AXIS CAPITAL HOLDINGS LTD 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements and Accompanying Notes Page Report of Independent Registered Public Accounting Firm - PCAOB ID No. 5230 . 112 Consolidated Balance Sheets at December 31, 2025 and 2024 114 Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 115 Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023 116 Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2025, 2024 and 2023 117 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023 118 Notes to Consolidated Financial Statements 120 Note 1 – Organization 120 Note 2 – Basis of Presentation and Significant Accounting Policies 121 Note 3 – Segment Information 130 Note 4 – Goodwill and Intangible Assets 135 Note 5 – Investments 138 Note 6 – Fair Value Measurements 153 Note 7 – Derivative Instruments 162 Note 8 – Reserve for Losses and Loss Expenses 164 Note 9 – Reinsurance 183 Note 10 – Debt and Financing Arrangements 185 Note 11 – Federal Home Loan Bank Advances 189 Note 12 – Commitments and Contingencies 190 Note 13 – Leases 193 Note 14 – Earnings Per Common Share 195 Note 15 – Shareholders’ Equity 195 Note 16 – Retirement Plans 197 Note 17 – Share-Based Compensation 198 Note 18 – Related Party Transactions 203 Note 19 – Reorganization Expenses 205 Note 20 – Income Taxes 206 Note 21 – Other Comprehensive Income (Loss) 213 Note 22 – Statutory Financial Information 215 Note 23 – Subsequent Events 218 111 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of AXIS Capital Holdings Limited Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of AXIS Capital Holdings Limited and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in shareholders' equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 27, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Reserve for losses and loss expenses - Refer to Notes 2 and 8 to the consolidated financial statements Critical Audit Matter Description The Company’s estimate of loss and loss expense reserves is derived using expected trends in claim severity and frequency and other factors that may vary significantly as claims are settled. The estimate is sensitive to significant assumptions, including the initial expected loss ratio and loss development factors. The estimate is also sensitive to the selection of actuarial methods and weighting of these methods applied to project the ultimate losses, the estimation of ultimate reserves associated with catastrophic events, and other factors. Further, not all catastrophic events can be modeled using traditional actuarial methodologies, which increases the degree of judgment needed in estimating loss reserves for such events. Auditing the Company’s methods, assumptions and best estimate of the cost of the ultimate settlement and administration of claims represented by the incurred but not reported ("IBNR") claims included in recorded loss and loss adjustment reserves involved especially subjective auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists. 112 How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to reserves for losses and loss expenses included the following, among others: • We tested the effectiveness of controls over the valuation of the recorded loss and loss expense reserves, including the review and approval process that management has in place for significant actuarial methods and assumptions used and the approval of management’s best estimate of loss and loss expense reserves. • We tested the completeness and accuracy of the underlying data that served as the basis for the Company’s actuarial analysis, including historical claims data, to test the reasonableness of key inputs to the actuarial estimate. • With the assistance of our actuarial specialists: – We independently developed an estimate of the reserves for selected classes of business, compared our estimates to those booked by the Company, and evaluated the differences. – We evaluated the Company’s methodologies against recognized actuarial practices for the remaining classes. We also evaluated the assumptions used by the Company using our industry knowledge and experience and other analytical procedures. – We compared the results of the reserve study prepared by third party actuaries to management’s best estimate and evaluated the differences. /s/ Deloitte Ltd. Hamilton, Bermuda February 27, 2026 We have served as the Company's auditor since 2001. 113 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024 2025 2024 (in thousands) Assets Investments: Fixed maturities, available for sale, at fair value (Amortized cost 2025: $ 12,937,728 ; 2024: $ 12,419,905 Allowance for expected credit losses 2025: $ 1,836 ; 2024: $ 3,938 ) $ 13,018,027 $ 12,152,753 Fixed maturities, held to maturity, at amortized cost (Fair value 2025: $ 395,942 ; 2024: $ 436,751 Allowance for expected credit losses 2025: $ nil ; 2024: $ nil ) 397,430 443,400 Equity securities, at fair value (Cost 2025: $ 581,275 ; 2024: $ 520,743 ) 707,569 579,274 Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2025: $ 29,742 ; 2024: $ 23,378 ) 356,840 505,697 Other investments, at fair value 1,027,798 930,278 Equity method investments 227,181 206,994 Short-term investments, at fair value 20,298 223,666 Total investments 15,755,143 15,042,062 Cash and cash equivalents 820,252 2,143,471 Restricted cash and cash equivalents 500,933 920,150 Accrued interest receivable 116,252 114,012 Insurance and reinsurance premium balances receivable (Allowance for expected credit losses 2025: $ 15,821 ; 2024: $ 17,339 ) 3,244,661 2,826,942 Reinsurance recoverable on unpaid losses and loss expenses (Allowance for expected credit losses 2025: $ 40,340 ; 2024: $ 43,445 ) 8,951,763 6,840,897 Reinsurance recoverable on paid losses and loss expenses 673,765 546,287 Deferred acquisition costs 801,778 685,853 Prepaid reinsurance premiums 2,139,294 1,936,979 Receivable for investments sold 12,806 3,693 Goodwill 66,498 66,498 Intangible assets 166,050 175,967 Operating lease right-of-use assets 93,900 92,516 Loan advances made 231,542 247,775 Other assets 887,289 1,038,207 Total assets $ 34,461,926 $ 32,681,309 Liabilities Reserve for losses and loss expenses $ 18,122,256 $ 17,218,929 Unearned premiums 5,825,698 5,211,865 Insurance and reinsurance balances payable 1,882,021 1,713,798 Debt 1,316,710 1,315,179 Federal Home Loan Bank advances 66,380 66,380 Payable for investments purchased 36,982 269,728 Operating lease liabilities 110,095 106,614 Other liabilities 745,349 689,437 Total liabilities 28,105,491 26,591,930 Commitments and Contingencies Shareholders' equity Preferred shares 550,000 550,000 Common shares (shares issued 2025: 176,580 ; 2024: 176,580 shares outstanding 2025: 74,135 ; 2024: 82,984 ) 2,206 2,206 Additional paid-in capital 2,405,792 2,394,063 Accumulated other comprehensive income (loss) 28,431 ( 267,557 ) Retained earnings 8,181,699 7,341,569 Treasury shares, at cost (2025: 102,445 ; 2024: 93,596 ) ( 4,811,693 ) ( 3,930,902 ) Total shareholders’ equity 6,356,435 6,089,379 Total liabilities and shareholders’ equity $ 34,461,926 $ 32,681,309 See accompanying notes to Consolidated Financial Statements. 114 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, AND 2023 2025 2024 2023 (in thousands, except for per share amounts) Revenues Net premiums earned $ 5,714,609 $ 5,306,235 $ 5,083,781 Net investment income 766,903 759,229 611,742 Other insurance related income 23,216 30,721 22,495 Net investment gains (losses): Increase in allowance for expected credit losses ( 4,261 ) ( 10,338 ) ( 5,246 ) Impairment losses ( 2,268 ) ( 408 ) ( 12,757 ) Other realized and unrealized investment gains (losses) 65,479 ( 127,788 ) ( 56,627 ) Total net investment gains (losses) 58,950 ( 138,534 ) ( 74,630 ) Total revenues 6,563,678 5,957,651 5,643,388 Expenses Net losses and loss expenses 3,288,541 3,158,487 3,393,102 Acquisition costs 1,136,469 1,070,551 1,000,945 General and administrative expenses 703,931 666,202 684,446 Foreign exchange losses (gains) 141,983 ( 50,822 ) 58,115 Interest expense and financing costs 66,659 67,766 68,421 Reorganization expenses — 26,312 28,997 Amortization of intangible assets 9,917 10,917 10,917 Total expenses 5,347,500 4,949,413 5,244,943 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 ) 55,595 ( 26,316 ) Interest in income of equity method investments 9,452 17,953 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 Per share data Earnings per common share: Earnings per common share $ 12.52 $ 12.49 $ 4.06 Earnings per diluted common share $ 12.35 $ 12.35 $ 4.02 Weighted average common shares outstanding 78,192 84,165 85,142 Weighted average diluted common shares outstanding 79,266 85,176 86,012 See accompanying notes to Consolidated Financial Statements. 115 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, AND 2023 2025 2024 2023 (in thousands) Net income $ 1,008,898 $ 1,081,786 $ 376,292 Other comprehensive income, net of tax: Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized 252,011 ( 33,030 ) 257,940 Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized ( 420 ) ( 248 ) 9,583 Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income 30,016 155,320 128,513 Unrealized gains (losses) arising during the year, net of reclassification adjustment 281,607 122,042 396,036 Foreign currency translation adjustment 14,381 ( 23,763 ) ( 1,572 ) Total other comprehensive income, net of tax 295,988 98,279 394,464 Comprehensive income $ 1,304,886 $ 1,180,065 $ 770,756 See accompanying notes to Consolidated Financial Statements. 116 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, AND 2023 2025 2024 2023 (in thousands) Preferred shares Balance at beginning and end of year $ 550,000 $ 550,000 $ 550,000 Common shares (par value) Balance at beginning and end of year 2,206 2,206 2,206 Additional paid-in capital Balance at beginning of year 2,394,063 2,383,030 2,366,253 Treasury shares reissued ( 31,455 ) ( 29,454 ) ( 40,430 ) Share-based compensation expense 43,184 40,487 57,207 Balance at end of year 2,405,792 2,394,063 2,383,030 Accumulated other comprehensive income (loss) Balance at beginning of year ( 267,557 ) ( 365,836 ) ( 760,300 ) Unrealized gains (losses) on available for sale investments, net of tax: Balance at beginning of year ( 225,617 ) ( 347,659 ) ( 743,695 ) Unrealized gains (losses) arising during the year, net of reclassification adjustment 281,607 122,042 396,036 Balance at end of year 55,990 ( 225,617 ) ( 347,659 ) Cumulative foreign currency translation adjustments, net of tax: Balance at beginning of year ( 41,940 ) ( 18,177 ) ( 16,605 ) Foreign currency translation adjustment 14,381 ( 23,763 ) ( 1,572 ) Balance at end of year ( 27,559 ) ( 41,940 ) ( 18,177 ) Balance at end of year 28,431 ( 267,557 ) ( 365,836 ) Retained earnings Balance at beginning of year 7,341,569 6,440,528 6,247,022 Net income 1,008,898 1,081,786 376,292 Preferred share dividends (1) ( 30,250 ) ( 30,250 ) ( 30,250 ) Common share dividends (1) ( 138,518 ) ( 150,495 ) ( 152,536 ) Balance at end of year 8,181,699 7,341,569 6,440,528 Treasury shares, at cost Balance at beginning of year ( 3,930,902 ) ( 3,746,732 ) ( 3,765,271 ) Shares repurchased ( 914,276 ) ( 215,868 ) ( 23,596 ) Shares reissued 33,485 31,698 42,135 Balance at end of year ( 4,811,693 ) ( 3,930,902 ) ( 3,746,732 ) Total shareholders' equity $ 6,356,435 $ 6,089,379 $ 5,263,196 (1) Refer to Note 15 'Shareholders' Equity' for details on dividends declared and paid related to the Company's common and preferred shares. See accompanying notes to Consolidated Financial Statements. 117 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, AND 2023 2025 2024 2023 (in thousands) Cash flows from operating activities: Net income $ 1,008,898 $ 1,081,786 $ 376,292 Adjustments to reconcile net income to net cash provided by operating activities: Net investment (gains) losses (1) ( 56,045 ) 144,175 74,630 Net realized and unrealized gains on other investments ( 67,961 ) ( 47,203 ) ( 19,682 ) Amortization of fixed maturities ( 39,612 ) ( 38,428 ) ( 20,167 ) Interest in income of equity method investments ( 9,452 ) ( 17,953 ) ( 4,163 ) Other amortization and depreciation 56,379 55,306 75,552 Share-based compensation expense, net of cash payments 45,214 42,731 54,120 Changes in: Accrued interest receivable ( 2,298 ) ( 8,441 ) ( 11,777 ) Reinsurance recoverable on unpaid losses and loss expenses ( 2,120,523 ) ( 543,442 ) ( 493,831 ) Reinsurance recoverable on paid losses and loss expenses ( 190,804 ) ( 3,764 ) ( 60,860 ) Deferred acquisition costs ( 115,444 ) ( 84,839 ) 11,780 Prepaid reinsurance premiums ( 203,531 ) ( 31,265 ) ( 365,732 ) Reserve for losses and loss expenses 906,298 841,727 1,272,999 Unearned premiums 614,481 482,867 388,747 Insurance and reinsurance balances, net ( 16,349 ) 94,122 49,132 Other items 149,817 ( 122,566 ) ( 71,481 ) Net cash provided by (used in) operating activities ( 40,932 ) 1,844,813 1,255,559 Cash flows from investing activities: Purchases of: Fixed maturities, available for sale ( 9,183,843 ) ( 10,530,382 ) ( 6,348,753 ) Fixed maturities, held to maturity ( 125,203 ) ( 105,755 ) ( 37,499 ) Equity securities ( 130,880 ) ( 114,519 ) ( 89,502 ) Mortgage loans ( 15,437 ) ( 17,655 ) ( 24,867 ) Other investments ( 170,182 ) ( 69,596 ) ( 91,010 ) Equity method investments ( 10,735 ) ( 14,407 ) ( 22,183 ) Short-term investments ( 244,688 ) ( 331,267 ) ( 247,499 ) Unsettled payable for reverse repurchase agreements included in cash and cash equivalents — 247,495 — Proceeds from the sale of: Fixed maturities, available for sale 6,811,178 9,059,672 4,848,826 Equity securities 98,865 154,645 55,651 Other investments 140,623 135,975 158,348 Short-term investments 315,659 58,151 227,318 Proceeds from redemption of fixed maturities, available for sale 1,616,339 1,508,473 934,017 Proceeds from redemption of fixed maturities, held to maturity 171,219 348,812 49,609 Proceeds from redemption of short-term investments 134,973 69,010 76,545 Proceeds from the repayment of mortgage loans 153,341 98,241 36,375 Proceeds from the purchase of other assets, net ( 51,282 ) ( 17,396 ) ( 31,144 ) Loan advances made ( 138,672 ) ( 199,045 ) ( 349,842 ) Net cash provided by (used in) investing activities ( 628,725 ) 280,452 ( 855,610 ) Cash flows from financing activities: Repurchase of common shares ( 887,717 ) ( 199,944 ) — Taxes paid on withholding shares ( 26,559 ) ( 15,925 ) ( 23,596 ) Dividends paid - common shares ( 142,732 ) ( 151,765 ) ( 153,775 ) Dividends paid - preferred shares ( 30,250 ) ( 30,250 ) ( 30,250 ) Federal Home Loan Bank advances, net — ( 19,410 ) 5,250 Net cash used in financing activities ( 1,087,258 ) ( 417,294 ) ( 202,371 ) Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash 14,479 ( 28,335 ) 11,754 Increase (decrease) in cash, cash equivalents and restricted cash ( 1,742,436 ) 1,679,636 209,332 Cash, cash equivalents and restricted cash - beginning of year 3,063,621 1,383,985 1,174,653 Cash, cash equivalents and restricted cash - end of year $ 1,321,185 $ 3,063,621 $ 1,383,985 (1) In 2025, net investment (gains) losses in the consolidated statements of cash flows excluded net realized gains on overseas deposits of $ 3 million (2024: $ 6 million) that are included in net investment (gains) losses in the consolidated statement of operations. See accompanying notes to Consolidated Financial Statements. 118 AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2025, 2024, AND 2023 Supplemental disclosures of cash flow information: 2025 2024 2023 Income taxes paid $ 126,843 $ 80,557 $ 77,479 Interest paid $ 62,554 $ 64,180 $ 63,596 Non-cash settlements with Third-Party Reinsurer Loan advances made $ 1,325 $ 74,976 $ 81,708 Reinsurance recoverable on unpaid losses and loss expenses — — 21,308 Interest receivable on loan advances made — — 3,562 Net cash inflows $ 1,325 $ 74,976 $ 106,578 Insurance and reinsurance balances payable, net $ ( 1,325 ) $ ( 74,976 ) $ ( 106,578 ) Net cash outflows $ ( 1,325 ) $ ( 74,976 ) $ ( 106,578 ) Refer to Note 5 'Investments' for details of non-cash settlements with Monarch Point Re (Monarch Point Re (ISA 2023) Ltd., Monarch Point Re (ISA 2024) Ltd., Monarch Point Re (ISA 2025) Ltd., individually, collectively, or together with Monarch Point Re (ISAC) Ltd "Monarch Point Re"). See accompanying notes to Consolidated Financial Statements. 119 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 1. ORGANIZATION AXIS Capital Holdings Limited ("AXIS Capital" and together with its wholly-owned subsidiaries the "Company"), was incorporated on December 9, 2002, under the laws of Bermuda. The Company is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company's principal operating subsidiaries, located in Bermuda, the United States ("U.S."), Europe, Singapore and Canada, are described below: • AXIS Specialty Limited ("AXIS Specialty Bermuda"), a Bermuda domiciled company, is licensed to provide specialty lines insurance and reinsurance products on a worldwide basis. In addition, AXIS Specialty Bermuda conducts insurance and reinsurance business through its branch in Singapore, AXIS Specialty Limited (Singapore Branch). AXIS Specialty Bermuda ceased writing new business through its branch in Singapore on January 1, 2024, and will close this branch, subject to meeting all regulatory and legal requirements. AXIS Specialty Insurance Limited ("AXIS Specialty Insurance Bermuda"), a Bermuda domiciled company, incorporated on August 19, 2024, was licensed on December 17, 2024 to provide specialty lines insurance and reinsurance products on a worldwide basis. • AXIS Insurance Company, domiciled in Illinois, and AXIS Reinsurance Company, domiciled in New York, together with AXIS Reinsurance Company (Canadian Branch) are licensed to offer a range of specialty lines insurance and reinsurance products to a variety of niche markets on a worldwide basis. AXIS Surplus Insurance Company, domiciled in Illinois, is eligible to write insurance on a surplus lines basis. • AXIS Specialty Europe SE ("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 registered in accordance with company law of the EU. AXIS Specialty Europe also conducts insurance business through its branch in the United Kingdom ("U.K."), AXIS Specialty Europe SE (UK Branch). Effective October 28, 2022, AXIS Specialty Europe SE (UK Branch) is fully regulated by the Prudential Regulation Authority and the U.K. Financial Conduct Authority as a third-country branch. • AXIS Re SE is a European public limited liability company, incorporated as a reinsurer under the laws of Ireland. AXIS Re SE is a Societas Europaea (SE), or European society company registered in accordance with company law of the EU. AXIS Re SE also conducts reinsurance business through its branch in Switzerland, AXIS Re SE, Dublin (Zurich Branch). • The Company operates in the Lloyd's of London ("Lloyd's") market through its corporate members AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, that provided 70 % and 30 % capital support, respectively, to AXIS Syndicate 1686 ("Syndicate 1686") through December 31, 2024. AXIS Corporate Capital UK II Limited provided 100 % capital support to Syndicate 1686 for underwriting activities effective January 1, 2025. Syndicate 1686 is managed by AXIS Managing Agency Ltd. ("AXIS Managing Agency"). • AXIS Energy Transition Syndicate 2050 ("Syndicate 2050") commenced underwriting on April 1, 2024. AXIS Corporate Capital UK II Limited is the sole corporate member of Syndicate 2050. Syndicate 2050 is managed by AXIS Managing Agency. • AXIS Reinsurance Managers Limited ("AXIS Reinsurance Managers") is regulated by the BMA as an insurance manager and generates fee income from services provided to strategic capital partners. 120 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and include AXIS Capital Holdings Limited and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. At December 31, 2025, the Company presented loss funds and funds withheld balances in other assets and excess ceding commissions in other liabilities in the consolidated balance sheet. These amounts were previously included in insurance and reinsurance premium balances receivable and deferred acquisition costs, respectively in the consolidated balance sheets. These reclassifications did not impact results of operations, financial condition or liquidity. Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • reserve 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. The Company's significant accounting policies are as follows: a) Investments Fixed Maturities, Available for Sale, at Fair Value and Fixed Maturities, Held to Maturity, at Amortized Cost Fixed maturities classified as available for sale are reported at fair value (refer to Note 6 ' Fair Value Measurements ') and are presented net of an allowance for expected credit losses. The change in fair values of fixed maturities, net of tax is recognized in accumulated other comprehensive income (loss) ("AOCI") in total shareholders’ equity. Fixed maturities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity or redemption. Fixed maturities classified as held to maturity are reported at amortized cost and are presented net of an allowance for expected credit losses. Net investment income includes interest income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of fixed maturities are recorded on a trade-date basis and realized gains (losses) on sales of fixed maturities are determined based on the specific identification method. Realized gains (losses) on fixed maturities are included in net investment gains (losses) in the consolidated statements of operations. 121 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if applicable. The effective yield used to determine the amortization of fixed maturities subject to prepayment risk (e.g., asset-backed, mortgage-backed and other structured securities) is recalculated and adjusted periodically based on historical and/or projected future cash flows. Adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. Adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. Credit Losses - Fixed Maturities, Available for Sale A fixed maturity, available for sale security is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company evaluates all fixed maturities, available for sale securities for impairment losses. If a fixed maturity, available for sale security is impaired and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income (loss) and is included in net investment gains (losses). In instances where the Company intends to hold the impaired fixed maturity, available for sale security, the Company determines whether the decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. If the Company does not anticipate to fully recover the amortized cost , an allowance for expected credit losses is established. The allowance for expected credit losses is limited to the difference between a security's amortized cost basis and its fair value. The allowance for expected credit losses is charged to net income (loss) and is included in net investment gains (losses). On a quarterly basis, the Company assesses whether unrealized losses on fixed maturities, available for sale represent credit impairments by considering the following factors: a. the extent to which the fair value is less than amortized cost; b. adverse conditions related to the security, industry, or geographical area; c. downgrades in the security's credit rating by a credit rating agency; and d. failure of the issuer to make scheduled principal or interest payments. The length of time a security has been in an unrealized loss position no longer impacts the determination of whether a credit loss exists. If a security is assessed to be credit impaired, it is subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost, a credit loss exists and an allowance for expected credit losses is recognized. If the present value of expected future cash flows is equal to or greater than the amortized cost basis, an expected credit loss does not exist. The non-credit impairment amount of the loss (i.e., related to interest rates, market conditions, etc.) is recognized in other comprehensive income (loss). The Company reports accrued interest receivable related to available for sale debt securities separately and has elected not to measure an allowance for expected credit losses for accrued interest receivable. Write-offs of accrued interest receivable balances are recognized in net investment gains (losses) in the consolidated statements of operations in the period in which they are deemed uncollectible. 122 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Credit Losses - Fixed Maturities, Held to Maturity A fixed maturity, held to maturity security is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company evaluates all fixed maturities, held to maturity securities for impairment losses. The Company's fixed maturity, held to maturity securities portfolio consists of asset-backed securities ("ABS") and corporate debt securities. The Company's ABS, held to maturity consist of CLO debt tranched securities. The Company uses a scenario-based approach to review its CLO debt portfolio and reviews subordination levels of these securities to determine their ability to absorb credit losses of the underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. To estimate expected credit losses for corporate debt securities, held to maturity, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, which is a function of the probability of default and projected recovery rates. The Company's default and recovery rates are based on credit ratings, credit analysis and macroeconomic forecasts. The allowance for expected credit losses is estimated based on the Company’s analysis of projected lifetime losses. The allowance for expected credit losses is charged to net income (loss) and is included in net investment gains (losses). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Equity Securities, at Fair Value Equity securities are reported at fair value. The change in the fair values of equity securities, net of tax is recognized in net investment gains (losses) in the consolidated statements of operations. Net investment income includes dividend income and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of equity securities are recorded on a trade-date basis and realized gains (losses) on sales of equity securities are determined based on the specific identification method. Realized gains (losses) on equity securities are included in net investment gains (losses) in the consolidated statements of operations. Mortgage Loans, Held for Investment, at Fair Value Mortgage loans, held for investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives effect to the amortization of premiums and accretion of discounts. Mortgage loans, held for investment are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company’s analysis of projected lifetime losses. These projections take into account the Company’s experience with credit quality indicators, loan losses, defaults, loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. The allowance for expected credit losses is recognized in net investment gains (losses) in the consolidated statements of operations. Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Other Investments Other investments are recorded at fair value (refer to Note 6 ' Fair Value Measurements '). Changes in fair value and realized gains (losses) are reported in net investment income in the consolidated statements of operations. 123 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equity Method Investments Investments in which the Company has significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of net income or loss of the investee. Adjustments are based on the most recently available financial information from the investee. Changes in the carrying value of these investments are recorded in net income (loss) as interest in income (loss) of equity method investments. Short-term Investments Short-term investments primarily comprise highly liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. b) Cash and Cash Equivalents Cash equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Restricted cash primarily relates to funds held in trust to support obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support underwriting activities at Lloyd's. c) Premiums and Acquisition Costs Premiums Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract based on estimates received from ceding companies. For multi-year contracts insurance and reinsurance premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. Premiums are recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the contract. Any adjustments to insurance and reinsurance premium estimates are recognized in the period in which they are determined. Insurance and reinsurance premiums are earned over the period during which the Company is exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums which relate to the unexpired term under contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The recognition of reinstatement premiums is based on estimates of losses and loss expenses, which reflects management’s judgment (refer to Note 2(d) 'Losses and Loss Expenses'). Insurance and reinsurance premium balances receivable ("premium balances receivable") are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs, and current economic conditions, together with reasonable and supportable forecasts of short-term economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of premium balances receivable, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. 124 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Acquisition Costs Acquisition costs vary with and are directly related to the successful acquisition efforts of acquiring new or renewing existing insurance and reinsurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Acquisition costs are shown net of ceding commissions receivable on reinsurance purchased limited to an amount that represents recovery of initial acquisition costs. Ceding commissions receivable in excess of the recovery of initial acquisition costs are recognized in other liabilities in the consolidated balance sheets. Net acquisition costs and any excess ceding commissions are deferred and charged to net income (loss) as the related premium is earned. In addition, certain of the Company's contracts include profit commission provisions or other adjustable features that are estimated based on expected losses and loss expenses for those contracts. Insurance and reinsurance premium balances receivable is presented net of acquisition costs when contract terms provide for the right of offset. Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of deferred acquisition costs. Deferred acquisition cost amounts that are assessed to be irrecoverable are recognized in net income (loss) in the period in which the determination is made. Compensation expenses for personnel involved in contract acquisition, and advertising costs, are charged to net income (loss) when incurred. d) Losses and Loss Expenses Reserve for losses and loss expenses represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for insured and reinsured events that have occurred at or before the balance sheet date. These amounts reflect claims that have been reported ("case reserves") and claims that have been incurred but have not yet been reported ("IBNR") and are reduced for estimated amounts of salvage and subrogation recoveries. The Company reviews its reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported by clients and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Chain Ladder and Bornhuetter-Ferguson methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident/underwriting year and reserve class. Historical claims data may be supplemented with industry benchmarks when applying these methodologies. Any adjustments to estimates of reserve for losses and loss expenses are recognized in the period in which they are determined. While the Company believes that its reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the consolidated balance sheets. e) Reinsurance In the normal course of business, the Company purchases facultative and treaty reinsurance protection to limit its ultimate losses and to reduce its loss aggregation risk. The premiums paid to reinsurers (i.e., ceded premiums written) are recognized over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded which relate to the unexpired term of the contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. Reinsurance recoverable on unpaid losses and loss expenses ("reinsurance recoverables") related to case reserves is estimated on a case-by-case basis by applying the terms of applicable reinsurance cover to individual case reserve estimates. Reinsurance recoverables related to IBNR is generally developed as part of the Company's loss reserving process, therefore, its estimation is subject to similar risks and uncertainties as the estimation of IBNR. Estimates of amounts to be ceded under 125 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) excess of loss reinsurance contracts also take into account pricing information for those contracts and require greater judgment than estimates for proportional contracts. Reinsurance recoverable balances are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. A case-specific allowance for expected credit losses against reinsurance recoverables that we deem are unlikely to be collected in full, is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs. In addition, a default analysis is used to estimate an allowance for expected credit losses on the remainder of the reinsurance recoverable balance. The principal components of the default analysis are reinsurance recoverable balances by reinsurer and default factors applied to estimate uncollectible amounts based on reinsurers’ credit ratings and the length of collection periods. The default factors are based on a model developed by a major rating agency. The default analysis considers current and forecasted economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of reinsurance recoverable balances, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. Retroactive Reinsurance Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retroactive elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into net income (loss) over the claims settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in net income (loss) in the period in which the change is determined so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. f) Foreign Exchange The functional currency of the Company and the majority of its subsidiaries is the U.S. dollar. All foreign currency transactions are initially measured and recorded in functional currency using the rates of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currency are remeasured to functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign exchange losses (gains) generally being recognized in the consolidated statements of operations. Foreign exchange losses (gains) related to available for sale securities denominated in foreign currency represent an unrealized appreciation (depreciation) in the market value of the securities and are included in AOCI in total shareholders’ equity. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. The Company’s reporting currency is the U.S. dollar. Assets and liabilities of the Company's subsidiaries and branches where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the rates of exchange in effect at the balance sheet date, and revenue and expenses are translated using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in total shareholders’ equity. g) Share-based Compensation The Company is authorized to issue restricted shares, restricted stock units, performance restricted stock units, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes share-settled service awards and share-settled performance awards. 126 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Stock Units - Share-Settled The fair value of share-settled service awards is based on market value of the Company's common shares measured at the grant date and is expensed over the requisite service period. The Company recognizes forfeitures when they occur. Performance Restricted Stock Units - Share-Settled The fair value of share-settled performance awards which include a market condition is measured on the grant date using a Monte Carlo simulation model which requires inputs including share price, expected volatility, expected term, expected dividend yield and risk-free interest rates. The fair value of share-settled performance awards which include a performance condition is based on the closing price of the Company's common shares measured at the grant date. The fair value of share-settled performance awards is recognized on a straight-line basis over the requisite service period. The Company recognizes forfeitures when they occur. h) Derivative Instruments The Company may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of its overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. From time to time the Company may also enter into insurance and reinsurance contracts that meet the Financial Accounting Standards Board's ("FASB") definition of a derivative contract. The Company measures all derivative instruments at fair value (refer to Note 6 ' Fair Value Measurements ') and recognizes these instruments in either other assets or other liabilities in the consolidated balance sheets. Subsequent changes in fair value and realized gains (losses) are recognized in net income (loss) in the consolidated statements of operations. i) Goodwill and Intangible Assets The Company recognizes goodwill and other intangible assets in connection with certain acquisitions. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in these acquisitions and is not amortized. Other intangible assets with a finite life are amortized over the estimated useful life of the intangible asset. Other intangible assets with an indefinite life are not amortized. The Company tests goodwill and indefinite-lived intangible assets for potential impairment during the fourth quarter each year and between annual tests if an event occurs or changes in circumstances indicate that the asset is impaired. Such events or circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. For the purpose of evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. For the purpose of evaluating indefinite-lived intangibles for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. If the Company elects to perform a qualitative assessment, it first assesses qualitative factors to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the Company determines that it is more likely than not that the indefinite lived intangible asset is impaired, the Company performs the quantitative impairment test. 127 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) For the purposes of evaluating goodwill and indefinite-lived intangible assets for impairment, the Company has an unconditional option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The Company may resume performing the qualitative assessment in any subsequent period. For other finite-lived intangible assets the Company tests for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company recognizes an impairment loss if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount of a finite-lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If goodwill or an intangible asset is impaired, the carrying value of the asset is reduced to fair value and a corresponding expense is recorded in the consolidated statements of operations. j) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income (loss), or in certain cases to AOCI, based on enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities reported in the consolidated balance sheets and those reported in the various jurisdictional tax returns. When the assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. The Company recognizes the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained on audit by the relevant taxing authorities. k) Treasury Shares Common shares repurchased by the Company and not subsequently canceled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the average cost method to determine the cost of shares reissued from treasury. l) Leases The Company recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term related to office property and equipment leases. The Company accounts for non-lease components separately from lease components. As a result, the non-lease components associated with the Company's leases are not included in the lease liabilities and right-of-use assets in the Company's consolidated balance sheets. The Company does not record office property and equipment leases with an initial term of 12 months or less (short-term) in the Company's consolidated balance sheets. m) New Accounting Standards Adopted in 2025 Improvements to Income Tax Disclosures Effective October 1, 2025 the Company adopted Accounting Standards Update ("ASU" or "Update") ASU 2023-09 "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures " which aims to provide more transparency and comparability of income taxes disclosures by jurisdiction. 128 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The amendments applicable to the Company primarily relate to the effective tax rate reconciliation and the requirement to provide a more detailed reconciliation of income tax expense by comparing reported income tax expense to the amount calculated using the statutory tax rate of the entity’s country of domicile. The amendments also introduce enhanced disaggregation requirements including separate disclosure of specified categories that meet a quantitative threshold. In addition, the amendments required the Company to disclose income taxes paid (net of refunds received) disaggregated between federal and state taxes in the Company’s country of domicile and foreign income taxes paid disaggregated by individual jurisdictions when the amount paid (net of refunds received) in a jurisdiction is equal to or greater than 5 percent of total income taxes paid (net of refunds received) (refer to Note 20 ' Income Taxes '). The adoption of this guidance did not impact the Company's results of operations, financial condition, or liquidity. n) Recently Issued Accounting Standards Not Yet Adopted Disaggregation of Income Statement Expenses On November 4, 2024, the FASB issued ASU 2024-03 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expense" which requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The amendments require public business entities to disclose disaggregated information about specific natural expense categories underlying certain income statement expense line items that are considered "relevant" (referred to as "relevant expense captions") because they include one or more of the five natural expense categories. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. The ASU requires entities to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into applicable natural expense categories including (1) employee compensation (2) depreciation and (3) intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026 and for interim periods, effective within fiscal years beginning after December 15, 2027. As this Update relates solely to financial statement disclosures its adoption will not impact the Company's results of operations, financial condition, or liquidity. Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU" or "Update") 2025-06 "Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software" . The amendments in this Update remove all references to prescriptive and sequential software development stages (referred to as "project stages") throughout Subtopic 350-40. An entity will be required to start capitalizing software costs when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the "probable-to-complete recognition threshold") have occurred. This guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted at the beginning of an annual reporting period. The amendments in this Update can be applied on a prospective, modified or a retrospective transition approach. The Company does not expect the adoption of this guidance to have a material impact on its results of operations, financial condition, or liquidity. 129 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 3. SEGMENT INFORMATION AXIS Capital's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance. Insurance The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are property, professional lines, liability, cyber, marine and aviation, accident and health, and credit and political risk. Reinsurance The Company's reinsurance segment provides reinsurance to insurance companies on a worldwide basis. The product lines in this segment are liability, professional lines, motor, accident and health, credit and surety, agriculture, marine and aviation, and run-off lines which include catastrophe and property lines of business that the Company placed into run-off in 2022 and engineering lines of business that the Company placed into run-off in 2020. The Company has identified its President and Chief Executive Officer as its chief operating decision maker ("CODM"). The CODM evaluates performance and decides how to allocate resources based on underwriting income (loss) for each of the Company's reportable segments. During quarterly Results Review meetings, an analysis of each reportable segment's underwriting income (loss) compared to the same period in the prior year, and compared to plan, is provided by business leaders to the CODM to facilitate the evaluation of segment performance. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets. The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: 130 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 3. SEGMENT INFORMATION (CONTINUED) At and year ended December 31, 2025 Insurance Reinsurance Total Gross premiums written $ 7,179,206 $ 2,465,308 $ 9,644,514 Net premiums written 4,627,224 1,494,432 6,121,656 Net premiums earned 4,291,485 1,423,124 5,714,609 Other insurance related income 677 22,539 23,216 Current accident year net losses and loss expenses ( 2,404,202 ) ( 971,302 ) ( 3,375,504 ) Net favorable prior year reserve development 66,975 19,988 86,963 Acquisition costs ( 820,324 ) ( 316,145 ) ( 1,136,469 ) Underwriting-related general and administrative expenses ( 537,558 ) ( 50,111 ) ( 587,669 ) Underwriting income $ 597,053 $ 128,093 725,146 Net investment income 766,903 Net investment gains 58,950 Corporate expenses ( 116,262 ) Foreign exchange (losses) gains ( 141,983 ) Interest expense and financing costs ( 66,659 ) Reorganization expenses — Amortization of intangible assets ( 9,917 ) Income before income taxes and interest in income of equity method investments 1,216,178 Income tax expense ( 216,732 ) Interest in income of equity method investments 9,452 Net income 1,008,898 Preferred share dividends 30,250 Net income available to common shareholders $ 978,648 Current accident year loss ratio 56.0 % 68.3 % 59.1 % Prior year reserve development ratio ( 1.5 %) ( 1.5 %) ( 1.6 %) Net losses and loss expenses ratio 54.5 % 66.8 % 57.5 % Acquisition cost ratio 19.1 % 22.2 % 19.9 % General and administrative expense ratio 12.5 % 3.6 % 12.4 % Combined ratio 86.1 % 92.6 % 89.8 % Goodwill and intangible assets $ 232,548 $ — $ 232,548 131 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 3. SEGMENT INFORMATION (CONTINUED) At and year ended December 31, 2024 Insurance Reinsurance Total Gross premiums written $ 6,615,584 $ 2,390,304 $ 9,005,888 Net premiums written 4,250,545 1,506,806 5,757,351 Net premiums earned 3,926,036 1,380,199 5,306,235 Other insurance related income 94 30,627 30,721 Current accident year net losses and loss expenses ( 2,261,629 ) ( 921,181 ) ( 3,182,810 ) Net favorable prior year reserve development 16,209 8,114 24,323 Acquisition costs ( 766,915 ) ( 303,636 ) ( 1,070,551 ) Underwriting-related general and administrative expenses ( 485,929 ) ( 50,513 ) ( 536,442 ) Underwriting income $ 427,866 $ 143,610 571,476 Net investment income 759,229 Net investment gains (losses) ( 138,534 ) Corporate expenses ( 129,760 ) Foreign exchange gains 50,822 Interest expense and financing costs ( 67,766 ) Reorganization expenses ( 26,312 ) Amortization of intangible assets ( 10,917 ) Income before income taxes and interest in income of equity method investments 1,008,238 Income tax benefit 55,595 Interest in income of equity method investments 17,953 Net income 1,081,786 Preferred share dividends 30,250 Net income available to common shareholders $ 1,051,536 Current accident year loss ratio 57.6 % 66.7 % 60.0 % Prior year reserve development ratio ( 0.4 %) ( 0.5 %) ( 0.5 %) Net losses and loss expenses ratio 57.2 % 66.2 % 59.5 % Acquisition cost ratio 19.5 % 22.0 % 20.2 % General and administrative expense ratio 12.4 % 3.6 % 12.6 % Combined ratio 89.1 % 91.8 % 92.3 % Goodwill and intangible assets $ 242,465 $ — $ 242,465 132 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 3. SEGMENT INFORMATION (CONTINUED) At and year ended December 31, 2023 Insurance Reinsurance Total Gross premiums written $ 6,140,764 $ 2,215,761 $ 8,356,525 Net premiums written 3,758,720 1,343,605 5,102,325 Net premiums earned 3,461,700 1,622,081 5,083,781 Other insurance related income (loss) ( 198 ) 22,693 22,495 Current accident year net losses and loss expenses ( 1,903,648 ) ( 1,077,572 ) ( 2,981,220 ) Net favorable (adverse) prior year reserve development ( 176,353 ) ( 235,529 ) ( 411,882 ) Acquisition costs ( 648,463 ) ( 352,482 ) ( 1,000,945 ) Underwriting-related general and administrative expenses ( 472,094 ) ( 79,373 ) ( 551,467 ) Underwriting income (loss) $ 260,944 $ ( 100,182 ) 160,762 Net investment income 611,742 Net investment gains (losses) ( 74,630 ) Corporate expenses ( 132,979 ) Foreign exchange (losses) gains ( 58,115 ) Interest expense and financing costs ( 68,421 ) Reorganization expenses ( 28,997 ) Amortization of intangible assets ( 10,917 ) Income before income taxes and interest in income of equity method investments 398,445 Income tax (expense) benefit ( 26,316 ) Interest in income of equity method investments 4,163 Net income 376,292 Preferred share dividends 30,250 Net income available to common shareholders $ 346,042 Current accident year loss ratio 55.0 % 66.4 % 58.6 % Prior year reserve development ratio 5.1 % 14.6 % 8.1 % Net losses and loss expenses ratio 60.1 % 81.0 % 66.7 % Acquisition cost ratio 18.7 % 21.7 % 19.7 % General and administrative expense ratio 13.7 % 4.9 % 13.5 % Combined ratio 92.5 % 107.6 % 99.9 % Goodwill and intangible assets $ 287,684 $ — $ 287,684 133 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024, AND 2023 3. SEGMENT INFORMATION (CONTINUED) The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Years ended December 31, 2025 2024 2023 U.S. $ 5,204,252 $ 4,864,074 $ 4,484,789 Ireland 1,892,851 1,923,006 1,837,177 Lloyd's of London 2,346,215 1,998,217 1,759,990 Bermuda 201,196 220,591 274,569 Gross premiums written $ 9,644,514 $ 9,005,888 $ 8,356,525 The following table presents net premiums earned by segment and line of business: Years ended December 31, 2025 2024 2023 Insurance Property $ 1,347,011 $ 1,139,308 $ 878,849 Professional lines 887,533 817,535 764,558 Liability 543,627 494,561 496,381 Cyber 310,837 347,842 323,025 Marine and aviation 665,306 614,826 567,292 Accident and health 338,522 360,894 306,061 Credit and political risk 198,649 151,070 125,534 Total Insurance 4,291,485 3,926,036 3,461,700 Reinsurance Liability 314,003 309,265 403,239 Professional lines 198,457 169,074 205,404 Motor 126,233 123,545 155,942 Accident and health 303,690 322,932 341,806 Credit and surety 273,702 231,780 236,408 Agriculture 137,367 126,549 121,628 Marine and aviation 57,667 64,609 65,658 Run-off lines Catastrophe 406 13,412 33,963 Property 3,845 6,266 44,508 Engineering 7,754 12,767 13,525 Total run-off lines 12,005 32,445 91,996 Total Reinsurance 1,423,124 1,380,199 1,622,081 Total $ 5,714,609 $ 5,306,235 $ 5,083,781 134 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 4. GOODWILL AND INTANGIBLE ASSETS The table below provides details of goodwill and intangible assets related to the Company's insurance segment: Goodwill Intangible assets with an indefinite life Intangible assets with a finite life Total At December 31, 2023 Gross amount $ 95,890 $ 120,784 $ 394,604 $ 611,278 Accumulated amortization n/a n/a ( 317,588 ) ( 317,588 ) Accumulated translation adjustment 4,911 — — 4,911 100,801 120,784 77,016 298,601 Amortization n/a n/a ( 10,917 ) ( 10,917 ) Impairment charges — — — — At December 31, 2024 Gross amount 95,890 120,784 394,604 611,278 Accumulated amortization n/a n/a ( 328,505 ) ( 328,505 ) Accumulated translation adjustment 4,911 — — 4,911 100,801 120,784 66,099 287,684 Amortization n/a n/a ( 10,917 ) ( 10,917 ) Impairment charges — — — — Tax-related adjustments ( 34,303 ) — — ( 34,303 ) At December 31, 2025 Gross amount 95,890 120,784 394,604 611,278 Accumulated amortization n/a n/a ( 339,421 ) ( 339,421 ) Accumulated translation adjustment 4,911 — — 4,911 Tax-related adjustments ( 34,303 ) — — ( 34,303 ) 66,498 120,784 55,183 242,465 Amortization n/a n/a ( 9,917 ) ( 9,917 ) Impairment charges — — — — $ 66,498 $ 120,784 $ 45,266 $ 232,548 n/a – not applicable Intangible Assets with an Indefinite Life Intangible assets with an indefinite life include U.S. state licenses that provide a legal right to transact business indefinitely and the value of Lloyd's syndicate capacity, which represents the right to underwrite a certain allocated limit of premium in the Lloyd's market. Impairment Review For the years ended December 31, 2025, 2024 and 2023, the Company's impairment review of goodwill did no t result in the recognition of an impairment loss. Tax-related Adjustments During the year ended December 31, 2024, the Company assessed that certain deferred tax assets and deferred tax liabilities were no longer required and recognized a tax-related adjustment of $ 34 million. 135 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 4. GOODWILL AND INTANGIBLE ASSETS (CONTINUED) The tables below provide details of the gross amount and accumulated amortization by category of value of business acquired ("VOBA") and intangible assets: VOBA and intangible assets At December 31, 2025 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Syndicate capacity (2) 94,748 n/a 94,748 Customer relationships and customers lists (1) 13,330 $ ( 13,330 ) — VOBA (2) 256,942 ( 256,942 ) — Coverholders (2) 63,565 ( 43,701 ) 19,864 Large brokers (2) 46,641 ( 25,653 ) 20,988 SME brokers (2) 14,126 ( 9,712 ) 4,414 $ 515,388 $ ( 349,338 ) $ 166,050 n/a – not applicable (1) On April 1, 2015, the Company completed its acquisition of Ternian Insurance Group LLC and recognized the definite life intangible assets detailed above. (2) On October 2, 2017, the Company acquired Novae and recognized finite lived intangible assets, including VOBA, distribution networks, and indefinite lived intangible assets related to Lloyd's syndicate capacity, all detailed above. VOBA and intangible assets At December 31, 2024 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Syndicate capacity (2) 94,748 n/a 94,748 Customer relationships and customers lists (1) 13,330 $ ( 12,993 ) 337 VOBA (2) 256,942 ( 256,942 ) — Coverholders (2) 63,565 ( 38,408 ) 25,157 Large brokers (2) 46,641 ( 22,545 ) 24,096 SME brokers (2) 14,126 ( 8,533 ) 5,593 $ 515,388 $ ( 339,421 ) $ 175,967 n/a – not applicable (1) On April 1, 2015, the Company completed its acquisition of Ternian Insurance Group LLC (renamed AXIS Group Benefits LLC in 2022) and recognized the definite life intangible assets detailed above. (2) On October 2, 2017, the Company acquired Novae Group plc ("Novae") and recognized finite lived intangible assets, including VOBA, distribution networks, and indefinite lived intangible assets related to Lloyd's syndicate capacity, all detailed above. 136 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 4. GOODWILL AND INTANGIBLE ASSETS (CONTINUED) The table below provides details of estimated amortization expense of intangible assets with a finite life: Total 2026 $ 9,583 2027 9,583 2028 9,583 2029 7,965 2030 3,109 After 2030 5,443 Total remaining amortization expense 45,266 Indefinite lived intangible assets 120,784 Total intangible assets $ 166,050 The estimated remaining average useful life of finite lived intangible assets is 5 years. 137 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS a) Fixed Maturities, Available for Sale The following table provides the amortized cost and fair values of the Company's fixed maturities classified as available for sale: Amortized cost Allowance for expected credit losses Gross unrealized gains Gross unrealized losses Fair value At December 31, 2025 Available for sale U.S. government and agency $ 2,406,907 $ — $ 17,206 $ ( 6,212 ) $ 2,417,901 Non-U.S. government 798,984 — 14,961 ( 3,401 ) 810,544 Corporate debt 5,168,562 ( 1,539 ) 96,137 ( 40,727 ) 5,222,433 Agency RMBS (1) 2,026,043 — 31,869 ( 22,560 ) 2,035,352 CMBS (2) 811,056 — 6,641 ( 16,186 ) 801,511 Non-agency RMBS 193,372 ( 240 ) 1,366 ( 4,374 ) 190,124 ABS (3) 1,479,963 ( 57 ) 12,231 ( 4,070 ) 1,488,067 Municipals (4) 52,841 — 462 ( 1,208 ) 52,095 Total fixed maturities, available for sale $ 12,937,728 $ ( 1,836 ) $ 180,873 $ ( 98,738 ) $ 13,018,027 At December 31, 2024 Available for sale U.S. government and agency $ 2,830,111 $ — $ 6,011 $ ( 33,136 ) $ 2,802,986 Non-U.S. government 753,315 — 2,584 ( 25,960 ) 729,939 Corporate debt 4,941,510 ( 3,690 ) 30,594 ( 126,224 ) 4,842,190 Agency RMBS (1) 1,245,681 — 1,154 ( 61,990 ) 1,184,845 CMBS (2) 852,534 — 1,244 ( 34,170 ) 819,608 Non-agency RMBS 132,116 ( 195 ) 597 ( 9,982 ) 122,536 ABS (3) 1,547,350 ( 53 ) 5,812 ( 13,277 ) 1,539,832 Municipals (4) 117,288 — 125 ( 6,596 ) 110,817 Total fixed maturities, available for sale $ 12,419,905 $ ( 3,938 ) $ 48,121 $ ( 311,335 ) $ 12,152,753 (1) Residential mortgage-backed securities ("RMBS") originated by U.S. government-sponsored agencies. (2) Commercial mortgage-backed securities ("CMBS"). (3) Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs"). (4) Municipals include bonds issued by states, municipalities and political subdivisions. 138 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) Contractual Maturities Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The table below provides the contractual maturities of fixed maturities classified as available for sale: Amortized cost Fair value % of Total fair value At December 31, 2025 Maturity Due in one year or less $ 364,414 $ 364,273 2.8 % Due after one year through five years 5,665,467 5,721,423 44.0 % Due after five years through ten years 2,212,109 2,231,417 17.1 % Due after ten years 185,304 185,860 1.4 % 8,427,294 8,502,973 65.3 % Agency RMBS 2,026,043 2,035,352 15.6 % CMBS 811,056 801,511 6.2 % Non-agency RMBS 193,372 190,124 1.5 % ABS 1,479,963 1,488,067 11.4 % Total $ 12,937,728 $ 13,018,027 100.0 % At December 31, 2024 Maturity Due in one year or less $ 895,177 $ 885,866 7.4 % Due after one year through five years 5,637,336 5,567,905 45.8 % Due after five years through ten years 1,895,116 1,826,564 15.0 % Due after ten years 214,595 205,597 1.7 % 8,642,224 8,485,932 69.9 % Agency RMBS 1,245,681 1,184,845 9.7 % CMBS 852,534 819,608 6.7 % Non-agency RMBS 132,116 122,536 1.0 % ABS 1,547,350 1,539,832 12.7 % Total $ 12,419,905 $ 12,152,753 100.0 % 139 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) Gross Unrealized Losses The following table summarizes fixed maturities, available for sale in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: 12 months or greater Less than 12 months Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses At December 31, 2025 Fixed maturities, available for sale U.S. government and agency $ 186,934 $ ( 4,695 ) $ 314,665 $ ( 1,517 ) $ 501,599 $ ( 6,212 ) Non-U.S. government 50,892 ( 2,202 ) 147,629 ( 1,199 ) 198,521 ( 3,401 ) Corporate debt 589,821 ( 32,617 ) 501,402 ( 8,110 ) 1,091,223 ( 40,727 ) Agency RMBS 338,652 ( 21,806 ) 160,500 ( 754 ) 499,152 ( 22,560 ) CMBS 331,169 ( 15,831 ) 98,333 ( 355 ) 429,502 ( 16,186 ) Non-agency RMBS 39,376 ( 4,361 ) 1,092 ( 13 ) 40,468 ( 4,374 ) ABS 94,908 ( 3,582 ) 204,271 ( 488 ) 299,179 ( 4,070 ) Municipals 21,039 ( 1,203 ) 727 ( 5 ) 21,766 ( 1,208 ) Total fixed maturities, available for sale $ 1,652,791 $ ( 86,297 ) $ 1,428,619 $ ( 12,441 ) $ 3,081,410 $ ( 98,738 ) At December 31, 2024 Fixed maturities, available for sale U.S. government and agency $ 262,368 $ ( 17,515 ) $ 1,026,139 $ ( 15,621 ) $ 1,288,507 $ ( 33,136 ) Non-U.S. government 98,846 ( 9,179 ) 457,889 ( 16,781 ) 556,735 ( 25,960 ) Corporate debt 934,975 ( 78,979 ) 2,032,254 ( 47,245 ) 2,967,229 ( 126,224 ) Agency RMBS 280,550 ( 35,333 ) 749,040 ( 26,657 ) 1,029,590 ( 61,990 ) CMBS 410,213 ( 22,334 ) 260,411 ( 11,836 ) 670,624 ( 34,170 ) Non-agency RMBS 69,418 ( 9,900 ) 8,302 ( 82 ) 77,720 ( 9,982 ) ABS 147,281 ( 8,471 ) 295,897 ( 4,806 ) 443,178 ( 13,277 ) Municipals 49,495 ( 4,198 ) 51,002 ( 2,398 ) 100,497 ( 6,596 ) Total fixed maturities, available for sale $ 2,253,146 $ ( 185,909 ) $ 4,880,934 $ ( 125,426 ) $ 7,134,080 $ ( 311,335 ) At December 31, 2025, 2,244 fixed maturities (2024: 3,994 ) were in an unrealized loss position of $ 99 million (2024: $ 311 million) of which $ 9 million (2024: $ 14 million) was related to securities below investment grade or not rated. At December 31, 2025, 1,522 fixed maturities (2024: 2,108 ) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $ 1,653 million (2024: $ 2,253 million). The unrealized losses of $ 99 million (2024: $ 311 million) were due to non-credit factors and were expected to be recovered as the related securities approach maturity. At December 31, 2025, the Company did not intend to sell the securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs. 140 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) b) Fixed Maturities, Held to Maturity The following table provides the amortized cost and fair values of the Company's fixed maturities classified as held to maturity: Amortized cost Allowance for expected credit losses Net carrying value Gross unrealized gains Gross unrealized losses Fair value At December 31, 2025 Held to maturity Corporate debt $ 145,137 $ — $ 145,137 $ 2,039 $ ( 4,100 ) $ 143,076 ABS (1) 252,293 — 252,293 625 ( 52 ) 252,866 Total fixed maturities, held to maturity $ 397,430 $ — $ 397,430 $ 2,664 $ ( 4,152 ) $ 395,942 At December 31, 2024 Held to maturity Corporate debt $ 122,706 $ — $ 122,706 $ 675 $ ( 7,764 ) $ 115,617 ABS (1) 320,694 — 320,694 560 ( 120 ) 321,134 Total fixed maturities, held to maturity $ 443,400 $ — $ 443,400 $ 1,235 $ ( 7,884 ) $ 436,751 (1) Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by collateralized loan obligations ("CLOs"). At December 31, 2025, fixed maturities, held to maturity of $ 397 million (2024: $ 443 million) were presented net of an allowance for expected credit losses of $ nil (2024: $ nil ). The Company's ABS, held to maturity consist of CLO debt tranched securities ("CLO Debt"). The Company uses a scenario-based approach to review its CLO Debt portfolio and reviews subordination levels of these securities to determine their ability to absorb credit losses of the underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At December 31, 2025 and 2024, the allowance for credit losses expected to be recognized over the life of the Company's ABS, held to maturity was $ nil . To estimate expected credit losses for corporate debt securities, held to maturity, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, which is a function of the probability of default and projected recovery rates. The Company's default and recovery rates are based on credit ratings, credit analysis and macroeconomic forecasts. At December 31, 2025 and 2024, the allowance for credit losses expected to be recognized over the life of the Company's corporate debt, held to maturity was $ nil . Contractual Maturities Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ABS classified as held to maturity had a net carrying value of $ 252 million (2024: $ 321 million). Corporate debt classified as held to maturity with a net carrying value of $ 32 million (2024: $ 28 million) is due between 1 year and 3 years. Corporate debt classified as held to maturity with a net carrying value of $ 110 million (2024: $ 95 million) is due between 3 years and 10 years. Corporate debt classified as held to maturity with a net carrying value of $ 3 million (2024: $ nil ) is due after 10 years. 141 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) c) Equity Securities The following table provides the cost and fair values of the Company's equity securities: Cost Gross unrealized gains Gross unrealized losses Fair value At December 31, 2025 Equity securities Common stocks $ 13,927 $ 439 $ ( 671 ) $ 13,695 Preferred stocks 19,662 717 ( 68 ) 20,311 Exchange-traded funds 259,353 142,901 ( 497 ) 401,757 Bond mutual funds 288,333 9,411 ( 25,938 ) 271,806 Total equity securities $ 581,275 $ 153,468 $ ( 27,174 ) $ 707,569 At December 31, 2024 Equity securities Common stocks $ 3,061 $ 65 $ ( 488 ) $ 2,638 Preferred stocks 5,843 136 ( 112 ) 5,867 Exchange-traded funds 188,771 126,477 ( 1,206 ) 314,042 Bond mutual funds 323,068 540 ( 66,881 ) 256,727 Total equity securities $ 520,743 $ 127,218 $ ( 68,687 ) $ 579,274 142 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) d) Mortgage Loans The following table provides details of the Company's mortgage loans, held for investment: December 31, 2025 December 31, 2024 Carrying value % of Total Carrying value % of Total Mortgage loans, held for investment: Commercial $ 386,582 108 % $ 529,075 105 % Allowance for expected credit losses ( 29,742 ) ( 8 %) ( 23,378 ) ( 5 %) Total mortgage loans, held for investment $ 356,840 100 % $ 505,697 100 % The primary credit quality indicators for commercial mortgage loans are the debt service coverage ratio which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, (generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio which compares the unpaid principal balance of the loan to the estimated fair value of the underlying collateral (generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated quarterly. The commercial mortgage loan portfolio has a weighted average debt service coverage rat io of 1.6 x (2024: 1.7 x) and a weighted average loan-to-value ratio o f 84 % (2024: 78 %) . At December 31, 2025, there were two commercial mortgage loans with past due amounts where the Company is assessing exit strategies. The carry value of these loans net of an allowance for expected credit losses was $ 14 million. At December 31, 2024, there were no past due amounts associated with the commercial mortgage loans held by the Company. On a quarterly basis, the Company's exposure to commercial mortgage loans in the office sector, that represents 51 % (2024: 43 %) of the total mortgage loan portfolio, is evaluated for credit losses based on inputs unique to this sector. This assessment utilizes historical credit loss experience adjusted to reflect current conditions and management forecasts. Further, collateral dependent commercial mortgage loans (e.g., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) are evaluated individually for credit losses. The allowance for expected credit losses for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan's underlying collateral, less selling cost when foreclosure is probable. Accordingly, any change in estimated credit losses is recognized as a change in the allowance for expected credit losses and is recorded in net investment gains (losses). At December 31, 2025, the Company's mortgage loan portfolio had an allowance for expected credit losses of $ 30 million (2024: $ 23 million). 143 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) e) Other Investments The following table provides a summary of the Company's other investments, together with additional information relating to the liquidity of each category: Fair value Redemption frequency (if currently eligible) Redemption notice period At December 31, 2025 Multi-strategy funds $ 11,577 1 % Quarterly 60 - 90 days Direct lending funds 186,747 18 % Quarterly (1) 90 days Private equity funds 364,376 36 % n/a n/a Real estate funds 291,491 28 % Quarterly (2) , Annually (3) 45 - 90 days Other privately held investments 173,607 17 % n/a n/a Total other investments $ 1,027,798 100 % At December 31, 2024 Multi-strategy funds $ 24,919 3 % Quarterly 60 - 90 days Direct lending funds 171,048 18 % Quarterly (1) 90 days Private equity funds 320,690 35 % n/a n/a Real estate funds 291,640 31 % Quarterly (2) , Annually (3) 45 - 90 days Other privately held investments 121,981 13 % n/a n/a Total other investments $ 930,278 100 % n/a – not applicable (1) Applies to one fund with a fair value of $ 2 million (2024: $ 3 million). (2) Applies to one fund with a fair value of $ 44 million (2024: $ 51 million). (3) Applies to one fund with a fair value of $ 24 million (2024: $ 21 million). The investment strategies for the above funds are as follows: • Multi-strategy funds : Seek to achieve above-market returns by pursuing multiple investment strategies to diversify risks and reduce volatility. This category includes funds of hedge funds which invest in a large pool of hedge funds across a diversified range of hedge fund strategies. • Direct lending funds : Seek to achieve attractive risk-adjusted returns, including current income generation, by investing in funds which provide financing directly to borrowers. • Private equity funds : Seek to achieve attractive risk-adjusted returns by investing in private transactions over the course of several years. • Real estate funds : Seek to achieve attractive risk-adjusted returns by making and managing investments in real estate and real estate securities and businesses. 144 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) Two common redemption restrictions which may impact the Company's ability to redeem multi-strategy funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the fund’s net assets which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. During 2025 and 2024, neither of these restrictions impacted the Company's redemption requests. At December 31, 2025, the Company had $ 30 million (2024: $ 28 million) of unfunded commitments as a limited partner in multi-strategy funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until after the completion of the funds' investment term. These funds have investment terms ranging from two years to the dissolution of the underlying fund. At December 31, 2025, there were no multi-strategy fund holdings (2024: nil ) where the Company is still within the lockup period. At December 31, 2025, the Company had $ 292 million (2024: $ 170 million) of unfunded commitments as a limited partner in direct lending funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until the completion of the fund's investment term. These funds have investment terms ranging from four to twelve years and the General Partners of certain funds have the option to extend the term by up to three years . At December 31, 2025, there was one direct lending fund holding (2024: nil ), with a fair value of $ 18 million (2024: $ nil ), where the Company is still within the lockup period. At December 31, 2025, the Company had $ 240 million (2024: $ 215 million) of unfunded commitments as a limited partner in private equity funds. The life of the funds is subject to the dissolution of the underlying funds. The Company expects the overall holding period to be over six years . At December 31, 2025, the Company had $ 105 million (2024: $ 91 million) of unfunded commitments as a limited partner in real estate funds. These funds include an open-ended fund and funds with investment terms ranging from two years to the dissolution of the underlying fund. At December 31, 2025, the Company had $ 16 million (2024: $ 21 million) of unfunded commitments as a limited partner in four private company investment funds focusing on financial services technology companies with an emphasis on insurance technology companies ("private company investment fun ds ") . Two of these funds have investment terms of five years , one fund has an investment term of ten years and one fund has an investment term of ten years with the option to extend the term by up to three years . f) Equity Method Investments The following table provides details of the Company's equity method investments: December 31, 2025 December 31, 2024 Carrying value Carrying value Equity method investments: Harrington Re $ 163,513 $ 163,933 Monarch Point Re 63,668 43,061 Total equity method investments $ 227,181 $ 206,994 145 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) Harrington Re During 2016, the Company paid $ 108 million including direct transaction costs to acquire 19 % of the common equity of Harrington Reinsurance Holdings Limited ("Harrington"), the parent company of Harrington Re Ltd. ("Harrington Re"), an independent reinsurance company jointly sponsored by the Company and The Blackstone Group L.P. ("Blackstone"). Following share tender offers in 2025 and 2024, the Company's ownership interest in Harrington increased to 23 % and 22 %, at December 31, 2025 and 2024, respectively. Through long-term service agreements, the Company serves as Harrington Re's reinsurance underwriting manager and Blackstone serves as exclusive investment management service provider. As an investor, the Company expects to benefit from underwriting profit generated by Harrington Re and the income and capital appreciation Blackstone seeks to deliver through its investment management services. In addition, the Company has entered into an arrangement with Blackstone under which underwriting and investment related fees will be shared equally. The Company accounts for its ownership interest in Harrington under the equity method of accounting. Retrocession Agreement with Harrington Re In the normal course of business, the Company enters into certain reinsurance transactions with Harrington Re. For the year ended December 31, 2025, the Company ceded reinsurance premiums of $ 209 million (2024: $ 218 million; 2023: $ 298 million) and ceded losses of $ 131 million (2024: $ 197 million; 2023: $ 229 million) to Harrington Re. In addition, Harrington Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2025, the amount of reinsurance recoverable on unpai d and paid losses was $ 814 million (2024: $ 884 million) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $ 131 million (2024: $ 181 million) in the consolidated balance sheets. This transaction was conducted at market rates consistent with negotiated arms-length contracts. During 2018, the Company entered into a quota share retrocessional agreement with Harrington Re which was deemed to have met the established criteria for retroactive reinsurance accounting. During 2024, the Company entered into a reinsurer novation and replacement agreement with Harrington Re and a third-party reinsurer with respect to this quota share retrocession contract. Monarch Point Re During 2023, the Company paid $ 22 million to acquire 18 % of the common equity of Monarch Point Re (ISAC) Ltd. and Monarch Point Re (ISA 2023) Ltd., a collateralized reinsurance company formed under the laws of Bermuda as an incorporated segregated accounts company under the Incorporated Segregated Accounts Companies Act 2019, as amended (the "ISAC Act"). During 2024, the Company paid $ 14 million to acquire 18 % of the common equity of Monarch Point Re (ISA 2024) Ltd. During 2025, the Company paid $ 11 million to acquire 18 % of the common equity of Monarch Point Re (ISA 2025) Ltd. Monarch Point Re is not a Variable Interest Entity ("VIE") that is required to be included in the Company's consolidated financial statements. The Company accounts for its ownership interest in Monarch Point Re under the equity method of accounting. The Company retrocedes a diversified portfolio of casualty reinsurance business to Monarch Point Re and Stone Point Credit Adviser LLC, a wholly owned subsidiary of Stone Point Capital, LLC ("Stone Point" refer to Note 18 ' Related Party Transactions ') serves as its investment manager. As an investor, the Company expects to benefit from underwriting fees generated by Monarch Point Re and the income and capital appreciation Stone Point seeks to deliver through its investment management services. For the year ended December 31, 2025, fees paid by Monarch Point Re to Stone Point Credit Adviser LLC were $ 2 million (2024: $ 1 million; 2023; $ 0.1 million). 146 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) Retrocession Agreement with Monarch Point Re On September 22, 2023 (the "closing date"), the Company entered into an agreement, with an effective date of January 1, 2023. The agreement covers losses both on a prospective basis and on a retroactive basis. Therefore, the Company has bifurcated the prospective and retroactive elements of the agreement and is accounting for each element separately. Retroactive element Reinsurance premiums of $ 119 million were allocated to the retroactive element of the agreement which was deemed to have met the established criteria for retroactive reinsurance accounting. At the closing date, the Company recognized acquisition costs of $ 33 million and a loss expense of $ 7 million in the consolidated statement of operations associated with the retroactive element of the agreement. In addition, the Company recognized reinsurance recoverable on unpaid losses of $ 76 million and reinsurance recoverable on paid losses of $ 4 million in the consolidated balance sheets associated with the retroactive element of the agreement (refer to Note 8 'Reserve for Losses and Loss Expenses'). Prospective element For the year ended December 31, 2025, the Company ceded reinsurance premiums of $ 328 million (2024: $ 323 million; 2023: $ 287 million) and ceded losses of $ 253 million (2024: $ 214 million; 2023: $ 37 million ) to Monarch Point Re. In addition, Monarch Point Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2025, the amount of reinsurance recoverable on unpaid and paid losses was $ 462 million (2024: $ 246 million) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $ 227 million (2024: $ 226 million) in the consolidated balance sheets. This transaction was conducted at market rates consistent with negotiated arms-length contracts. Loan Advances Made to Monarch Point Re During 2025, the Company advanced $ 227 million (2024: $ 253 million) to Monarch Point Re that was included in loan advances made in the Company’s consolidated balance sheets. Loan balances receivable from Monarch Point Re are settled against amounts due to Monarch Point Re under the aforementioned retrocession agreements and are treated as a non-cash activity in the consolidated statement of cash flows. The loan balance receivable at December 31, 2025 was $ 228 million (2024: $ 243 million). Loan advances made are expected to be repaid in full by May 15, 2027 (2024: May 15, 2026). Interest on these loans was payable in 2025 at interest rates between 4.3 % and 4.8 % (2024: interest rates between 4.7 % and 5.5 %). Interest related to these loans of $ 5 million (2024: $ 7 million) was received in advance and is included in other liabilities in the consolidated balance sheets. 147 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) The following table provides a summary of non-cash settlements with Monarch Point Re: Non-cash settlements with Monarch Point Re 2025 2024 2023 Loan advances made $ 153,579 $ 181,516 $ 50,072 Reinsurance recoverable on unpaid losses and loss expenses 59,141 31,936 4,207 Interest receivable on loan advances made 10,656 13,573 12,157 Net cash inflows $ 223,376 $ 227,025 $ 66,436 Insurance and reinsurance balances payable, net $ ( 223,376 ) $ ( 227,025 ) $ ( 66,436 ) Net cash outflows $ ( 223,376 ) $ ( 227,025 ) $ ( 66,436 ) g) Variable Interest Entities In the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by VIEs. These structured securities include RMBS, CMBS and ABS. The Company also invests in limited partnerships which represent 73 % of the Company's other investments. The investments in limited partnerships include multi-strategy funds, direct lending funds, private equity funds and real estate funds, that are variable interests issued by VIEs (refer to Note 5(e) ' Other Investments '). The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs. Therefore, the Company is not the primary beneficiary of these VIEs. The maximum exposure to loss on these interests is limited to the carrying value reported in the Company's consolidated balance sheets and its unfunded commitments of $ 612 million at December 31, 2025 (2024: $ 466 million). The Company has not provided financial or other support to these structured securities other than the original investment. h) Net Investment Income Net investment income was derived from the following sources: Year ended December 31, 2025 2024 2023 Fixed maturities $ 612,198 $ 620,704 $ 514,842 Other investments 69,275 48,666 20,411 Equity securities 13,593 12,922 12,088 Mortgage loans 23,587 34,028 35,312 Cash and cash equivalents 75,092 59,600 50,261 Short-term investments 3,136 12,569 8,924 Gross investment income 796,881 788,489 641,838 Investment expenses ( 29,978 ) ( 29,260 ) ( 30,096 ) Net investment income $ 766,903 $ 759,229 $ 611,742 148 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) i) Net Investment Gains (Losses) The following table provides an analysis of net investment gains (losses): Year ended December 31, 2025 2024 2023 Gross realized investment gains Fixed maturities, short-term investments, and cash and cash equivalents $ 81,559 $ 77,525 $ 32,920 Equity securities 40,102 32,292 16,847 Gross realized investment gains 121,661 109,817 49,767 Gross realized investment losses Fixed maturities, short-term investments, and cash and cash equivalents ( 106,130 ) ( 230,774 ) ( 158,080 ) Equity securities ( 11,590 ) ( 15,251 ) ( 639 ) Mortgage loans ( 4,950 ) ( 7,215 ) — Gross realized investment losses ( 122,670 ) ( 253,240 ) ( 158,719 ) (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 (2) ( 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 the Company intends to sell securities or it is more likely than not that the Company will be required to sell securities before their anticipated recovery. (2) Refer to Note 7 'Derivative Instruments'. The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale: Year ended December 31, 2025 2024 2023 Balance at beginning of period $ 3,938 $ 10,759 $ 11,733 Expected credit losses on securities where credit losses were not previously recognized 2,620 926 5,200 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized ( 1,000 ) ( 2,319 ) 4,934 Impairments of securities which the Company intends to sell or more likely than not will be required to sell — — — Securities sold/redeemed/matured ( 3,722 ) ( 5,428 ) ( 11,108 ) Balance at end of period $ 1,836 $ 3,938 $ 10,759 149 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on mortgage loans: Year ended December 31, 2025 2024 2023 Balance at beginning of period $ 23,378 $ 6,220 $ — Expected credit losses on loans where credit losses were not previously recognized 3,172 21,757 6,220 Additions (reductions) for expected credit losses on loans where credit losses were previously recognized 8,927 2,616 — Loans sold/redeemed/matured ( 5,735 ) ( 7,215 ) — Balance at end of period $ 29,742 $ 23,378 $ 6,220 Fixed Maturities The Company evaluates available for sale securities for expected credit losses when fair value is below amortized cost. If the Company intends to sell or will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income (loss). If the Company does not intend to sell or will not be required to sell the security before its anticipated recovery, an allowance for expected credit losses is established and the portion of the loss that relates to credit losses is recorded in net income (loss). A summary of credit loss activity by asset class, the significant inputs and the methodology used to estimate credit losses are described below. U.S. Government, U.S. Agency and U.S. Agency RMBS Unrealized losses on securities issued or backed, either explicitly or implicitly by the U.S. government are not analyzed for credit losses. The Company has concluded that the possibility of a credit loss on these securities is highly unlikely due to the explicit U.S. government guarantee related to certain securities (e.g., Government National Mortgage Association issuances) and the implicit guarantee related to other securities that has been validated by past actions (e.g., U.S. government bailout of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation during the 2008 credit crisis). Although these securities are not analyzed for credit losses, they are evaluated for intention to sell and likely requirement to sell. Non-U.S. Government Non-U.S. government securities are evaluated for expected credit losses primarily through qualitative assessments of the likelihood of credit losses using information such as severity of unrealized losses, credit ratings and price volatility. At December 31, 2025, the gross unrealized losses of $ 3 million includ ed foreign exchange losses of $ 1 million. At December 31, 2024 , the gross unrealized losses of $ 26 million includ ed foreign exchange losses of $ 19 million . At December 31, 2025 and 2024, the Company determined that an allowance for expected credit losses on non-U.S.government securities was not required. Corporate Debt To estimate expected credit losses for corporate debt securities, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, probability of default and projected recovery rates. The Company's default and loss severity rates are based on credit rating, credit analysis and macroeconomic forecasts. At December 31, 2025 and 2024, corporate debt had an allowance for expected credit losses of $ 2 million (2024: $ 4 million) mainly related to loss severity where the forecasted recovery to amortized cost was uncertain. 150 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) CMBS The Company's investments in CMBS are diversified and primarily rated AA or better. At December 31, 2025, CMBS had a weighted average estimated subordination percentage of 32 % (2024: 34 %). Based on discounted cash flows at December 31, 2025 and 2024 , the current level of subordination is sufficient to cover the estimated loan losses on the underlying collateral of the CMBS. At December 31, 2025 and 2024, the Company determined that an allowance for expected credit losses on CMBS was not required. Non-agency RMBS To estimate expected credit losses for non-agency RMBS , the Company's projected c ash flows incorporated underlying data from widely accepted third-party data sources along with certain internal assumptions and judgments regarding the future performance of the security. These assumptions included default, delinquency, loss severity and prepayment rates. At December 31, 2025, the fair value of the Company's non-agency RMBS was $ 190 million (2024: $ 123 million), consisting primarily of $ 16 million (2024: $ 15 million) of Prime and $ 162 million (2024: $ 92 million) of Alt-A, Non-qualified, and Home Equity MBS . At December 31, 2025 and 2024, non-agency RMBS had an allowance for expected credit losses of $ 0.2 million (2024: $ 0.2 million) related to loss severity where the forecasted recovery to amortized cost is uncertain. ABS The Company's investments in ABS consist mainly of CLO Debt purchased primarily as new issues between 2018 and 2025. Substantially all of these new issues had credit ratings of AA or better. The Company utilizes a scenario-based approach to review its CLO Debt portfolio based on the current asset market price. The Company also reviews subordination levels of these securities to determine their ability to absorb credit losses of underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At December 31, 2025 and 2024 , ABS had an allowance for expected credit losses of $ 0.1 million (2024: $ 0.1 million) related to loss severity where the forecasted recovery to amortized cost is uncertain. Municipals Municipal securities are evaluated for expected credit losses primarily through qualitative assessments of the likelihood of credit losses using information such as severity of unrealized losses, credit ratings and price volatility. At December 31, 2025 and 2024, the Company determined that an allowance for expected credit losses on municipal securities was not required. 151 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 5. INVESTMENTS (CONTINUED) j) Restricted Assets In order to support the Company's obligations in regulatory jurisdictions where it operates as a non-admitted carrier, the Company provides collateral in the form of assets held in trust and, to a lesser extent, letters of credit (refer to Note 10(c) ' Debt and Financing Arrangement s'). The Company's restricte d investments and cash pr imarily consist of high-quality fixed maturity and short-term investment securities. The table below provides the fair values of the Company's restr icted investments and cash: At December 31, 2025 2024 Collateral in trust for inter-company agreements $ 2,820,416 $ 2,549,220 Collateral for secured letter of credit facility 184,651 208,090 Funds at Lloyd's 1,069,623 883,362 Collateral in trust for third-party agreements 2,481,821 2,602,306 Securities on deposit or in trust with regulatory authorities 747,100 632,268 Total restricted investments and cash $ 7,303,611 $ 6,875,246 k ) Reverse Repurchase Agreements At December 31, 2025, the Company held $ 14 million (2024: $ 543 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents in the Company's consolidated balance sheets. The required collateral for these loans is either cash or U.S. Treasuries at a minimum rate of 102 % of the loan principal. Upon maturity, the Company receives principal and interest income. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. 152 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS Fair Value Hierarchy Fair value is defined as the price to sell an asset or transfer a liability (i.e., the "exit price") in an orderly transaction between market participants. U.S. GAAP prescribes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. The hierarchy is broken down into three levels as follows: • Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The unobservable inputs reflect the Company's judgments about assumptions that market participants might use. The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for financial instruments categorized as Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This may lead the Company to change the selection of valuation technique (from market to cash flow approach) or may cause the Company to use multiple valuation techniques to estimate the fair value of a financial instrument. This circumstance could cause an instrument to be reclassified between levels within the fair value hierarchy. Valuation Techniques The valuation techniques, including significant inputs and assumptions generally used to determine the fair values of the Company's financial instruments as well as the classification of the fair values of its financial instruments in the fair value hierarchy are described in detail below. Fixed Maturities At each valuation date, the Company uses the market approach valuation technique to estimate the fair value of its fixed maturities portfolio, where possible. The market approach includes, but is not limited to, prices obtained from third-party pricing services for identical or comparable securities and the use of "pricing matrix models" using observable market inputs such as yield curves, credit risks and spreads, measures of volatility, and prepayment speeds. Pricing from third-party pricing services is sourced from multiple vendors, where available, and the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Where prices are unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers who are active in the corresponding markets. The valuation techniques including significant inputs and assumptions generally used to determine the fair values of the Company's fixed maturities by asset class as well as the classifications of the fair values of these securities in the fair value hierarchy are described in detail below. 153 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) U.S. Government and Agency U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. As the fair values of U.S. Treasury securities are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. The fair values of U.S. government agency securities are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2. 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). The fair values of these securities are based on prices obtained from international indices or valuation models that include inputs such as interest rate yield curves, cross-currency basis index spreads and country credit spreads for structures similar to the sovereign bond in terms of issuer, maturity and seniority. As the significant inputs used to price these securities are observable market inputs, the fair values of non-U.S. government securities are classified as Level 2. Corporate Debt Corporate debt securities consist primarily of investment grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of corporate debt securities are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. Agency RMBS Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. The fair values of these securities are priced using a mortgage pool specific model which uses daily inputs from the active to be announced market and the spread associated with each mortgage pool based on vintage. As the significant inputs used to price these securities are observable market inputs, the fair values of Agency RMBS are classified as Level 2. CMBS CMBS mainly include investment grade bonds originated by non-agencies. The fair values of these securities are determined using a pricing model which uses dealer quotes and other available trade information along with security level characteristics to determine deal specific spreads. As the significant inputs used to price these securities are observable market inputs, the fair values of CMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. I n this event, the fair values of these securities are classified as Level 3. 154 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) Non-agency RMBS Non-agency RMBS mainly include investment grade bonds originated by non-agencies. The fair values of these securities are determined using an option adjusted spread model or other relevant models, which use inputs including available trade information or broker quotes, prepayment and default projections based on historical statistics of the underlying collateral and current market data. As the significant inputs used to price these securities are observable market inputs, the fair values of non-agency RMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. ABS 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. The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, the fair values of ABS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers t o estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. Municipals Municipals comprise revenue bonds and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair values of these securities are determined using spreads obtained from the new issue market, trade prices and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, the fair values of municipals are classified as Level 2. Equity Securities Equity securities include common stocks, preferred stocks, exchange-traded funds and bond mutual funds. As the fair values of common stocks, exchange-traded funds and exchange listed preferred stocks are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. As the significant inputs used to price non-exchange listed preferred stocks are observable market inputs, the fair value of these securities are classified as Level 2. As bond mutual funds have daily liquidity, the fair values of these securities are classified as Level 2. Other Investments Other privately held investments include common shares, preferred shares, convertible notes, convertible preferred shares, a variable yield security and private company investment funds. 155 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) These investments are initially valued at cost, which approximates fair value. In subsequent measurement periods, the fair values of these investments are generally derived from one or a combination of valuation methodologies which consider factors including recent capital raises by the investee companies, comparable precedent transaction multiples, comparable publicly traded multiples, third-party valuations, discounted cash-flow models, and other techniques that consider the industry and development stage of each investee company. The fair value of the variable yield security is determined using an externally developed discounted cash flow model. In order to assess the reasonableness of the information received from investee companies, the Company maintains an understanding of current market conditions, historical results, and emerging trends that may impact the results of operations, financial condition or liquidity of these companies. In addition, the Company engages in regular communication with management at investee companies. As the significant inputs used to price these investments are unobservable, the fair values of other privately held investments are classified as Level 3. The fair values of private company investment funds are estimated using net asset valuations ("NAVs") as advised by external fund managers or third-party administrators. Short-term Investments Short-term investments primarily comprise highly liquid securities with maturities greater than three months but less than one year from the date of purchase. These securities are typically not actively traded due to their approaching maturity, therefore their amortized cost approximates fair value. The fair values of short-term investments are classified as Level 2. Derivative Instruments Derivative instruments include foreign exchange forward contracts that are customized to the Company's economic hedging strategies and trade in the over-the-counter derivative market. The fair values of these derivatives are determined using a market approach valuation technique based on significant observable market inputs from third-party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. As the significant inputs used to price these derivatives are observable market inputs, the fair values of these derivatives are classified as Level 2. 156 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 2025 Assets Fixed maturities, available for sale U.S. government and agency $ 2,385,085 $ 32,816 $ — $ — $ 2,417,901 Non-U.S. government — 810,544 — — 810,544 Corporate debt — 5,033,161 189,272 — 5,222,433 Agency RMBS — 2,035,352 — — 2,035,352 CMBS — 801,511 — — 801,511 Non-agency RMBS — 190,124 — — 190,124 ABS — 1,448,711 39,356 — 1,488,067 Municipals — 52,095 — — 52,095 2,385,085 10,404,314 228,628 — 13,018,027 Equity securities Common stocks 13,695 — — — 13,695 Preferred stocks 14,239 6,072 — — 20,311 Exchange-traded funds 401,757 — — — 401,757 Bond mutual funds — 271,806 — — 271,806 429,691 277,878 — — 707,569 Other investments Multi-strategy funds — — — 11,577 11,577 Direct lending funds — — — 186,747 186,747 Private equity funds — — — 364,376 364,376 Real estate funds — — — 291,491 291,491 Other privately held investments — — 123,925 49,682 173,607 — — 123,925 903,873 1,027,798 Short-term investments — 20,298 — — 20,298 Other assets Derivative instruments (refer to Note 7) — 930 — — 930 Total Assets $ 2,814,776 $ 10,703,420 $ 352,553 $ 903,873 $ 14,774,622 Liabilities Derivative instruments (refer to Note 7) $ — $ 8,859 $ — $ — $ 8,859 Total Liabilities $ — $ 8,859 $ — $ — $ 8,859 157 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 2024 Assets Fixed maturities, available for sale U.S. government and agency $ 2,767,315 $ 35,671 $ — $ — $ 2,802,986 Non-U.S. government — 729,939 — — 729,939 Corporate debt — 4,715,799 126,391 — 4,842,190 Agency RMBS — 1,184,845 — — 1,184,845 CMBS — 819,608 — — 819,608 Non-agency RMBS — 122,536 — — 122,536 ABS — 1,519,000 20,832 — 1,539,832 Municipals — 110,817 — — 110,817 2,767,315 9,238,215 147,223 — 12,152,753 Equity securities Common stocks 2,638 — — — 2,638 Preferred stocks 3 5,864 — — 5,867 Exchange-traded funds 314,042 — — — 314,042 Bond mutual funds — 256,727 — — 256,727 316,683 262,591 — — 579,274 Other investments Multi-strategy funds — — — 24,919 24,919 Direct lending funds — — — 171,048 171,048 Private equity funds — — — 320,690 320,690 Real estate funds — — — 291,640 291,640 Other privately held investments — — 92,230 29,751 121,981 — — 92,230 838,048 930,278 Short-term investments — 223,666 — — 223,666 Other assets Derivative instruments (refer to Note 7) — 9,439 — — 9,439 Total Assets $ 3,083,998 $ 9,733,911 $ 239,453 $ 838,048 $ 13,895,410 Liabilities Derivative instruments (refer to Note 7) $ — $ 3,100 $ — $ — $ 3,100 Total Liabilities $ — $ 3,100 $ — $ — $ 3,100 158 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) The following table presents changes in Level 3 for financial instruments measured at fair value on a recurring basis: Opening balance Transfers into Level 3 Transfers out of Level 3 Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ distributions Closing balance Change in unrealized gains/(losses) (3) Year ended December 31, 2025 Fixed maturities, available for sale Corporate debt $ 126,391 $ — $ — $ 252 $ 1,843 $ 84,228 $ ( 2,072 ) $ ( 21,370 ) $ 189,272 $ — ABS 20,832 — — — 1,188 17,336 — — 39,356 — 147,223 — — 252 3,031 101,564 ( 2,072 ) ( 21,370 ) 228,628 — Other investments CLO-Equities — — — — — — — — — — Other privately held investments 92,230 — — 7,799 — 40,232 — ( 16,336 ) 123,925 6,374 92,230 — — 7,799 — 40,232 — ( 16,336 ) 123,925 6,374 Total assets $ 239,453 $ — $ — $ 8,051 $ 3,031 $ 141,796 $ ( 2,072 ) $ ( 37,706 ) $ 352,553 $ 6,374 Year ended December 31, 2024 Fixed maturities, available for sale Corporate debt $ 135,753 $ — $ ( 20,832 ) $ ( 1,347 ) $ 2,051 $ 35,744 $ ( 165 ) $ ( 24,813 ) $ 126,391 $ — ABS — 20,832 — — — — — — 20,832 — 135,753 20,832 ( 20,832 ) ( 1,347 ) 2,051 35,744 ( 165 ) ( 24,813 ) 147,223 — Other investments CLO-Equities 5,300 — — 849 — — — ( 6,149 ) — — Other privately held investments 87,289 — ( 6,899 ) 4,024 — 12,238 — ( 4,422 ) 92,230 4,024 92,589 — ( 6,899 ) 4,873 — 12,238 — ( 10,571 ) 92,230 4,024 Total assets $ 228,342 $ 20,832 $ ( 27,731 ) $ 3,526 $ 2,051 $ 47,982 $ ( 165 ) $ ( 35,384 ) $ 239,453 $ 4,024 (1) Realized gains (losses) on fixed maturities and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). (3) Change in unrealized gains (losses) relating to assets and liabilities held at the reporting date. 159 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) Transfers into Level 3 from Level 2 There were no transfers into Level 3 from Level 2 during 2025 and 2024. Transfers out of Level 3 into Level 2 There were no transfers out of Level 3 into Level 2 during 2025 and 2024. During 2024 there was a change in an asset classification that resulted in a Level 3 corporate bond being reclassified as a Level 3 ABS. Other Transfers out of Level 3 During 2024, one private company inv estment fund included in other privately held investments in the consolidated balance sheets was transferred from Level 3 to the NAV practical expedient. Measuring the Fair Value of Other Investments Using Net Asset Valuations The fair values of multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds are estimated using NAVs as advised by external fund managers or third-party administrators. For these funds, NAVs are based on the manager's or administrator's valuation of the underlying holdings in accordance with the fund's governing documents and in accordance with U.S. GAAP. For multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds, valuation statements are typically released on a reporting lag. Therefore, the Company estimates the fair value of these funds by starting with the most recent fund valuations and adjusting for capital calls, redemptions, drawdowns and distributions. Return estimates are not available from the relevant fund managers for these funds, therefore the Company typically has a reporting lag in its fair value measurements of these funds. At December 31, 2025 and 2024, all funds measured at fair value using NAVs are reported generally on a one quarter lag. The Company often does not have access to financial information relating to the underlying securities held within the funds, therefore, management is unable to corroborate the fair values placed on the securities underlying the asset valuations provided by fund managers or fund administrators. In order to assess the reasonableness of the NAVs, the Company performs a number of monitoring procedures on a quarterly basis, to assess the quality of the information provided by fund managers and fund administrators. These procedures include, but are not limited to, regular review and discussion of each fund's performance with its manager, regular evaluation of fund performance against applicable benchmarks and the backtesting of the Company's fair value estimates against subsequently received NAVs. Backtesting involves comparing the Company's previously reported fair values for each fund against NAVs per audited financial statements (for year-end values) and final NAVs from fund managers and fund administrators (for interim values). The fair values of multi-strategy funds, direct lending funds, private equity funds, real estate funds and private company investment funds, are measured using the NAV practical expedient, therefore the fair values of these funds have not been categorized within the fair value hierarchy. 160 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 6. FAIR VALUE MEASUREMENTS (CONTINUED) Financial Instruments Disclosed, But Not Carried, at Fair Value The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments, including insurance contracts. At December 31, 2025, the carrying values of cash and cash equivalents including restricted amounts, accrued investment income, receivable for investments sold, certain other assets, payable for investments purchased and certain other liabilities approximated fair values due to their short maturities. As these financial instruments are not actively traded, their fair values are classified as Level 2. At December 31, 2025, the Company's fixed maturities, held to maturity, were recorded at amortized cost with a carrying value of $ 397 million (2024: $ 443 million) and a fair value of $ 396 million (2024: $ 437 million). The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, their fair values are classified as Level 2. At December 31, 2025, the carrying value of mortgage loans, held for investment, approximated fair value. The fair values of mortgage loans are primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk or are determined from pricing for similar loans. As mortgage loans are not actively traded, their fair values are classified as Level 3. At December 31, 2025, the Company's debt was recorded at amortized cost with a carrying value of $ 1,317 million (2024: $ 1,315 million) and a fair value of $ 1,293 million (2024: $ 1,247 million). The fair value of the Company's debt is based on prices obtained from a third-party pricing service and is determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair value of this debt is classified as Level 2. At December 31, 2025, Federal Home Loan Bank advances were recorded at amortized cost with a carrying value of $ 66 million (2024: $ 66 million) and a fair value of $ 66 million (2024: $ 66 million). As these advances are not actively traded, their fair values are classified as Level 2. 161 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 7. DERIVATIVE INSTRUMENTS The following table provides the balance sheet classifications of derivatives recorded at fair value: December 31, 2025 December 31, 2024 Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 9,583 $ — $ 181 $ 17,655 $ 323 $ — Relating to underwriting portfolio: Foreign exchange forward contracts 1,425,737 930 8,678 1,323,714 9,116 3,100 Total derivatives $ 930 $ 8,859 $ 9,439 $ 3,100 (1) Derivative assets and derivative liabilities are classified within other assets and other liabilities in the consolidated balance sheets. The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges. Offsetting Assets and Liabilities The Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements: December 31, 2025 December 31, 2024 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 3,126 $ ( 2,196 ) $ 930 $ 20,067 $ ( 10,628 ) $ 9,439 Derivative liabilities $ 11,055 $ ( 2,196 ) $ 8,859 $ 13,728 $ ( 10,628 ) $ 3,100 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. Refer to Note 5 'Investments' for information on reverse repurchase agreements. a) Relating to Investment Portfolio Foreign Currency Risk The Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign currency exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. 162 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 7. DERIVATIVE INSTRUMENTS (CONTINUED) b) Relating to Underwriting Portfolio Foreign Currency Risk The Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures. The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges: Consolidated statement of operations line item that includes gain (loss) recognized in net income (loss) Amount of gain (loss) recognized in net income (loss) 2025 2024 2023 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ ( 1,275 ) $ 1,783 $ ( 1,456 ) Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange (losses) gains ( 3,439 ) 13,399 8,121 Total $ ( 4,714 ) $ 15,182 $ 6,665 163 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES Reserving Methodology Sources of Information The Company's loss reserving process begins with the collection and analysis of paid and incurred claim data for each of the Company's segments. The segment data is disaggregated by reserve class and further disaggregated by underwriting year and accident year. Underwriting year or accident year information is used to analyze the Company's business and to estimate reserves for losses and loss expenses. Reserve classes are reviewed to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. The Company's reserve classes are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim data serves as a key input to many of the methods employed by the Company's actuaries. Actuarial Analysis Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all reserve classes. The relative strengths and weaknesses of the specific estimation methods when applied to a particular group of claims can also change over time. The following is a brief description of the reserve estimation methods commonly employed by the Company's actuaries including a discussion of their strengths and weaknesses: • Expected Loss Ratio Method ("ELR Method") : This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio ("ELR") to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry benchmark information, adjusted as appropriate, to reflect premium rate changes, loss and exposure trends, and terms and conditions. This method is insensitive to actual paid or incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when few losses have been incurred. Conversely, the lack of sensitivity to paid or incurred losses for the accident year or underwriting year in question means that this method is usually inappropriate in later stages of an accident year or underwriting year’s development. • Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method") : This method assumes that the losses paid or incurred for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses paid or incurred at the same point in time after the inception of that year. The percentages paid or incurred are established for each development stage (e.g., 12 months, 24 months, etc.) after examining averages from historical loss development data and/or, in limited instances, industry benchmark information. Ultimate losses are then estimated by multiplying the actual paid or incurred losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, among other things. Furthermore, this method tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year. 164 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) • Bornhuetter-Ferguson Method ("BF Method") : This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more responsive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information. As part of the loss reserving process, the Company's actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each reserve class and accident year or underwriting year combination. Often, this is a blend (i.e., weighted average) of the results of two or more appropriate actuarial methods. These ultimate loss estimates are generally utilized to evaluate the adequacy of ultimate loss estimates for previous accident or underwriting years, established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, initial estimates for an accident or underwriting year are generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines. The initial ELR for each reserve class is established by the Company's actuaries at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmark information, adjusted after considering factors such as loss and exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions. Key Actuarial Assumptions The use of the above actuarial methods requires the Company to make certain explicit assumptions, the most significant of which are expected loss ratios and loss development patterns and the Company relies on historical loss experience in establishing these assumptions. In establishing expected loss ratios for the insurance segment, consideration is given to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and the Company's underwriters’ view of terms and conditions in the market environment. For the reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by the Company's underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience for some reserve classes as compiled and analyzed by an independent actuarial firm is also considered, as appropriate. Reserving for Catastrophic Events The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. The magnitude and complexity of losses associated with certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from the Company's current estimates. 165 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Net reserves for losses and loss expenses related to catastrophes represent the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2025. The determination of these net reserves for losses and loss expenses is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially have been impacted by the catastrophic event. This in-depth analysis may rely on several sources of information including: • estimates of the size of insured industry losses from the catastrophic event and the Company's corresponding market share; • a review of the Company's portfolio of contracts to identify those contracts which may be exposed to the catastrophic event; • a review of the Company's claims notifications • a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; • a review of the coverage provided by the Company's ceded reinsurance; • discussions of the impact of the event with customers and brokers; and • catastrophe bulletins published by various independent statistical reporting agencies. A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from these catastrophic events. While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2025 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for these events may ultimately differ materially from the Company's current estimates. Selection of Reported Reserves – Management’s Best Estimate The Company's loss reserving process involves the collaboration of its underwriting, claims, actuarial, ceded reinsurance and finance departments, including multiple committee meetings and culminates with the approval of a single point best estimate by the Company's Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to, the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of Company historical loss data versus industry benchmark information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established. Reserve for Losses and Loss Expenses Reserve for losses and loss expenses comprise the following: At December 31, 2025 2024 Reserve for reported losses and loss expenses $ 5,797,152 $ 5,433,903 Reserve for losses incurred but not reported 12,325,104 11,785,026 Reserve for losses and loss expenses $ 18,122,256 $ 17,218,929 166 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reserve Roll-forward The following table presents a reconciliation of the Company's beginning and ending gross reserves for losses and loss expenses and net reserves for unpaid losses and loss expenses: Year ended December 31, 2025 2024 2023 Gross reserve for losses and loss expenses, beginning of year $ 17,218,929 $ 16,434,018 $ 15,168,863 Less reinsurance recoverable on unpaid losses and loss expenses, beginning of year ( 6,840,897 ) ( 6,323,083 ) ( 5,831,172 ) Net reserve for unpaid losses and loss expenses, beginning of year 10,378,032 10,110,935 9,337,691 Net incurred losses and loss expenses related to: Current year 3,375,504 3,182,810 2,981,220 Prior years ( 86,963 ) ( 24,323 ) 411,882 3,288,541 3,158,487 3,393,102 Net paid losses and loss expenses related to: Current year ( 592,308 ) ( 538,709 ) ( 488,016 ) Prior years ( 2,554,334 ) ( 2,360,100 ) ( 2,185,588 ) ( 3,146,642 ) ( 2,898,809 ) ( 2,673,604 ) Foreign exchange and other 286,994 ( 110,280 ) 126,275 Ceded reserves related to retroactive transactions ( 1,636,432 ) 117,699 ( 72,529 ) ( 1,349,438 ) 7,419 53,746 Net reserve for unpaid losses and loss expenses, end of year 9,170,493 10,378,032 10,110,935 Reinsurance recoverable on unpaid losses and loss expenses, end of year 8,951,763 6,840,897 6,323,083 Gross reserve for losses and loss expenses, end of year $ 18,122,256 $ 17,218,929 $ 16,434,018 The Company writes business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in its financial results. During 2025, 2024 and 2023, the Company recognized catastrophe and weather-related losses, net of reinstatement premiums, of $ 159 million, $ 226 million and $ 138 million. On April 24, 2025, the Company completed a loss portfolio transfer reinsurance agreement ("LPT agreement") with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") which was deemed to have met the established criteria for retroactive reinsurance accounting (refer to Note 9 ' Reinsurance' and Note 18 ' Related Party Transactions' ). At December 31, 2025 , foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $ 1.8 billion related to this transaction. On September 22, 2023, the Company entered into a retrocession reinsurance agreement with a third-party reinsurer which was deemed to have met the established criteria for retroactive reinsurance accounting. At December 31, 2023, foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $ 74 million related to this transaction. 167 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Estimates for Catastrophe Events At December 31, 2025, net reserves for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include California Wildfires, the Middle Eastern Conflict and Hurricane Melissa in 2025, and Hurricane Milton and Hurricane Helene in 2024. As a result, actual losses for these events may ultimately differ materially from the Company's current estimates. Prior Year Reserve Development The Company's net favorable (adverse) prior year reserve development arises from changes to estimates for losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net favorable (adverse) prior year reserve development by segment: Favorable (Adverse) Insurance Reinsurance Total Year ended December 31, 2025 $ 66,975 $ 19,988 $ 86,963 Year ended December 31, 2024 $ 16,209 $ 8,114 $ 24,323 Year ended December 31, 2023 $ ( 176,353 ) $ ( 235,529 ) $ ( 411,882 ) The following sections provide further details on net favorable (adverse) prior year reserve development by segment, reserve class and accident year. Insurance Segment : The following table maps the Company's lines of business to reserve classes: Insurance segment Reserve class Property Casualty Specialty other Reported lines of business Property X Professional lines X Liability X Cyber X Marine and aviation X Accident and health X Credit and political risk X Prior year reserve development by reserve class was as follows: Favorable (Adverse) Years ended December 31, 2025 2024 2023 Property $ 37,891 $ 17,718 $ 16,195 Casualty — — ( 240,980 ) Specialty other 29,084 ( 1,509 ) 48,432 Total $ 66,975 $ 16,209 $ ( 176,353 ) 168 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) In 2025, we recognized $ 67 million of net favorable prior year reserve development, the principal components of which were: • $ 38 million of net favorable prior year reserve development on property business. • $ 29 million of net favorable prior year development on the specialty other reserve class primarily due to better than expected loss emergence attributable to the credit and political risk line of business and the accident and health line of business. In 2024, we recognized $ 16 million of net favorable prior year reserve development, the principal components of which were: • $ 18 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence mainly related to the 2022 accident year. • $ 2 million of net adverse prior year development on the specialty other reserve class including : ◦ $ 11 million of net adverse prior year reserve development attributable to the marine and aviation line of business due to an increase in the loss estimate attributable to a specific large claim related to the 2019 accident year. ◦ $ 5 million of net favorable prior year reserve development attributable to credit and political risk line of business due to better than expected loss emergence related to 2013 and older accident years and 2019 through 2022 accident years. ◦ $ 4 million of net favorable prior year reserve development attributable to accident and health line of business due to better than expected loss emergence attributable to pet insurance business. In 2023 , we recognized $ 176 million of net adverse prior year reserve development, the principal components of which were: • $ 241 million of net adverse prior year reserve development on the casualty reserve class including : ◦ $ 235 million of net adverse prior year development attributable to the liability line of business due to reserve strengthening within the U.S. primary casualty book of business mainly related to 2022 and older accident years and U.S. programs books of business mainly related to 2017 through 2022 accident years associated with updated trend assumptions, emerging development patterns and new industry data reflecting the impact of current economic and social inflation trends in the U.S. casualty market. ◦ $ 41 million of n et adverse prior year development attributable to professional lines business primarily due to reserve strengthening within the U.S. financial institutions, U.S. commercial management solutions, U.S. design professional and environmental, and the international book of business related to 2019 and older accident years, and increases in loss estimates attributable to specific large claims within the international book of business related to 2012 and older accident years. ◦ $ 36 million of net favorable prior year reserve development attributable to the cyber line of business due to better than expected loss emergence related to most accident years, partially offset by increases in loss estimates attributable to specific large claims related to the 2020 accident year. • $ 48 million of net favorable prior year reserve development on the specialty other reserve class including : ◦ $ 32 million of net favorable prior year reserve development attributable to the credit and political risk line of business primarily due to a decrease in the loss estimate attributable to a specific large claim related to the 2020 accident year and better than expected loss emergence related to several accident years. ◦ $ 27 million of net favorable prior year reserve development attributable to the marine and aviation line of business primarily due to better than expected loss emergence attributable to the marine cargo and aviation books of business related to several accident years and better than expected loss emergence attributable to several catastrophe events. ◦ $ 10 million of net adverse prior year reserve development attributable to the accident and health line of business primarily due to reserve strengthening within the international book of business mainly related to the 2021 and 2022 accident years. 169 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) • $ 16 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence mainly related to 2017 through 2019 accident years and better than expected loss emergence attributable to 2022 catastrophe events, partially offset by increases in loss estimates attributable to two specific large claims within the E&S book of business related to the 2016 and 2022 accident years. Reinsurance Segment : The following table maps the Company's lines of business to reserve classes: Reinsurance segment Reserve class Casualty Specialty Run-off Reported lines of business Liability X Professional lines X Motor X Accident and health X Credit and surety X Agriculture X Marine and aviation X Catastrophe X Property X Engineering X Prior year reserve development by reserve class was as follows: Favorable (Adverse) Years ended December 31, 2025 2024 2023 Casualty $ — $ — $ ( 363,948 ) Specialty 19,863 8,114 61,629 Run-off 125 — 66,790 Total $ 19,988 $ 8,114 $ ( 235,529 ) In 2025, we recognized $ 20 million of net favorable prior year reserve development, the principal components of which were: • $ 20 million of net favorable prior year reserve development on the specialty reserve class primarily due to better than expected loss emergence attributable to the agriculture line of business and the accident and health line of business. In 2024, we recognized $ 8 million of net favorable prior year reserve development, the principal components of which were: • $ 8 million of net favorable prior year reserve development on the specialty reserve class including: ◦ $ 4 million attributable to the marine and aviation line of business due to better than expected loss emergence mainly related to the 2022 accident year. ◦ $ 4 million attributable to the credit and surety line of business due to better than expected loss emergence attributable to the mortgage book of business mainly related to the 2020 accident year. 170 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) In 2023, we rec ognized $ 236 million of net adverse prior year reserve development, the principal components of which were: • $ 364 million of ne t adverse prior year reserve development on the casualty reserve class including: ◦ $ 262 million of net adverse prior year reserve development attributable to the liability line of business due to reserve strengthening within the U.S. casualty and U.S. multiline/regional books of business related to all accident years associated with updated trend assumptions, emerging development patterns and new industry data reflecting the impact of current economic and social inflation trends in the U.S. casualty market. ◦ $ 92 million of net adverse prior year reserve development attributable to professional lines business due to reserve strengthening within the U.S. proportional book of business mainly related to 2019 and older accident years, partially offset by better than expected loss emergence mainly related to the 2021 and 2022 accident years. ◦ $ 10 million of net adverse prior year reserve development attributable to the motor line of business due to reserve strengthening to reflect increased estimates of future loss trend due to inflation and reserve strengthening attributable to the proportional book of business mainly related to 2018 through 2022 accident years. • $ 62 million of net favorable prior year reserve development on the specialty reserve class including: ◦ $ 30 million of net favorable prior year reserve development attributable to the accident and health line of business primarily due to better than expected loss emergence mainly related to 2018 through 2021 accident years. ◦ $ 13 million of net favorable prior year reserve development attributable to the marine and aviation line of business primarily due to better than expected loss emergence mainly related to the 2021 and 2022 accident years. ◦ $ 11 million of net favorable prior year reserve development attributable to the agriculture line of business primarily due to better than expected loss emergence mainly related to the 2022 accident year. ◦ $ 8 million of net favorable prior year reserve development attributable to the credit and surety line of business due to better than expected loss emergence attributable to the international credit and mortgage books of business mainly related to the 2018 and 2019 accident years and the 2021 and 2022 accident ye ars, partially offset by increases in loss estimates attributable to specific large claims related to the 2020 accident year. • $ 67 million of net favorable prior year reserve development on the run-off reserve class including: ◦ $ 46 million of net favorable prior year reserve development attributable to the catastrophe line of business due to better than expected loss emergence mainly attributable to 2022 catastrophe events. ◦ $ 15 million of net favorable prior year reserve development attributable to the property line of business due to better than expected loss emergence mainly attributable to 2022 catastrophe events. ◦ $ 5 million of net favorable prior year reserve development attributable to the engineering line of business due to better than expected loss emergence mainly related to older accident years. 171 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Net Incurred and Paid Claims Development Tables by Accident Year The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and average annual percentage payout of incurred claims by age for each reserve class. The loss development tables are presented on an accident year basis for each reserve class in the insurance and reinsurance segments. The Company does not discount reserves for losses and loss expenses. Non-U.S. dollar denominated loss data is converted to U.S. dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies which results in all historical U.S. dollar amounts being presented on a constant-dollar basis. The approach shows prior year loss development exclusive of the effect of fluctuations in foreign currency exchange rates, which would otherwise distort the change in incurred losses and loss expenses and cash flow patterns. The change in incurred losses and loss expenses presented in these loss development tables differs from other U.S. GAAP disclosures of prior year reserve development amounts, which include the effect of fluctuations in exchanges rates. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using the rates of exchange in effect at the balance sheet date. There are many considerations in establishing net reserves for losses and loss expenses. An attempt to evaluate net reserves for losses and loss expenses using solely the paid losses and claim counts presented in these tables could be misleading. When projecting net reserves for losses and loss expenses, the Company relies on several inputs in addition to the information presented in this disclosure including case incurred loss projections, changes in mix of business, external trends, and additional qualitative information. The Company cautions against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure. Insurance Segment The reporting of cumulative claims frequency for the reserve classes within the insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each reserve class. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available, therefore reporting of claims frequency is deemed to be impracticable. Insurance Property The property reserve class provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property as well as physical damage and business interruption following an act of terrorism. Cover is provided on an occurrence basis and some risks are catastrophe-exposed. In general, reporting and payment patterns are relatively short although they can be volatile due to the incidence of catastrophe events. 172 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Insurance property Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Cumulative number of reported claims Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 264,194 $ 289,213 $ 280,512 $ 266,055 $ 260,134 $ 261,503 $ 260,917 $ 266,033 $ 265,364 $ 268,320 $ 843 6,694 2017 797,170 704,795 693,194 683,764 679,915 680,251 674,933 673,117 675,382 13,782 10,124 2018 614,321 645,557 624,664 616,929 616,102 606,842 600,785 600,610 303 9,711 2019 379,574 370,018 369,591 379,696 363,589 363,928 366,073 5,127 9,653 2020 669,832 644,624 594,489 603,112 608,297 614,552 9,645 12,562 2021 380,914 378,525 375,290 375,209 378,089 6,870 8,002 2022 417,271 421,974 406,032 407,847 18,306 7,813 2023 402,022 400,748 369,344 56,469 7,354 2024 545,712 525,040 151,212 7,941 2025 585,269 280,088 7,289 Total $ 4,790,526 Insurance property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 82,930 $ 207,490 $ 243,902 $ 251,487 $ 251,573 $ 257,527 $ 254,939 $ 261,163 $ 265,436 $ 267,127 2017 191,282 516,060 626,041 654,387 650,383 640,135 652,344 652,894 656,471 2018 223,593 473,016 569,027 578,912 597,042 583,171 592,302 597,839 2019 150,263 263,234 314,815 352,040 341,846 346,945 349,144 2020 183,428 431,914 489,509 539,712 570,037 586,705 2021 134,554 288,144 325,758 345,584 358,224 2022 97,826 263,666 330,983 357,064 2023 90,869 210,618 267,668 2024 112,214 259,794 2025 131,652 Total 3,831,688 All outstanding liabilities before 2016, net of reinsurance 13,460 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 972,298 173 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Insurance property Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 29.5 % 38.8 % 13.9 % 5.5 % 1.3 % 0.5 % 0.7 % 1.1 % 1.1 % 0.6 % Insurance Casualty The casualty reserve class provides cover for professional lines, liability and cyber lines of business. Cover is provided on a claims made basis for professional lines and cyber lines of business and on an occurrence basis for liability lines of business. In general, this reserve class is anticipated to exhibit longer reporting and payment patterns. Insurance casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Cumulative number of reported claims Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 474,228 $ 482,526 $ 487,559 $ 487,417 $ 490,035 $ 492,878 $ 497,108 $ 510,078 $ 515,518 $ 535,542 $ 40,372 20,461 2017 563,754 565,587 624,541 636,060 655,626 661,141 701,960 702,912 702,059 29,806 23,792 2018 530,691 547,414 622,884 665,020 698,951 751,975 767,689 790,152 32,781 26,608 2019 599,840 620,636 688,421 737,128 839,466 844,494 860,703 64,084 26,086 2020 666,364 657,806 640,606 673,362 681,243 684,991 114,350 19,041 2021 742,516 755,260 737,784 727,349 724,867 149,013 18,746 2022 922,640 933,723 929,766 917,685 402,934 19,258 2023 942,711 940,454 911,050 434,565 20,063 2024 1,041,785 1,010,791 678,741 19,453 2025 1,136,503 1,008,138 17,971 Total $ 8,274,343 174 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Insurance casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 22,170 $ 94,271 $ 183,591 $ 248,591 $ 300,340 $ 339,912 $ 397,457 $ 419,865 $ 450,515 $ 469,318 2017 26,465 101,215 197,689 321,200 382,810 482,262 526,332 572,178 623,635 2018 30,183 117,752 226,717 341,171 446,209 547,079 614,767 691,586 2019 35,881 138,059 251,451 408,803 542,516 621,781 705,343 2020 34,674 119,870 237,996 327,481 432,312 504,596 2021 47,336 156,143 263,118 378,157 501,744 2022 32,256 138,448 282,090 392,368 2023 31,491 157,547 311,739 2024 40,449 213,515 2025 69,989 Total 4,483,833 All outstanding liabilities before 2016, net of reinsurance 225,184 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 4,015,694 Insurance casualty Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 4.5 % 13.0 % 15.3 % 14.8 % 13.3 % 10.8 % 8.8 % 6.8 % 6.5 % 3.5 % Insurance Specialty Other The specialty other reserve class provides cover for marine and aviation, accident and health, and credit and political risk lines of business. Cover is provided primarily on an occurrence basis for this reserve class. Reporting and payment patterns are relatively short for most exposures in this reserve class although they can be volatile due to the incidence of catastrophe events. In addition, some marine and aviation exposures can develop slower due to the liability nature of the associated claims. An increase in accident and health limited benefits medical business written in 2017 resulted in a significant increase in reported claims observed in that year and subsequent years. Given the nature of the business, under the notification provisions of credit insurance policies issued by the Company, it anticipates being advised of an insured event within a relatively short time period. Consequently, the Company generally estimates ultimate losses based on a contract-by-contract analysis which considers the contracts’ terms, the facts and circumstances of underlying loss events and qualitative input from claims managers. Despite notification, credit and political risk claim reporting and payment patterns are anticipated to be volatile and can take longer to develop due to the complex nature of claims and the potential additional time that may be required to realize subrogation assets. 175 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Insurance specialty other Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Cumulative number of reported claims Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 248,754 $ 244,508 $ 240,101 $ 234,312 $ 217,231 $ 216,430 $ 216,026 $ 216,398 $ 214,925 $ 215,037 $ 2,523 91,904 2017 428,561 388,663 377,195 365,696 355,654 350,463 347,392 346,400 346,952 8,086 696,601 2018 396,345 411,100 395,181 378,650 369,313 374,592 376,823 376,760 17,661 753,818 2019 346,372 370,874 358,100 374,001 368,423 394,756 389,886 19,556 683,450 2020 342,739 317,183 297,336 283,765 289,280 273,970 10,507 725,091 2021 352,778 332,167 310,600 330,852 357,495 25,909 447,218 2022 410,974 405,917 405,471 392,247 91,271 408,378 2023 532,094 493,950 484,440 100,063 414,351 2024 628,023 621,144 164,284 437,818 2025 646,035 361,945 605,277 Total $ 4,103,966 Insurance specialty other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 65,600 $ 156,709 $ 192,672 $ 200,807 $ 203,899 $ 206,253 $ 210,055 $ 209,878 $ 209,530 $ 210,778 2017 100,996 223,825 268,301 304,440 313,555 316,261 328,573 331,649 334,497 2018 116,738 248,067 289,636 303,709 324,441 341,526 347,992 354,752 2019 116,646 213,823 265,640 299,534 305,252 319,466 347,782 2020 91,718 230,280 230,338 236,856 254,568 268,207 2021 69,023 131,132 187,304 231,962 272,912 2022 79,751 192,348 239,614 269,855 2023 134,882 248,292 311,530 2024 192,270 345,728 2025 197,630 Total 2,913,671 All outstanding liabilities before 2016, net of reinsurance 24,693 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,214,988 176 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Insurance specialty other Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 28.3 % 31.4 % 11.8 % 7.0 % 4.8 % 3.0 % 3.6 % 0.9 % 0.3 % 0.6 % Reinsurance Segment The presentation of net incurred and paid claims development tables by accident year for the reinsurance segment is challenging due to the need to allocate loss information related to proportional treaties to the appropriate accident years. Information related to proportional treaty reinsurance contracts is generally submitted to the Company via quarterly bordereaux reporting by underwriting year, with a supplemental listing of large losses. Large losses can be allocated to the corresponding accident years accurately. The remaining losses can generally only be allocated to accident years based on estimated premiums earned and loss reporting patterns. To the extent that management’s assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the net incurred and paid claims development presented in the tables below. The reporting of cumulative claims frequency for the lines of business within the reinsurance segment is deemed to be impracticable as the information necessary to provide cumulative claims frequency for these lines of business is not available to the Company. Reinsurance Casualty The casualty reserve class provides cover for professional lines, motor and liability lines of business. Cover is provided on a claims-made basis for professional lines and on an occurrence basis for the liability and motor lines of business. This business is written on a proportional and excess of loss basis. In general, this reserve class is anticipated to exhibit longer reporting and payment patterns. 177 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reinsurance casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 690,240 $ 716,938 $ 727,835 $ 748,329 $ 777,045 $ 778,357 $ 801,648 $ 855,937 $ 858,665 $ 858,409 $ 26,385 2017 809,462 815,689 820,321 845,226 865,355 892,461 965,711 965,036 965,332 54,657 2018 782,566 793,128 817,794 836,500 851,700 932,423 928,739 947,361 56,099 2019 754,582 763,632 769,587 762,805 836,140 838,204 839,006 52,378 2020 653,493 659,234 645,183 650,882 658,887 658,641 119,789 2021 644,504 646,955 680,083 671,408 663,189 162,865 2022 688,474 684,022 670,616 671,452 188,146 2023 546,519 554,649 555,642 226,893 2024 456,194 444,952 292,350 2025 522,007 473,378 Total $ 7,125,991 Reinsurance casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 75,377 $ 167,039 $ 256,260 $ 360,017 $ 435,248 $ 513,100 $ 571,515 $ 629,328 $ 679,824 $ 717,123 2017 88,533 196,467 290,320 392,277 480,094 567,187 639,330 708,255 774,301 2018 104,813 200,443 331,770 412,550 501,750 596,203 680,610 741,177 2019 110,591 246,094 320,448 403,468 485,219 571,390 642,173 2020 65,017 163,338 230,047 294,009 355,462 414,191 2021 57,456 148,458 219,736 297,582 370,232 2022 56,724 118,707 203,460 292,777 2023 44,552 104,491 185,341 2024 31,537 66,724 2025 13,034 Total 4,217,073 All outstanding liabilities before 2016, net of reinsurance 565,169 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,474,087 Reinsurance casualty Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 8.7 % 11.6 % 11.4 % 10.8 % 9.6 % 9.5 % 7.9 % 6.7 % 6.4 % 4.3 % 178 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reinsurance Specialty The specialty reserve class provides cover for accident and health, credit and surety, agriculture, and marine and aviation lines of business. The Company exited aviation business effective January 1, 2023. Cover is provided primarily on an occurrence basis for this reserve class. This business is written on a proportional and excess of loss basis. Reporting and payment patterns for most exposures in this reserve class are relatively short although they can be volatile due to the incidence of catastrophe events. Reinsurance specialty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 472,023 $ 490,739 $ 488,749 $ 464,383 $ 454,899 $ 453,189 $ 451,262 $ 453,775 $ 456,548 $ 452,185 $ 3,205 2017 532,267 512,690 493,255 489,803 484,173 480,017 478,581 475,852 479,888 2,317 2018 467,286 498,805 484,263 500,398 497,430 486,774 489,097 488,593 7,603 2019 551,807 551,275 546,732 539,575 528,029 531,139 533,010 12,051 2020 407,859 410,772 386,315 395,782 390,668 387,622 11,406 2021 398,655 375,440 359,110 358,453 361,327 16,055 2022 502,136 467,399 451,017 443,802 43,170 2023 475,608 483,611 473,821 118,174 2024 438,793 439,301 139,809 2025 451,236 243,704 Total $ 4,510,785 Reinsurance specialty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 104,599 $ 307,926 $ 411,629 $ 433,047 $ 438,523 $ 437,520 $ 438,959 $ 441,461 $ 441,265 $ 436,496 2017 127,085 380,961 431,330 456,209 456,842 460,518 461,228 460,319 463,628 2018 119,005 374,068 427,002 450,919 456,281 467,466 470,521 470,606 2019 127,026 384,279 452,042 477,545 492,462 503,811 504,061 2020 129,000 271,338 329,554 322,782 332,223 339,009 2021 81,830 234,988 295,028 310,156 322,579 2022 132,056 300,556 350,944 377,754 2023 158,077 277,087 330,555 2024 141,081 262,225 2025 164,210 Total 3,671,123 All outstanding liabilities before 2016, net of reinsurance 48,306 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 887,968 179 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reinsurance specialty Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 28.5 % 40.9 % 13.9 % 4.0 % 1.8 % 1.4 % 0.3 % 0.1 % 0.4 % ( 1.1 )% Reinsurance Run-off The Run-off reserve class provides cover for catastrophe, property and engineering lines of business. The Company exited the catastrophe and property lines of business in June 2022. The Company exited the engineering line of business in 2020. This business was written on a proportional and excess of loss basis. Reporting and payment patterns for most exposures in this reserve class are relatively short although they can be volatile due to the incidence of catastrophe events. Losses from engineering exposures tend to develop slower than the other reinsurance run-off lines of business. Reinsurance run-off Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 286,471 $ 285,473 $ 282,417 $ 277,034 $ 280,606 $ 280,862 $ 280,588 $ 273,720 $ 273,541 $ 273,445 $ 1,805 2017 706,847 699,583 734,025 735,533 733,418 723,586 715,848 720,081 709,439 8,847 2018 522,499 609,737 622,388 607,888 593,666 593,570 591,051 594,985 18,341 2019 436,899 417,983 397,489 382,095 375,084 377,752 381,141 20,029 2020 523,736 559,594 555,787 559,722 554,625 556,705 39,256 2021 439,866 452,538 449,198 447,666 445,121 32,858 2022 269,326 229,016 231,964 229,478 46,821 2023 64,432 61,543 61,475 22,479 2024 28,826 32,754 7,484 2025 9,974 4,437 Total $ 3,294,517 180 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reinsurance run-off Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident Year 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 unaudited 2021 unaudited 2022 unaudited 2023 unaudited 2024 unaudited 2025 2016 $ 64,091 $ 140,521 $ 200,390 $ 231,655 $ 245,912 $ 252,959 $ 258,412 $ 257,009 $ 259,688 $ 262,665 2017 162,930 413,833 521,421 579,439 603,920 639,970 651,113 662,615 671,942 2018 116,421 327,067 421,012 473,785 520,135 541,489 549,967 556,385 2019 55,136 204,018 263,511 299,187 323,736 337,930 344,330 2020 105,162 238,405 323,736 393,094 444,569 455,578 2021 87,860 239,137 309,066 361,441 378,800 2022 50,273 103,775 139,163 155,767 2023 22,862 29,382 32,667 2024 11,372 15,628 2025 4,795 Total 2,878,557 All outstanding liabilities before 2016, net of reinsurance 33,115 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 449,075 Reinsurance run-off Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 26.1 % 27.0 % 15.0 % 9.9 % 6.0 % 3.4 % 1.7 % 0.7 % 1.2 % 1.1 % 181 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 8. RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) Reconciliation of Loss Development Tables to Consolidated Balance Sheet The following table reconciles the reserve for losses and loss expenses at December 31, 2025, included in the loss development tables to the reserve for losses and loss expenses reported in the consolidated balance sheet: Reconciliation of the disclosure of incurred and paid claims development to the liability for unpaid claims and claim adjustment expenses At December 31, 2025 Net outstanding liabilities Reinsurance recoverable on unpaid claims Gross outstanding liabilities Insurance segment Property $ 972,298 $ 526,407 $ 1,498,705 Casualty 4,015,694 3,918,423 7,934,117 Specialty other 1,214,988 438,800 1,653,788 Total insurance segment 6,202,980 4,883,630 11,086,610 Reinsurance segment Casualty 3,474,087 3,297,288 6,771,375 Specialty 887,968 402,574 1,290,542 Run-off 449,075 368,271 817,346 Total reinsurance segment 4,811,130 4,068,133 8,879,263 Total $ 11,014,110 $ 8,951,763 19,965,873 Unallocated claims adjustment expenses 240,209 Foreign exchange and other (1) ( 5,400 ) Ceded reserves related to retroactive transactions ( 2,078,426 ) Total liability for unpaid claims and claims adjustment expense $ 18,122,256 (1) Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies, which results in all historical U.S. dollar amounts being presented on a constant-dollar basis. The approach shows prior year loss development exclusive of the effect of fluctuations in foreign currency exchange rates, which would otherwise distort the change in incurred losses and loss expenses and cash flow patterns. The change in incurred losses and loss expenses presented in these loss development tables differs from other U.S. GAAP disclosures of prior year reserve development amounts, which include the effect of fluctuations in exchanges rates. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using rates of exchange in effect at the balance sheet date. 182 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 9. REINSURANCE In the normal course of business, the Company purchases facultative and treaty reinsurance protection to limit ultimate losses and reduce loss aggregation risk. Facultative reinsurance provides cover for all or a portion of the losses incurred for a single policy and the Company separately negotiates each facultative contract. Treaty reinsurance provides cover for a specified type or category of risks. The Company's treaty reinsurance agreements provide this cover on either an excess of loss or a proportional basis. Excess of loss covers provide a contractually set amount of coverage after a specified loss amount has been reached. These treaties can provide cover for a number of lines of business within one contract. Under proportional reinsurance, the Company cedes an agreed percentage of the premiums and the losses and loss expenses on the policies it underwrites. These treaties provide the Company with a specified percentage of coverage from the first dollar of loss. All of these reinsurance contracts provide the Company with the right to recover a specified amount of losses and loss expenses from reinsurers. To the extent that reinsurers do not meet their obligations under these agreements due to solvency issues, contractual disputes over contract language or coverage and/or other reasons, the Company remains liable. The following table presents gross and net premiums written and earned: Year ended December 31, 2025 2024 2023 Premiums written Premiums earned Premiums written Premiums earned Premiums written Premiums earned Gross $ 9,644,514 $ 9,038,161 $ 9,005,888 $ 8,529,567 $ 8,356,525 $ 7,973,577 Ceded ( 3,522,858 ) ( 3,323,552 ) ( 3,248,537 ) ( 3,223,332 ) ( 3,254,200 ) ( 2,889,796 ) Net $ 6,121,656 $ 5,714,609 $ 5,757,351 $ 5,306,235 $ 5,102,325 $ 5,083,781 For the year ended December 31, 2025, the Company recognized ceded losses and loss expenses of $ 2,008 million (2024: $ 2,039 million; 2023: $ 1,754 million). At December 31, 2025 , the Company’s reinsurance recoverable on unpaid and paid losses and loss expenses was $ 9.6 billion ( 2024: $ 7.4 billion). 183 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 9. REINSURANCE (CONTINUED) At December 31, 2025, the Company's allowance for expected credit losses to be recognized over the life of the Company’s r einsurance recoverables balance was $ 40 million (2024: $ 43 million; 2023: $ 37 million). The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses related to the Company’s reinsurance recoverable balance: Year ended December 31, 2025 2024 Beginning balance $ 43,445 $ 36,611 Increase (decrease) in allowance for expected credit losses ( 3,105 ) 6,834 Ending Balance $ 40,340 $ 43,445 Loss Portfolio Transfer Reinsurance Agreement On December 13, 2024, the Company entered into a LPT agreement with Enstar (refer to Note 8 ' Reserves for Losses and Loss Expenses ' and Note 18 ' Related Party Transactions' ) 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 and was completed on April 24, 2025 . 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 for consideration of $ 2,039 million and provides cover up to a policy limit of approximately $ 940 million. Pursuant to the LPT agreement, the Company maintained responsibility for claims management subject to certain administrative rights of Enstar and entered into collateral agreements with the Reinsurer under which the Company may be obligated to maintain certain types of eligible assets as partial collateral securing the Reinsurer’s obligations with respect to the Subject Business. The transaction was deemed to have met the established criteria for retroactive reinsurance accounting. 184 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 10. DEBT AND FINANCING ARRANGEMENTS a) Debt The following table summarizes the Company's debt: Year ended December 31, 2025 2024 5.150 % Senior Notes $ 246,963 $ 246,873 4.000 % Senior Notes 349,176 348,774 3.900 % Senior Notes 298,057 297,556 Junior Subordinated Notes 422,514 421,976 Total Debt $ 1,316,710 $ 1,315,179 The tables below provide the key terms of the Company's debt: Description Issuance Date Aggregate Principal Issue Price Net Proceeds Maturity Date 5.150 % Senior Notes March 13, 2014 $ 250,000 99.474 % $ 246,000 April 1, 2045 4.000 % Senior Notes December 6, 2017 $ 350,000 99.780 % $ 347,000 December 6, 2027 3.900 % Senior Notes June 19, 2019 $ 300,000 99.360 % $ 296,000 July 15, 2029 Junior Subordinated Notes December 10, 2019 $ 425,000 99.000 % $ 420,750 January 15, 2040 Description Interest Rate Interest Payments Due 5.150 % Senior Notes 5.150 % Semi-annually in arrears on April 1 and October 1 of each year 4.000 % Senior Notes 4.000 % Semi-annually in arrears on June 6 and December 6 of each year 3.900 % Senior Notes 3.900 % Semi-annually in arrears on January 15 and July 15 of each year Junior Subordinated Notes (1) 4.900 % Semi-annually on January 15 and July 15 of each year (1) The Junior Subordinated Notes accrue interest from the date of issuance to, but excluding, January 15, 2030 (the "Par Call Date") at the fixed rate of 4.900 % and from, and including, the Par Call Date, at a rate equal to the Five-Year Treasury Rate as of the Reset Interest Determination Date, plus 3.186 %. Interest on the Junior Notes is payable semi-annually on January 15 and July 15 of each year, beginning on July 15, 2020. 5.150 % Senior Notes The 5.150 % Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC, a 100 % owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 5.150 % Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. 4.000 % Senior Notes The 4.000 % Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC, a 100 % owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 4.000 % Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. 185 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 10. DEBT AND FINANCING ARRANGEMENTS (CONTINUED) 3.900 % Senior Notes The 3.900 % Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance LLC, a 100 % owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC under the 3.900 % Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. The Company has the option to redeem the Senior Notes at any time and from time to time, in whole or in part, at a ''make-whole'' redemption price, which is equal to the greater of the aggregate principal amount or the sum of the present values of the remaining scheduled payments of principal and interest. The related indentures contain various covenants, including limitations on liens on the stock of restricted subsidiaries, restrictions as to the disposition of the stock of restricted subsidiaries and limitations on mergers and consolidations. The Company was in compliance with all the covenants contained in the indentures at December 31, 2025. Interest expense recognized in relation to the Senior Notes includes interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses are amortized over the period of time during which the Senior Notes are outstanding. For the year ended December 31, 2025, the Company's interest expense of $ 40 million (2024: $ 40 million, 2023: $ 40 million) is recorded in interest expense and financing costs in the consolidated statements of operations. Junior Subordinated Notes The 4.900 % Fixed-Rate Reset Junior Notes are ranked as unsecured junior subordinated obligations of AXIS Specialty Finance LLC, a 100 % owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC under the Junior Notes. AXIS Capital's obligation under this guarantee is an unsecured junior subordinated obligation and ranks equally with all future unsecured junior subordinated obligations of AXIS Capital, and junior in right of payment to all outstanding and future senior obligations of AXIS Capital. Interest expense recognized in relation to the Junior Notes includes interest payable and amortization of debt offering expenses. The debt offering expenses are amortized over the period of time during which the Junior Notes are outstanding. For the year ended December 31, 2025, the Company incurred interest expense of $ 21 million (2024: $ 21 million, 2023: $ 21 million). Scheduled Debt Maturity The following table provides the scheduled maturity of the Company's debt obligations at December 31, 2025: Year ended December 31, 2026 $ — 2027 350,000 2028 — 2029 300,000 2030 — After 2030 675,000 Unamortized discount and debt issuance expenses ( 8,290 ) Total senior notes and notes payable $ 1,316,710 186 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 10. DEBT AND FINANCING ARRANGEMENTS (CONTINUED) b) Loan Advances Made to a Third-Party Reinsurer At December 31, 2022, a loan balance receivable from a third-party reinsurer of $ 87 million was included in loan advances made in the consolidated balance sheet. During 2023, the Company advanced $ 102 million to the third-party reinsurer. Loans balances receivable from the third-party reinsurer are settled against amounts due to the third-party reinsurer under retrocession agreements and are treated as a non-cash activity in the consolidated statement of cash flows. At December 31, 2025, $ 1 million (2024: $ 75 million, 2023: $ 110 million) was repaid. At December 31, 2025, the loan balance receivable was $ 3 million (2024: $ 5 million, 2023: $ 80 million). Loan advances made are expected to be repaid in full by February 15, 2026. At December 31, 2023, the Company had committed to advance a further $ 26 million to the third party reinsurer. During 2024, the third party reinsurer advised the Company that this advance was no longer required. Interest on these loans was payable in 2025 at an interest rate of 5.4 % (2024; 5.4 %). c) Letter of Credit Facility At December 31, 2023, certain of AXIS Capital’s operating subsidiaries (the "Participating Subsidiaries") had a $ 500 million letter of credit facility available from Citibank Europe plc ("Citibank") (the " $ 500 million Facility"), pursuant to a Master Reimbursement Agreement May 14, 2010, as amended, and Committed Letter of Credit Facility Letter dated December 18, 2015, as amended (together, the "LOC Facility Documents"). Under the terms of the $ 500 million Facility, letters of credit up to a maximum aggregate amount of $ 500 million are available for issuance on behalf of the Participating Subsidiaries. These letters of credit are principally used to support the reinsurance obligations of the Participating Subsidiaries. The $ 500 million Facility is subject to certain covenants, including the requirement to maintain sufficient collateral, as defined in the LOC Facility Documents to cover all of the obligations under the $ 500 million Facility. Such obligations include contingent reimbursement obligations for outstanding letters of credit and fees payable to Citibank. In the event of default, Citibank may exercise certain remedies, including the exercise of control over pledged collateral and the termination of the availability of the $ 500 million Facilit y to any or all of the Participating Subsidiaries. On March 26, 2024, the $ 500 million Facility was amended to reduce the committed utilization capacity available under the Facility to $ 300 million (the "$ 300 million Facility"), enter into an uncommitted secured letter of credit facility up to a maximum aggregate amount of $ 200 million (the "$ 200 million Facility") with Citibank, extend the tenors of issuable letters of credit to March 31, 2026 and make certain updates to the facility's collateral and fee arrangements. On March 23, 2025, the $ 300 million Facility was amended to extend the tenors of issuable letters of credit to March 31, 2027. At December 31, 2025, letters of credit outstanding under the LOC Facility were $ 226 million (2024: $ 235 million). At December 31, 2025, the Participating Subsidiaries were in compliance with all LOC Facility covenants. 187 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 10. DEBT AND FINANCING ARRANGEMENTS (CONTINUED) On August 26, 2025, AXIS Corporate Capital UK II Limited (the "Borrower"), acting through AXIS Managing Agency Limited, as managing agent of Syndicate 1686 and Syndicate 2050 (collectively, the "Syndicates"), entered into a Facility Letter and Master Agreement (together, the "Agreements") with Citibank (the "Lender"), providing for an uncommitted unsecured letter of credit facility up to a maximum aggregate amount of $ 90 million (the "$ 90 million Facility") with tenors of issuable letters of credit to August 31, 2030. The facility is supported by a guarantee issued by AXIS Specialty Limited. The letter of credit facility is intended to support the Borrower's obligations in connection with the Syndicates’ participation in the Lloyd’s insurance market, specifically its Funds at Lloyd’s requirements. The facility contains customary representations, warranties, covenants, and events of default for transactions of this nature. At December 31, 2025, letters of credit outstanding under the Agreements were $ 80 million . At December 31, 2025, the Borrower was in compliance with all LOC Agreements covenants. On October 8, 2025, AXIS Specialty Limited (the "Borrower"), entered into a Letter Agreement with Wells Fargo Bank, National Association (the "Bank"), providing for an uncommitted bilateral short-term line of credit facility up to a maximum aggregate amount of $ 150 million (the "$ 150 million Facility") with tenors of issuable letters of credit to October 7, 2026. The $ 150 million Facility is intended to support the Borrower's working capital requirements and general corporate expenses. The line of credit facility contains customary representations, warranties, covenants, and events of default for transactions of this nature. At December 31, 2025, the line of credit facility was not drawn. At December 31, 2025, the Borrower was in compliance with all line of credit facility covenants. 188 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 11. 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). Conditions of membership include maintaining sufficient collateral deposits for funding, a requirement to maintain member stock at 0.4% of mortgage-related assets at December 31st of the prior year, and a requirement to purchase additional member stock of 2.0% or 4.5% of any amount borrowed. At December 31, 2025, the Company had borrowings under the FHLB program of $ 66 million (2024: $ 66 million ). On September 11, 2024, the Company repaid borrowings under the FHLB program of $ 10 million, at their stated maturity. On October 31, 2024, the Company repaid borrowings under the FHLB program of $ 9 million, at their stated maturity. The FHLB advances have maturities in 2026 (2024: 2025) 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's interest expense of $ 3 million (2024: $ 4 million; 2023: $ 5 million) is recorded in interest expense and financing costs in the consolidated statements of operations. The borrowings under the FHLB program are secured by cash and investments with a fair value of $ 74 million (2024: $ 72 million). 189 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 12. COMMITMENTS AND CONTINGENCIES a) Concentrations of Credit Risk Credit Risk Aggregation The Company monitors and manages the aggregation of credit risk on a group-wide basis allowing it to consider exposure management strategies for individual companies, countries, regions, sectors and any other relevant inter-dependencies. The Company's credit exposures are aggregated based on the origin of risk. Credit risk aggregation is also managed through minimizing overlaps in underwriting, financing and investing activities. As part of its credit aggregation framework, the Company also assigns aggregate credit limits by country and by single counterparty (or parent of affiliated counterparties). These limits are based on and adjusted for a variety of factors including the prevailing economic environment and the nature of the underlying credit exposures. The Company's credit aggregation measurement and reporting process is facilitated by its credit risk exposure database, which contains relevant information on counterparty details and credit risk exposures. The database is accessible by management throughout the Company, therefore providing transparency to allow for the implementation of active exposure management strategies. The Company also licenses third-party tools to provide credit risk assessments. The Company monitors all its credit aggregations and, where appropriate, adjusts its internal risk limits and/or takes specific actions to reduce our risk exposures. The assets that potentially subject the Company to concentrations of credit risk consist principally of cash and investments, reinsurance recoverable on unpaid and paid claims, and insurance and reinsurance premiums balances receivable, as described below: (i) Cash and Investments In order to mitigate concentration and operational risks related to cash and cash equivalents, the Company limits the maximum amount of cash that can be deposited with a single counterparty and limits acceptable counterparties based on current rating, outlook and other relevant factors. The Company's fixed maturities portfolio, which represents approximately $ 13.4 billion or 39 % of its total assets, is exposed to potential losses arising from the diminished creditworthiness of issuers of bonds. The Company's investment portfolio is managed by external investment managers in accordance with its investment guidelines. The Company limits credit risk through diversification and issuer exposure limits graded by ratings and, with respect to custodians, through contractual and other legal remedies. Excluding Government and agency securities, the Company limits its concentration of credit risk to any single corporate issuer to 1 % of its investment grade fixed maturities portfolio for securities rated A- or above and 0.5 % of its investment grade fixed maturities portfolio for securities rated below A-. At December 31, 2025, the Company was in compliance with these limits. (ii) Reinsurance Recoverable on Unpaid and Paid Losses and Loss Expenses The Company is exposed to the credit risk associated with reinsurance recoverable on unpaid and paid losses and loss expenses to the extent that any of its reinsurers fail to meet their obligations under reinsurance contracts. To help mitigate this risk, the Company's purchase of reinsurance is subject to financial security requirements specified by its Reinsurance Security Committee. This Committee maintains a list of approved reinsurers, performs credit risk assessments for potential new reinsurers, regularly monitors approved reinsurers with consideration for events which may have a material impact on their creditworthiness, recommends counterparty tolerance levels for different types of ceded business and monitors concentrations of credit risk. This assessment considers a wide range of individual attributes, including a review of the counterparty’s financial strength, industry position and other qualitative factors. Generally, the Committee requires that reinsurers who do not meet specified requirements provide collateral. 190 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 12. COMMITMENTS AND CONTINGENCIES (CONTINUED) 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. 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). (iii) Insurance and Reinsurance Premium Balances Receivable The diversity of the Company's client base limits credit risk associated with its premium balances receivable. In addition, for insurance contracts the Company has contractual rights to cancel coverage for non-payment of premiums and for reinsurance contracts the Company has contractual rights to offset premium balances receivable against corresponding payments for losses and loss expenses. Brokers and other intermediaries collect premiums from customers on behalf of the Company. The Company has procedures in place to manage and monitor credit risk from intermediaries with a focus on day-to-day monitoring of the largest positions. These contractual rights contribute to the mitigation of credit risk, together with the monitoring of aged premium balances receivable. In light of these mitigating factors and considering that a significant portion of premium balances receivable are not currently due based on the terms of the underlying contracts, the Company does not utilize specific credit quality indicators to monitor its premium balances receivable. At December 31, 2025 , the Company’s premium balances receivable was $ 3.2 billion (2024: $ 2.8 billion). At December 31, 2025, the Company's allowance for expected credit losses to be recognized over the life of the Company’s premium balances receivable was $ 16 million (2024: $ 17 million). The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses related to the Company’s premiums balances receivable: Year ended December 31, 2025 2024 Beginning balance $ 17,339 $ 11,997 Increase (decrease) in allowance for expected credit losses ( 1,518 ) 5,342 Ending balance $ 15,821 $ 17,339 For the year ended December 31, 2025, bad debt expense was $ 1 million (2024: $ 3 million; 2023: $ 2 million). b) Brokers The Company produces business through brokers. For the year ended December 31, 2025, 2024 and 2023, three brokers accounted for 37 %, 38 % and 38 % of gross premiums written, respectively. Marsh & McLennan Companies Inc. accounted for 13 % (2024: 14 %, 2023: 14 %), Aon plc accounted for 13 % (2024: 14 %, 2023: 15 %), and Arthur J. Gallagher & Co. accounted for 11 % (2024: 10 %, 2023: 9 %). No other broker and no single insured or reinsured accounted for more than 10% of gross premiums written in any of the last three years. 191 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 12. COMMITMENTS AND CONTINGENCIES (CONTINUED) c) Reinsurance Purchase Commitment In the normal course of business, the Company purchases reinsurance and retrocessional (collectively referred to as "reinsurance") protection for its insurance and reinsurance business. Minimum reinsurance premiums are contractually due in advance on a quarterly basis. At December 31, 2025, the Company had outstanding reinsurance purchase commitments of $ 10 million (2024: $ nil ). Actual payments under the reinsurance contracts will depend on the underlying subject premium and may exceed the minimum reinsurance premiums. d) Legal Proceedings From time to time, the Company is 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 the Company 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 the Company's consolidated balance sheets. The Company is not party to any material legal proceedings arising outside the ordinary course of business. e) Investments At December 31, 2025, the Company has $ 683 million (2024: $ 526 million) of unfunded investment commitments related to its other investment portfolio, which are callable by investment managers (refer to Note 5(e) ' Investments '). At December 31, 2025, the Company has $ 3 million (2024: $ 9 million) of unfunded investment commitments to purchase commercial mortgage loans and $ 403 million (2024: $ 94 million) of unfunded investment commitments to purchase corporate debt. f) Funds at Lloyd's The Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Solvency UK. The capital provided to support underwriting or Funds at Lloyd’s ("FAL") may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2025, investments and cash of $ 1,070 million (2024: $ 883 million) were restricted to satisfy the Company's FAL requirements (refer to Note 5 'Investments' and Note 22 ' Statutory Financial Information' ). 192 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 13. LEASES In the ordinary course of business, the Company renews and enters into new leases for office property and equipment, which expire at various dates. At the lease inception date, the Company assesses whether a contract is or contains a lease. At the commencement date, the Company determines the classification of each separate lease component as either a finance lease or an operating lease. The Company's leases are all currently classified as operating leases. For operating leases that have a lease term of more than 12 months, the Company recognizes a lease liability and a right-of-use asset in the Company's consolidated balance sheets at the present value of the lease payments at the lease commencement date. At the commencement date, the Company determines lease terms by assuming the exercise of those renewal options that are deemed to be reasonably certain. The exercise of lease renewal options is at the sole discretion of the Company. As the lease contracts generally do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. The incremental borrowing rate is based on a borrowing with a term that is similar to the term of the associated lease. The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the commencement date. The following table presents the Company’s total lease expense and the cash flows arising from lease transactions: Year ended December 31, 2025 2024 2023 Lease cost: Operating lease expense $ 17,199 $ 17,273 $ 21,499 Short-term lease expense (1) 1,445 781 2,291 Sublease income (2) ( 3,138 ) ( 4,554 ) ( 4,531 ) Total lease expense $ 15,506 $ 13,500 $ 19,259 Other information: Operating cash outflows from operating leases $ 17,960 $ 17,035 $ 20,190 Right-of-use assets obtained in exchange for new operating lease liabilities (3) $ 13,391 $ ( 3,209 ) $ 34,988 Weighted-average remaining lease term - operating leases (4) 8.7 years 9.3 years 9.8 years Weighted-average discount rate - operating lease (5) 5.0 % 4.9 % 4.4 % (1) Short-term lease expense is recognized on a straight-line basis over the lease term. (2) Sublease income largely relates to office p roperties in Chicago, Alpharetta and London. (3) In 2024, the Company modified a lease agreement to reflect an increase in lease payments for its office property in London, terminated a lease agreement for its office property in Singapore and entered into a new lease agreement for an office property with a reduced floor in Singapore. (4) Weighted-average remaining lease term was calculated on the basis of the remaining lease term and the lease liability balance for each lease at the reporting date. (5) Weighted-average discount was calculated on the basis of the discount rate that was used to calculate the lease liability balance for each lease at the reporting date and the remaining balance of the lease payments for each lease at the reporting date. 193 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 13. LEASES (CONTINUED) The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2025: Year ended December 31, Expected cash flows 2026 $ 16,937 2027 15,735 2028 14,984 2029 14,986 2030 14,964 Later years 58,714 Discount ( 26,225 ) Total discounted operating lease liabilities $ 110,095 The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2024: Year ended December 31, Expected cash flows 2025 $ 17,787 2026 15,181 2027 13,026 2028 12,283 2029 12,280 Later years 62,663 Discount ( 26,606 ) Total discounted operating lease liabilities $ 106,614 194 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 14. EARNINGS PER COMMON SHARE The following table presents a comparison of earnings (loss) per common share and earnings (loss) per diluted common share: At and year ended December 31, 2025 2024 2023 Earnings per common share Net income $ 1,008,898 $ 1,081,786 $ 376,292 Less: Preferred share dividends 30,250 30,250 30,250 Net income available to common shareholders $ 978,648 $ 1,051,536 $ 346,042 Weighted average common shares outstanding 78,192 84,165 85,142 Earnings per common share $ 12.52 $ 12.49 $ 4.06 Earnings per diluted common share Net income available to common shareholders $ 978,648 $ 1,051,536 $ 346,042 Weighted average common shares outstanding 78,192 84,165 85,142 Share-based compensation plans 1,074 1,011 870 Weighted average diluted common shares outstanding 79,266 85,176 86,012 Earnings per diluted common share $ 12.35 $ 12.35 $ 4.02 Weighted average anti-dilutive shares excluded from the dilutive computation 14 192 405 15. SHAREHOLDERS' EQUITY a) Common Shares The Company's authorized share capital is 800,000,000 common shares, par value of $ 0.0125 per share. The following table presents changes in common shares issued and outstanding: Year ended December 31, 2025 2024 2023 Shares issued, balance at beginning of year 176,580 176,580 176,580 Shares issued — — — Total shares issued at end of year 176,580 176,580 176,580 Treasury shares, balance at beginning of year ( 93,596 ) ( 91,294 ) ( 91,912 ) Shares repurchased ( 9,616 ) ( 3,061 ) ( 398 ) Shares reissued 767 759 1,016 Total treasury shares at end of year ( 102,445 ) ( 93,596 ) ( 91,294 ) Total shares outstanding 74,135 82,984 85,286 195 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 15. SHAREHOLDERS' EQUITY (CONTINUED) Treasury Shares On December 7, 2023, the Company's Board of Directors renewed its authorization for the repurchase of up to $ 100 million of the Company's common shares, effective January 1, 2024, through December 31, 2024. At June 30, 2024, authorization under this plan was exhausted. On May 16, 2024, the Company's Board of Directors approved a new share repurchase program for up to $ 300 million of the Company's common shares. This 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, the Company's Board of Directors approved a new share repurchase program for up to $ 400 million of the Company's common shares. This 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, the Company's 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. The following table presents common shares repurchased from shares held in Treasury: Year ended December 31, 2025 2024 2023 Publicly announced programs: (1) Total shares 9,342 2,806 — Total cost $ 887,717 $ 199,943 $ — Average price per share (2) $ 95.02 $ 71.27 $ — From employees: (3) Total shares 274 255 398 Total cost $ 26,559 $ 15,925 $ 23,596 Average price per share (2) $ 96.80 $ 62.45 $ 59.15 Total shares repurchased: Total shares 9,616 3,061 398 Total cost $ 914,276 $ 215,868 $ 23,596 Average price per share (2) $ 95.07 $ 70.53 $ 59.15 (1) Shares are repurchased pursuant to the Company's Board-authorized share repurchase programs. (2) Calculated using whole numbers. (3) Shares are repurchased from employees to satisfy personal withholding tax liabilities that arise on the vesting of share-settled restricted stock units. 196 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 15. SHAREHOLDERS' EQUITY (CONTINUED) b) Preferred Shares Series E Preferred Shares On November 7, 2016, the Company issued $ 550 million of 5.50 % Series E preferred shares, par value $ 0.0125 per share, with a liquidation preference of $ 2,500 per share. The Company could redeem the Series E preferred shares on or after November 7, 2021 at a redemption price of $ 2,500 per share. Dividends on the Series E preferred shares are non-cumulative. Holders of the Series E preferred shares are entitled to receive, only when, as and if declared by the Board of Directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on January 15, 2017. 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. Dividends The following table presents dividends declared and paid related to the Company's common and preferred shares: Per share data Dividends declared Dividends paid in year of declaration Dividends paid in year following declaration Year ended December 31, 2025 Common shares $ 1.76 $ 1.32 $ 0.44 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 Year ended December 31, 2024 Common shares $ 1.76 $ 1.32 $ 0.44 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 Year ended December 31, 2023 Common shares $ 1.76 $ 1.32 $ 0.44 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 16 . RETIREMENT PLANS The Company maintains defined contribution plans to provide retirement benefits to eligible employees. Contributions to the plans, which are managed externally, are based on eligible compensation. For eligible U.S. employees, the Company provides a non-qualified deferred compensation plan that enables employees to make contributions to the plan that are in excess of those permitted under the Company's 401(k) Plan. In addition, employees are permitted to make additional contributions from any bonus received and to benefit from discretionary employer contribution to the Plan. For the year ended December 31, 2025, total pension expenses were $ 36 million (2024: $ 35 million and 2023: $ 35 million) for the above retirement benefit. 197 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 17. SHARE-BASED COMPENSATION In May 2017, shareholders approved the establishment of the AXIS Capital Holdings Limited 2017 Long-Term Equity Compensation Plan (the "2017 Plan"). The 2017 Plan provides for, among other things, the issuance of restricted shares, restricted stock units (share-settled awards and cash-settled awards), performance units (share-settled awards and cash-settled awards), stock options, stock appreciation rights and other equity-based awards to the Company's employees and directors. The 2017 Plan authorizes the issuance of a total of 3,400,000 common shares. On May 7, 2021, at the Annual General Meeting of Shareholders of the Company, the Company’s shareholders approved an amendment to the Company’s 2017 Plan to increase by 1,600,000 the number of common shares authorized for issuance under the Plan. On May 4, 2023, at the Annual General Meeting of Shareholders of the Company, the Company’s shareholders approved an amendment to the Company’s 2017 Plan to increase by 1,125,000 the number of common shares authorized for issuance under the Plan. At December 31, 2025, 2,129,781 equity-based awards remained available for grant pursuant to the 2017 Plan. Restricted Stock Units - Share-Settled The grant date fair value of share-settled restricted stock units granted pursuant to the 2017 Plan is established at the fair market value of the Company's common shares at the date of grant. These awards either cliff vest at the end of a three-year period, vest in accordance with a three-year graded vesting schedule in three annual installments beginning on the grant date, or vest in accordance with a four-year graded vesting schedule in four annual installments beginning on the grant date. Performance Restricted Stock Units - Share-Settled Performance restricted stock units granted pursuant to the 2017 Plan represent the right to receive a specified number of common shares in the future, based on the achievement of established performance criteria and continued service during the applicable performance period. The grant date fair value of performance restricted stock units granted in 2021 and subsequent years with a market condition were measured on the grant date using a Monte Carlo simulation model. The grant date fair value of performance restricted stock units granted in 2024 and subsequent years with a performance condition was determined based on the closing price of the Company's common shares on the grant date. Awards granted pursuant to the 2017 Plan generally cliff vest at the end of a three-year period. Compensation expense is recognized on a straight-line basis over the applicable requisite service period. Acceleration Provisions Grants provided under the 2017 Plan generally allow for accelerated vesting provisions on the employee’s death, permanent disability, or certain terminations following a change in control of the Company occurring within two years of the change in control event. Notwithstanding these vesting provisions, the Compensation Committee of the Company's Board of Directors has broad authority to accelerate vesting at its discretion. Retirement Plan In 2016, the Company established the AXIS Executive Restricted Stock Unit Retirement Plan (the "Plan") to reward certain eligible long-term employees of the Company for their dedicated service. The Plan was implemented in 2017. Subject to certain conditions being met, eligible employees do not forfeit their outstanding restricted stock units or performance restricted stock units on or following their retirement. Absent the Plan, outstanding restricted stock units are generally forfeited on termination of employment. 198 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 17. SHARE-BASED COMPENSATION (CONTINUED) a) Performance Restricted Stock Units Performance Restricted Stock Units granted in with a market condition Certain share-settled performance restricted stock units include a market condition which is the Company’s total shareholder return relative to its peer group ("Relative TSR") over the performance period. Relative TSR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0 % to 200 % of target. Performance Restricted Stock Units granted with a performance condition Certain share-settled performance restricted stock units include a performance condition which is the Company’s average annual growth in book value per diluted common share, plus accumulated dividends over the performance period, adjusted to exclude unrealized investment gains (losses) recognized in accumulated other comprehensive income (loss), and share repurchases during the performance period ("Adjusted DBVPS"). Adjusted DBVPS is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0 % to 200 % of target. Performance Restricted Stock Units granted in the three months ended March 31, 2023 in relation to senior leadership transition Share-settled performance restricted stock units granted in the three months ended March 31, 2023 to one senior leader include a market condition which is the Company’s total shareholder return relative to its peer group ("Relative TSR") over the performance period. Relative TSR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, 50 % of these awards will vest at the end of a one-year performance period, and the remaining 50 % of these awards will vest at the end of a three-year vest period within a range of 0 % to 200 % of target. Performance Restricted Stock Units granted in the three months ended June 30, 2023 in relation to senior leadership transition Share-settled performance restricted stock units granted in the three months ended June 30, 2023 to one senior leader include a market condition which is the Company’s total shareholder return compound annual growth rate ("TSR CAGR") over the performance period. TSR CAGR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0 % to 200 % of target. 199 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 17. SHARE-BASED COMPENSATION (CONTINUED) Valuation assumptions Performance Restricted Stock Units granted with a market condition The fair values of these performance restricted stock units were measured on the grant date using a Monte Carlo simulation model. The following table provides details of the significant inputs used in the Monte Carlo simulation model: Year ended December 31, 2025 2024 2023 (1) 2023 (2) 2023 (3) Expected volatility 25.30 % 26.00 % 36.24 % 29.30 % 30.05 % Expected term (in years) 3.0 3.0 3.0 1.0 3.0 Expected dividend yield n/a n/a n/a n/a n/a Risk-free interest rate 4.16 % 4.06 % 3.79 % 4.61 % 3.39 % n/a - not applicable (1) Performance restricted stock units granted in the ordinary course of business (2) Performance restricted stock units granted in the three months ended March 31, 2023 in relation to senior leadership transition (3) Performance restricted stock units granted in the three months ended June 30, 2023 in relation to senior leadership transition Beginning share price, Ending share price and Expected term Performance restricted stock units granted in 2025 and 2024 The beginning share price for awards was based on the average closing share price over the 30 trading days preceding and including the start of the performance period. The ending share price was based on the average projected closing share price over the 30 trading days preceding and including the end of the performance period. Performance for awards granted in 2025 is measured from January 1, 2025 to December 31, 2027, and performance for awards granted in 2024 is measured from January 1, 2024 to December 31, 2026. Performance restricted stock units granted in 2023, and performance restricted stock units granted in the three months ended March 31, 2023 in relation to senior leadership transition The beginning share price for awards was based on the average closing share price over the 10 trading days preceding and including the start of the performance period. The ending share price was based on the projected average closing share price over the 10 trading days preceding and including the end of the performance period. Performance for awards granted in 2023 is generally measured from January 1, 2023 to December 31, 2025, with performance for awards granted to one senior leader being measured from January 1, 2023 to December 31, 2023. Performance restricted stock units granted in the three months ended June 30, 2023 in relation to senior leadership transition The beginning share price for awards was based on the average closing share price over the 30 trading days preceding and including the start of the performance period. The ending share price of the awards was based on the average closing share price over the 30 trading days preceding and including the end of the performance period. Performance for awards is being measured from May 4, 2023 to May 4, 2026. Expected volatility The expected volatility was estimated based on the Company's historical share price volatility. Expected dividend yield The expected dividend yield is not applicable to the performance restricted stock units as dividends are paid at the end of the vesting period and do not affect the value of the performance restricted stock units. 200 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 17. SHARE-BASED COMPENSATION (CONTINUED) Risk-free interest rate The risk-free rate was estimated based on the yield on a U.S. treasury zero-coupon bond issued with a remaining term equal to the vesting period of the performance restricted stock units. Compensation expense associated with performance restricted stock units is determined on the grant date based on the fair value calculated by the Monte Carlo simulation model and is recognized on a straight-line basis over the requisite service period. During the three months ended March 31, 2023, the transition in our senior leadership resulted in a modification of the previously existing vesting terms of the outstanding restricted stock units and performance restricted stock units granted in 2022 and earlier of one senior leader, and a modification of the performance period of that leader's performance restricted stock units granted in 2022. The modifications did not result in incremental compensation expense. Performance Restricted Stock Units granted with a performance condition The fair value of performance restricted stock units is determined based on the closing price of the Company's common shares on the grant date, and compensation expense is recognized on a straight-line basis over the requisite service period, and is subject to periodic adjustment based on the achievement of established performance criteria during the performance period. b) Share-Settled Awards The following table provides an activity summary of the Company's share-settled restricted stock units: Share-Settled Performance Restricted Stock Units Share-Settled Service Restricted Stock Units Number of restricted stock units Weighted average grant date fair value Number of restricted stock units Weighted average grant date fair value Nonvested restricted stock units - December 31, 2023 144 $ 65.69 1,855 $ 55.21 Granted 104 65.77 748 60.50 Vested — — ( 759 ) 54.65 Forfeited ( 1 ) 65.78 ( 202 ) 56.66 Nonvested restricted stock units - December 31, 2024 247 65.73 1,642 57.73 Granted 89 98.22 625 91.01 Performance adjustment (1) 55 68.63 — — Vested ( 115 ) 68.63 ( 653 ) 57.00 Forfeited ( 5 ) 86.55 ( 147 ) 67.73 Nonvested restricted stock units - December 31, 2025 271 $ 75.43 1,467 $ 71.25 (1) The performance adjustment represents the difference between the number of performance restricted stock units granted and earned following the three-year performance period that ended in 2024. The performance restricted stock units were granted at the target level of achievement. 201 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 17. SHARE-BASED COMPENSATION (CONTINUED) The following table provides additional information related to share-based compensation: Year ended December 31, 2025 2024 2023 Share-based compensation expense $ 45,222 $ 42,713 $ 57,729 Tax benefits associated with share-based compensation expense $ 12,578 $ 8,007 $ 8,819 Fair value of restricted stock units vested (1) $ 74,229 $ 46,884 $ 64,156 Unrecognized share-based compensation expense $ 70,971 $ 60,192 $ 62,416 Expected weighted average period associated with the recognition of unrecognized share-based compensation expense 2.3 years 2.4 years 2.4 years (1) Fair value is based on the closing price of the Company's common shares on the vest date. 202 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 18. RELATED PARTY TRANSACTIONS Related Party Transactions with Stone Point Capital, LLC ("Stone Point") A member of the Company’s Board of Directors, Mr. Charles Davis, is the Co-Chief Executive Officer of Stone Point Capital, LLC ("Stone Point"). In the ordinary course of business, the Company engaged SKY Harbor Capital Management, LLC, which was majority-owned by Stone Point's private equity fund Trident V, L.P. ("Trident V"), to provide asset management services for certain high yield debt portfolios. During 2025, Trident V, sold its ownership of SKY Harbor Capital Management, LLC to an unaffiliated asset manager. For the year ended December 31, 2025, total fees paid to SKY Harbor Capital Management, LLC, were $ 1 million (2024: $ 3 million; 2023: $ 3 million). In addition, the Company has an investment of $ 2 million (2024: $ 3 million) in the Freedom Consumer Credit Fund, LLC - Series B. The manager of this fund is Freedom Financial Asset Management, LLC ("Freedom") which is an indirect subsidiary of Pantheon Partners, LLC ("Pantheon"). A Stone Point private equity fund, Trident VI, L.P. ("Trident VI") owns approximately 14.5 % of Pantheon. For the year ended December 31, 2025, fees paid to Freedom were $ nil (2024: $ nil ; 2023: $ 1 million). The Company has an investment of $ 79 million (2024: $ 92 million) in Stone Point's private equity fund, Trident VIII, L.P. ("Trident VIII") and co-investments of $ 25 million (2024: $ 30 million) with Trident VIII. For the year ended December 31, 2025, fees paid to Stone Point in relation to Trident VIII were $ 2 million (2024: $ 4 million; 2023: $ 2 million). The Company has an investment of $ 53 million (2024: $ 39 million) in Stone Point's private equity fund, Trident IX, L.P. ("Trident IX"). For the year ended December 31, 2025, fees paid to Stone Point in relation to Trident IX were $ 2 million (2024: $ 3 million; 2023: $ 1 million). The Company has an investment of $ 47 million (2024: $ 48 million) with Rialto Real Estate IV-Property ("Rialto") and co-investments of $ 17 million (2024: $ 23 million) managed by Rialto, which is a portfolio company of Stone Point's private equity fund, Trident VII, L.P. ("Trident VII"). For the year ended December 31, 2025, fees paid to Rialto were $ 0.3 million (2024: $ 2 million; 2023: $ 2 million). The Company has an investment of $ 20 million (2024: $ 18 million) in Stone Point Credit Corporation. For the year ended December 31, 2025, fees paid to Stone Point in relation to Stone Point Credit Corporation were $ 0.7 million (2024: $ 0.5 million; 2023: $ 0.5 million). The Company previously had an investment of $ 18 million in Stone Point Credit Corporation bonds. These bonds were repaid in full during the year ended December 31, 2025. For the year ended December 31, 2025, the Company earned income of $ 1 million (2024: $ 1 million; 2023: $ 1 million) in relation to this bond. The Company has an investment of $ 7 million (2024: $ 7 million) in a loan to Eagle Point Credit Management LLC ("Eagle Point"), which is majority-owned by Trident IX. For the year ended December 31, 2025, the Company earned income of $ 0.6 million (2024: $ 0.7 million; 2023: $ 0.5 million) in relation to this loan. The Company has an investment of $ 65 million in separately managed accounts ("SMAs") that are managed by Eagle Point. For the year ended December 31, 2025, fees paid to Eagle Point in relation to the SMAs were less than $ 0.1 million. The Company has an investment of $ 371 million in a collateralized loan obligation ("CLO") investment account that is managed by Eagle Point. For the year ended December 31, 2025, fees paid to Eagle Point in relation to this investment account were $ 0.1 million. The Company has an investment of $ 8 million in a SMA that is managed by Stone Point Credit LLC. For the year ended December 31, 2025, the fees paid to Stone Point Credit LLC were less than $ 0.1 million. The Company has an investment of $ 6 million (2024: $ 6 million) in cumulative preferred shares of Aspida Holdings Ltd. ("Aspida"). The investment was syndicated to the Company by Stone Point Credit Corporation. For the year ended December 31, 2025 and 2024, the Company did not pay any fees to Aspida. 203 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 18. RELATED PARTY TRANSACTIONS (CONTINUED) Commitments At December 31, 2025, the Company had up to $ 53 million (2024: $ 60 million) of unfunded commitments to the Stone Point Credit LLC SMA. At December 31, 2025, the Company had up to $ 25 million (2024: $ 25 million) of unfunded commitments to Stone Point's private equity fund, Trident X L.P. ("Trident X"). At December 31, 2025, the Company had up to $ 8 million (2024: $ 8 million) of unfunded commitments to Stone Point's private equity fund, Trident VIII. At December 31, 2025, the Company had up to $ 11 million (2024: $ 20 million) of unfunded commitments to Stone Point's private equity fund, Trident IX. At December 31, 2025, the Company had up to $ 185 million of unfunded commitments to the Eagle Point SMA. Stock Repurchase Agreements with Stone Point On February 3, 2025, the Company entered into a stock repurchase agreement with T-VIII PubOpps LP ("T8"), an investment vehicle managed by Stone Point, pursuant to which T8 agreed to sell 2,234,636 shares to the Company for an aggregate price of approximately $ 200 million. On March 5, 2025, the Company entered into a stock repurchase agreement with T8, pursuant to which T8 agreed to sell 2,139,037 shares to the Company for an aggregate price of approximately $ 200 million. On November 19, 2025, the Company entered into a stock repurchase Agreement with T8, pursuant to which T8 agreed to sell 2,404,133 shares to the Company for an aggregate price of approximately $ 238 million. Loss Portfolio Transfer Reinsurance Agreement with Enstar On December 13, 2024, the Company entered into a LPT agreement with Enstar (refer to Note 8 ' Reserves for Losses and Loss Expenses ' and Note 9 ' Reinsurance' ) 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 and was completed on April 24, 2025 . Stone Point serves as the manager of Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. (collectively, "Trident V Funds"), that indirectly held an aggregate ownership interest of approximately 9.5 % in Enstar at December 31, 2024. On July 2, 2025, in connection with the acquisition of Enstar by investment vehicles managed or advised by affiliates of Sixth Street Partners LLC., all ordinary shares held by the Trident V Funds in Enstar were converted into the right to receive cash, without interest. In addition, affiliates and managed funds of Stone Point Credit Adviser LLC, together with certain co‑investors, purchased preferred equity interests in a parent entity of Enstar with a liquidation preference of $ 175 million. This preferred equity interest represents a senior, fixed‑value investment and does not confer a controlling interest in the parent entity or any of its subsidiaries, including Enstar. Retrocession Agreement with Monarch Point Re Refer to Note 5 ' Investments ' Loan Advances Made to Monarch Point Re Refer to Note 5 ' Investments ' 204 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 18. RELATED PARTY TRANSACTIONS (CONTINUED) Significant Influence considerations The Company's investment portfolio includes certain investments where it is considered to have the ability to exercise significant influence over the operating and financial policies of the investee. Significant influence is generally deemed to exist where the Company has an investment of 20% or more in the common stock of a corporation or an investment greater than 3% to 5% in closed end funds, limited partnerships, LLCs or similar investment vehicles. At December 31, 2025, the Company h as $ 532 million (2024: $ 448 million) of investments where it is deemed to have the ability to exercise such significant influence. The Company generally pays management and performance fees to the investment managers of these investments. The Company considers all fees paid to the investment managers to be at market rates consistent with negotiated arms-length contracts. Harrington Re Retrocession Agreement with Harrington Re Refer to Note 5 ' Investments ' Harrington Notes On June 29, 2021, the Company invested $ 10 million in 7.25 % fixed to floating rate, senior unsecured notes ("Harrington Notes") due 2031, issued by Harrington. On June 29, 2024, the Harrington Notes were fully redeemed. 19. REORGANIZATION EXPENSES For the year ended December 31, 2025, reorganization expenses were $ nil (2024: $ 26 million and 2023: $ 29 million). In 2024, reorganization expenses were primarily related to severance costs attributable to the Company's "How We Work" program. In 2023, reorganization expenses were primarily related to impairments of computer software assets and severance costs attributable to the Company's "How We Work" program which is focused on simplifying the Company’s operating structure. 205 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES On December 27, 2023, the Bermuda government enacted the Corporate Income Tax Act 2023 (the "Act") which applies a corporate income tax for fiscal years beginning on or after January 1, 2025. Under the Corporate Income Tax Act 2023 of Bermuda, any liability to the tax applies regardless of any assurances previously provided under the Exempted Undertakings Tax Protection Act 1966 of Bermuda. 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 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. T he Amendment Act includes a provision to allow for derecognition of deferred tax liabilities where a Bermuda tax group recognized both deferred tax assets and deferred tax liabilities under the Bermuda ETA. Pursuant to the Amendment Act, the Company released $ 19 million of deferred tax liabilities previously established under the Bermuda ETA in 2025. AXIS Specialty Insurance Bermuda (refer to Note 1 'Organization' ), a wholly owned subsidiary of AXIS Specialty U.S. Holdings, Inc, made an election to be treated as a U.S. taxpayer under section 953(d) of the Internal Revenue Code of 1986, as amended ("U.S. Internal Revenue Code"). AXIS Specialty Insurance Bermuda is subject to tax in the U.S. beginning tax year 2024 and in Bermuda beginning tax year 2025. Any U.S. tax incurred as a result of this election is eligible to be fully creditable against the Bermuda corporate income tax. AXIS Capital's primary Bermuda subsidiary has an operating branch in Singapore, which is subject to the relevant taxes in that jurisdiction. The Company is currently in the process of winding down regulated operations in Singapore. The Singapore branch is not under examination in that tax jurisdiction but remains subject to examination for tax years 2022 through 2025. AXIS Capital's U.S. subsidiaries are subject to federal, state and local corporate income taxes, and other taxes applicable to U.S. corporations. The provision for federal income taxes has been determined under the principles of the consolidated tax provisions of the U.S. Internal Revenue Code. Should the U.S. subsidiaries pay a dividend outside the U.S. tax group, withholding taxes will apply. The U.S. subsidiaries are subject to examination for tax years 2022 through 2025. An Internal Revenue Service ("IRS") examination of the U.S. group was completed in 2025 with respect to tax years 2019, 2021, and 2022 and was closed without material adjustments. In Canada, AXIS Capital's U.S. reinsurance company operates through a branch and its U.S. service company has an unlimited liability company subsidiary based in Canada. The Canadian operations are subject to the relevant taxes in that jurisdiction and remain subject to examination for tax years 2021 through 2025. AXIS Capital has subsidiaries in Ireland, the U.K., and Brazil with branches in the U.K., Switzerland, and Belgium. These subsidiaries and their branches are not under examination but remain subject to examination in all applicable jurisdictions for tax years 2021 through 2025. In the U.K., the Company operates through a Lloyd’s syndicate whose income is subject to tax in the U.K., payable by its corporate members. The income from operations at Lloyd’s is also subject to taxes in other jurisdictions in which Lloyd's operates, including the U.S. Under a Closing Agreement between Lloyd’s and the IRS, Lloyd's corporate members pay U.S. income tax on U.S. connected income written by Lloyd’s syndicates. To the extent that the Lloyd’s syndicates incur taxes outside the U.K., they may claim a credit for foreign taxes incurred, limited to the U.K. equivalent tax on the same income. 206 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) The following table provides an analysis of income tax expense (benefit) and net tax assets: Year ended December 31, 2025 2024 2023 Current income tax expense (benefit) U.S. $ 95,565 $ 84,255 $ 12,021 Europe 40,245 19,260 32,386 Bermuda 42,464 3,425 291 Deferred income tax expense (benefit) U.S. ( 55,000 ) 716 ( 24,042 ) Europe 47,017 7,290 18,932 Bermuda (1) 46,441 ( 170,541 ) ( 13,272 ) Total income tax expense (benefit) $ 216,732 $ ( 55,595 ) $ 26,316 Net current tax receivables (payables) $ ( 9,907 ) $ 42,991 $ 78,570 Net deferred tax assets (liabilities) 176,726 278,474 72,850 Net tax assets $ 166,819 $ 321,465 $ 151,420 (1) 2024 reflects the recognition of a tax benefit related to the Bermuda ETA, offset by a partial reversal of the 2023 tax benefit on unrealized investment losses included in other comprehensive income (loss) due to the enactment of corporate income tax, effective January 1, 2025. 2025 reflects Bermuda ETAs including the amortization of $ 19 million of deferred tax assets offset by the derecognition of $ 19 million of deferred tax liabilities pursuant to the Amendment Act. The following table provides an analysis of income taxes paid disaggregated by jurisdiction, following the adoption of Accounting Standards Update ("ASU") 2023-09: Year ended December 31, 2025 Jurisdiction Income taxes paid (net of refunds) Federal (Bermuda) $ 1,000 Foreign United States 96,637 United Kingdom 12,685 Canada 8,093 Ireland 6,980 Other foreign jurisdictions 1,448 Total income tax expense (benefit) $ 126,843 207 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The following table provides details of the significant components of deferred tax assets and liabilities: At December 31, 2025 2024 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 60,852 $ 66,338 Unearned premiums 69,113 62,656 Net unrealized investments losses — 36,536 Operating and capital loss carryforwards 54,923 75,864 Accruals not currently deductible 40,826 36,253 Tax credits 12,601 2,414 Bermuda economic transition adjustment (1) 176,759 176,923 Other deferred tax assets 3,742 3,681 Deferred tax assets before valuation allowance 418,816 460,665 Valuation allowance ( 7,591 ) ( 19,829 ) Deferred tax assets net of valuation allowance 411,225 440,836 Deferred tax liabilities: Deferred acquisition costs ( 50,832 ) ( 35,401 ) Net unrealized investments gains ( 9,807 ) — Other investment adjustments and impairments ( 6,104 ) ( 7,933 ) Intangible assets ( 45,034 ) ( 47,355 ) Depreciation and amortization ( 1,450 ) ( 7,586 ) Equalization reserves ( 2,140 ) ( 2,347 ) Lloyd’s deferred year of account results ( 114,124 ) ( 51,770 ) Other deferred tax liabilities ( 5,008 ) ( 9,970 ) Deferred tax liabilities ( 234,499 ) ( 162,362 ) Net deferred tax assets (liabilities) $ 176,726 $ 278,474 (1) At December 31, 2025, the Bermuda ETA includes amortization of $ 19 million of deferred tax assets offset by the derecognition of $ 19 million of deferred tax liabilities pursuant to the Amendment Act. 208 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) The following table summarizes total operating and capital loss carryforwards and tax credits: At December 31, 2025 2024 Operating and Capital Loss Carryforwards (1) Singapore operating loss carryforward $ 55,914 $ 91,924 U.K. operating loss carryforward 182,348 216,928 U.K. capital loss carryforward 93 93 Ireland operating loss carryforward — 27 Ireland capital loss carryforward 835 1,372 Switzerland operating loss carryforward (2) — 68,573 U.S. capital loss carryforward (3) 16,932 59,434 Tax Credits (1) Ireland foreign tax credit $ — $ 333 U.K. foreign tax credit 643 504 U.S. foreign tax credit (4) 11,957 1,577 (1) At December 31, 2025, the Singapore, U.K., and Ireland operating and capital loss carryforwards and tax credits can be carried forward indefinitely. (2) At December 31, 2025, the Swiss net operating losses were fully utilized. (3) At December 31, 2025, the U.S. capital loss carryforwards expire in 2030. (4) At December 31, 2025, the U.S. foreign tax credits expire in 2034. The following table shows an analysis of the movement in the Company's valuation allowance: At December 31, 2025 2024 Income tax expense (benefit): Valuation allowance - beginning of year $ 17,221 $ 31,688 Operating loss carryforwards ( 8,476 ) ( 6,572 ) Foreign tax credit ( 333 ) ( 6,589 ) U.K. branch assets and other foreign rate differentials 756 ( 1,567 ) Capital loss carryforwards and impaired investments ( 111 ) 261 Valuation allowance - end of year $ 9,057 $ 17,221 Accumulated other comprehensive income (loss): Valuation allowance - beginning of year $ 2,608 $ 7,023 Change in investment - related items ( 4,074 ) ( 4,415 ) Valuation allowance - end of year ( 1,466 ) 2,608 Total valuation allowance - end of year $ 7,591 $ 19,829 At December 31, 2025 and 2024, the Company had a full val uation allowance on operating loss carryforwards relating to operations in Singapore and Ireland and certain other deferred tax assets related to branch operations. 209 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) In 2025, the valuation allowance decreased by $ 12 million (2024: $ 19 million). In 2025, 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). In 2024, 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 in net income (loss) and $ 5 million was released in other comprehensive income (loss). In 2025, the remaining $ 0.3 million valuation allowance was fully released against foreign tax credits held by AXIS Specialty Europe. In 2024, a valuation allowance of $ 7 million was released against foreign tax credits held by AXIS Specialty Europe At December 31, 2025 and 2024, the Company's 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). The Company 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 Company’s Bermuda operations had a deferred tax liability of $ 11 million and a deferred tax asset of $ 17 million, respectively, for the unrealized gains (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. The Company 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. Although realization is not assured, management believes it is more likely than not that the tax benefit of the recorded net deferred tax assets will be realized. In evaluating the Company's ability to recover these tax assets within the jurisdiction from which they arise, it considered all available positive and negative evidence, including historical results, operating loss carry-back potential and scheduled reversals of deferred tax liabilities. The Company believes its U.S. and U.K. operations will produce significant taxable income in future periods and have deferred tax liabilities that will reverse in future periods, such that the Company believes sufficient ordinary taxable income is available to utilize all remaining ordinary deferred tax assets. A deferred tax liability has not been recorded on undistributed earnings as the U.S. group satisfies the indefinite reversal criteria. At December 31, 2025 and 2024, there were no unrecognized tax benefits. 210 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 15 % under Bermuda law to income before income taxes, following the adoption of ASU 2023-09: Year ended December 31, 2025 Amount Percent Income (loss) before income taxes Bermuda (domestic) $ 586,113 Foreign 639,517 Total income before income taxes $ 1,225,630 Bermuda Federal Statutory Rate $ 183,844 15.0 % State and Local Income Taxes — 0.0 % Foreign Tax Effects United States Statutory tax rate difference between United States and Bermuda 10,915 0.9 % U.S. tax on insurance income 84,093 6.9 % Other ( 1,791 ) ( 0.1 %) United Kingdom Statutory tax rate difference between United Kingdom and Bermuda 31,401 2.5 % Other ( 5,638 ) ( 0.5 %) Other Foreign Jurisdictions ( 7,794 ) ( 0.6 %) Effect of changes in tax laws or rates enacted in the current period (1) ( 18,782 ) ( 1.5 %) Effect of cross-border tax laws — 0.0 % Tax Credits ( 68,281 ) ( 5.6 %) Changes in valuation allowances — — % Nontaxable or nondeductible items 1,943 0.2 % Changes in unrecognized tax benefits — 0.0 % Other Adjustments 6,822 0.5 % Actual tax rate 216,732 17.7 % (1) At December 31, 2025, the effects of changes in tax laws or rates enacted in the current period reflects the release of $ 19 million of Bermuda ETA deferred tax liabilities pursuant to the Amendment Act. 211 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 20. INCOME TAXES (CONTINUED) The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0 % under Bermuda law to income before income taxes prior to the adoption of issuance of ASU 2023-09: Year ended December 31, 2024 2023 Income (loss) before income taxes Bermuda (domestic) $ 323,688 $ 213,539 Foreign 702,503 189,067 Total income before income taxes $ 1,026,191 $ 402,606 Reconciliation of effective tax rate (% of income before income taxes) Expected tax rate 0.0 % 0.0 % Foreign taxes at local expected rates: U.S. 8.4 % ( 2.5 %) Europe 6.0 % 11.9 % Valuation allowance ( 1.4 %) ( 2.0 %) Prior year adjustments ( 1.5 ) % 1.3 % Incremental branch taxes 1.1 % 0.9 % Change in enacted tax rate (1) ( 1.9 %) ( 3.3 %) Bermuda economic transition adjustment ( 17.2 ) % — % Change in unrealized investment gain/(loss) 0.6 % — % Withholding tax 0.3 % — % Other 0.2 % 0.2 % Actual tax rate ( 5.4 %) 6.5 % (1) At December 31, 2024, the change in enacted tax rate represents the rate change related to deferred tax assets and deferred tax liabilities on acquisition adjustments no longer required. At December 31, 2023, the change in enacted tax rate represents the enactment of the Act related to unrealized investment losses included in other comprehensive income (loss). 212 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 21. OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the tax effects allocated to each component of other comprehensive income (loss): Before tax amount Income tax (expense) benefit Net of tax amount Year ended December 31, 2025 Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized $ 309,671 $ ( 57,660 ) $ 252,011 Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized ( 483 ) 63 ( 420 ) Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income 35,803 ( 5,787 ) 30,016 Unrealized gains (losses) arising during the year, net of reclassification adjustment 344,991 ( 63,384 ) 281,607 Foreign currency translation adjustment 14,381 — 14,381 Total other comprehensive income (loss), net of tax $ 359,372 $ ( 63,384 ) $ 295,988 Year ended December 31, 2024 Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized $ ( 44,964 ) $ 11,934 $ ( 33,030 ) Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized ( 278 ) 30 ( 248 ) Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income 170,984 ( 15,664 ) 155,320 Unrealized gains (losses) arising during the year, net of reclassification adjustment 125,742 ( 3,700 ) 122,042 Foreign currency translation adjustment ( 23,763 ) — ( 23,763 ) Total other comprehensive income (loss), net of tax $ 101,979 $ ( 3,700 ) $ 98,279 Year ended December 31, 2023 Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized $ 294,933 $ ( 36,993 ) $ 257,940 Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized 11,220 ( 1,637 ) 9,583 Adjustment for reclassification of net realized (gains) losses and impairment losses recognized in net income 142,324 ( 13,811 ) 128,513 Unrealized gains (losses) arising during the year, net of reclassification adjustment 448,477 ( 52,441 ) 396,036 Foreign currency translation adjustment ( 1,572 ) — ( 1,572 ) Total other comprehensive income (loss), net of tax $ 446,905 $ ( 52,441 ) $ 394,464 213 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 21. OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED) The following table presents details of amounts reclassified from accumulated other comprehensive income (loss) ("AOCI") to net income (loss): Amounts reclassified from AOCI (1) AOCI components Consolidated statement of operations line item that includes reclassification adjustment Year ended December 31, 2025 2024 2023 Unrealized gains (losses) on available for sale investments Other realized and unrealized investment gains (losses) $ ( 33,535 ) $ ( 170,576 ) $ ( 129,567 ) Impairment losses ( 2,268 ) ( 408 ) ( 12,757 ) Total before tax ( 35,803 ) ( 170,984 ) ( 142,324 ) Income tax (expense) benefit 5,787 15,664 13,811 Net of tax $ ( 30,016 ) $ ( 155,320 ) $ ( 128,513 ) (1) Amounts in parentheses are charges to net income (loss). 214 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 22. STATUTORY FINANCIAL INFORMATION The Company's insurance and reinsurance operations are subject to laws and regulations in the jurisdictions in which they operate, the most significant of which include Bermuda, Ireland, and the U.S. In addition, the Company is regulated by Lloyd's. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval from insurance regulatory authorities. The statutory capital and surplus in each of the Company's most significant regulatory jurisdictions is shown in the following table: Bermuda Ireland U.S. At December 31, 2025 2024 2025 2024 2025 2024 Required statutory capital and surplus $ 2,111,743 $ 1,982,025 $ 662,931 $ 733,689 $ 502,661 $ 675,672 Available statutory capital and surplus $ 4,396,966 $ 4,475,219 $ 1,068,054 $ 1,197,127 $ 1,879,213 $ 2,483,658 Bermuda Under the Insurance Act 1978, amendments thereto and related regulations of Bermuda (the "Insurance Act"), the Company's Bermuda subsidiaries, AXIS Specialty Bermuda and AXIS Specialty Insurance Bermuda are required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin ("MSM") and the Enhanced Capital Requirement ("ECR"). The MSM is the greater of $ 100 million, 50 % of net premiums written, 15 % of net reserve for losses and loss expenses, and 25 % of the ECR. The Company's ECR is based on an Economic Balance Sheet ("EBS") framework and is calculated using a standard risk-based capital model developed by the Bermuda Monetary Authority ("BMA"). At December 31, 2025 and 2024, the required and available statutory capital and surplus were based on this EBS framework. Under the Act, the Company's Bermuda subsidiaries are restricted as to the payment of dividends for amounts greater than 25 % of the prior year’s statutory capital and surplus, whereby an affidavit signed by at least two members of the Board of Directors is required, attesting that any dividend in excess of this amount would not cause the Company to fail to meet its relevant margins. At December 31, 2025, the maximum dividend the Company's Bermuda subsidiaries could pay, without a signed affidavit, having met minimum levels of statutory capital and surplus requirements, was approximately $ 941 million (2024: $ 958 million). Ireland The Company's Irish subsidiaries, AXIS Specialty Europe and AXIS Re SE, are required to continuously maintain the Minimum Capital Requirement ("MCR") and the Solvency Capital Requirement ("SCR"). The capital requirements are calculated by reference to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of business of Insurance and Reinsurance (Solvency II) ("Solvency II") definitions. If an entity falls below the MCR or SCR, the Central Bank of Ireland is authorized to take action to restore the financial position of the Company's Irish subsidiaries. During 2025 and 2024, the Company's Irish subsidiaries were in compliance with these requirements. The Company's Irish subsidiaries may declare dividends subject to meeting their solvency and capital requirements. The maximum dividend is limited to "excess eligible own funds" which is defined as excess Solvency II capital over the SCR and may also be limited to "profits available for distribution'', which is defined as accumulated realized profits less accumulated realized losses and statutory reserves. In addition, a target coverage ratio range of excess eligible own funds to SCR is set by 215 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 22. STATUTORY FINANCIAL INFORMATION (CONTINUED) the Company’s Irish subsidiaries to ensure their ability to absorb stress events without breaches of required capital levels. Own Fund balances in excess of the target coverage ratio range may be considered for distribution back to Group. At December 31, 2025, the maximum dividend the Company's Irish subsidiaries could pay, having met their target solvency and capital requirements was approximately $ 74 million (2024: $ 97 million). United States The Company's U.S. subsidiaries required statutory capital and surplus is determined using the risk-based capital formula ("RBC"), which is the National Association of Insurance Commissioners' (the "Commissioner") method of measuring the minimum capital appropriate for U.S. reporting entities to support its overall business operations in consideration of its size and risk profile. If a company falls below the authorized control level as determined under the RBC, the domiciliary states are authorized to take whatever regulatory actions may be considered necessary to protect policyholders and creditors. The maximum dividend that may be paid by the Company's U.S. subsidiaries is restricted by the regulatory requirements of the domiciliary states. Generally, the maximum dividend that may be paid by each of the Company's U.S. subsidiaries is limited to unassigned surplus (statutory equivalent of retained earnings) and may also be limited to statutory net income, net investment income or 10 % of total statutory capital and surplus. At December 31, 2025, the maximum dividend that the Company's U.S. subsidiaries could pay without regulatory approval was approximately $ 186 million (2024: $ 344 million). Lloyd's of London The Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited. AXIS Corporate Capital UK II Limited provides 100 % capital support to Syndicate 1686 for underwriting activities effective January 1, 2025. AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited provided 70 % and 30 % capital support, respectively, to Syndicate 1686's through December 31, 2024. AXIS Corporate Capital UK II Limited also provides 100 % capital support to Syndicate 2050. Syndicate 1686 and Syndicate 2050 are managed by AXIS Managing Agency. Corporate members of Lloyd’s and Lloyd’s syndicates are bound by the rules of Lloyd’s, which are prescribed by Bye-laws and Requirements made by the Council of Lloyd’s under powers conferred by the Lloyd’s Act 1982. These rules prescribe membership subscriptions, contributions to the Lloyd’s Central Fund and assets that must be deposited with Lloyd’s in support of members' underwriting. The Council of Lloyd’s has broad powers to sanction breaches of its rules, including the power to restrict or prohibit a member’s participation on Lloyd’s syndicates. The capital provided to support underwriting, or FAL, is not available for distribution for the payment of dividends or for working capital requirements. Corporate members may also be required to maintain funds under the control of Lloyd’s in excess of their capital requirements and such funds also may not be available for distribution for the payment of dividends. Lloyd’s sets the corporate members’ required capital annually and reviews funds held compared to latest capital requirements on a quarterly basis. This process is supported by the application of a capital model that is based on regulatory rules pursuant to Solvency UK. FAL may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2025, fixed maturities and short-term investments with a fair value of $ 175 million (2024: $ 328 million) and cash of $ 3 million (2024: $ 4 million), respectively, were restricted to satisfy AXIS Corporate Capital UK Limited FAL requirements. At December 31, 2025, fixed maturities and short-term investments with a fair value of $ 849 million (2024: $ 424 million), equity securities with a fair value of $ 36 million (2024: $ 27 million), a letter of credit for $ 80 million (2024: $ nil ), and cash of $ 8 million (2024: $ 99 million) were restricted to satisfy AXIS Corporate Capital UK II Limited FAL requireme nts (refer to Note 5 ' Investments ' and Note 12 'Commitments and Contingencies' ). 216 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 22. STATUTORY FINANCIAL INFORMATION (CONTINUED) Corporate members can apply to Lloyd's to release accumulated funds, whether syndicate profits or interest on FAL, which are in excess of the agreed FAL requirements on a quarterly basis. At December 31, 2025 and 2024, actual capital and assets exceeded the FAL requirements for Syndicate 1686 and Syndicate 2050. Branch Offices The Company's operating subsidiaries in Bermuda and the U.S. maintain branch offices in Singapore and Canada, respectively. The Company's Irish operating subsidiaries maintain branch offices in the U.K., Switzerland and Belgium. As branch offices are not considered separate entities for regulatory purposes, the required and actual statutory capital and surplus amounts for each jurisdiction in the table above, incl ude amounts related to the applicable branch offices. The Company's branch offices in Singapore and Canada are subject to additional minimum capital or asset requirements in their countries of domicile. At December 31, 2025 and 2024, the actual capital/assets for each of these branches exceeded the relevant local regulatory requirements. Total statutory net income (loss) of the Company's operating subsidiaries was $ 0.9 billion , $ 1.0 billion , and $ 471 million for 2025, 2024 and 2023, respectively. The differences between statutory financial statements and statements prepared in accordance with U.S. GAAP vary by jurisdiction, however, the primary differences are that statutory financial statements may not reflect deferred acquisition costs, certain net deferred tax assets, goodwill and intangible assets, unrealized gains (losses) on fixed maturities or certain unauthorized reinsurance recoverable balances. 217 AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025, 2024 AND 2023 23. SUBSEQUENT EVENTS Share Repurchase program On February 26, 2026, the Company's 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 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. 218 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.