losses or damages suffered by our insureds from physical or transition risks, such as losses stemming from climate-related litigation in liability lines. These risks could arise from management and boards of directors not fully considering or responding to the impacts of climate change, or not appropriately disclosing current and future risks. In addition, new regulatory developments, increased litigation activity and subsequent liability issues associated with climate change or greenhouse gas emissions may lead to losses under environmental liability, product liability and directors and officers or professional liability, particularly where the emitter is deemed to have misled investors. In addition, there is a link between liability risk and transition risk as the failure of companies to shift towards a low-carbon future and mitigate the impacts of climate change may lead to losses incurred by insureds. 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. 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 32 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. This directive, along with other current or proposed regulations, could significantly increase compliance burdens and associated regulatory costs and complexity. While the Securities and Exchange Commission (SEC) Climate Regulations (issued March 6, 2024) have been 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 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. 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. 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 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 and may result in reserve increases over time. If actual claims exceed loss reserves, our financial results could be adversely affected. 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 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. 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. 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. Such factors included, but were not limited to, an examination of trend assumptions, the timing of the emergence of claims, volume and complexity of claims, current social and judicial trends, potential severity of individual claims and the extent of internal historical loss data versus new industry information. Changes to previous estimates of prior year loss reserves can adversely impact the reported calendar year underwriting results if loss reserves prove to be insufficient, or can favorably impact reported results if loss reserves prove to be higher than actual claim payments. 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 seek to mitigate loss exposure through multiple 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. 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. If we choose to purchase reinsurance, we may be unable to do so on favorable terms or at all. 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 large loss events may be materially reduced. We utilize models to assist our decision making in key areas such as underwriting, reserving, investment management, capital assessment, risk management, reinsurance purchasing and the evaluation of our catastrophe risk, and we could be adversely impacted if these models are inadequate or unfit for the purpose for which they are being used. 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 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. 34 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 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 producers, 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 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. 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. Competition and consolidation in the insurance/reinsurance industry could reduce our growth and profitability. 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 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. 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. 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. In particular, implementation of artificial intelligence to enhance efficiency is perceived as a top factor for insurance companies to maintain or increase their market position in the 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. 35 Global economic conditions could adversely affect our business, results of operations or financial condition. 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. 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. 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. 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. 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 connection with the implementation of our corporate strategies, we face risks associated with the acquisition or disposition of businesses, the entry into new lines of business, the integration of acquired businesses and the growth and development of these businesses. As part of our strategy, we have pursued and may continue to pursue growth through acquisitions, or we may dispose of or exit businesses we currently own. The success of this strategy is dependent upon our ability to identify appropriate acquisition and disposition targets, negotiate transactions on favorable terms, complete transactions and, in the case of acquisitions, successfully integrate them into our existing businesses. If a proposed transaction is not consummated, the time and resources spent in researching it could adversely result in missed opportunities to locate and acquire other businesses. In addition, the negotiation of potential acquisitions as well as the integration of an acquired business or new personnel could result in a substantial diversion of management resources. Successful integration may depend on, among other things, our ability to effectively integrate acquired businesses or new personnel into our existing risk management and financial and operational reporting systems, our ability to effectively manage any regulatory issues created by our entry into new markets and geographic locations, our ability to retain key personnel and other operational and economic factors. There can be no assurance that the integration of acquired businesses or new personnel will be successful, or that we will realize anticipated synergies, cost savings and operational efficiencies, or that the business acquired will prove to be profitable or sustainable. Acquisitions could involve numerous additional risks such as potential losses from unanticipated litigation, levels of claims and an inability to generate sufficient revenue to offset acquisition costs. Failure to manage these risks could materially and adversely affect our business, financial condition and results of operations. If we dispose of or otherwise exit certain businesses, there can be no assurance that we will not incur certain disposition related charges, or that we will be able to reduce overhead related to the divested assets. From time to time, either through acquisitions or internal development, we may enter new lines of business or offer new products and services within existing lines of business. These new lines of business or new products and services may present additional risks, particularly in instances where the markets are not fully developed. Such risks include the investment of significant time and resources; the possibility that these efforts will not be successful, or that we are unable to retain clients; and the risk of additional liabilities associated with these efforts. Failure to manage these risks in the development of new lines of businesses could materially and adversely affect our business, financial condition and results of operations. 36 Regulators’ concerns relating to corporate substance may have an adverse impact on us. AXIS operates in multiple jurisdictions, and utilizes a shared services model in order to optimize its resources. This leads to members of staff providing services to AXIS entities in various jurisdictions on a cross-border basis. Many jurisdictions have in place minimum corporate substance requirements, such as Bermuda's Economic Substance Act 2018 and its accompanying regulations. AXIS monitors its corporate substance in Bermuda closely to ensure it continues to meet these requirements. Similar requirements are in place in other jurisdictions, such as in Europe, where in February 2023, European Insurance and Occupational Pensions Authority ("EIOPA") issued a Supervisory Statement addressing the use of governance arrangements in third countries (e.g. the U.K. post-Brexit) by EU insurers. Lloyd’s accesses the EU market through its Belgium based insurance company, Lloyd’s Insurance Company S.A., which has a third country branch in the U.K. In Belgium, the National Bank of Belgium has not yet made any public announcement regarding the EIOPA Supervisory Statement. As Lloyd's is a key platform for AXIS, a change to the status quo by the National Bank of Belgium could impact Lloyd’s Insurance Company S.A., and consequently AXIS Managing Agency. This would potentially limit AXIS' ability to access the EEA market through the Lloyd's platform. We continue to monitor this situation closely. In addition, failure to comply with the economic substance rules in Bermuda can result in fines, penalties and, in severe cases, deregistration, with similar penalties possible in Ireland. Since we depend on a few brokers for a large portion of our revenues, loss of business provided by any one of them could have a material adverse effect on our business. 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. 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 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. A downgrade in our financial strength or credit ratings by one or more rating agencies could adversely affect our business, results of operations, financial condition or liquidity. Financial strength, claims paying and credit ratings are important factors in establishing the competitive position of insurance companies and maintaining customer confidence in us and in our ability to market insurance products. Independent rating agencies analyze the financial performance and condition of insurers on an ongoing basis. We have experienced, and there can be no assurance that we will not experience in the future, a ratings downgrade or other negative action from one of the independent rating agencies. This could arise from a change in our financial performance, our financial condition or a change in ratings methodology. Ratings agencies may also heighten the level of scrutiny they apply when analyzing companies in our industry, adjust upward the capital and other requirements employed in their models and/or discontinue credit and debt instruments or other structures deployed for maintenance of certain rating levels. A downgrade, withdrawal or negative watch/outlook by any independent rating agency could cause our competitive position in the insurance/reinsurance industry to suffer and make it more difficult for us to market our products. In addition, if we experience a credit rating downgrade, withdrawal or negative watch/outlook in the future, we could incur higher borrowing costs and may have more limited means to access capital. 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. 37 We may require additional capital in the future, which may not be available or may only be available on unfavorable terms. Our future capital requirements depend on many factors, including rating agency and regulatory requirements, the performance of our investment portfolio, our ability to write new business successfully, the frequency and severity of catastrophe events and our ability to establish premium rates and loss reserves at levels sufficient to cover losses. We may need to raise additional funds through financings. If we are unable to do so, it may curtail our ability to conduct our business. Any equity or debt financing, if available at all, may be on terms that are not favorable to us. As economic and market uncertainty continues, it is possible that access to the capital markets may become more constrained and cost of capital may increase. Equity financings could be dilutive to our existing shareholders and could result in the issuance of securities that have rights, preferences and privileges that are senior to those of our other securities. If we cannot obtain adequate capital on favorable terms or at all, our business, operating results and financial condition could be adversely affected. 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. Because the U.S. and certain other jurisdictions do not permit insurance companies to take credit on their statutory financial statements for reinsurance obtained from unlicensed or non-admitted insurers unless appropriate security mechanisms are in place, our reinsurance clients in these jurisdictions typically require AXIS Specialty Bermuda and AXIS Re SE to provide letters of credit or other collateral, unless such reinsures have obtained reciprocal jurisdiction reinsurer status in the reinsured's domiciliary state. Our credit facilities are used to post letters of credit. However, if our credit facilities are not sufficient or if we are unable to renew our credit facilities or arrange for other types of security on commercially affordable terms, AXIS Specialty Bermuda and AXIS Re SE could be limited in their ability to write business for some of our clients. 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. Loss of key executives or specialists, or failure to recruit successors, could impair our risk selection, pricing discipline, and operational continuity. We face intense competition for talent from insurers, financial services firms, and technology companies. Competitors may offer higher compensation, more flexible work arrangements, or enhanced career opportunities. Evolving employee expectations for remote work and enhanced benefits may limit our access to talent if we cannot offer competitive arrangements. Immigration and work permit restrictions in Bermuda and other jurisdictions may delay or prevent us from employing expatriate executives and specialists. Regulatory changes in compensation governance, taxation, or pay transparency laws may increase costs or limit flexibility in structuring packages. Our specialty lines require continuous upskilling in cyber risk, pricing analytics, and catastrophe modeling. Failure to recruit or retain talent with these skills could materially affect our competitiveness and risk management. There is no guarantee that we will always be able to successfully identify, hire, develop, or retain the talent in all of our disciplines. Any of these risks could materially and adversely affect our business, financial condition, and results of operations. 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. While all executives who periodically work in our Bermuda office and who require work permits have obtained them, there is no guarantee that we will be able to obtain them in the future. 38 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 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 when evaluating their investments and business relationships. 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. 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 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. 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. 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. The spread of COVID-19 and mitigating measures caused unprecedented disruptions to the global economy and normal business operations across sectors and countries, including the sectors and countries in which we operate. Future pandemics or other outbreaks of contagious diseases may result in similar or worse economic implications and disruptions. Market Risk Market risk is the risk that our financial instruments, which include derivatives, may be negatively impacted by movements in financial market prices or rates such as interest rates, credit spreads, equity securities' prices and foreign currency exchange rates. Our investment portfolios are exposed to significant capital markets risk related to changes in interest rates, credit spreads and equity prices, as well as other risks, which may adversely affect our results of operations or financial condition. The performance of our cash and investments portfolio has a significant impact on our financial results. A failure to successfully execute our investment strategy could have a significant impact on our results of operations or financial condition. Our investment portfolio is subject to a variety of market risks, including risks relating to general economic conditions, interest rate fluctuations, equity price risk, foreign currency movements, pre-payment or reinvestment risk, liquidity risk and credit risk. We manage market risks through, among other things, stressing diversification and conservation of principal and liquidity in our investment guidelines. An extended period of poor global financial market returns would adversely impact the value of our investment portfolio. 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. 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. 39 Our derivative instrument counterparties may default on amounts owed to us due to bankruptcy, insolvency, lack of liquidity, adverse economic conditions, operational failure, fraud or other reasons. 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. However, a portion of gross premiums are written and ceded in currencies other than the U.S. dollar and a portion of gross and ceded loss reserves are in currencies other than the U.S. dollar. In addition, a portion of our investment portfolio is denominated in currencies other than the U.S. dollar. We may in the future experience losses or gains resulting from fluctuations in the values of these non-U.S. currencies. Although we manage our foreign currency exposure through matching of our major foreign-denominated assets and liabilities, as well as through use of currency derivatives, there is no guarantee that we will successfully mitigate our exposure to foreign exchange losses due to unfavorable currency fluctuations. If we fail to manage our foreign currency exposures or experience unfavorable currency fluctuations due to factors such as political unrest, sovereign debt concerns, inflation or other macro-economic factors in jurisdictions in which we operate our results of operations could be materially adversely impacted. Liquidity Risk Liquidity risk is the risk that we may not have sufficient cash to meet our obligations when they are due, or would have to incur excessive costs to do so. Our underwriting activities may expose us to liquidity risks. 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. We maintain cash and cash equivalents and high quality, liquid securities to meet expected outflows, including outflows that could result from a range of potential stress events. We place internal limits on the maximum percentage of cash and investments that may be in an illiquid form as well as on the minimum percentage of our asset portfolio that must be invested in unrestricted cash and liquid investment grade fixed income securities. Additionally, we have access to diverse funding sources to cover contingencies. Funding sources include asset sales and external debt issuances, and we may seek to establish additional borrowing facilities to cover such contingencies. We conduct stress tests to ensure the sufficiency of these funding sources in extreme scenarios. However, there remains a risk that in certain circumstances, our results of operations or financial condition may be adversely impacted by our inability to access appropriate liquidity or the cost of doing so. Credit Risk Credit risk represents the risk of incurring financial loss due to the diminished creditworthiness (reduced financial strength and, ultimately, possibly default) and concentration of our third-party counterparties (refer to ' Market Risk' above for a discussion of credit risk as it relates to the investment portfolio). If we successfully purchase reinsurance or execute portfolio transactions, we may be unable to collect amounts due to us. 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. 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 could have a material adverse effect on our results of operations, financial condition, or liquidity. Certain reinsurance obligations are collateralized, typically when the counterparty is unrated or in the event of rating downgrade. In most cases the Company relies on its governance of approved counterparties based on financial ratings and required surplus of approved counterparties. 40 Our reliance on brokers subjects us to credit risk. In accordance with industry practice, we pay amounts owed on claims under our insurance and reinsurance contracts to brokers, and these brokers pay these amounts to clients that have purchased insurance and reinsurance from us. 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. 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. Consequently, we assume a degree of credit risk associated with brokers with whom we transact business. These risks are heightened during periods characterized by financial market instability and/or an economic downturn or recession. Certain of our policyholders and intermediaries may not pay premiums owed to us due to insolvency or other reasons. Insolvency, liquidity problems, distressed financial conditions or the general macro-economic conditions may increase the risk that policyholders or intermediaries, such as insurance brokers, may not pay a part of or the full amount of premiums owed to us, despite an obligation to do so. The terms of our contracts may not permit us to cancel our insurance even though we have not received payment. If non-payment becomes widespread, due to insolvency, lack of liquidity, adverse economic conditions, operational failure or otherwise, it could have a material adverse impact on our revenues and results of operations. Operational Risk Operational risk represents the risk of loss as a result of inadequate processes, system and network failures, human error or external events, including but not limited to direct or indirect financial loss, reputational damage, customer dissatisfaction, and legal and regulatory penalties. We rely on our processes, people, and systems to maintain our operations and manage the operational risks inherent to our business. Any errors, omissions or misconduct by our employees or third-party agents in the execution of these processes may result in financial losses. We rely on the execution of our processes, people, and systems to maintain and execute our operations. We seek to monitor and control our exposure to risks arising from these processes through an enterprise risk management framework, internal controls, management review and other processes. We cannot provide total assurance that these processes will effectively identify or control all risks, or that our employees and third-party agents will effectively execute them. Loss may result from, among other things, actual or alleged fraud; errors; or failure to document transactions properly, obtain proper internal authorization, comply with underwriting or other internal guidelines, or comply with regulatory requirements. 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. 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. If we experience difficulties with technology and/or data security, our ability to conduct our business might be adversely affected. 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 41 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. 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. These cyberattacks and other data security incidents have included, or may in the future include: viruses, malware or other malicious code, ransomware, software bugs, deceptive social engineering campaigns (also known as "phishing" or "spoofing"), credential stuffing, account takeovers, loss or theft of assets, employee errors or malfeasance, third-party errors or malfeasance, as well as system and network failures and other similar security events, which could result in the loss of, unauthorized access to or disclosure of, or the misuse or misappropriation of, confidential, personal, proprietary or other information. 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", terrorists, nation states, nation-state supported actors and others. 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. While we generally perform cybersecurity diligence on our key service providers, we do not control our service providers and our ability to monitor their cybersecurity is limited. Some of our service providers may store or have access to our data and may not have effective controls, processes, or practices to protect our information from loss, unauthorized disclosure, unauthorized use or misappropriation. A vulnerability in our service providers’ software or systems, a failure of our service providers’ safeguards, policies or procedures, could result in a cyberattack or other data security incident which could harm our business. While we have not experienced a material cybersecurity incident, to the extent any such incident results in a loss or damage to our data, or inappropriate disclosure of our confidential, personal, proprietary or other information or that of others, it could impact our operations, cause significant damage to our reputation, affect our relationships with our customers and clients, lead to claims against us under various data privacy laws, result in regulatory action, fines, damages, injunctions, or penalties and ultimately have a material adverse effect on our business or operations. We also operate in a number of jurisdictions with strict data protection privacy, cybersecurity and other related laws, which could be violated in the event of a cybersecurity incident, or by personnel. Failure to comply with these obligations, including a failure to make adequate or timely disclosure to the public, regulators, or law enforcement agencies following any such incident, can give rise to monetary fines and other penalties that could be material. Our business may be adversely affected if third-party service providers fail to satisfactorily perform certain technology and business process functions. We outsource certain technology and business process functions to third parties. If we do not effectively develop and implement our outsourcing strategy, or if third-party service providers do not perform as anticipated or we experience technological or other problems with a transition to a third-party service provider, we may not realize productivity improvements or cost efficiencies and may experience operational difficulties, increased costs and a loss of business. In addition, our outsourcing of certain technology and business process functions to third parties may expose us to enhanced risk related to data security, which could result in monetary and reputational damages. 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. Compliance with data protection, privacy and cybersecurity laws and regulations governing the processing of personal information is a legal requirement, and non-compliance may impede our services or result in increased costs. Failure to comply could result in material fines and/or penalties imposed by data protection and/or financial services regulators. In addition, any data breach may have an adverse effect on our reputation, results of operations or financial condition, or have other adverse consequences. Our business relies on the processing of data, including personal information, in many jurisdictions and the movement of such data across national borders. The collection, storage, handling, disclosure, use, transfer, security and other processing of personal information that occurs in connection with our business is subject to federal, state, local and foreign data protection and privacy laws, regulations, rules, industry standards and other obligations. These legal requirements are not uniform and continue to evolve, and regulatory scrutiny in this area is increasing around the world. In many cases, these laws and regulations apply not only to third-party transactions, but also to transfers of information within the Group. Data protection, privacy and cybersecurity laws may be interpreted and applied differently from country to country and may create inconsistent or conflicting requirements. 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-EU citizens. 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 the U.S., there continue to be many changes in the data protection and privacy landscape. As states continue to focus on data protection, our compliance burden may increase. Further, while we strive to publish and prominently display privacy policies that are accurate, comprehensive, and compliant with applicable laws, regulations, rules and industry standards, we cannot ensure that our privacy policies and other statements regarding our practices will be sufficient to protect us from claims, proceedings, liability or adverse publicity relating to data protection, privacy or cybersecurity. Although we endeavor to comply with our privacy policies, we may at times fail to do so or be alleged to have failed to do so. The publication of our privacy policies and other documentation that provide promises and assurances about data protection, privacy and cybersecurity can subject us to potential government or legal action if they are found to be deceptive, unfair, or misrepresentative of our actual practices. Any concerns about our data protection, privacy and cybersecurity practices, even if unfounded, could damage our reputation and adversely affect our business. Compliance with obligations imposed by data protection, privacy, and cybersecurity legislation, including Bermuda’s Personal Information Protection Act and Quebec’s Law 25, requires investment in appropriate technical or organizational measures designed to safeguard the rights and freedoms of data subjects. Such investment may result in significant costs to our business and may require us to modify certain of our business practices. In addition, enforcement actions, investigations and the imposition of substantial fines and penalties by regulatory authorities as a result of data security incidents and privacy violations have increased dramatically over the past several years. The enactment of more restrictive laws, rules, regulations or future enforcement actions or investigations could impact us through increased costs or restrictions on our business, and noncompliance could result in regulatory penalties and significant legal liability. Any failure or perceived failure by us to comply with applicable data protection, privacy and cybersecurity laws, regulations, rules, industry standards and other obligations, or compromise of security that results in unauthorized access to, or unauthorized loss, destruction, use, modification, acquisition, disclosure, release or transfer of personal, sensitive, confidential or other client or Company information, could subject us to increased costs or restrictions on our business, future enforcement actions or investigations, regulatory penalties, claims, fines, criminal prosecution, judgments, awards, sanctions, monetary damages, costly litigation (including class actions) and significant legal liability. 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. Changes to existing regulation and supervisory standards, or failure to comply with them, could have an adverse effect on our business, results of operations and financial condition, or result in negative publicity, reputational damage or harm to our relationships. 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 those being undertaken in the U.K. to revamp its regulatory framework as it moves away from Solvency II, and the changes to Solvency II, Resolution Frameworks, and enhanced rules on AI governance in the 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. A supervisory challenge we may face is the potential designation of AXIS as an Internationally Active Insurance Group ("IAIG") due to its growth. If AXIS receives such a designation, the expectation is that compliance will involve higher capital requirements and enhanced governance standards, including more robust risk management and group-wide oversight. Further to this, we are seeing an increase in both the pace of, 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 increased governance requirements. Insurance regulatory authorities have broad authority to initiate investigations or other proceedings, and, in connection with a failure to comply with applicable laws and regulations, could impose adverse consequences, including fines, penalties, injunctions, denial or revocation of an operating license or approval, increased scrutiny or oversight, limitations on engaging in a particular business, or redress to clients. Further to this, regimes such as the Senior Managers and Certification Regime in the UK, and the Individual Accountability Regime in Ireland, place personal responsibility on key members of senior staff and Board members, meaning the regulators can take action directly against these individuals as well. These actions also could result in negative publicity, reputational damage or harm to client, employee or other relationships. Potential government intervention in our industry as a result of recent events and instability in the marketplace for insurance products could hinder our flexibility and negatively affect the business opportunities that may be available to us in the market. 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. 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). There is a risk that should another global event occur, we will see a recurrence of this stance by governments, regulators, and the judiciary. 44 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 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. 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. Our European insurance and reinsurance entities are subject to local laws that implement the Solvency II Directive. 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. The EU has adopted amendments to Solvency II which entered into force on 28 January 2025. Member states have two years to transpose the directive with application effective from 30 January 2027. 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 future governmental or regulatory initiatives at the EU or national level. Such initiatives could adversely affect our business by, among other things: • Changing participation requirements in national industry pools or guarantee schemes; • Introducing consumer protection rules that affect product design or claims handling following severe events; • Altering supervisory expectations or reporting obligations; and • Creating uneven competitive impacts through differences in national transposition or supervisory practices. Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could have a material adverse effect on our financial condition and operating results. We must comply with all applicable economic and financial sanctions, other trade controls and anti-bribery laws and regulations of the U.S. and other foreign jurisdictions where we operate, including Bermuda, the U.K. and the European Union. U.S. laws and regulations applicable to us include the economic trade sanctions laws and regulations administered by the U.S. Department of Treasury’s Office of Foreign Assets Control as well as certain laws administered by the U.S. Department of State. These laws and regulations are complex, frequently changing, and increasing in number, and they may impose additional prohibitions or compliance obligations on our dealings in certain countries and territories, including sanctions imposed on Russia and certain Ukraine territories. 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. Although we have policies and controls in place that are designed to ensure compliance with these laws and regulations, it is possible that an employee or an agent acting on our behalf could fail to comply with applicable laws and regulations and, due to the complex nature of the risks, it may not always be possible for us to ascertain compliance with such laws and regulations. In such event, we could be exposed to civil penalties, criminal penalties and other sanctions, including fines or other unintended punitive actions. In addition, such violations could damage our business and/or our reputation. 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. 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. The price of our common shares may not remain at or exceed current levels. The following factors, in addition to those described in other risk factors above, may have a material adverse effect on the market price of our common stock: • actual or anticipated variations in our quarterly results, including as a result of catastrophes or our investment performance; • any share repurchase program; • changes in market valuation of companies in the insurance/reinsurance industry; • changes in expectations of future financial performance or changes in estimates of securities analysts; • fluctuations in stock market processes and volumes; • issuances or sales of common shares or other securities in the future; • the addition or departure of key personnel; • changes in tax law; and • announcements by us or our competitors of acquisitions, investments or strategic alliances. 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. Our ability to pay dividends and to make payments on indebtedness may be constrained by our holding company structure. AXIS Capital is a holding company and has no direct operations of its own. AXIS Capital has no significant operations or assets other than its ownership of the shares of its operating insurance and reinsurance subsidiaries, AXIS Specialty Bermuda, AXIS Re SE, AXIS Specialty Europe SE, the Members of Lloyd's (AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited), AXIS Re U.S., AXIS Specialty U.S., AXIS Specialty Insurance Limited, AXIS Surplus and AXIS Insurance Co. (collectively, our "Insurance Subsidiaries"). Dividends and other permitted distributions from our Insurance Subsidiaries (in some cases through our subsidiary holding companies) are our primary source of funds to meet ongoing cash requirements, including debt service payments and other expenses, and to pay dividends to our shareholders. Our Insurance Subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends and make distributions. In addition, the ability of our Insurance Subsidiaries to pay dividends to AXIS Capital could be constrained by our dependence on financial strength ratings from independent rating agencies. Our ratings from these agencies depend to a large extent on the capitalization levels of our Insurance Subsidiaries. The inability of our Insurance Subsidiaries to pay dividends in an amount sufficient to enable us to meet our cash requirements at the holding company level could have a material adverse effect on our business and our ability to pay dividends and make payments on our indebtedness. AXIS Capital is a Bermuda company and it may be difficult to enforce judgments against it or its directors and executive officers. AXIS Capital is incorporated pursuant to the laws of Bermuda, and our business is based in Bermuda. In addition, some of our directors and officers reside outside the U.S., and a substantial portion of our assets and the assets of such persons are located in jurisdictions outside the U.S. As a result, it may be difficult or impossible to effect service of process within the U.S. upon us or those persons or to recover against us or them on judgments of U.S. courts, including judgments predicated upon civil liability provisions of the U.S. federal securities laws. Further, it may not be possible to bring a claim in Bermuda against us or our directors and officers for violation of U.S. federal securities laws because these laws may not have extraterritorial effect and/or may not be enforceable in Bermuda. 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. Our bye-laws generally provide that shareholders have one vote for each common share held by them and are entitled to vote, on a non-cumulative basis, at all meetings of shareholders. However, the voting rights exercisable by a shareholder may be limited so that certain persons or groups are not deemed to hold 9.5% or more of the voting power conferred by our shares. Under these provisions, some shareholders may have the right to exercise their voting rights limited to less than one vote per share. Moreover, these provisions could have the effect of reducing the voting power of some shareholders who would not otherwise be subject to the limitation by virtue of their direct share ownership. In addition, our Board of Directors may limit a shareholder’s exercise of voting rights where it deems it necessary to do so to avoid adverse tax, legal or regulatory consequences. We also have the authority under our bye-laws to request information from any shareholder for the purpose of determining whether a shareholder’s voting rights are to be limited pursuant to the bye-laws. If a shareholder fails to respond to our request for information or submits incomplete or inaccurate information in response to a request by us, we may, in our sole discretion, eliminate the shareholder’s voting rights. There are provisions in our bye-laws that may restrict the ability to transfer common shares and which may require shareholders to sell their common shares. Our bye-laws provide that our Board of Directors may decline to register a transfer of any common shares under certain circumstances, including if the Board has reason to believe that any non-de minimis adverse tax, regulatory or legal consequences to us, any of our subsidiaries or any of our shareholders may occur as a result of such transfer. Our bye-laws also provide that if our Board of Directors determines that share ownership by a person may result in non-de minimis adverse tax, legal or regulatory consequences to us, any of our subsidiaries or any of our shareholders, then we have the option, but not the obligation, to require such person to sell to us or to third parties to whom we assign the repurchase right for fair value the minimum number of common shares held by such person that is necessary to eliminate the non-de minimis adverse tax, legal or regulatory consequences. Applicable insurance laws may make it difficult to effect a change of control of our company. Before a person can acquire control of a U.S. insurance company, prior written approval must be obtained from the insurance commissioner of the state where the domestic insurer is domiciled. Prior to granting approval of an application to acquire control of a domestic insurer, the state insurance commissioner will consider such factors as the financial strength of the acquirer, the integrity and management of the acquirer’s board of directors and executive officers, the acquirer’s plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control. Generally, state statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10% or more of the voting securities of the domestic insurer. Because a person acquiring 10% or more of our common shares would indirectly control the same percentage of the stock of the AXIS U.S. Subsidiaries, the insurance change of control laws of Connecticut, Illinois and New York would likely apply to such a transaction. The Insurance Act in Bermuda requires that where the shares of a registered insurer or reinsurer, or the shares of its parent, are traded on a recognized stock exchange, and a person becomes a 10%, 20%, 33% or 50% shareholder controller of that insurer or reinsurer, that person shall, within 45 days, notify the BMA in writing that they have become such a controller. In addition, a person who is a shareholder controller of a Class 4 insurer or reinsurer (such as AXIS Specialty Bermuda) whose shares or shares of its parent company are traded on a recognized stock exchange must serve the BMA with a notice in writing that they have reduced or disposed of their holding in the insurer or reinsurer where the proportion of voting rights in the insurer or reinsurer held by them will have reached or has fallen below 10%, 20%, 33% or 50%, as the case may be, not later than 45 days after such reduction or disposal. 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. The BMA may object to any person holding 10% or more of our common shares if it appears to the BMA that such person is not, or is no longer, a fit and proper person to be such a holder. In such a case, the BMA may require the shareholder to reduce its holding of common shares or direct, among other things, that voting rights attaching to the common shares shall not be exercisable. A person who does not comply with such a notice or direction from the BMA may be guilty of an offense and subject to a variety of enforcement actions. In addition, the Insurance Acts and Regulations in Ireland require that anyone acquiring or disposing of a direct or indirect holding in an Irish authorized insurance or reinsurance company (such as AXIS Specialty Europe or AXIS Re SE) that represents 10% or more of the capital or of the voting rights of such company or that makes it possible to exercise a significant influence over the management of such company, or anyone who proposes to decrease or increase that holding to specified levels, must first notify the Central Bank of Ireland ("CBI") of their intention to do so. They also require any Irish authorized insurance or reinsurance company that becomes aware of any acquisitions or disposals of its capital involving the specified levels to notify the CBI. The specified levels are 20%, 33% and 50% or such other level of ownership that results in the company becoming the acquirer’s subsidiary within the meaning of article 20 of the European Communities (Non-Life Insurance) Framework Regulations 1994. The CBI has three months from the date of submission of a notification within which to oppose the proposed transaction if the CBI is not satisfied as to the suitability of the acquirer in view of the necessity "to ensure prudent and sound management of the insurance or reinsurance undertaking concerned". Any person owning 10% or more of the capital or voting rights or an amount that makes it possible to exercise a significant influence over the management of AXIS Capital would be considered to have a "qualifying holding" in AXIS Specialty Europe SE and AXIS Re SE. In the U.K., the Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA") regulate the acquisition of "control" of any U.K. insurance companies and Lloyd's managing agents that are authorized under the Financial Services and Markets Act 2000 ("FSMA"). Any legal entity or individual that (together with any person with whom it or they are "acting in concert") directly or indirectly acquires 10% or more of the shares in a U.K. authorized insurance company or Lloyd's managing agent, or their parent company, or is entitled to exercise or control the exercise of 10% or more of the voting power in such authorized insurance company or Lloyd's managing agent or their parent company, would be considered to have acquired "control" for the purposes of the relevant legislation, as would a person who had significant influence over the management of such authorized insurance company or their parent company by virtue of their shareholding or voting power in either. A purchase of 10% or more of the ordinary shares of the Company would therefore be considered to have acquired "control" of AXIS Managing Agency Ltd. Under FSMA, any person proposing to acquire "control" over a U.K. authorized insurance company must give prior notification to the PRA of their intention to do so. The PRA, which will consult with the FCA, would then have 60 working days to consider that person's application to acquire "control" (although this 60 working day period can be extended by up to 30 additional working days in certain circumstances where the regulators have questions relating to the application). Failure to make the relevant prior application could result in action being taken against AXIS Managing Agency Ltd. by the PRA. A person who is already deemed to have "control" will require prior approval of the PRA if such person increases their level of "control" beyond certain percentages. These percentages are 20%, 30% and 50%. Similar requirements apply in relation to the acquisition of control of a U.K. authorized person which is an insurance intermediary (such as AXIS Underwriting Limited) except that the approval must be obtained from the FCA rather than the PRA and the threshold triggering the requirement for prior approval is 20% of the shares or voting power in the insurance intermediary or its parent company. The approval of the Council of Lloyd's is also required in relation to the change of control of a Lloyd's managing agent or member. Broadly, Lloyd's applies the same tests in relation to control as are set out in the FSMA (see above) and in practice coordinates its approval process with that of the PRA. While our bye-laws limit the voting power of any shareholder to less than 9.5%, there can be no assurance that the applicable regulatory body would agree that a shareholder who owned 10% or more of our shares did not, because of the limitation on the voting power of such shares, control the applicable Insurance Subsidiary. 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. Our bye-laws contain provisions that may make it more difficult for shareholders to replace our directors and could delay or prevent a change of control that a shareholder might consider favorable. These provisions include a staggered board of directors (in which the directors of the class elected at each annual general meeting holds office for a term of three years, with the term of each class expiring at successive annual general meetings of shareholders), limitations on the ability of shareholders to remove directors other than for cause, limitations on voting rights and restrictions on transfer of our common shares. These provisions may prevent a shareholder from receiving the benefit from any premium over the market price of our shares offered by a bidder in a potential takeover. Even in the absence of an attempt to effect a change in management or a takeover attempt, these provisions may adversely affect the prevailing market price of our shares if they are viewed as discouraging takeover attempts in the future. Risks Related to Taxation Changes in tax laws resulting from the recommendations of the Organization for Economic Corporation and Development ("OECD") could materially adversely affect us. The OECD launched a global initiative among member and non-member countries on measures to limit harmful tax competition, known as the "Base Erosion and Profit Shifting" ("BEPS") project and, in 2015, published reports containing a suite of recommended actions. These measures are largely directed at counteracting the effects of low-tax and preferential tax regimes in countries around the world, including expanding the definition of permanent establishment and updating the rules for attributing profits to permanent establishments, tightening transfer pricing rules to ensure that outcomes are in line with value creation, neutralizing the effect of hybrid financial instruments and limiting the deductibility of interest costs for tax purposes and preventing double tax treaty abuse. Many countries have changed or announced future changes to their tax laws in response to the BEPS project. On May 31, 2019, the OECD published a "Programme of Work", designed to address the tax challenges created by an increasingly digitalized economy. This was divided into two pillars. The first pillar addresses the broader challenge of a digitalized economy and focuses on the allocation of group profits among taxing jurisdictions, based on a market-based concept rather than the historical "permanent establishment" concept ("Pillar One"). The second pillar addresses the remaining BEPS risk of profit shifting to entities in low tax jurisdictions by introducing a global minimum tax ("Pillar Two"). Pillar One On October 11, 2023, the members of the OECD/G20 Inclusive Framework on BEPS (the "Inclusive Framework") published a multilateral convention to implement rules which coordinate a reallocation of taxing rights to market jurisdictions in accordance with Pillar One. Pillar One is expected to apply to groups with adjusted revenues in excess of €20 billion and specific exemptions have been incorporated in the multilateral convention for regulated financial institutions. The application of the multilateral convention on Pillar One is therefore not expected to have a material impact on our effective tax rate, however these rules remain subject to ongoing negotiation and implementation. Pillar Two On December 20, 2021, the OECD released proposed model legislation for Pillar Two which was approved by 135 countries (the "Model Rules"). 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"). In essence, these taxes allow a jurisdiction to levy a top‑up charge on entities operating within its borders if their effective tax rate falls below 15%. Several jurisdictions in which we operate have now enacted the Model Rules, including QDMTTs, with application to accounting periods beginning on or after 31 December 2023. 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. The 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. Several of the areas of tax law (including double taxation treaties) on which the BEPS project continues to focus may be relevant to our ability to efficiently realize income or capital gains and repatriate such income and capital gains from the jurisdictions in which they arise to the Company. Accordingly, depending on the extent to and manner in which relevant jurisdictions implement changes in those areas of tax law (including double taxation treaties), our ability to efficiently realize income or capital gains and to repatriate such income and capital gains, may be adversely impacted. 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. The Bermuda Minister of Finance, under the Exempted Undertakings Tax Protection Act 1966 of Bermuda, as amended, has given each of our Bermuda resident companies an assurance that if any legislation is enacted in Bermuda that would impose tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax will not be applicable to our Bermuda resident companies or any of their respective operations, shares, debentures or other obligations until March 31, 2035. Notwithstanding the above, on December 27, 2023 the Bermuda government enacted a corporate income tax which will apply for accounting periods starting on or after January 1, 2025. Importantly, under the Corporate Income Tax Act 2023 of Bermuda, any liability to the tax will apply regardless of any assurances previously provided under the Exempted Undertakings Tax Protection Act 1966 of Bermuda. This tax will likely have a material impact on our effective tax rate in future accounting periods. Broadly, the Bermuda corporate income tax is intended to be treated as a covered tax for the purposes of Pillar Two and therefore no double taxation is expected to arise from these rules and the top-up taxes under Pillar Two in other jurisdictions. However, the treatment of the Bermuda corporate income tax as a covered tax is subject to interpretation in other jurisdictions and therefore remains uncertain at this time. The OECD published administrative guidance on January 15, 2025 regarding transition rules for deferred tax accounting attributes. 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. We intend to manage our business so that each of our non-U.S. companies, apart from our Lloyd's operations with U.S. effectively connected income, will operate in such a manner that none of these companies should be subject to U.S. tax (other than U.S. excise tax on insurance or reinsurance premiums attributable to insuring or reinsuring U.S. risks and U.S. withholding tax on some types of U.S. source investment income), because none of these companies should be treated as engaged in a trade or business within the U.S. However, because there is considerable uncertainty as to the activities that constitute being engaged in a trade or business within the U.S., we cannot be certain that the U.S. Internal Revenue Service will not contend successfully that any of our non-U.S. companies is/are engaged in a trade or business in the U.S. If any of our non-U.S. companies were considered to be engaged in a trade or business in the U.S., it could be subject to U.S. corporate income and additional branch profits taxes on the portion of its earnings effectively connected to such U.S. business. If this were to be the case, our results of operations could be materially adversely affected. Changes in U.S. tax law could adversely affect us. The tax treatment of non-U.S. companies and their U.S. and non-U.S. subsidiaries may be the subject of future legislation. We cannot predict the particulars of any proposed legislation, or whether such legislation would have any effect on us. Future legislation in the U.S. may arise in an effort to harmonize U.S. tax law with OECD Pillar Two initiatives. No assurance may be given that future legislative, administrative, or judicial developments will not produce an adverse U.S. tax consequence to us. 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. We intend to operate in such a manner so that none of our non-U.K. companies are resident in the U.K. for tax purposes and that none of our non-U.K. resident companies, other than AXIS Specialty Europe and AXIS Specialty U.S. Services, Inc., have a permanent establishment in the U.K. Accordingly, we expect that none of our non-U.K. resident companies, other than AXIS Specialty Europe and AXIS Specialty U.S. Services, Inc., will be subject to U.K. tax. Nevertheless, because neither case law nor U.K. statutes conclusively define the activities that constitute trading in the U.K. through a permanent establishment, the U.K. tax authority might contend successfully that one or more of our non-U.K. companies, in addition to AXIS Specialty Europe and AXIS Specialty U.S. Services, Inc., is trading in the U.K. through a permanent establishment in the U.K. and therefore subject to U.K. tax. In addition, there are circumstances in which companies that are neither resident in the U.K., nor entitled to the protection afforded by a double tax treaty between the U.K. and the jurisdiction in which they are resident, may be exposed to income tax in the U.K. (other than by deduction or withholding) on the profits of a trade carried on there even if that trade is not carried on through a permanent establishment. We intend to operate in such a manner that none of our companies will be subject to U.K. income tax in this respect. If any of our non-U.K. resident companies were treated as being resident in the U.K. for U.K. corporation tax purposes, or if any of our non-U.K. companies, other than AXIS Specialty Europe or AXIS Specialty U.S. Services, Inc., were to be treated as carrying on a trade in the U.K., whether or not through a permanent establishment, our results of operations could be materially adversely affected. The U.K. diverted profits tax ("DPT") is separate from U.K. corporation tax and is charged at a higher rate. It is an anti-avoidance measure aimed at protecting the U.K. tax base against the artificial diversion of profits that are being earned by activities carried out in the U.K. but which are not otherwise being taxed in the U.K., in particular as a result of arrangements between companies in the same multinational group. The U.K. network of double tax treaties does not offer protection from a DPT charge. In the event that the rules apply to certain arrangements, upfront payment of the U.K. tax authority’s estimate of the deemed tax liability may be required. If any of our non-U.K. companies is liable to DPT, our results could be materially adversely affected. The U.K. government announced major reforms to the DPT regime during 2025, as part of a broader overhaul of transfer pricing, permanent establishment rules, and international tax alignment. These reforms were released through the Autumn Budget 2025, Finance Bill 2025–26, and HMRC publications. DPT is to be abolished and replaced by "Unassessed Transfer Pricing Profits" ("UTTP"). There is currently a consultation period and new legislation is expected to be applied from January 1, 2026. Although DPT will be abolished, the new UTTP will have similar features of the DPT regime. If any of our companies is liable to UTTP, our results could be materially adversely affected. In accordance with the Model Rules on Pillar Two, the U.K. government has enacted legislation to implement a QDMTT which seeks to ensure that U.K. tax resident companies have an effective tax rate in excess of 15% (broadly, this is determined in line with effective tax rates under the Model Rules on Pillar Two). Therefore, if our U.K. tax resident companies have an effective tax rate of less than 15%, the QDMTT may adversely affect our results. Changes in U.K. tax law could adversely affect us. AXIS Specialty Europe, AXIS Specialty U.S. Services, Inc. and our U.K. resident companies are treated as taxable in the U.K. 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. We intend to operate our non-Irish resident companies in such a manner so that none of our non-Irish resident companies are resident in Ireland for tax purposes and are not treated as carrying on a trade through a branch or agency in Ireland. Accordingly, we expect that none of our non-Irish resident companies will be subject to Irish corporation tax. Nevertheless, since the determination as to whether a company is resident in Ireland is a question of fact to be determined based on a number of different factors and since neither case law nor Irish legislation conclusively defines the activities that constitute trading in Ireland through a branch or agency, the Irish Revenue Commissioners might contend successfully that one or more of our non-Irish companies is resident in or otherwise trading through a branch or agency in Ireland and therefore subject to Irish corporation tax. If this were the case, our results of operations could be materially adversely affected. In accordance with the Model Rules on Pillar Two, the Irish government has enacted legislation to implement a QDMTT which seeks to ensure that Irish tax resident companies have an effective tax rate in excess of 15%. 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. Trading income derived from the insurance and reinsurance business carried on in Ireland by AXIS Specialty Europe and AXIS Re SE is generally taxed in Ireland at a rate of 12.5%. 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. If, however, tax laws in Ireland change so as to increase the general corporation tax rate, our results of operations could be materially adversely affected. Irish profits would become subject to the 15% global minimum tax rate pursuant to the European Commission Directive discussed above. If investments held by AXIS Specialty Europe SE or AXIS Re SE are determined not to be integral to the insurance and reinsurance business carried on by those companies, additional Irish tax could be imposed and our business and financial results could be adversely affected. Based on administrative practice, taxable income derived from investments made by AXIS Specialty Europe and AXIS Re SE is generally taxed in Ireland at the rate of 12.5% on the grounds that such investments either form part of the permanent capital required by regulatory authorities or are otherwise integral to the insurance and reinsurance business carried on by those companies. AXIS Specialty Europe and AXIS Re SE intend to operate in such a manner so that the level of investments held by such companies does not exceed the amount that is integral to the insurance and reinsurance business carried on by AXIS Specialty Europe and AXIS Re SE. If, however, investment income earned by AXIS Specialty Europe or AXIS Re SE is deemed to be non-trading income, Irish corporation tax could apply to such investment income at a rate higher than the general 12.5% rate, and our results of operations could be materially adversely affected. Our operations may be adversely affected by a transfer pricing adjustment in computing taxable profits. Any affiliated arrangements between contracting parties established in different jurisdictions are subject to transfer pricing regimes. Consequently, if any arrangement (including any reinsurance or financing arrangements) is found not to be on arm’s length terms, an adjustment will be required to compute taxable profits as if the arrangement were on arm’s length terms. 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. 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. Whilst the European Commission approved a draft directive "Proposal for a Council Directive on transfer pricing", which seeks to harmonize transfer pricing rules within the EU and ensure a common approach to transfer pricing, this remains to be adopted by the European Council. Therefore, whether these proposals will be taken forward, and if so the details and timing of their implementation and the impact on the Company, or any entities therein, is uncertain. 52 Changes in tax law as a result of the European Commission’s BEFIT proposal could adversely affect us. On September 12, 2023, the European Commission published a legislative proposal on "Business in Europe: Framework for Income Taxation" ("BEFIT"). The BEFIT proposal sets forth rules introducing a common framework for corporate income taxation in the EU, with the aim of replacing the current EU member states’ various ways for determining the taxable base for groups of companies that have annual combined revenues exceeding €750 million and, in the case of groups of companies headquartered outside the EU, if the EU companies within the group have annual combined revenues exceeding €50 million or representing at least 5% of the total group revenues. BEFIT has the potential to alter taxing rights within the EU, and may include substantive changes to applicable tax rules (including, for example, the debt-equity bias reduction allowance proposal (commonly known as "DEBRA"), which would, if adopted, introduce both a tax allowance on increases in company equity and a limitation of the tax deductibility of interest payments). The BEFIT proposal will now move to the negotiation phase among EU member states with the aim of reaching unanimous agreement. The European Commission proposes that EU member states transpose a directive on BEFIT into EU member states’ national laws by January 1, 2028 for the rules to come into effect as of July 1, 2028. The full detail of the proposals (and therefore their effect on the Company's business, financial condition and results of operations) is subject to change and currently remains subject to significant uncertainty; whilst the stated aims of the BEFIT proposals are intended to reduce compliance costs and tax burden for groups of companies operating within the EU, the impact of any such change could have an adverse effect on the Company's tax position. General Risk Factors Future changes in current accounting practices may adversely impact our reported financial results. Future changes in accounting practices may result in significant additional expenses and may affect the calculation of financial statement line items. For example, this could occur if we are required to prepare information relating to prior periods or if we are required to apply new requirements retroactively. 53 ITEM 1B. UNRESOLVED STAFF COMMENTS At December 31, 2025, we had no outstanding, unresolved comments from the SEC staff. ITEM 1C. CYBERSECURITY Risk Management and Strategy The Company’s information risk management program is designed to protect the confidentiality of nonpublic, sensitive information and the integrity and availability of our information systems. The program includes policies and procedures that identify how security measures and controls are developed, implemented, and maintained. We have designed our enterprise-wide information security program consistent with industry standards using the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Risk assessment, risk-based analysis, and judgment are used to select security controls to address risks. Information about cybersecurity risks and our risk management processes is collected, analyzed and considered as part of our overall enterprise risk management program. Key components of our cybersecurity risk management program include: • risk assessments designed to help identify cybersecurity risks to our critical systems, information, and services. • a security team principally responsible for managing (1) our cybersecurity policies & risk assessment processes, (2) security architecture and engineering, (3) identifying vulnerabilities, managing remediation, and testing of our security controls, and (4) our cybersecurity monitoring & incident response. • the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes. • managing a cybersecurity awareness and training program that covers employees and contractors who access internal systems. • a cybersecurity incident response plan that includes procedures for responding to various types of cybersecurity incidents and tested through periodic tabletop exercises. • a third-party security risk assessment team , which is involved with identifying, assessing, and controlling risks that occur due to interactions with third parties including vendors and procurement. • restricted physical access to critical areas, servers, and network equipment. • support of our business continuity and disaster response plans. Impact of Material Risk To date, no cybersecurity incidents have materially impacted the Company, including the Company's business strategy, results of operations, or financial conditions. However, financial institutions face risks from threat actors that focus on attacks of critical information systems infrastructure assets, disruption to operations, and ransomware groups that steal data, encrypt systems, and demand a payment. The Company relies on third-party software, third-party hardware, and third-party vendors to manage critical aspects of our operations which may be at risk of cybersecurity threats. As described above, we utilize a risk-based approach and judgment to determine the security controls to implement, and it is possible we may not implement appropriate controls if we do not recognize or underestimate a particular risk. In addition, security controls, no matter how well designed or implemented, may only mitigate and not fully eliminate risks and events, and when detected by security tools or third parties, may not always be immediately understood or acted upon. Although the Company has implemented cybersecurity policies, procedures and controls intended to mitigate these risks and the likelihood of these risks occurring may not be high, if these risks are realized the impact could be material, such as in the event of a material cybersecurity incident. Additionally, in Item 1A, ' Risk Factors ' we discuss forward-looking cybersecurity risks that could have a material impact on us. Our disclosures in Item 1A should be read in conjunction with this Item 1C. 54 Management & Board Governance With over 30 years of industry cybersecurity experience, the Company’s Chief Information Security Officer ("CISO") is the member of the Company’s management team with primary responsibility for the development, operation, and maintenance of the Company’s information security program. The CISO supervises the Company’s cybersecurity team, facilitates the incident response plan and acts as the liaison to the Company’s executive management team, including relaying strategies, resource requests and incident updates. The Company’s security event monitoring and detection capabilities are performed by our Cybersecurity team and third parties through the use of processes and tooling. Cybersecurity incidents are responded to by a multi-disciplinary Incident Response team and if appropriate, escalated to our Cybersecurity Disclosure Subcommittee, Executive Management, and the Board . The level of escalation will vary depending on the severity and scope of the cyber incident. 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. 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. 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. 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. The Company uses governance, risk and compliance tools to assess, identify and manage its cybersecurity risks. ITEM 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. We believe that our office space is sufficient for us to conduct our operations for the foreseeable future. ITEM 3. LEGAL PROCEEDINGS From time to time, we are subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against us in the ordinary course of its insurance or reinsurance operations. Estimated amounts payable related to these proceedings are included in reserve for losses and loss expenses in our consolidated balance sheets. We are not party to any material legal proceedings arising outside the ordinary course of business. ITEM 4. MINE SAFETY DISCLOSURES Not Applicable. 55 PART II 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. This figure does not represent the actual number of beneficial owners of our common shares because shares are frequently held in "street name" by securities dealers and others for the benefit of beneficial owners who may vote the shares. We have a history of paying quarterly cash dividends. While we expect to continue paying comparable cash dividends in the foreseeable future, the declaration and payment of future dividends 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 Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources' for further details. 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. (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. (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 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. The cumulative total shareholder return is a concept used to compare the performance of a company's stock over time and is the ratio of the stock price change plus the cumulative amount of dividends over the specified time period (assuming dividend reinvestment), to the stock price at the beginning of the time period. 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 6. [RESERVED] 57 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is a discussion and analysis of our results of operations for the years ended December 31, 2025 and 2024, and our financial condition at December 31, 2025 and 2024. This should be read in conjunction with Item 8 ' Financial Statements and Supplementary Data' of this report. Unless otherwise noted, tabular dollars are in thousands, except per share amounts. Amounts may not reconcile due to rounding differences. Page 2025 Financial Highlights 59 Overview 60 Consolidated Results of Operations 63 Results by Segment: i) Insurance Segment 65 ii) Reinsurance Segment 69 Net Investment Income and Net Investment Gains (Losses) 73 Other Expenses (Revenues), Net 76 Financial Measures 78 Non-GAAP Financial Measures Reconciliation 79 Cash and Investments 83 Liquidity and Capital Resources 90 Critical Accounting Estimates 97 i) Reserve for Losses and Loss Expenses 97 ii) Reinsurance Recoverable on Unpaid Losses and Loss Expenses 102 iii) Gross Premiums Written 103 iv) Net Premiums Earned 104 v) Fair Value Measurements of Financial Assets and Liabilities 105 vi) Impairment Losses and the Allowance for Expected Credit Losses - Fixed Maturities, Available for Sale 106 Recent Accounting Pronouncements 107 58 2025 FINANCIAL HIGHLIGHTS 2025 Consolidated Results of Operations • Net income available to common shareholders of $979 million , or $12.52 per common share, and $12.35 per diluted common share • Operating income (1) of $1.0 billion, or $12.92 per diluted common share (1) • Gross premiums written of $9.6 billion • Net premiums written of $6.1 billion • Net premiums earned of $5.7 billion • Pre-tax catastrophe and weather-related losses, net of reinsurance, were $159 million ($127 million, after-tax), (Insurance: $156 million; Reinsurance: $3 million) or 2.8 points, including natural catastrophe and weather-related losses of $137 million or 2.4 points, primarily attributable to California Wildfires, Hurricane Melissa and other weather-related events. The remaining losses of $22 million or 0.4 points were attributable to the Middle East Conflict. • Net favorable prior year reserve development of $87 million • Underwriting income (2) of $725 million and combined ratio of 89.8% • Net investment income of $767 million • Net investment gains of $59 million • Foreign exchange losses of $142 million • Income tax expense of $217 million, inclusive of a Bermuda deferred tax benefit of $19 million. Refer to ' Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments – Bermuda Corporate Income Tax Act 2023 for further details. 2025 Consolidated Financial Condition • Total cash and investments of $17.2 billion; fixed maturities, short-term investments, and cash and cash equivalents comprise 86% of total cash and investments and have an average credit rating of AA- • Total assets of $34.5 billion • Reserve for losses and loss expenses of $18.1 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $9.6 billion. • Debt of $1.3 billion and a debt to total capital ratio (3) of 17.2% • Total common shares r epurchased were 10 million shares for a total of $914 million, including $888 million repurchased pursuant to our Board-authorized share repurchase programs, and $27 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units • Common shareholders’ equity of $5.8 billion; book value per diluted common share of $77.20 (1) Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' . (2) Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to the most comparable GAAP financial measure, net income (loss), is presented in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations', and a discussion of the rationale for its presentation is provided in ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' . (3) The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt. 59 OVERVIEW Business Overview AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions with operations in Bermuda, the U.S., Europe, Singapore and Canada. Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re. We provide our clients and distribution partners with a broad range of risk transfer products and services, and strong capacity, backed by excellent financial strength. We manage our portfolio holistically, aiming to construct the optimum portfolio of risks, consistent with our risk appetite and the development of our franchise. We nurture an ethical, entrepreneurial, disciplined and diverse culture that promotes outstanding client service, intelligent risk taking, operating efficiency, sustainability and the achievement of superior risk-adjusted returns for our shareholders. We believe that the achievement of our objectives will position us as a global specialty underwriting leader. The execution of our business strategy in 2025 included the following: • growing in a number of targeted specialty lines insurance and reinsurance markets including U.S. excess and surplus lines and Lloyd's specialty insurance business; • cycle-managing our portfolio towards attractive lines of business, that carry premium adequate returns while deploying capital within risk limits, diversification criteria and risk management strategy; • investing in attractive growth markets and advancing capabilities to address more transactional specialist business targeting the lower middle market with our key distribution partners; • leveraging our global platform to introduce our products and services to new regions including the continued expansion of our North America product capabilities; • continuing the implementation of a more focused distribution strategy while building mutually beneficial relationships with clients and partners; • improving the effectiveness and efficiency of our operating platforms and processes through our "How We Work" program; • investing in data and technology, together with AI capabilities and tools, to empower our underwriters and enhance the service that we provide to our customers; • utilizing reinsurance markets and third-party capital relationships; • fostering a positive workplace environment that enables us to attract, retain and develop top talent; and • leveraging our sustainability program to support and to make a positive impact on our communities. For discussion of our results of operations and changes in financial condition for year ended December 31, 2024, compared to year ended December 31, 2023, refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Form 10-K, which was filed with the SEC on February 26, 2025, and such discussions are incorporated herein by reference. 60 Outlook We are executing on our commitment to advance AXIS as a specialty underwriting leader that delivers consistent, profitable growth. Our market positioning, diversified book of business, specialty underwriting acumen, global platform, claims management capabilities, and deep distribution relationships, supported by a well performing investment portfolio, provide the foundation for profitable growth in our targeted specialty markets. The current trade and geopolitical environment introduce uncertainty across several dimensions including potential impacts on economic growth and loss costs. At AXIS, we assess all forms of uncertainty presented, and through our normal underwriting practices we take steps and measures that guard against adverse outcomes. Looking at the trends impacting our business: • Following multiple years of rate increases outpacing loss cost trends across the specialty sector, overall pricing has moderated and in some sectors is softening. Casualty lines continue to see positive rate achievement while property rates are deteriorating due to the influx of capital being deployed in the space. We will continue to lean into sectors where premium adequacy metrics remain strong, where market dislocations arise and where organic profitable growth opportunities exist. • The wholesale channel continues to experience submission growth in North America due to dislocations in the standard lines markets. This dynamic broadly enables specialty carriers to deploy a disciplined underwriting strategy to market opportunities. • Overall pricing remains robust but is moderating for our reinsurance business. We continue to see nuances by line of business and expect these conditions to persist. We continue to focus on underwriting discipline and profitability. Across the business, we will continue to pursue attractive opportunities by employing a focused underwriting strategy and selective appetite. Where price continues to deliver adequate profitability, we will look to grow within our risk and volatility guidelines. With a strong and balanced book of business, and an expanding footprint in our chosen specialty markets, we believe AXIS remains well positioned to drive profitable growth in 2026. Recent Developments Loss Portfolio Transfer Reinsurance Agreement with Enstar On December 13, 2024, we entered into a loss portfolio transfer reinsurance agreement ("LPT agreement") with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years. The transaction was subject to regulatory approvals and other customary conditions. On April 24, 2025 (the "closing date"), the LPT transaction was completed and considera tion of $2,039 million was paid to Enstar. The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $2,060 million and provides cover up to a policy limit of approximately $940 million. The transaction was deemed to have met the established criteria for retroactive reinsurance accounting. Under the terms of the LPT agreement we retained responsibility for the management of claims. Pursuant to the LPT transaction, Enstar was required to post collateral equal to 102% of our estimate of Enstar's obligations based on our estimate of net reserves for losses and loss expenses at the closing date. The collateral is provided through a collateral trust arrangement (the "LPT Trust") established by Enstar. At December 31, 2025, the balance in the LPT Trust was $1,895 million , together with a funds withheld balance of $17 million, and a letter of credit of $65 million, with the total balance of collateral securing Enstar’s obligations of $1,977 million. At December 31, 2025, the total reinsurance recoverable on unpaid losses associated with the LPT transaction was $1,755 million. 61 In subsequent periods, we will reassess the reserves for losses and loss expenses subject to the LPT agreement. Any adverse prior year reserve development associated with the subject business will increase the cumulative amounts ceded to the reinsurer compared to the consideration paid and will increase the gain determined in accordance with retroactive reinsurance accounting. Consistent with our accounting policy, gains are deferred and amortized into net income over the claims settlement period. Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the LPT agreement will provide significant protection from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreement. Bermuda Corporate Income Tax Act of 2023 On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which applies a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment ("Bermuda ETA"), which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, the Company recorded a Bermuda ETA net deferred tax asset of $177 million in 2024. On December 11, 2025, the Bermuda government enacted the Corporate Income Tax Amendment (No. 2) Act 2025 (the "Amendment Act") which provided technical corrections to the Act. The Amendment Act includes a provision to allow for the derecognition of deferred tax liabilities where a Bermuda tax group recognized both deferred tax assets and deferred tax liabilities under the Bermuda ETA provision. Pursuant to the Amendment Act, we released $19 million of deferred tax liabilities previously established under the Bermuda ETA provision in 2025. While we anticipated utilizing the Bermuda ETA net deferred tax asset over a ten-year period, guidance issued by the OECD in January 2025 makes it likely that the benefit of the Bermuda ETA net deferred tax asset will only apply in 2025 and 2026. The benefit of the Bermuda ETA net deferred tax asset is excluded from operating income (loss). Organization for Economic Cooperation and Development ("OECD") Update On January 15, 2025, the OECD issued guidelines that limit the use of the Bermuda ETA net deferred tax asset and similar assets in other jurisdictions in which we operate under Global Anti-Base Erosion ("GLoBE") rules. The guidelines clarify the use of deferred tax assets under transition rules and limits the benefit of deferred tax assets relating to transactions that occurred after November 30, 2021. The guidelines seek to restrict the benefit of the Bermuda ETA net deferred tax asset to 20% of the balance at January 1, 2025 to be utilized in 2025 and 2026. Thereafter GLoBE rules will apply a minimum tax rate of 15% to pre-tax income generated in Bermuda by disallowing the benefit of the Bermuda ETA net deferred tax asset. 62 CONSOLIDATED RESULTS OF OPERATIONS Year ended December 31, 2025 % Change 2024 % Change 2023 Underwriting revenues: Gross premiums written $ 9,644,514 7% $ 9,005,888 8% $ 8,356,525 Net premiums written 6,121,656 6% 5,757,351 13% 5,102,325 Net premiums earned 5,714,609 8% 5,306,235 4% 5,083,781 Other insurance related income 23,216 (24%) 30,721 37% 22,495 Underwriting expenses: Net losses and loss expenses (3,288,541) 4% (3,158,487) (7%) (3,393,102) Acquisition costs (1,136,469) 6% (1,070,551) 7% (1,000,945) Underwriting-related general and administrative expenses (1) (587,669) 10% (536,442) (3%) (551,467) Underwriting income (2) 725,146 571,476 160,762 Net investment income 766,903 1% 759,229 24% 611,742 Net investment gains (losses) 58,950 nm (138,534) 86% (74,630) Corporate expenses (1) (116,262) (10%) (129,760) (2%) (132,979) Foreign exchange (losses) gains (141,983) nm 50,822 nm (58,115) Interest expense and financing costs (66,659) (2%) (67,766) (1%) (68,421) Reorganization expenses — (100%) (26,312) (9%) (28,997) Amortization of intangible assets (9,917) (9%) (10,917) —% (10,917) Income before income taxes and interest in income of equity method investments 1,216,178 1,008,238 398,445 Income tax (expense) benefit (216,732) nm 55,595 nm (26,316) Interest in income of equity method investments 9,452 (47%) 17,953 nm 4,163 Net income 1,008,898 1,081,786 376,292 Preferred share dividends (30,250) —% (30,250) —% (30,250) Net income available to common shareholders $ 978,648 $ 1,051,536 $ 346,042 nm – not meaningful is defined as a variance greater than +/-100% (1) Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $116 million, $130 million, and $133 million for 2025, 2024, and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details on corporate expenses. Refer also to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details. (2) Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented in the table above . Refer also to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' for further details. 63 Underwriting Revenues Underwriting revenues by segment were as follows: Year ended December 31, 2025 % Change 2024 % Change 2023 Gross premiums written: Insurance $ 7,179,206 9% $ 6,615,584 8% $ 6,140,764 Reinsurance 2,465,308 3% 2,390,304 8% 2,215,761 Total gross premiums written $ 9,644,514 7% $ 9,005,888 8% $ 8,356,525 Percent of gross premiums written ceded: Insurance 36 % — pts 36 % (3 pts) 39 % Reinsurance 39 % 2 pts 37 % (2 pts) 39 % Total percent of gross premiums written ceded 37 % 1 pt 36 % (3 pts) 39 % Net premiums written: Insurance $ 4,627,224 9% $ 4,250,545 13% $ 3,758,720 Reinsurance 1,494,432 (1%) 1,506,806 12% 1,343,605 Total net premiums written $ 6,121,656 6% $ 5,757,351 13% $ 5,102,325 Net premiums earned: Insurance $ 4,291,485 9% $ 3,926,036 13% $ 3,461,700 Reinsurance 1,423,124 3% 1,380,199 (15%) 1,622,081 Total net premiums earned $ 5,714,609 8% $ 5,306,235 4% $ 5,083,781 Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment' for further details on underwriting revenues. Combined Ratio The components of the combined ratio were as follows: Year ended December 31, 2025 % Point Change 2024 % Point Change 2023 Current accident year loss ratio, excluding catastrophe and weather-related losses (1) 56.3 % 0.6 55.7 % (0.2) 55.9 % Catastrophe and weather-related losses ratio (1) 2.8 % (1.5) 4.3 % 1.6 2.7 % Current accident year loss ratio (1) 59.1 % (0.9) 60.0 % 1.4 58.6 % Prior year reserve development ratio (1.6 %) (1.1) (0.5 %) (8.6) 8.1 % Net losses and loss expenses ratio 57.5 % (2.0) 59.5 % (7.2) 66.7 % Acquisition cost ratio 19.9 % (0.3) 20.2 % 0.5 19.7 % General and administrative expense ratio (2) 12.4 % (0.2) 12.6 % (0.9) 13.5 % Combined ratio 89.8 % (2.5) 92.3 % (7.6) 99.9 % (1) Current accident year loss ratio, catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measure, net losses and loss expenses ratio is provided above and a discussion of the rationale for the presentation of these items are provided in ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation' . (2) The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.0%, 2.4% and 2.6% for 2025, 2024 and 2023, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details. Refer to 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment' for further details on underwriting expenses. 64 RESULTS BY SEGMENT Insurance Segment Results for the insurance segment were as follows: Year ended December 31, 2025 % Change 2024 % Change 2023 Revenues: Gross premiums written $ 7,179,206 9% $ 6,615,584 8% $ 6,140,764 Net premiums written 4,627,224 9% 4,250,545 13% 3,758,720 Net premiums earned 4,291,485 9% 3,926,036 13% 3,461,700 Other insurance related income (loss) 677 nm 94 nm (198) Expenses: Current accident year net losses and loss expenses (2,404,202) (2,261,629) (1,903,648) Prior year reserve development 66,975 16,209 (176,353) Acquisition costs (820,324) (766,915) (648,463) Underwriting-related general and administrative expenses (537,558) (485,929) (472,094) Underwriting income $ 597,053 $ 427,866 $ 260,944 Ratios: % Point Change % Point Change Current accident year loss ratio, excluding catastrophe and weather-related losses 52.4 % 0.3 52.1 % 0.3 51.8 % Catastrophe and weather-related losses ratio 3.6 % (1.9) 5.5 % 2.3 3.2 % Current accident year loss ratio 56.0 % (1.6) 57.6 % 2.6 55.0 % Prior year reserve development ratio (1.5 %) (1.1) (0.4 %) (5.5) 5.1 % Net losses and loss expenses ratio 54.5 % (2.7) 57.2 % (2.9) 60.1 % Acquisition cost ratio 19.1 % (0.4) 19.5 % 0.8 18.7 % Underwriting-related general and administrative expense ratio 12.5 % 0.1 12.4 % (1.3) 13.7 % Combined ratio 86.1 % (3.0) 89.1 % (3.4) 92.5 % nm – not meaningful 65 Gross Premiums Written Gross premiums written by line of business were as follows: % Change Year ended December 31, 2025 2024 2023 2024 to 2025 2023 to 2024 Property $ 2,166,222 30 % $ 2,050,329 31 % $ 1,736,586 28 % 6 % 18 % Professional lines 1,343,252 19 % 1,162,323 18 % 1,140,695 19 % 16 % 2 % Liability 1,366,245 19 % 1,251,603 19 % 1,256,951 20 % 9 % — % Cyber 473,604 7 % 561,937 8 % 649,160 11 % (16 %) (13 %) Marine and aviation 880,604 12 % 815,168 12 % 771,162 13 % 8 % 6 % Accident and health 564,374 8 % 450,810 7 % 333,559 5 % 25 % 35 % Credit and political risk 384,905 5 % 323,414 5 % 252,651 4 % 19 % 28 % Total $ 7,179,206 100 % $ 6,615,584 100 % $ 6,140,764 100 % 9 % 8 % Gross premiums written in 2025 increased by $564 million, or 9% ($553 million, or 8%, on a constant currency basis (1) ), compared to 2024, attributable to all lines of business with the exception of cyber lines. The increases in professional lines, property, liability, accident and health, marine and aviation, and credit and political risk lines were driven by new business. The increase in professional lines was also driven by a higher level of premiums associated with transactional liability business, increased rate associated with renewed environmental business, and higher renewals of program business, partially offset by reduced opportunities in Europe associated with competitive market conditions. The increase in property lines was also due to higher renewals of program business and onshore renewable energy business, together with increased rate associated with program business, partially offset by reduced opportunities in the excess and surplus lines market associated with competitive market conditions. The increase in liability lines was also driven by a higher level of premiums and increased rate associated with renewed U.S. excess casualty business, and higher renewals of program business, partially offset by a lower level of premiums in U.S. primary casualty business principally due to underwriting actions taken to reposition the portfolio. The increase in accident and health lines was also attributable to a higher level of premiums and increased rate associated with renewed pet insurance business. The decrease in cyber lines was related to the cancellation of two programs in 2024 and reduced opportunities associated with competitive market conditions, partially offset by premium adjustments related to business written on a line slip basis. (1) Amounts presented on a constant currency basis are non-GAAP financial measures as defined in Item10 (e) of SEC Regulation S-K. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to the prior year balance. 66 Ceded Premiums Written Ceded premiums written in 2025 were $2,552 million, or 36% of gross premiums written, compared to $2,365 million, or 36% in 2024. The increase in ceded premiums written of $187 million, or 8% was primarily driven by increases in accident and health, credit and political risk, professional lines, and marine and aviation lines, partially offset by decreases in property, liability, and cyber lines. The increase in accident and health lines was attributable to a new quota share treaty covering pet insurance business effective July 2024 and the increase in gross premiums written for 2025, compared to 2024. The i ncreases in credit and political risk, professional lines, and marine and aviation lines reflected the increases in gross premiums written for 2025, compared to 2024. The decreases in property, and liability lines were due to the restructuring of existing quota share treaties that increased our retentions on these lines of business, partially offset by increases in gross premiums written for 2025, compared to 2024. The decrease in cyber lines reflected the decrease in gross premiums written for 2025, compared to 2024. Net Premiums Earned Net premiums earned by line of business were as follows: % Change Year ended December 31, 2025 2024 2023 2024 to 2025 2023 to 2024 Property $ 1,347,011 30 % $ 1,139,308 28 % $ 878,849 26 % 18 % 30 % Professional lines 887,533 21 % $ 817,535 21 % 764,558 22 % 9 % 7 % Liability 543,627 13 % 494,561 13 % 496,381 14 % 10 % — % Cyber 310,837 7 % 347,842 9 % 323,025 9 % (11 %) 8 % Marine and aviation 665,306 16 % 614,826 16 % 567,292 16 % 8 % 8 % Accident and health 338,522 8 % 360,894 9 % 306,061 9 % (6 %) 18 % Credit and political risk 198,649 5 % 151,070 4 % 125,534 4 % 31 % 20 % Total $ 4,291,485 100 % $ 3,926,036 100 % $ 3,461,700 100 % 9 % 13 % Net premiums earned in 2025 increased by $365 million, or 9%, compared to 2024, primarily driven by an increase in gross premiums earned in property lines together with a decrease in ceded premiums earned attributable to the restructuring of an existing quota share treaty that increased our retention of property business. In addition, gross premiums earned increased in professional lines, credit and political risk, liability, and marine and aviation lines. These increases were partially offset by a decrease in gross premiums earned in cyber lines and a decrease in net premiums earned in accident and health lines attributable to an increase in ceded premiums earned associated with the new quota share treaty covering pet insurance business, effective July 2024. 67 Loss Ratio The components of the loss ratio were as follows: Year ended December 31, 2025 % Point Change 2024 % Point Change 2023 Current accident year loss ratio 56.0 % (1.6) 57.6 % 2.6 55.0 % Prior year reserve development ratio (1.5 %) (1.1) (0.4 %) (5.5) 5.1 % Loss ratio 54.5 % (2.7) 57.2 % (2.9) 60.1 % Current Accident Year Loss Rati o The current accident year loss ratio decreased to 56.0% in 2025 from 57.6% in 2024. The decrease in the current accident year loss ratio was impacted by a lower level of catastrophe and weather-related losses. During 2025, catastrophe and weather-related losses, net of reinsurance, were $156 million, or 3.6 points, i ncluding natural catastrophe and weather-related losses of $134 million or 3.1 points attributable to California Wildfires, Hurricane Melissa and other weather-related events. The remaining losses of $22 million, or 0.5 points were attributable to the Middle East Conflict. Comparatively, in 2024, catastrophe and weather-related losses, net of reinsurance, were $216 million, or 5.5 points, i ncluding natural catastrophe and weather-related losses of $203 million , or 5.2 points, primarily attributable to Hurricanes Milton, Helene, and Beryl, and other weather-related events. The remaining losses of $13 million , or 0.3 points were attributable to the Red Sea Conflict. Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio of 52.4% in 2025 was comparable to 52.1% in 2024, principally due to the benefits of changes in business mix, largely offsetting the impact of rate and trend. Prior Year Reserve Development Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses' for details of prior year reserve development by segment, reserve class and accident year. Acquisition Cost Ratio The acquisition cost ratio decreased to 19.1% in 2025 from 19.5% in 2024, primarily related to an increase in ceding commissions in accident and health lines, partially offset by an increase in gross acquisition cost attributable to changes in business mix driven by the increases in credit and political risk, accident and health, and excess and surplus lines property business written in recent periods which is associated with relatively higher gross acquisition cost ratios. Underwriting-Related General and Administrative Expense Ratio The underwriting-related general and administrative expense ratio of 12.5% in 2025 was comparable to 12.4% in 2024, mainly driven by increases in personnel costs associated with the expansion of underwriting teams and performance-related compensation costs, together with investments in information technology, largely offset by an increase in net premiums earned. 68 Reinsurance Segment Results for the reinsurance segment were as follows: Year ended December 31, 2025 % Change 2024 % Change 2023 Revenues: Gross premiums written $ 2,465,308 3% $ 2,390,304 8% $ 2,215,761 Net premiums written 1,494,432 (1%) 1,506,806 12% 1,343,605 Net premiums earned 1,423,124 3% 1,380,199 (15%) 1,622,081 Other insurance related income 22,539 (26%) 30,627 35% 22,693 Expenses: Current accident year net losses and loss expenses (971,302) (921,181) (1,077,572) Prior year reserve development 19,988 8,114 (235,529) Acquisition costs (316,145) (303,636) (352,482) Underwriting-related general and administrative expenses (50,111) (50,513) (79,373) Underwriting income (loss) $ 128,093 $ 143,610 $ (100,182) Ratios: % Point Change % Point Change Current accident year loss ratio, excluding catastrophe and weather-related losses 68.1 % 2.1 66.0 % 1.2 64.8 % Catastrophe and weather-related losses ratio 0.2 % (0.5) 0.7 % (0.9) 1.6 % Current accident year loss ratio 68.3 % 1.6 66.7 % 0.3 66.4 % Prior year reserve development ratio (1.5 %) (1.0) (0.5 %) (15.1) 14.6 % Net losses and loss expenses ratio 66.8 % 0.6 66.2 % (14.8) 81.0 % Acquisition cost ratio 22.2 % 0.2 22.0 % 0.3 21.7 % Underwriting-related general and administrative expense ratio 3.6 % — 3.6 % (1.3) 4.9 % Combined ratio 92.6 % 0.8 91.8 % (15.8) 107.6 % 69 Gross Premiums Written : Gross premiums written by line of business were as follows: % Change Year ended December 31, 2025 2024 2023 2024 to 2025 2023 to 2024 Liability $ 667,626 27 % $ 616,333 26 % $ 642,801 29 % 8 % (4 %) Professional lines 415,266 17 % 421,846 18 % 379,222 17 % (2 %) 11 % Motor 268,080 11 % 238,961 10 % 201,466 9 % 12 % 19 % Accident and health 366,159 15 % 436,296 18 % 396,668 18 % (16 %) 10 % Credit and surety 510,094 21 % 417,717 17 % 351,083 16 % 22 % 19 % Agriculture 161,151 7 % 150,373 6 % 126,300 6 % 7 % 19 % Marine and aviation 64,870 2 % 82,274 3 % 62,260 3 % (21 %) 32 % Run-off lines Catastrophe 677 — % 10,823 1 % 30,175 1 % (94 %) (64 %) Property 3,715 — % 3,130 — % 21,513 1 % 19 % (85 %) Engineering 7,670 — % 12,551 1 % 4,273 — % (39 %) nm Total run-off lines 12,062 — % 26,504 2 % 55,961 2 % (54 %) (53 %) Total $ 2,465,308 100 % $ 2,390,304 100 % $ 2,215,761 100 % 3 % 8 % nm – not meaningful Gross premiums written in 2025 increased by $75 million, or 3%, ($94 million, or 4%, on a constant currency basis) compared to 2024. The increase was primarily attributable to new business and premium adjustments. The increase in credit and surety lines was driven by new credit and political risk business, new surety business, and a higher level of positive premium adjustments attributable to credit business, partially offset by a lower level of positive premium adjustments related to mortgage business. The increase in liability lines was due to a higher level of positive premium adjustments, new general liability business including business at Lloyd's, new workers compensation business, the restructuring of a contract at Lloyds and the timing of renewals, partially offset by non-renewals and decreased line sizes. The decrease in accident and health lines was driven by decreased line sizes and non-renewals attributable to increased competition and clients retaining more business, a lower level of premiums associated with a short-term medical program, and negative premium adjustments in 2025, compared to positive premium adjustments in 2024 associated with a short-term medical program. Ceded Premiums Written Ceded premiums written in 2025 were $971 million, or 39%, of gross premiums written, compared to $883 million, or 37%, in 2024. The increase in ceded premiums written of $87 million, or 10%, was primarily driven by increases in liability, credit and surety, motor, and agriculture lines, partially offset by a decrease in accident and health lines. The increases in liability, credit and surety, and motor lines reflected the increase in gross premiums written in 2025, compared to 2024. The increases in liability, credit and surety, and motor lines also reflected the restructuring of quota share retrocession treaties with strategic capital partners that decreased our retentions of these lines of business. The increases in liability lines was also due to the restructuring of a quota share retrocession treaty that decreased our retention of this line of business. The decrease in accident and health lines reflected the decrease in gross premiums written in 2025 , compared to 2024 . 70 Net Premiums Earned Net premiums earned by line of business were as follows: % Change Year ended December 31, 2025 2024 2023 2024 to 2025 2023 to 2024 Liability $ 314,003 22 % $ 309,265 22 % $ 403,239 25 % 2 % (23 %) Professional lines 198,457 14 % 169,074 12 % 205,404 13 % 17 % (18 %) Motor 126,233 9 % 123,545 9 % 155,942 10 % 2 % (21 %) Accident and health 303,690 21 % 322,932 23 % 341,806 21 % (6 %) (6 %) Credit and surety 273,702 19 % 231,780 17 % 236,408 15 % 18 % (2 %) Agriculture 137,367 10 % 126,549 9 % 121,628 7 % 9 % 4 % Marine and aviation 57,667 4 % 64,609 5 % 65,658 4 % (11 %) (2 %) Run-off lines Catastrophe 406 — % 13,412 2 % 33,963 1 % (97 %) (61 %) Property 3,845 — % 6,266 — % 44,508 3 % (39 %) (86 %) Engineering 7,754 1 % 12,767 1 % 13,525 1 % (39 %) (6 %) Total run-off lines 12,005 1 % 32,445 3 % 91,996 5 % (63 %) (65 %) Total $ 1,423,124 100 % $ 1,380,199 100 % $ 1,622,081 100 % 3 % (15 %) Net premiums earned in 2025 increased by $43 million, or 3%, compared to 2024 primarily driven by an increase in gross premiums earned in credit and surety lines, partially offset by an increase in ceded premiums earned in credit and surety lines attributable to the restructuring of existing quota share treaties that decreased our retentions of this business. In addition, gross premiums earned increased in professional lines. These increases were partially offset by decreases in gross premiums earned in run-off lines and accident and health lines. Loss Ratio The components of the loss ratio were as follows: Year ended December 31, 2025 % Point Change 2024 % Point Change 2023 Current accident year loss ratio 68.3 % 1.6 66.7 % 0.3 66.4 % Prior year reserve development ratio (1.5 %) (1.0) (0.5 %) (15.1) 14.6 % Loss ratio 66.8 % 0.6 66.2 % (14.8) 81.0 % Current Accident Year Loss Ratio The current accident year loss ratio increased to 68.3% in 2025 from 66.7% in 2024. During 2025, catastrophe and weather-related losses, net of reinsurance, were $3 million , or 0.2 points, primarily attributable to California Wildfires. Comparatively, in 2024, catastrophe and weather-related losses, net of reinsurance, were $10 million , or 0.7 points, primarily attributable to Hurricanes Milton and Helene and other weather-related events. Adjusting for the impact of the catastrophe and weather-related losses, the current accident year loss ratio increased to 68.1% in 2025 from 66.0% in 2024, principally due to the impact of rate and trend, partially offset by changes in business mix. 71 Prior Year Reserve Development Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses' for details of prior year reserve development by segment, reserve class and accident year. Acquisition Cost Ratio The acquisition cost ratio of 22.2% in 2025 was comparable to 22.0% in 2024, primarily related to an increase in gross acquisition costs attributable to credit and surety, and professional lines, partially offset by lower adjustments attributable to loss-sensitive features in credit and surety lines including mortgage business, and liability lines and the benefit of retrocessional contracts driven by credit and surety, and liability lines. 72 NET INVESTMENT INCOME AND NET INVESTMENT GAINS (LOSSES) Net Investment Income Net investment income from our cash and investment portfolio by major asset class was as follows: Year ended December 31, 2025 % Change 2024 % Change 2023 Fixed maturities $ 612,198 (1%) $ 620,704 21% $ 514,842 Other investments 69,275 42% 48,666 nm 20,411 Equity securities 13,593 5% 12,922 7% 12,088 Mortgage loans 23,587 (31%) 34,028 (4%) 35,312 Cash and cash equivalents 75,092 26% 59,600 19% 50,261 Short-term investments 3,136 (75%) 12,569 41% 8,924 Gross investment income 796,881 1% 788,489 23% 641,838 Investment expense (29,978) 2% (29,260) (3%) (30,096) Net investment income $ 766,903 1% $ 759,229 24% $ 611,742 Pre-tax yield: (1) Fixed maturities 4.8 % 4.5 % 3.9 % nm – not meaningful (1) Pre-tax yield is calculated by dividing net investment income by the average month-end amortized cost balances for the periods indicated. Fixed Maturities 2025 versus 2024 : Net investment income in 2025 decreased by $9 million or 1%, compared to 2024 due to the decrease in average fixed maturities principally driven by the sale and redemption of securities used to fund the consideration paid for the LPT transaction with Enstar. Other Investments Other investments include multi-strategy funds, direct lending funds, private equity funds, real estate funds, other privately held investments and a final distribution from CLO-Equities. These investments are recorded at fair value, with changes in fair value and income distributions reported in net investment income. The pre-tax return on other investments may vary materially year over year, particularly during volatile equity and credit markets. Net investment income from other investments was as follows: Year ended December 31, 2025 2024 2023 Multi-strategy, direct lending, private equity and real estate funds $ 49,077 $ 41,277 $ 20,867 Other privately held investments 19,614 6,502 (2,875) CLO-Equities 584 887 2,419 Total net investment income from other investments $ 69,275 $ 48,666 $ 20,411 2025 versus 2024 : Net investment income in 2025 increased by $21 million or 42%, compared to 2024 due to higher returns from direct lending funds and other privately held investments. Mortgage Loans 2025 versus 2024: Net investment income in 2025 decreased $10 million or 31%, compared to 2024 due to loan repayments during the year. 73 Net Investment Gains (Losses) Fixed maturities classified as available for sale are reported at fair value. Realized gains (losses) on fixed maturities are reported in net investment gains (losses) when these securities are sold or impaired. Equity securities are reported at fair value. Realized gains (losses) on equity securities are also reported in net investment gains (losses) when securities are sold or impaired. In addition, changes in the fair values of equity securities are reported in net investment gains (losses). Changes in the fair value of investment derivatives, mainly foreign exchange forward contracts are recorded in net investment gains (losses). Net investment gains (losses) were as follows: Year ended December 31, 2025 2024 2023 On sale of investments: Fixed maturities, short-term investments, and cash and cash equivalents $ (24,571) $ (153,249) $ (125,160) Equity securities 28,512 17,041 16,208 Mortgage loans (4,950) (7,215) — (1,009) (143,423) (108,952) (Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale 2,103 6,821 974 (Increase) decrease in allowance for expected credit losses, mortgage loans (6,364) (17,159) (6,220) Impairment losses (1) (2,268) (408) (12,757) Change in fair value of investment derivatives (1,275) 1,783 (1,456) Net unrealized gains (losses) on equity securities 67,763 13,852 53,781 Net investment gains (losses) $ 58,950 $ (138,534) $ (74,630) (1) Related to instances where we intend to sell securities, or it is more likely than not that we will be required to sell securities before their anticipated recovery. On Sale of Investments and Net Unrealized Gains (Losses) on Equity Securities Generally, sales of individual securities occur when there are changes in the relative value, credit quality, or duration of a particular issue. We may also sell securities to re-balance our investment portfolio in order to change exposure to particular asset classes or sectors. 2025 versus 2024 : Net investment gains in 2025 were $59 million compared to net investment losses of $139 million in 2024. Net investment gains reported in 2025 mainly reflected net realized and unrealized gains on equities, partially offset by net realized losses on the sale of corporate debt and Agency RMBS. Net investment losses reported in 2024 mainly reflected net realized losses on the sale of corporate debt, Agency RMBS and U.S. government, partially offset by net realized and unrealized gains on equity securities. (Increase) Decrease in Allowance for Expected Credit Losses, Fixed Maturities, Available for Sale Refer to Item 8, Note 5(i) to the Consolidated Financial Statements ' Investments' . (Increase) Decrease in Allowance for Expected Credit Losses, Mortgage Loans 2025 versus 2024 : The allowance for expected credit losses increased by $6 million in 2025 compared to $17 million in 2024, primarily related to commercial mortgage loans exposed to the office sector. Refer to Item 8, Note 5(d) to the Consolidated Financial Statements ' Investments' . 74 Impairment Losses Refer to ' Critical Accounting Estimates – Impairment losses' for further details). Change in Fair Value of Investment Derivatives We economically hedge residual foreign exchange exposure with derivative contracts. Our derivative instruments are not designated as hedges. Therefore, net unrealized gains (losses) on the hedged securities were recorded in accumulated other comprehensive income (loss) in total shareholders’ equity. Total Return Our investment strategy is to take a long-term view by actively managing our investment portfolio to maximize total return within certain guidelines and constraints. In assessing returns under this approach, we include net investment income, net investment gains (losses), the change in unrealized gains (losses) on fixed maturities, and interest in income (loss) of equity method investments generated by our investment portfolio. Total return on cash and investments was as follows: Year ended December 31, 2025 2024 2023 Net investment income $ 766,903 $ 759,229 $ 611,742 Net investment gains (losses) 58,950 (138,534) (74,630) Change in net unrealized gains (losses) on fixed maturities (1) 344,991 125,742 448,477 Interest in income of equity method investments 9,452 17,953 4,163 Total $ 1,180,296 $ 764,390 $ 989,752 Average cash and investments (2) $ 17,052,541 $ 17,409,516 $ 16,155,418 Pre-tax, total return on average cash and investments: Including investment related foreign exchange movements 6.9 % 4.4 % 6.1 % Excluding investment related foreign exchange movements (3) 6.2 % 4.8 % 5.8 % (1) Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at year end less net unrealized gains (losses) at the prior year end. (2) The average cash and investments balance is the average of the monthly fair value balances. (3) Pre-tax total return on cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, included foreign exchange (losses) gains of $130 million, $(63) mi llion and $51 million for the years ended December 31, 2025, 2024 and 2023, respectively. 75 OTHER EXPENSES (REVENUES), NET The following table provides a summary of other expenses (revenues), net: Year ended December 31, 2025 % Change 2024 % Change 2023 Corporate expenses $ 116,262 (10%) $ 129,760 (2%) $ 132,979 Foreign exchange losses (gains) 141,983 nm (50,822) nm 58,115 Interest expense and financing costs 66,659 (2%) 67,766 (1%) 68,421 Income tax expense (benefit) 216,732 nm (55,595) nm 26,316 Total $ 541,636 $ 91,109 $ 285,831 nm – not meaningful Corporate Expenses Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As a percentage of net premiums earned, corporate expenses decreased to 2.0% in 2025 from 2.4% in 2024 due to a decrease in corporate expenses and an increase in net premiums earned. The decrease in corporate expenses in 2025 was mainly driven by a decrease in professional f ees. Foreign Exchange Losses (Gains) Foreign exchange losses in 2025 were primarily related to the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro and pound sterling . Foreign exchange gains in 2024 were primarily related to the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro and Canadian dollar, partially offset by the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling. Interest Expense and Financing Costs Interest expense and financing costs are related to interest due on the senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2025 and 2024. Interest expense and financing costs of $67 million in 2025 was comparable to $68 million in 2024. Income Tax Expense (Benefit) Income tax expense (benefit) primarily results from income (loss) generated by our global operations. Our effective tax rate, which is calculated as income tax expense (benefit) divided by income (loss) before tax including interest in income (loss) of equity method investments, wa s 17.7%, (5.4%), and 6.5% in 2025, 2024, and 2023, respectively. This effective rate can vary between years depending on the distribution of net income (loss) across jurisdictions, as well as other factors. The tax expense of $217 million in 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S. and European operations, partially offset by a Bermuda deferred tax benefit o f $19 million associated with the write off Bermuda deferred tax liabilities, following amendments to Bermuda's Corporate Income Tax Act 2023, effective December 2025. The tax benefit of $56 million in 2024 was principally due to the recognition of an income tax benefit of $177 million related to Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023 and adjustments related to certain deferred tax assets and deferred tax liabilities that are no longer required, partially offset by pre-tax income in our U.S., U.K. and European operations. 76 Valuation allowance (refer to Item 8, Note 20 to the Consolidated Financial Statements ' Income taxes') . In 2025, the valuation allowance decreased by $12 million. The net gain incurred by AXIS Re Europe, the Swiss branch of the Irish reinsurance company, resulted in the release of a valuation allowance of $8 million against the net deferred tax assets of which $4 million was released in net income (loss) and $4 million was released in other comprehensive income (loss). The remaining valuation allowance of $0.3 million was fully released against foreign tax credits held by AXIS Specialty Europe. In 2024, the valuation allowance decreased by $19 million. The net gain incurred by AXIS Re SE, the Irish reinsurance company, resulted in the release of a valuation allowance of $13 million against the net deferred tax assets of AXIS Re SE and AXIS Re Europe, the Swiss branch of the Irish reinsurance company, of which $8 million was released to net income (loss) and $5 million was released in other comprehensive income (loss). A valuation allowance of $7 million was also released against U.S. foreign tax credits held by AXIS Specialty Europe SE. At December 31, 2025 and 2024, the U.S. operations had a deferred tax asset of $1 million and $19 million, respectively, for the unrealized losses on its fixed maturities that were recorded in other comprehensive income (loss). We examined the need for a valuation allowance and after considering all positive and negative evidence concluded a valuation allowance against its net unrealized investment losses in the U.S was not required. At December 31, 2025 and 2024, the Bermuda operations had a deferred tax liability of $11 million and a deferred tax asset of $17 million, respectively, for the unrealized losses on its fixed maturities that were recorded in other comprehensive income (loss). Due to the net unrealized investment gains in Bermuda, a valuation allowance was not required. At December 31, 2025 and 2024, the Company’s Bermuda operations had a deferred tax asset of $177 million related to the Bermuda ETA. We examined the need for a valuation allowance and after considering all positive and negative evidence concluded a valuation allowance against this asset in Bermuda was not required. 77 FINANCIAL MEASURES We believe that the following financial indicators are important in evaluating performance and measuring the overall growth in value generated for common shareholders: Year ended and at December 31, 2025 2024 2023 Return on average common equity (1) 17.3 % 20.5 % 7.9 % Operating return on average common equity (2) 18.1 % 18.6 % 11.0 % Book value per diluted common share (3) $ 77.20 $ 65.27 $ 54.06 Cash dividends declared per common share $ 1.76 $ 1.76 $ 1.76 (1) Return on average common equity ("ROACE") is calculated by dividing net income (loss) available (attributable) to common shareholders for the year by the average common shareholders' equity determined using the common shareholders' equity balances at the beginning and end of the year. ( 2) Operating return on average common equity ("operating ROACE"), is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to the most comparable GAAP financial measure, ROACE, and a discussion of the rationale for its presentation is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures Reconciliation '. (3) Book value per diluted common share represents common shareholders’ equity divided by the number of diluted common share outstanding, determined using the treasury stock method. Return on Average Common Equity Our objective is to generate superior returns on capital that appropriately reward common shareholders for the risks we assume and to grow revenue only when we expect the returns will meet or exceed our requirements. We recognize that the nature of underwriting cycles and the frequency or severity of large loss events in any one year may challenge the ability to achieve a profitability target in any specific period. The decrease in ROACE in 2025, compared to 2024, was primarily driven by an increase in average common shareholders' equity, and to a lesser extent, a decrease in net income available to common shareholders. The decrease in operating ROACE in 2025, compared to 2024, was primarily driven by an increase in average common shareholders' equity, partially offset by an increase in operating income. Book Value per Diluted Common Share We consider book value per diluted common share to be an appropriate measure of returns to common shareholders, as we believe growth in book value on a diluted basis will ultimately translate into appreciation of our stock price. In 2025, book value per diluted common share increased by 18%, driven by net income for the year, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common share repurchases, and common dividends declared. In 2024, book value per diluted common share increased by 21% , driven by net income for the year, and net unrealized investment gains reported in accumulated other comprehensive income (loss), partially offset by common dividends declared. Cash Dividends Declared per Common Share We believe in returning excess capital to shareholders by way of dividends. Accordingly, dividend policy is an integral part of the value we create for shareholders. Our Board of Directors has approved quarterly common share dividends for twenty two consecutive years. 78 NON-GAAP FINANCIAL MEASURES RECONCILIATION Year ended December 31, 2025 2024 2023 Net income available to common shareholders $ 978,648 $ 1,051,536 $ 346,042 Net investment (gains) losses (58,950) 138,534 74,630 Foreign exchange losses (gains) 141,983 (50,822) 58,115 Reorganization expenses — 26,312 28,997 Interest in income of equity method investments (9,452) (17,953) (4,163) Bermuda deferred tax asset (1) (18,782) (176,923) — Income tax benefit (2) (9,235) (18,649) (17,488) Operating income $ 1,024,212 $ 952,035 $ 486,133 Earnings per diluted common share $ 12.35 $ 12.35 $ 4.02 Net investment (gains) losses (0.74) 1.63 0.87 Foreign exchange losses (gains) 1.79 (0.60) 0.68 Reorganization expenses — 0.31 0.34 Interest in income of equity method investments (0.12) (0.21) (0.05) Bermuda deferred tax asset (0.24) (2.08) — Income tax benefit (0.12) (0.22) (0.21) Operating income per diluted common share $ 12.92 $ 11.18 $ 5.65 Weighted average diluted common shares outstanding (3) 79,266 85,176 86,012 Average common shareholders' equity $ 5,672,907 $ 5,126,288 $ 4,401,553 Return on average common equity 17.3% 20.5% 7.9% Operating return on average common equity 18.1% 18.6% 11.0% (1) Bermuda deferred tax benefit in 2025 is due to the derecognition of deferred tax liabilities related to Bermuda corporate income tax. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax. (2) Tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to common shareholders. Tax impact is estimated by applying the statutory rates of applicable jurisdictions. (3) Refer to Item 8, Note 14 to the Consolidated Financial Statements 'Earnings Per Common Share' for further details. 79 Rationale for the Use of Non-GAAP Financial Measures We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, operating income (loss) ( in total and on a per share basis ), operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax, total return on average cash and investments excluding foreign exchange movements, which are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Underwriting-Related General and Administrative Expenses Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in Item 8, Note 3 to the Consolidated Financial Statements 'Segment Information' , it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis. Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses. The reconciliation of consolidated underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations' . Consolidated Underwriting Income (Loss) Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in Item 8, Note 3 to the Consolidated Financial Statements 'Segment Information' , it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis. We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure. Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss). Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income (loss). 80 Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss). Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss). We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations' . Current Accident Year Loss Ratio Current accident year loss ratio represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year loss ratio provides investors with an enhanced understanding of our results of operations by highlighting net losses and loss expenses associated with our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year loss ratio to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in ' Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations' . Catastrophe and Weather-Related Losses Ratio and Current Accident Year Loss Ratio, excluding Catastrophe and Weather-Related Losses Catastrophe and weather-related losses ratio represents net losses and loss expenses ratio associated with natural catastrophes, man-made disasters, other significant catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development. Current accident year loss ratio, excluding catastrophe and weather-related losses represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural catastrophes, man-made disasters, other significant catastrophe events and other weather-related events. We believe that the presentation of these ratios that separately identify net losses and loss expenses associated with catastrophe and weather-related events provide investors with an enhanced understanding of our results of operations due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events. The reconciliation of catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in ' Management's Discussion and Analysis of Financial Condition and Results of Operations – Consolidated Results of Operations' . Operating Income (Loss) Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax asset. Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies. Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses) and unrealized foreign exchange losses 81 (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss). Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from operating income (loss). Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss). Bermuda deferred tax benefit in 2025 is due to the derecognition of deferred tax liabilities related to Bermuda corporate income tax, pursuant to the Corporate Income Tax Act amendment (No. 2) 2025 that is effective December 11, 2025. Bermuda deferred tax benefit in 2024 is due to the recognition of deferred tax assets net of deferred tax liabilities, pursuant to the Corporate Income Tax Act 2023 that is effective for fiscal years beginning on or after January 1, 2025. Bermuda deferred tax benefits are not related to the underwriting process. Therefore, this income is excluded from operating income (loss). Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax asset in order to understand the profitability of recurring sources of income. We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax asset reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented above. We also present operating income (loss) per diluted common share and operating ROACE, which are derived from the operating income (loss) measure and are reconciled above to the most comparable GAAP financial measures, earnings (loss) per diluted common share and return on average common equity ("ROACE"), respectively. Constant Currency Basis We present gross premiums written and net premiums earned on a constant currency basis in this MD&A. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums earned on a constant basis. The reconciliation to gross premiums written and net premiums earned on a GAAP basis is presented in ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results by Segment' . Pre-Tax, Total Return on Average Cash and Investments excluding Foreign Exchange Movements Pre-tax, total return on average cash and investments excluding foreign exchange movements measures net investment income (loss), net investment gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax, total return on average cash and investments excluding foreign exchange movements to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, is presented in ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Net Investment Income and Net Investment Gains (Losses)' . 82 CASH AND INVESTMENTS Details of cash and investments are as follows: December 31, 2025 December 31, 2024 Fair value Fair value Fixed maturities, available for sale $ 13,018,027 $ 12,152,753 Fixed maturities, held to maturity (1) 395,942 436,751 Equity securities 707,569 579,274 Mortgage loans 356,840 505,697 Other investments 1,027,798 930,278 Equity method investments 227,181 206,994 Short-term investments 20,298 223,666 Total investments $ 15,753,655 $ 15,035,413 Cash and cash equivalents (2) $ 1,321,185 $ 3,063,621 (1) Presented at net carrying value of $397 million (2024: $443 million) in the consolidated balance sheets. (2) Includes restricted cash and cash equivalents of $501 million and $920 million for 2025 and 2024, respectively. Overview The fair value of total investments increased by $718 million in 2025, driven by the reinvestment of interest income and income from operations, and the increase in market value of fixed maturities due to the decline in yields. Cash and Cash equivalents At December 31, 2025, cash and cash equivalents were $1.3 billion compared to $3.1 billion at December 31, 2024, a decrease of $1.7 billion. Cash and cash equivalents at December 31, 2024 were higher than usual in anticipation of premiums to be paid for the LPT agreement on receipt of regulatory approval. 83 An analysis of our investment portfolio by asset class is detailed below: Fixed Maturities Details of our fixed maturities portfolio are as follows: December 31, 2025 December 31, 2024 Fair value % of total Fair value % of total Fixed maturities: U.S. government and agency $ 2,417,901 18 % $ 2,802,986 22 % Non-U.S. government 810,544 6 % 729,939 6 % Corporate debt 5,365,509 41 % 4,957,807 39 % Agency RMBS 2,035,352 15 % 1,184,845 9 % CMBS 801,511 6 % 819,608 7 % Non-agency RMBS 190,124 1 % 122,536 1 % ABS 1,740,933 13 % 1,860,966 15 % Municipals (1) 52,095 — % 110,817 1 % Total $ 13,413,969 100 % $ 12,589,504 100 % Credit ratings: U.S. government and agency $ 2,417,901 18 % $ 2,802,986 22 % AAA (2) 2,577,512 19 % 2,665,334 21 % AA 3,182,165 24 % 2,354,372 19 % A 2,331,459 17 % 2,090,516 17 % BBB 1,339,101 10 % 1,190,381 9 % Below BBB (3) 1,565,831 12 % 1,485,915 12 % Total $ 13,413,969 100 % $ 12,589,504 100 % (1) Includes bonds issued by states, municipalities, and political subdivisions. (2) Includes U.S. government-sponsored agencies, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS"). (3) Non-investment grade and non-rated securities. At December 31, 2025, fixed maturities had a weighted average credit rating of A+ (2024: A+), a book yield of 4.6% (2024: 4.5%), and an average duration of 3.1 years (2024: 2.8 years). At December 31, 2025, fixed maturities together with short-term investments, and cash and cash equivalents (i.e., total investments of $14.8 billion) had a weighted average credit rating of AA- (2024: AA-) and an average duration of 2.8 years (2024: 2.5 years). Our methodology for assigning credit ratings to fixed maturities is in line with the methodology used for the Barclays U.S. Aggregate Bond index. This methodology uses the midpoint of Standard & Poor's (S&P), Moody's and Fitch ratings. When ratings from only two of these agencies are available, the lower rating is used. When only one agency rates a security, that rating is used. When ratings provided by S&P, Moody's and Fitch are not available, ratings from other nationally recognized agencies are used. To calculate the weighted average credit rating for fixed maturities, we assign points to each rating with the highest points assigned to the highest rating (AAA) and the lowest points assigned to the lowest rating (D) and then calculate the weighted average based on the fair values of the individual securities. Securities that are not rated are excluded from weighted average calculations. At December 31, 2025, the fair value of fixed maturities not rated was $1 million (2024: $3 million). In addition to managing credit risk exposure within our fixed maturities portfolio, we also monitor the aggregation of country risk exposure on a group-wide basis. Country risk exposure is the risk that events in a country, such as currency crises, regulatory changes and other political events, will adversely affect the ability of obligors in the country to honor their obligations. For corporate debt and structured securities, we measure the country of risk exposure based on a number of factors, including but not limited to location of management, principal operations and country of revenues. 84 An analysis of our fixed maturities portfolio by major asset classes is detailed below: Non-U.S. Government Non-U.S. government securities include bonds issued by non-U.S. governments and their agencies along with supranational organizations (collectively also known as sovereign debt securities). Details of exposures to governments in the eurozone and other non-U.S. government concentrations by fair value are as follows: December 31, 2025 December 31, 2024 Country Fair value % of total Weighted average credit rating Fair value % of total Weighted average credit rating Eurozone countries: Supranationals (1) $ 36,859 5 % AA+ $ 43,494 6 % AAA Germany 18,125 2 % AAA 25,126 3 % AAA Luxembourg 7,762 1 % BBB — — % — France 4,153 1 % A- 6,127 1 % A Netherlands 2,169 — % AAA 6,584 1 % AAA Total eurozone 69,068 9 % AA 81,331 11 % AA+ Other concentrations: Canada 421,535 52 % AA+ 322,111 44 % AA+ United Kingdom 265,617 33 % AA- 259,282 36 % AA- Mexico 6,270 1 % BBB 3,303 — % BBB Other 48,054 5 % AA 63,912 9 % BBB Total other concentrations 741,476 91 % AA 648,608 89 % AA Total non-U.S. government $ 810,544 100 % AA $ 729,939 100 % AA (1) Includes supranationals only in the eurozone. At December 31, 2025, net unrealized losses on non-U.S. government securities were $12 million (2024: $23 million) which included gross unrealized foreign exchange losses of $1 million (2024: $19 million), mainly related to Canada and U.K. government bonds. 85 Corporate Debt Corporate debt securities consist primarily of investment grade debt of a wide variety of corporate issuers and industries. Details of our corporate debt securities portfolio by sector are as follows: December 31, 2025 December 31, 2024 Fair value % of total Weighted average credit rating Fair value % of total Weighted average credit rating Financial institutions: U.S. banks $ 623,817 12 % A $ 679,827 14 % A Corporate/commercial finance 720,965 13 % BBB 558,577 11 % BBB Non-U.S. banks 394,037 7 % A 411,074 8 % A Insurance 242,309 5 % A- 223,503 5 % A- Investment brokerage 154,770 3 % BBB 132,237 3 % BBB Total financial institutions 2,135,898 40 % A- 2,005,218 41 % A- Consumer non-cyclicals 543,440 10 % BBB- 515,072 10 % BBB- Consumer cyclical 526,340 10 % BB 506,912 10 % BB Communications 391,897 7 % BBB- 336,192 7 % BB+ Industrials 568,203 11 % BB+ 533,401 11 % BB Technology 397,522 7 % BB+ 299,938 6 % BB+ Utilities 284,196 5 % A- 253,756 5 % A- Energy 286,713 5 % BBB- 252,851 5 % BBB- Other 231,300 5 % A+ 254,467 5 % A Total $ 5,365,509 100 % BBB $ 4,957,807 100 % BBB Credit quality summary: Investment grade $ 3,803,562 71 % A- $ 3,477,840 70 % A- Non-investment grade 1,561,947 29 % B+ 1,479,967 30 % B+ Total $ 5,365,509 100 % BBB $ 4,957,807 100 % BBB At December 31, 2025, our non-investment grade portfolio had a fair value of $1,562 million (2024: $1,480 million), a weighted average credit rating of B+ (2024: B+) and duration o f 1.8 years (2024: 2.2 years). At December 31, 2025, our corporate debt portfolio, including non-investment grade securities, had a duration of 3.2 years (2024: 3.2 years). Mortgage-Backed Securities Details of the fair values of our RMBS and CMBS portfolios by credit rating are as follows: December 31, 2025 December 31, 2024 RMBS CMBS RMBS CMBS Government agency $ 2,035,352 $ 166,392 $ 1,184,845 $ 142,214 AAA 184,093 571,618 115,115 614,801 AA 4,451 44,408 5,280 51,411 A 207 17,578 250 7,439 BBB 57 868 81 2,732 Below BBB (1) 1,316 647 1,810 1,011 Total $ 2,225,476 $ 801,511 $ 1,307,381 $ 819,608 (1) Non-investment grade securities and non-rated securities. 86 Residential MBS Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association, which are primarily AA+ rated and are supported by loans which are diversified across geographical areas. At December 31, 2025, agency RMBS had an average duration of 5.2 years (2024: 5.2 years). Non-agency RMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2025, 99% (2024: 98 % ) of our non-agency RMBS were rated AA or better. At December 31, 2025, non-agency RMBS had an average duration of 3.5 years (2024: 4.3 years) and weighted average life of 2.3 years (2024: 5.4 years). Commercial MBS CMBS mainly include investment grade bonds originated by non-agencies. At December 31, 2025, 98% (2024: 99%) of our CMBS were rated AA or better. At December 31, 2025, the weighted average estimated subordination percentage of the portfolio was 32% (2024: 34%), which represents the current weighted average estimated percentage of the capital structure subordinated to the investment holding that is available to absorb losses before the security incurs the first dollar loss of principal. At December 31, 2025, CMBS had an average duration of 2.7 years (2024: 2.7 years) and weighted average life of 3.3 years (2024: 3.7 years). Asset-Backed Securities ABS mainly include investment grade bonds backed by pools of loans with a variety of underlying collateral, including auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs") originated by a variety of financial institutions. Details of the fair value of our ABS portfolio by underlying collateral and credit rating are as follows: Asset-backed securities AAA AA A BBB Below BBB Total At December 31, 2025 CLO - debt tranches $ 635,695 $ 220,572 $ 65,367 $ 23,842 $ — $ 945,476 Auto loans 305,265 — 307 — — 305,572 Student loans 94,039 11,164 — — — 105,203 Credit card receivables 89,379 239 — — — 89,618 Other 216,558 4,450 65,206 6,925 1,925 295,064 Total $ 1,340,936 $ 236,425 $ 130,880 $ 30,767 $ 1,925 $ 1,740,933 % of total 76% 14% 8% 2% —% 100% At December 31, 2024 CLO - debt tranches $ 599,224 $ 303,480 $ 54,712 $ 29,861 $ — $ 987,277 Auto loans 447,594 — — — — 447,594 Student loans 56,995 11,968 — — — 68,963 Credit card receivables 71,390 577 — — — 71,967 Other 262,632 674 16,747 3,527 1,585 285,165 Total $ 1,437,835 $ 316,699 $ 71,459 $ 33,388 $ 1,585 $ 1,860,966 % of total 77% 17% 4% 2% —% 100% At December 31, 2025, the average duration of our ABS portfolio was 1.1 years (2024: 1.0 year) and the weighted average life was 3.8 years (2024: 3.1 years). 87 Municipals Municipals comprise revenue bonds and general obligation bonds issued by U.S. domiciled state and municipal entities and are primarily held in the taxable portfolios of our U.S. subsidiaries. At December 31, 2025, our municipals had a fair value of $52 million (2024: $111 million), a weighted average credit rating of AA- (2024: AA-) and duration of 3.7 years (2024: 3.3 years). Gross Unrealized Losses At December 31, 2025, the gross unrealized losses on our fixed maturities, available for sale portfolio were $99 million (2024: $311 million). Investment grade fixed maturities, available for sale The severity of the unrealized loss position as a percentage of amortized cost for all investment grade fixed maturities in an unrealized loss position including any impact of foreign exchange losses (gains) was as follows: December 31, 2025 December 31, 2024 Severity of Unrealized Loss Fair value Gross unrealized losses % of total gross unrealized losses Fair value Gross unrealized losses % of total gross unrealized losses 0-10% $ 2,545,441 $ (55,806) 62 % $ 5,564,985 $ (147,136) 50 % 10-20% 252,267 (33,835) 38 % 866,342 (138,082) 46 % 20-30% 712 (216) — % 43,062 (11,696) 4 % 30-40% — — — % 183 (89) — % 40-50% — — — % — — — % > 50% — — — % 132 (41) — % Total $ 2,798,420 $ (89,857) 100 % $ 6,474,704 $ (297,044) 100 % The decrease in gross unrealized losses on investment grade fixed maturities primarily reflected the impact of the decline in yields and the tightening of credit spreads on investment grade corporate debt securities. Non-investment grade fixed maturities, available for sale The severity of the unrealized loss position as a percentage of amortized cost for all non-investment grade fixed maturities in an unrealized loss position including any impact of foreign exchange losses (gains) was as follows: December 31, 2025 December 31, 2024 Severity of Unrealized Loss Fair value Gross unrealized losses % of total gross unrealized losses Fair value Gross unrealized losses % of total gross unrealized losses 0-10% $ 263,445 $ (4,087) 46 % $ 643,929 $ (11,655) 82 % 10-20% 13,103 (1,773) 20 % 12,210 (1,601) 11 % 20-30% 3,927 (761) 9 % 1,387 (354) 2 % 30-40% 297 (102) 1 % 1,557 (602) 4 % 40-50% 1,053 (478) 5 % 289 (75) 1 % > 50% 1,165 (1,680) 19 % 4 (4) — % Total $ 282,990 $ (8,881) 100 % $ 659,376 $ (14,291) 100 % The decrease in gross unrealized losses on non-investment grade fixed maturities reflected the impact of the tightening of credit spreads on non-investment grade high yield corporate debt securities. 88 Equity Securities At December 31, 2025, net unrealized gains on equity securities were $126 million (2024: $59 million). The increase was driven by the rally in global equity markets. Mortgage Loans During 2025, investment in commercial mortgage loans decreased to $357 million from $506 million, a decrease of $149 million, mainly due to the repayment of loans. The commercial mortgage loans are collateralized by a variety of commercial properties and diversified geographically throughout the U.S. and by property type to reduce the risk of concentration. At December 31, 2025, the allowance for expected credit loss of $30 million (2024: $23 million) was primarily related to commercial properties exposed to the office sector. Other Investments Details of our other investments portfolio are as follows: December 31, 2025 December 31, 2024 Multi-strategy funds $ 11,577 1 % $ 24,919 3 % Direct lending funds 186,747 18 % 171,048 18 % Private equity funds 364,376 36 % 320,690 35 % Real estate funds 291,491 28 % 291,640 31 % Total multi-strategy, direct lending, private equity and real estate funds 854,191 83 % 808,297 87 % Other privately held investments 173,607 17 % 121,981 13 % Total other investments $ 1,027,798 100 % $ 930,278 100 % Refer to Item 8, Note 5(e) to the Consolidated Financial Statements 'Investments'. Equity Method Investments Our ownership interests in Harrington Reinsurance Holdings Limited ("Harrington") and Monarch Point Re (ISAC) Ltd., Monarch Point Re (ISA 2023) Ltd., Monarch Point Re (ISA 2024) Ltd., and Monarch Point Re (ISA 2025) Ltd. (collectively "Monarch Point Re") are reported in interest in income (loss) of equity method investments. Refer to Note 5(f) to the Consolidated Financial Statements ' Investments' . Restricted Assets Refer to Item 8, Note 5(j) to the Consolidated Financial Statements 'Investments'. 89 LIQUIDITY AND CAPITAL RESOURCES Liquidity Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of its business operations. We manage liquidity at the holding company and operating subsidiary level. Holding Company As a holding company, AXIS Capital has no operations of its own and its assets consist primarily of investments in its subsidiaries. Accordingly, AXIS Capital’s future cash flows depend on the availability of dividends or other statutorily permissible distributions, such as returns of capital, from its subsidiaries. The ability to pay such dividends and/or distributions is limited by the applicable laws and regulations of the various countries and states in which AXIS Capital’s subsidiaries operate (refer to Item 8, Note 22 to the Consolidated Financial Statements 'Statutory Financial Information' for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies. During 2025, AXIS Capital received $1.0 billion (2024: $459 million) of distributions from its subsidiaries. AXIS Capital’s primary uses of funds are dividend payments to common and preferred shareholders, interest and principal payments on debt, capital investments in subsidiaries, and payment of corporate operating expenses. We believe the dividend/distribution capacity of AXIS Capital’s subsidiaries, that was $1.2 billion at December 31, 2025 (2024: $1.4 billion), will provide AXIS Capital with sufficient liquidity for the foreseeable future. Operating Subsidiaries AXIS Capital’s operating subsidiaries primarily derive cash from the net inflow of premiums less claim payments related to underwriting activities and from net investment income. Historically, these cash receipts have been sufficient to fund the operating expenses of these subsidiaries, as well as to fund dividend payments to AXIS Capital. The subsidiaries’ remaining cash flows are generally invested in our investment portfolio and have also been used to fund common share repurchases in recent years. The insurance and reinsurance business of our operating subsidiaries inherently provide liquidity, as premiums are received in advance (sometimes substantially in advance) of the time losses are paid. However, the amount of cash required to fund loss payments can fluctuate significantly from period to period, due to the low frequency/high severity nature of certain types of business we write. Consolidated cash flows from operating, investing and financing activities in the last three years were as follows: Total cash provided by (used in) (1) 2025 2024 2023 Operating activities $ (40,932) $ 1,844,813 $ 1,255,559 Investing activities (628,725) 280,452 (855,610) Financing activities (1,087,258) (417,294) (202,371) Effect of exchange rate changes on cash 14,479 (28,335) 11,754 Increase (decrease) in cash and cash equivalents $ (1,742,436) $ 1,679,636 $ 209,332 (1) Refer to Item 8, ' Consolidated Statements of Cash Flows' for further details. 90 Operating activities • Net cash used in operating activities was $41 million in 2025 compared to net cash provided by operating activities of $1,845 million in 2024. Cash inflows from insurance and reinsurance operations typically include premiums, net of acquisition costs, and reinsurance recoverables. Cash outflows principally include payments of losses and loss expenses, payments of premiums to reinsurers and operating expenses. Cash provided by operating activities can fluctuate due to timing differences between the collection of premiums and reinsurance recoverables and the payment of losses and loss expenses, and the payment of premiums to reinsurers. • Operating cash outflows increased in 2025 compared to 2024, primarily attributable to increases in payments of premiums to reinsurers including payment for the LPT agreement with Enstar completed April 24, 2025 and payments of losses and loss expenses, partially offset by increases in premiums received and reinsurance recoverables received. Investing activities • Investing cash outflows in 2025 were principally related to the net purchases of fixed maturities of $710 million, loan advances made to Monarch Point Re reinsurers of $139 million, net purchases of other assets of $51 million, equity securities of $32 million, other investments of $30 million, and equity method investments of $11 million, partially offset by net proceeds from the sale and redemption of short-term investments of $206 million and the repayment of mortgage loans of $138 million. • Investing cash inflows in 2024 were principally related to the net proceeds from the sale and redemption of fixed maturities of $281 million, unsettled payable for reverse repurchase agreements included in cash and cash equivalents of $247 million, net proceeds from the sales of other investments of $66 million, and equity securities of $40 million, and the net proceeds from the sales and repayment of mortgage loans of $81 million , partially offset by net purchases of short-term investments of $204 million and loan advances made to Monarch Point Re of $199 million. Financing activities • Financing cash outflows in 2025 were principally due to the repurchase of common shares of $914 million and dividends paid to common and preferred shareholders of $173 million. • Financing cash outflows in 2024 were principally due to the repurchase of common shares of $216 million dividends paid to common and preferred shareholders of $182 million, and the repayment of the Federal Home Loan Bank advances of $19 million. • The declaration and payment of future dividends and share repurchases is at the discretion of our Board of Directors and will depend on many factors including, but not limited to, our net income, financial condition, business needs, capital and surplus requirements of our operating subsidiaries and regulatory and contractual restrictions, including those detailed in our credit facilities (refer to 'Capital Resources – Share Repurchases' below for further details). We have generated positive operating cash flows in all years since 2003, with the exception of 2025 which was impacted by payment for the LPT agreement with Enstar completed April 24, 2025 . These positive cash flows were generated notwithstanding the impacts of the global financial crisis and the recognition of significant catastrophe and weather-related losses including the impact of the COVID-19 pandemic in 2020 and 2021. Net losses and loss expenses, gross of reinstatement premiums, included estimates of ultimate losses for catastrophe and weather-related losses of $159 million in 2025, $226 million in 2024 and $138 million in 2023. There remains significant uncertainty associated with estimates of ultimate losses for certain of these events (refer to 'Underwriting Results – Insurance segment – Current Accident Year Loss' and 'Underwriting Results – Reinsurance segment – Current Accident Year Loss Ratio' for further details), as well as the timing of the associated cash outflows. Should claim payment obligations accelerate beyond our ability to fund payments from operating cash flows, we would utilize cash and cash equivalent balances and/or liquidate a portion of our investment portfolio. For context, at January 1, 2026, our largest 1-in-100 year return period, single occurrence, single-zone modeled probable maximum loss (Southeast U.S. Hurricane) was approximately $225 million , net of reinsurance. Claim payments pertaining to such an event would be paid out over a period spanning many months. Our internal risk tolerance framework aims to limit the loss of capital due to a single event and the loss of capital that would occur from multiple but perhaps smaller events, in any year (refer to Item 1 'Risk and Capital Management' for further details). 91 Our investment portfolio is heavily weighted towards conservative, high quality and highly liquid securities. We expect that, if necessary, cash and invested assets of approximately $14.4 billion at December 31, 2025 (2024 $15.2 billion) could be available in one to three business days under normal market conditions. Of this amount, $7.3 billion (2024 $6.9 billion) related to restricted assets, which primarily support our obligations in regulatory jurisdictions where we opera te as a non-admi tted carrier (refer to Item 8, Note 5(j) to the Consolidated Financial Statements 'Investments' for further details). We expect that cash flows generated from operations, combined with the liquidity provided by our investment portfolio, to be sufficient to cover required cash outflows and other contractual commitments through the foreseeable future (refer to 'Contractual Obligations and Commitments' below for further details). Capital Resources In addition to common equity, we have utilized other external sources of financing, including debt, preferred shares, and letter of credit facilities to support our business operations. We believe that we hold sufficient capital to allow us to take advantage of market opportunities and to maintain our financial strength ratings, as well as to comply with various local statutory regulations. We monitor capital adequacy on a regular basis and adjust our capital base according to the needs of our business (refer to Item 1 'Risk and Capital Management' for further details). The following table summarizes consolidated capital: At December 31, 2025 2024 Debt $ 1,316,710 $ 1,315,179 Preferred shares 550,000 550,000 Common equity 5,806,435 5,539,379 Shareholders’ equity 6,356,435 6,089,379 Total capital $ 7,673,145 $ 7,404,558 Ratio of debt to total capital 17.2 % 17.8 % We finance our operations with a combination of debt and equity capital. The debt to total capital ratio provides an indication of our capital structure, along with some insight into our financial strength. We believe that our financial flexibility remains strong. Adjustments are made if developments occur that are different from previous expectations. Debt Debt represents the 5.150% Senior Notes issued in 2014, which will mature in 2045, the 4.000% Senior Notes issued in 2017, which will mature in 2027, the 3.900% Senior Notes issued in 2019, which will mature in 2029, and the 4.900% Junior Subordinated Notes issued in 2019, which will mature in 2040 (refer to Item 8, Note 10(a) to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details) . 92 Federal Home Loan Bank Advances The Company's subsidiaries, AXIS Insurance Company and AXIS Surplus Insurance Company, are members of the Federal Home Loan Bank of Chicago ("FHLB"). Members may borrow from the FHLB at competitive rates subject to certain conditions. At December 31, 2025, the companies had admitted assets of approximately $3.6 billion (2024: $3.2 billion) which provides borrowing capacity of up to approximately $888 million (2024: $798 million) (refer to Item 8, Note 11 to the Consolidated Financial Statements 'Federal Home Loan Bank Advances' ). At December 31, 2025, the Company had borrowings under the FHLB program of $66 million (2024: $66 million). The FHLB advances have maturities in 2026 and interest payable at interest rates between 3.9% and 4.6% (2024: 4.5% and 5.5%). For the year ended December 31, 2025, the Company incurred interest expense of $3 million (2024: $4 million). The borrowings under the FHLB program are secured by cash and investments with a fair value of $74 million (2024: $72 million). Preferred Shares Series E Preferred Shares On November 7, 2016, we issued $550 million of 5.50% Series E preferred shares with a liquidation preference of $2,500 per share (equivalent to $25 per depositary share). Dividends on the Series E preferred shares are non-cumulative. To the extent declared, dividends accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum (equivalent to $137.50 per Series E preferred share and $1.375 per depositary share). We could redeem these shares on or after November 7, 2021 at a redemption price of $2,500 per Series E preferred share (equivalent to $25 per depositary share) (refer to Item 8, Note 15 to the Consolidated Financial Statements 'Shareholders' Equity' for further details) . Secured Letter of Credit Facilities We routinely enter into agreements with financial institutions to obtain secured letter of credit facilities. At December 31, 2025, certain of AXIS Capital’s operating subsidiaries had a committed letter of credit facility up to a maximum aggregate amount of $300 million and an uncommitted secured letter of credit facility up to a maximum aggregate amount o f $200 million available from Citibank Europe plc ("Citibank"). At December 31, 2025, letters of credit outstanding were $226 million (2024: $235 million). These facilities are primarily used for the issuance of letters of credit, in the normal course of operations, to certain insurance and reinsurance entities that purchase reinsurance protection from us. These letters of credit allow those operations to take credit, under local insurance regulations, for reinsurance obtained in jurisdictions where AXIS Capital’s subsidiaries are not licensed or otherwise admitted as an insurer. The value of our letters of credit outstanding is driven by, among other factors, the amount of unearned premiums, development of loss reserves, the payment patterns of loss reserves, the expansion of our business and the loss experience of that business (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details). At December 31, 2025, AXIS Corporate Capital UK II Limited, acting through AXIS Managing Agency Limited, as managing agent of AXIS Syndicate 1686 and AXIS Syndicate 2050 (collectively, the "Syndicates") had an uncommitted unsecured letter of credit facility up to a maximum aggregate amount of $90 million available from Citibank. At December 31, 2025, letters of credit outstanding were $80 million . This letter of credit facility is intended to support obligations in connection with the Syndicates’ participation in the Lloyd’s insurance market, specifically its Funds at Lloyd’s requirements (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details). At December 31, 2025, AXIS Specialty Limited had an uncommitted bilateral short-term line of credit facility up to a maximum aggregate amount of $150 million available from Wells Fargo Bank National Association. At December 31, 2025, the $150 million Facility was not drawn . The line of credit facility is intended to support the Borrower's working capital requirements and general corporate expenses (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details). 93 Common Equity During the year ended December 31, 2025, common eq uity increased by $267 million. The following table reconciles opening and closing common equity positions: Year ended December 31, 2025 2024 Common equity - opening $ 5,539,379 $ 4,713,196 Share-based compensation expense 43,184 40,487 Change in unrealized gains on available for sale investments, net of tax 281,607 122,042 Foreign currency translation adjustment 14,381 (23,763) Net income 1,008,898 1,081,786 Preferred share dividends (30,250) (30,250) Common share dividends (138,518) (150,495) Treasury shares repurchased (914,276) (215,868) Treasury shares reissued 2,030 2,244 Common equity - closing $ 5,806,435 $ 5,539,379 Share Repurchases During 2025, we repurch ased 10 million common shares for a total of $914 million, including $888 million repurchased pursuant to our Board-authorized share repurchase programs, and $27 million from employees to facilitate the satisfaction of their personal withholding tax liabilities that arise on vesting of share-settled restricted stock units g ranted under o ur 2017 Long-Term Equity Compensation Plans. At June 30, 2024, authorization under our share repurchase program approved in December 2023 was exhausted. On May 16, 2024, our Board of Directors approved a new share repurchase program for up to $300 million of the Company's common shares. The new share repurchase program was open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. On February 6, 2025, authorization under this plan was exhausted. On February 19, 2025, our Board of Directors approved a new share repurchase program for up to $400 million of the Company's common shares. The new share repurchase program was open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. On September 3, 2025, authorization under this plan was exhausted. On September 17, 2025, our Board of Directors approved a new share repurchase program for up to $400 million of the Company's common shares. The new share repurchase program is open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. At December 31, 2025, we had $112 million of remaining authorization under our open-ended Board-authorized share repurchase program for common share repurchases. Refer to Item 5 ' Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities' and Item 8, Note 15 to the Consolidated Financial Statements 'Shareholders' Equity' for further details. Shelf Registrations On November 4, 2025, we filed an unallocated universal shelf registration statem ent with the SEC, which became effective on filing. Pursuant to the shelf registration , we may issue an unlimited amount of equity, debt, warrants, purchase contracts or a combination of these securities. Our intent and ability to issue securities pursuant to this registration statement will depend on market conditions at the time of any proposed offering. 94 Financial Strength Ratings Operating subsidiaries Our principal insurance and reinsurance operating subsidiaries are assigned financial strength ratings from internationally recognized rating agencies, including Standard & Poor’s, A.M. Best, and Moody’s Investors Service. These ratings are publicly announced and are available directly from the agencies, and on our website. Financial strength ratings represent the opinions of the rating agencies on the overall financial strength of a company and its capacity to meet the obligations of its insurance and reinsurance contracts. Independent ratings are one of the important factors that establish a competitive position in insurance and reinsurance markets. The rating agencies consider many factors in determining the financial strength rating of an insurance company, including the relative level of statutory surplus necessary to support the business operations of the company. These ratings are based on factors considered by the rating agencies to be relevant to policyholders, agents and intermediaries and are not directed toward the protection of investors. Ratings are not recommendations to buy, sell or hold securities. The following are the most recent financial strength ratings from internationally recognized agencies in relation to our principal insurance and insurance operating subsidiaries: Rating agency Agency’s description of rating Rating and outlook Agency’s rating definition Ranking of rating Standard & Poor’s An "opinion about the financial security characteristics of an insurance organization, with respect to its ability to pay under its insurance policies and contracts, in accordance with their terms". A+ (Stable) "Strong capacity to meet its financial commitments" The 'A' category is the third highest out of ten major rating categories. The second through eighth major rating categories may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. A.M. Best An "opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations". A (Stable) "Excellent ability to meet ongoing insurance obligations" The 'A' category is the third highest rating out of fourteen. Ratings outlooks ('Positive', 'Negative' and 'Stable') are assigned to indicate a rating’s potential direction over an intermediate term, generally defined as 36 months. Moody’s Investors Service "Opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations." A2 (Stable) "Offers good financial security" The 'A' category is the third highest out of nine rating categories. Each of the second through seventh categories are subdivided into three subcategories, as indicated by an appended numerical modifier of '1', '2' and '3'. The '1' modifier indicates that the obligation ranks in the higher end of the rating category, the '2' modifier indicates a mid-category ranking and the '3' modifier indicates a ranking in the lower end of the rating category. Non-operating holding companies On January 29, 2024, Standard and Poor's affirmed the Issuer Credit Rating of AXIS Capital Holding Company at A- (Stable). In addition, Standard & Poor's also reaffirmed the A+ Financial Strength and issuer credit ratings on all core operating subsidiaries (Stable). The stable outlook reflects Standard and Poor's expectation that AXIS will sustain its strong competitive position supported by solid, less-volatile underwriting performance, and will maintain capital adequacy at the 99.99% (or extreme stress) level in 2023-2025. 95 Contractual Obligations and Commitments At December 31, 2025, contractual obligations and commitments by period due were: Payment due by period Contractual obligations and commitments Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating activities Estimated gross losses and loss expenses payments (1) $ 18,122,256 $ 5,140,504 $ 6,168,334 $ 3,218,486 $ 3,594,932 Operating lease obligations (2) 136,320 16,937 30,719 29,950 58,714 Investing activities Unfunded investment commitments (3) 1,089,367 278,196 282,558 218,414 310,199 Financing activities Debt (principal payments) (4) 1,325,000 — 350,000 300,000 675,000 Debt (interest payments) (4)(5) 408,714 61,002 106,811 54,918 185,983 Total $ 21,081,657 $ 5,496,639 $ 6,938,422 $ 3,821,768 $ 4,824,828 (1) We are obligated to pay claims for specified loss events covered by the insurance and reinsurance contracts that we write. Loss payments represent our most significant future payment obligation. In contrast to our other contractual obligations, cash payments are not determinable from the terms specified within the underlying contracts. Our best estimate of reserve for losses and loss expenses is reflected in the table above. Actual amounts and timing may differ materially from our best estimate (refer to ‘ Critical Accounting Estimates – Reserve for Losses and Loss Expenses ’ for further details). We have not taken into account corresponding reinsurance recoverable on unpaid amounts that would be due to us. (2) In the ordinary course of business, we renew and enter into new leases for office space that expire at various dates. Operating lease obligations further includes $26 million of unamortized discount expenses (refer to Item 8, Note 13 to the Consolidated Financial Statements ' Leases ' for further details). (3) We have $683 million of unfunded investment commitments related to our other investments portfolio, which are callable by our investment managers (refer to Item 8, Note 5(e) to the Consolidated Financial Statements ' Investments ' and Note 12(e) to the Consolidated Financial Statements 'Commitment and Contingencies' for further details). In addition, we have $3 million of unfunded commitments related to our commercial mortgage loans portfolio and $403 million of unfunded commitments related to our corporate debt portfolio. (4) Refer to Item 8, Note 10(a) to the Consolidated Financial Statements ' Debt and Financing Arrangement s' for further details. (5) Debt (interest payments) further includes $8 million of unamortized discount and debt issuance expenses (refer to Item 8, Note 10(a) to the Consolidated Financial Statements ' Debt and Financing Arrangement s' for further details). 96 CRITICAL ACCOUNTING ESTIMATES The consolidated financial statements include certain amounts that are inherently uncertain and judgmental in nature. As a result, we are required to make assumptions and best estimates to determine the reported values. We consider an accounting estimate to be critical if: (1) it requires that significant assumptions be made to deal with uncertainties and (2) changes in the estimate could have a material impact on our results of operations, financial condition, or liquidity. We believe that the material items requiring such subjective and complex estimates are: • reserves for losses and loss expenses; • reinsurance recoverable on unpaid losses and loss expenses, including the allowance for expected credit losses; • gross premiums written and net premiums earned; • fair value measurements of financial assets and liabilities; and • the allowance for credit losses associated with fixed maturities, available for sale. Significant accounting policies are also important to understanding the consolidated financial statements (refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details). We believe that the amounts included in the consolidated financial statements reflect management's best judgment. However, factors such as those described in Item 1A ' Risk Factors' could cause actual events or results to differ materially from the underlying assumptions and estimates which could lead to a material adverse impact on our results of operations, financial condition, or liquidity. Reserve for Losses and Loss Expenses Overview We believe the most significant accounting judgment we make is the estimate of reserve for losses and loss expenses ("loss reserves"). Loss reserves represent management’s estimate of the unpaid portion of our ultimate liability for losses and loss expenses ("ultimate losses") for insured and reinsured events that have occurred at or before the balance sheet date. Loss reserves reflect claims that have been reported ("case reserves") to us and claims that have been incurred but not reported ("IBNR") to us. Loss reserves represent our best estimate of what the ultimate settlement and administration of claims will cost, based on our assessment of facts and circumstances known at that particular point in time. Loss reserves are not an exact calculation of the liability but instead are complex estimates. The process of estimating loss reserves involves a number of variables (refer to 'Selection of Reported Reserves – Management's Best Estimate' below for further details). We review estimates of loss reserves each reporting period and consider all significant facts and circumstances known at that particular point in time. As additional experience and other data become available and/or laws and legal interpretations change, we may adjust previous estimates of loss reserves. Adjustments are recognized in the period in which they are determined. Therefore, they can impact that period's underwriting results either favorably, indicating that current estimates are lower than previous estimates, or adversely, indicating that current estimates are higher than previous estimates. Case Reserves With respect to insurance business, we are generally notified of losses by our insureds and/or their brokers. Based on this information, our claims personnel estimate ultimate losses arising from the claim, including the cost of administering the claims settlement process. These estimates reflect the judgment of our claims personnel based on general reserving practices, the experience and knowledge of such personnel regarding the nature of the specific claim and, where appropriate, the advice of legal counsel, loss adjusters and other relevant consultants. 97 With respect to reinsurance business, we are generally notified of losses by ceding companies and/or their brokers. For excess of loss contracts, we are typically notified of insured losses on specific contracts and record a case reserve for the estimated ultimate liability arising from the claim. For contracts written on a proportional basis, we typically receive aggregated claims information and record a case reserve for the estimated ultimate liability arising from the claim based on that information. Proportional reinsurance contracts typically require that losses in excess of pre-defined amounts be separately notified so we can adequately evaluate them. Our claims department evaluates each specific loss notification we receive and records additional case reserves when a ceding company’s reserve for a claim is not considered adequate. We also undertake an extensive program of cedant audits, using outsourced legal and industry experience where necessary. This allows us to review cedants’ claims administration practices to ensure that reserves are consistent with exposures, adequately established, and properly reported in a timely manner. IBNR The estimation of IBNR is necessary due to potential development on reported claims and the time lag between when a loss event occurs and when it is actually reported, which is referred to as a reporting lag. Reporting lags may arise from a number of factors, including but not limited to the nature of the loss, the use of intermediaries and complexities in the claims adjusting process. As we do not have specific information on IBNR, it must be estimated. IBNR is calculated by deducting incurred losses (i.e., paid losses and case reserves) from management’s best estimate of ultimate losses. In contrast to case reserves, which are established at the contract level, IBNR reserves are generally estimated at an aggregate level and cannot be identified as reserves for a particular loss event or contract (refer to ' Reserving for Catastrophic Events' below for further details). Reserving Methodology Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Sources of Information' for a description of the collection and analysis of data used in our quarterly loss reserving process. Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Actuarial Analysis' for a description of the reserve estimation methods, Expected Loss Ratio Method ("ELR Method"), Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method") and Bornhuetter-Ferguson Method ("BF Method") which are commonly employed by our actuaries together with a discussion of their strengths and weaknesses. Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Key Actuarial Assumptions', which notes that the most significant assumptions used in our quarterly loss reserving process are expected loss ratios ("ELRs") and loss development patterns. 98 Gross Loss Reserves by Reserve Class Gross loss reserves for each of the reportable segments, segregated between case reserves and IBNR, by reserve class are shown below: 2025 2024 At December 31, Case reserves IBNR Total Case reserves IBNR Total Insurance segment: Property $ 628,961 $ 888,753 $ 1,517,714 $ 571,477 $ 732,266 $ 1,303,743 Casualty 1,840,499 6,117,060 7,957,559 1,531,924 6,127,417 7,659,341 Specialty other 566,990 1,114,259 1,681,249 543,963 992,656 1,536,619 Total Insurance 3,036,450 8,120,072 11,156,522 2,647,364 7,852,339 10,499,703 Reinsurance segment: Casualty 2,129,777 3,085,382 5,215,159 2,040,947 2,918,011 4,958,958 Specialty 326,296 824,243 1,150,539 328,094 714,320 1,042,414 Run-off 304,629 295,407 600,036 417,498 300,356 717,854 Total Reinsurance 2,760,702 4,205,032 6,965,734 2,786,539 3,932,687 6,719,226 Total $ 5,797,152 $ 12,325,104 $ 18,122,256 $ 5,433,903 $ 11,785,026 $ 17,218,929 In order to capture the key dynamics of loss reserve development and potential volatility, reserve classes should be considered according to their potential expected length of loss emergence and settlement, generally referred to as the "tail". Favorable development on prior accident year reserves indicates that current estimates are lower than previous estimates, while adverse development on prior accident year reserves indicates that current estimates are higher than previous estimates. Although estimates of ultimate losses for shorter tail business are inherently more certain than for longer tail business, significant judgment is still required. For example, much of our excess insurance and excess of loss reinsurance business has high attachment points. Therefore, it is often difficult to estimate whether claims will exceed those attachment points. In addition, the inherent uncertainties relating to catastrophe events further add to the complexity of estimating potential exposure. Further, we use managing general agents ("MGAs") and other producers for certain business in the insurance segment, which can delay the reporting of loss information. For short-tail business, we expect the majority of development for an accident year or underwriting year to be recognized in the subsequent one to three years. Factors that contribute additional uncertainty to estimates for longer tail business include, but are not limited to: • potential volatility of actuarial estimates, the number of years of development it takes to produce a significant incurred loss as a percentage of ultimate losses; • inherent uncertainties about loss trends, claims inflation (e.g., medical, judicial, social) and general economic conditions; and • the possibility of future litigation, legislative or judicial change that may impact future loss experience relative to prior industry loss experience relied on in reserve estimation. Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserve for Losses and Loss Expenses – Prior Year Reserve Development' for a discussion of prior year reserve development by segment, reserve class and accident year. Reserving for Credit and Political Risk Business Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserve for Losses and Loss Expenses – Prior Year Reserve Development' for further details of prior year reserve development for the insurance specialty other and reinsurance specialty reserve classes which include insurance and reinsurance credit and political risk lines of business. 99 Reserving for Catastrophic Events Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Reserving for Catastrophic Events' for further details. In addition to those noted in Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Reserving for Catastrophic Events' there are additional risks that affect our ability to accurately estimate ultimate losses for catastrophic events. For example, the estimates of loss reserves related to hurricanes and earthquakes can be affected by factors including, but not limited to, the inability to access portions of impacted areas, infrastructure disruptions, the complexity of factors contributing to losses, legal and regulatory uncertainties, complexities involved in estimating business interruption losses and additional living expenses, the impact of demand surge, fraud and the limited nature of information available. For hurricanes, additional complex coverage factors may include determining whether damage was caused by flooding or wind, evaluating general liability and pollution exposures, and mold damage. The timing of a catastrophe, for example, near the end of a reporting period, can also affect the level of information available to us to estimate loss reserves for that reporting period. Results of operations for 2025 were impacted by natural and man-made catastrophe activity (refer to 'Underwriting Results – Insurance segment – Current Accident Year Loss Ratio' and 'Underwriting Results – Reinsurance segment – Current Accident Year Loss Ratio' for further details). Selection of Reported Reserves – Management’s Best Estimate Refer to Item 8, Note 8 to the Consolidated Financial Statements 'Reserve for Losses and Loss Expenses – Reserving Methodology – Selection of Reported Reserves – Management’s Best Estimate' for further details. Independent Actuarial Review On an annual basis, we engage an independent actuarial firm to provide an actuarial opinion on the reasonableness of loss reserves for each of our operating subsidiaries and statutory reporting entities as these actuarial opinions are required to meet various insurance regulatory requirements. The actuarial firm also discusses its conclusions from the annual review with management and presents its findings to the Audit Committee of the Board of Directors. Sensitivity Analysis While we believe that loss reserves at December 31, 2025 are adequate, new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in our loss reserves. As previously noted, there are many factors that may cause reserves to increase or decrease, particularly those related to catastrophe losses and longer tail lines of business. Expected loss ratios are a key assumption in estimates of ultimate losses for business at an early stage of development. A higher expected loss ratio results in a higher ultimate loss estimate, and vice versa. Assumed loss development patterns are another significant assumption in estimating loss reserves. Accelerating a loss reporting pattern (i.e., shortening the claim tail) results in lower ultimate losses, as the estimated proportion of losses already incurred would be higher. 100 The effect on estimates of gross loss reserves of reasonably likely changes in the two key assumptions used to estimate gross loss reserves at December 31, 2025 was as follows: INSURANCE Loss development pattern Expected loss ratio Higher Loss Reserves (Lower Loss Reserves) Property 5% lower Unchanged 5% higher 3 months shorter $ (122,477) $ (70,443) $ (17,383) Unchanged (54,360) — 48,945 3 months longer 41,430 99,402 147,125 Casualty 10% lower Unchanged 10% higher 3 months shorter $ (898,647) $ (315,997) $ 224,599 Unchanged (600,107) — 590,283 3 months longer (202,845) 380,597 1,003,380 Specialty other 5%-10% lower Unchanged 5%-10% higher 3 months shorter $ (137,987) $ (80,919) $ (21,262) Unchanged (60,063) — 61,051 3 months longer 29,783 92,799 157,056 REINSURANCE Loss development pattern Expected loss ratio Higher Loss Reserves (Lower Loss Reserves) Casualty 10% lower Unchanged 10% higher 3 months shorter $ (521,338) $ (224,696) $ 74,027 Unchanged (307,601) — 312,528 3 months longer (53,072) 260,925 588,309 Specialty 5%-10% lower Unchanged 5%-10% higher 3 months shorter $ (130,820) $ (57,777) $ 15,461 Unchanged (75,290) — 74,237 3 months longer (4,235) 72,667 150,998 Run-off 5% lower Unchanged 5% higher 3 months shorter $ (23,147) $ (4,315) $ 14,516 Unchanged (18,832) — 18,832 3 months longer (16,466) 2,367 21,200 The results show the cumulative increase (decrease) in loss reserves across all accident years. For example, if assumed loss development pattern for insurance property business was three months shorter with no accompanying change in ELR assumption, loss reserves may decrease by approximately $70 million. Each of the impacts detailed in the tables is estimated individually, without consideration for any correlation among key assumptions or among lines of business. Therefore, it would be inappropriate to take each of the amounts and add them together in an attempt to estimate total volatility. Additionally, it is noted that in some instances, for example the projection of catastrophe estimates or credit and political risks estimates, development patterns are not appropriate as more bespoke techniques are used. While we believe the variations in the expected loss ratios and loss development patterns presented could be reasonably expected, our historical loss data regarding variability is generally limited and actual variations may be greater or less than these amounts. It is also important to note that the variations are not meant to be a "best-case" or "worst-case" series of scenarios and, therefore, it is possible that future variations in loss reserves may be more or less than the amounts presented. While we believe that these are reasonably likely scenarios, we do not believe this sensitivity analysis should be considered an actual reserve range. 101 Reinsurance Recoverable on Unpaid Losses and Loss Expenses In the normal course of business, we purchase facultative and treaty reinsurance protection to limit ultimate losses and to reduce loss aggregation risk. To the extent that reinsurers do not meet their obligations under the reinsurance agreements, we remain liable. Consequently, we are exposed to credit risk associated with reinsurance recoverable on unpaid and paid losses and loss expenses to the extent that any of our reinsurers are unable or unwilling to pay claims. Reinsurance recoverables on unpaid losses and loss expenses ("reinsurance recoverables") for each of the reportable segments, segregated between case reserves and IBNR, by reserve class are shown below: 2025 2024 At December 31, Case reserves IBNR Total Case reserves IBNR Total Insurance segment: Property $ 203,976 $ 322,431 $ 526,407 $ 206,654 $ 269,708 $ 476,362 Casualty 1,022,883 2,895,540 3,918,423 851,597 3,075,267 3,926,864 Specialty other 157,049 281,751 438,800 134,308 258,621 392,929 Total Insurance 1,383,908 3,499,722 4,883,630 1,192,559 3,603,596 4,796,155 Reinsurance segment: Casualty 1,470,825 1,826,463 3,297,288 484,220 1,122,586 1,606,806 Specialty 171,994 230,580 402,574 75,482 155,906 231,388 Run-off 188,393 179,878 368,271 112,288 94,260 206,548 Total Reinsurance 1,831,212 2,236,921 4,068,133 671,990 1,372,752 2,044,742 Total $ 3,215,120 $ 5,736,643 $ 8,951,763 $ 1,864,549 $ 4,976,348 $ 6,840,897 At December 31, 2025, reinsurance recoverables as a percentage of loss reserves was 49% (2024: 40%). The recognition of reinsurance recoverables requires two key estimates as follows: • The first estimate is the amount of loss reserves to be ceded to our reinsurers. This amount consists of amounts related to case reserves and amounts related to IBNR. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details. • The second estimate is the amount of the reinsurance recoverable balance that we believe ultimately will not be collected from reinsurers. We are selective in choosing reinsurers, buying reinsurance principally from reinsurers with a strong financial condition and industry ratings. The amount we ultimately collect may differ from our estimate due to the ability and willingness of reinsurers to pay claims, which may be negatively impacted by factors such as insolvency, contractual disputes over contract language or coverage and/or other reasons. In addition, economic conditions and/or operational performance of a particular reinsurer may deteriorate, and this could also affect the ability and willingness of a reinsurer to meet their contractual obligations. We review reinsurance recoverables at least quarterly to estimate an allowance for expected credit losses. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details. At December 31, 2025, the allowance for expected credit losses was $40 million (2024: $43 million ). We have not written off any significant reinsurance recoverable balances in the last three years. At December 31, 2025, the use of different assumptions could have a material effect on the allowance for expected credit losses. To the extent the creditworthiness of our reinsurers deteriorates due to an adverse event affecting the reinsurance industry, such as a large number of catastrophes, uncollectible amounts could be significantly greater than the allowance for expected credit losses. Given the various considerations used to estimate the allowance for expected credit losses, we cannot precisely quantify the effect a specific industry event may have on the allowance for expected credit losses. At December 31, 2025, the three largest balances by reinsurer accounted for 20%, 8% and 4% (2024: 12%, 7% and 5%) of reinsurance recoverable on unpaid and paid losses and loss expenses. 102 At December 31, 2025, amounts recoverable from reinsurers included 31% that is fully collateralized, 65% that is recoverable from reinsurers rated A- or higher by A.M. Best and 4% that is recoverable from reinsurers rated lower than A- by A.M. Best (2024: 17%, 81% and 2%, respectively). Refer to Item 8, Note 12 to the Consolidated Financial Statements 'Commitments and Contingencies' for an analysis of the credit risk associated with reinsurance recoverables. Gross Premiums Written Revenues primarily relate to premiums generated by our underwriting operations. The basis for recognizing gross premiums written varies by policy or contract type. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details. Insurance Segment For the majority of our insurance business, a fixed premium that is identified in the policy is recorded at the inception of the policy. This premium is adjusted if underlying insured values change. We actively monitor underlying insured values, and any adjustments to premiums are recognized in the period in which they are determined. Gross premiums written on a fixed premium basis accounted f or 94% of the segment’s gross premiums written for the years ended December 31, 2025 and 2024. Some of this business is written through MGAs, third parties granted authority to bind risks on our behalf in accordance with our underwriting guidelines. For this business, premiums are recorded based on monthly or quarterly statements received from MGAs or best estimates based on historical experience. The remainder of our insurance business is written on a line slip or proportional basis, where we assume an agreed proportion of the premiums and losses of a particular risk or group of risks along with other unrelated insurers. As premiums for this business are not identified in the policy, premiums are recognized at the inception of the policy based on estimates provided by clients through brokers (refer to 'Reinsurance Segment' below for further details). We review these premium estimates on a quarterly basis and any adjustments to premium estimates are recognized in the period in which they are determined. Gross premiums written on a line slip or proportional basis accounted for 6% of the segment’s gross premiums written for the years ended December 31, 2025 and 2024. For the credit and political risk line of business, we write certain policies on a multi-year basis. Premiums in respect of these policies are recorded at the inception of the policy based on management’s best estimate of premiums to be received, including assumptions relating to prepayments/refinancing. At December 31, 2025, the average duration of unearned premiums for credit and political risk line of business was 5.5 years (2024: 5.6 years). Reinsurance Segment The reinsurance segment provides cover to cedants (i.e., insurance companies) on an excess of loss or on a proportional basis. In most cases, cedants seek protection from us for business that they have not yet written at the time they enter into agreements with us. Therefore, cedants must estimate their underlying premiums when purchasing reinsurance cover from us. Excess of loss reinsurance contracts with cedants typically include minimum or deposit premium provisions. For excess of loss reinsurance contracts, minimum or deposit premiums are generally considered to be the best estimate of premiums at the inception of the contract. The minimum or deposit premium is normally adjusted at the end of the contract period to reflect changes in the underlying risks in force during the contract period. Any adjustments to minimum or deposit premiums are recognized in the period in which they are determined. Gross premiums written for excess of loss reinsurance contracts accounted for 35% and 40% of the reinsurance segment’s gross premiums written for the years ended December 31, 2025 and 2024, respectively. For proportional reinsurance contracts, premiums are recognized at the inception of the contract based on estimates to be received from ceding companies. We review these premium estimates on a quarterly basis and evaluate their reasonability in light of premiums reported by cedants. Factors contributing to changes in initial premium estimates may include: • changes in renewal rates or rates of new business accepted by cedants (changes could result from changes in the relevant insurance market that could affect more than one of our cedants or could be a consequence of changes in the marketing strategy or risk appetite of an individual cedant); • changes in underlying exposure values; and/or • changes in rates being charged by cedants. 103 As a result of this review process, any adjustments to premium estimates are recognized in the period in which they are determined. Changes in premium estimates could be material to gross premiums written in the period. Changes in premium estimates could also be material to net premiums earned in the period in which they are determined, as any adjustment may be substantially or fully earned. Gross premiums written for proportional reinsurance contracts, including adjustments to premium estimates established in prior years, accounted for 65% and 60% of the reinsurance segment’s gross premiums written for the years ended December 31, 2025 and 2024, respectively. Gross premiums written for proportional reinsurance contracts incepting during the year were as follows: Year ended December 31, 2025 2024 2023 Liability $ 426,345 $ 365,854 $ 356,022 Professional lines 371,089 343,208 280,381 Motor 101,232 40,848 68,136 Accident and health 243,550 310,907 298,577 Credit and surety 263,395 205,393 169,297 Agriculture 154,367 140,714 99,806 Marine and aviation 28,236 30,916 19,839 Run-off lines Catastrophe — — 1,343 Property 293 297 3,000 Engineering — — — Total run-off lines 293 29