Key Highlights

● Net income available to common shareholders rose to $250.5 million from $215.8 million.

● The combined ratio deteriorated to 93.1 per cent from 88.9 per cent a year earlier.

● Gross premiums written rose 6 per cent to $2,667.6 million, led by Insurance.

● The board declared a quarterly dividend of $0.44 per share, up from a lower rate.

AXIS Capital Holdings Limited (NYSE:AXS), the Bermuda-based specialty insurer and reinsurer, reported second-quarter 2026 results on 28 July. Net income available to common shareholders was $250.5 million, or $3.38 per diluted share, up from $215.8 million a year earlier. Operating income, which strips out items such as investment gains, moved the other way, falling to $210.6 million, or $2.84 per diluted share, from $261.3 million, or $3.29. The combined ratio, where lower is better, deteriorated to 93.1 per cent from 88.9 per cent, and underwriting income was $142.9 million. Catastrophe and weather-related losses were $80 million before tax, equal to 5.3 points of the loss ratio, of which $49 million came from natural catastrophes and $31 million from the Middle East conflict. Prior-year reserve development was a favourable $15 million.

Premium growth, segments and book value

Gross premiums written rose 6 per cent to $2,667.6 million, while net premiums written were $1,605.8 million. The mix shifted markedly. Insurance gross premiums grew 15.3 per cent to $2,228.1 million, with a combined ratio of 90.0 per cent (84.5 per cent excluding catastrophe losses, according to market data), whereas Reinsurance gross premiums fell 24.7 per cent to $439.5 million and its combined ratio was 94.5 per cent. According to market data, the reinsurance contraction reflected a deliberate reduction in casualty exposure. Underwriting income was $119.4 million in Insurance, down 21.3 per cent, and $23.6 million in Reinsurance, down 37.3 per cent. Net investment income slipped 3 per cent to $181.6 million; the trade press attributes this to lower cash balances following the Enstar loss portfolio transfer completed in the second quarter of 2025. Book value per diluted common share was $80.67, up 3.2 per cent from 31 March 2026, and annualised return on average common equity was 17.0 per cent, or 14.3 per cent on an operating basis. Loss reserves stood at $18,613.4 million, against $18,122.3 million at the end of 2025.

Capital returns and the dividend

AXIS returned $122 million to common shareholders in the quarter, comprising $89 million of share repurchases and $33 million of dividends. On 16 September the board declared a quarterly common dividend of $0.44 per share, payable on 15 October to shareholders of record on 30 September. Annualised, that is $1.76. Measured against the latest quarterly operating earnings, the payout looks well covered on the company's own operating earnings per share, although insurers' earnings can swing with catastrophe losses and reserve changes, so cover is not guaranteed. The same announcement declared $34.375 per preferred share, or $0.34375 per depositary share, on the Series E 5.50 per cent preferred stock, with the same record and payment dates. Preferred distributions rank ahead of common dividends, which is a consideration in assessing the overall capital commitment of the group.

A Deliberate Shift Toward Insurance

AXIS Capital's higher net income came alongside a weaker underwriting result, as catastrophe losses of $80 million before tax and a deliberate pullback in Reinsurance premiums reshaped the business mix toward Insurance, where gross premiums grew 15.3 per cent. Book value per share rose 3.2 per cent and the company returned $122 million to shareholders in the quarter, but insurers' earnings can swing sharply with catastrophe losses and reserve changes, so investors will watch whether the combined ratio stabilises as the mix shift continues.