Axis Capital’s Q3 profit drops 32% as cat losses hit $75m
Bermuda-based specialty re/insurer Axis Capital reported third-quarter net income of $202 million, down 32% year-on-year, as catastrophe and weather-related losses weighed on its underwriting performance.
The combined ratio worsened to 94% from 89.4% a year earlier.
Gross premiums written rose $234 million to $2.4 billion, driven by a $217 million increase in insurance and a $17 million rise in reinsurance.
Axis reported $75 million in pre-tax catastrophe and weather-related losses, net of reinsurance, adding 4.6 percentage points to its combined ratio. Of this, $44 million, or 2.7 points, was attributable to the Middle East conflict and the Russia/Ukraine war, while weather-related events accounted for the remaining $31 million, or 1.9 points.
Net favourable prior-year reserve development totalled $15 million, comprising $12 million in insurance and $3 million in reinsurance, compared with $19 million a year earlier.
Reinsurance gross premiums written increased by $17 million, primarily reflecting higher premiums from two agriculture contracts. This was partly offset by reduced line sizes and non-renewals in liability lines.
The reinsurance segment’s combined ratio improved by 0.2 percentage points year-on-year to 92.4%.
For the first nine months of 2026, gross premiums written increased by $689 million, or 9%, to $8.1 billion. On a constant-currency basis, premiums grew by 8%, as an $841 million, or 16%, increase in insurance partly offset a $151 million, or 7%, decline in reinsurance.
Vince Tizzio (pictured), president and CEO of Axis Capital, said: “Our insurance business produced a 13% increase in gross premiums with a 92% combined ratio and an 87.2% current accident year ex-cat combined ratio. Leveraging our global platform, we drove diversified premium volume with meaningful contributions from our expanded classes and Axis Capacity Solutions capability. Within Axis Re, we generated our 11th consecutive profitable quarter.
“As we look ahead to the remainder of this year and to 2027, Axis is well-positioned. The strength of our balance sheet provides us with the flexibility to make smart investments in our business spanning products, platforms, and talent. We are excited about where Axis stands today, supported by a clear strategy, balanced and resilient portfolio, enhanced operating model, and deep and capable team.”
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