AXIS (NYSE: AXS) reported an 11% year-over-year increase in gross premiums written to $2.4 billion for the third quarter of 2026, led by double-digit growth in its Insurance segment. The specialty underwriter posted a 94.0% group combined ratio despite catastrophe and weather-related losses, including losses associated with geopolitical conflicts.
Insurance gross premiums written rose by $217 million, or 13%, to $1.9 billion and included $630 million of new business. Growth came from all insurance lines except Liability and was supported by expanded initiatives, including the company’s Pet business and business sourced through AXIS Capacity Solutions.
Reinsurance gross premiums written increased by $17 million, or 4%, to $449 million. The segment recorded a 92.4% combined ratio, which the company said reflected consistent profitability and low volatility.
For the first nine months of 2026, the group combined ratio was 92.3%, including 4.4 percentage points of catastrophe losses associated in part with geopolitical conflicts. AXIS said it continues to prioritize underwriting profitability over premium volume as property pricing moderates and competition in casualty markets increases.
Insurance expansion supports premium growth
AXIS’ Insurance segment generated $8.0 billion of gross premiums written in the 12 months ended September 30, 2026, compared with $2.3 billion for Reinsurance. The company’s overall trailing-12-month gross premiums written totaled $10.3 billion.
Insurance growth reflected targeted product expansion and broader distribution. AXIS cited traction in recently launched retail products and niche specialty segments, alongside continued scaling of distribution partnerships and technology-enabled underwriting in the wholesale lower-middle-market business. Products launched in North America since 2023 include Inland Marine, Life Sciences, Ocean Marine, Construction, Environmental and Allied Health offerings.
The company is also using AXIS Capacity Solutions, launched in 2025, to pursue structured, multiline portfolio capacity opportunities and incorporate third-party reinsurance capital. The platform contributed $449 million of year-to-date gross premiums written growth through open-brokerage and selected delegated opportunities. Management projects that the business will generate $17 million of fee income in 2026 through ceding and structuring activities.
Reinsurance shifts further toward short-tail business
Reinsurance premium growth was primarily attributable to two agriculture contracts. That contribution was partly offset by portfolio actions in casualty lines, including reduced line sizes and non-renewals.
Short-tail business represented 57% of Reinsurance gross premiums written, up from 44% in the prior-year period. AXIS described the shift as part of its strategic repositioning toward short-tail lines while maintaining caution in casualty markets.
Across the group, management said capital is being directed toward specialty lines that meet its risk-adjusted return requirements. The company is maintaining underwriting discipline as property pricing moderates and casualty competition rises, with portfolio decisions focused on expected returns and volatility.
Book value rises as AXIS returns capital
Diluted book value per common share was $79.06 at September 30, an increase of 7.1% over the preceding 12 months. Diluted book value per common share excluding accumulated other comprehensive income, a non-GAAP measure, rose 14.4% to $84.33.
AXIS returned $141 million to common shareholders during the quarter, comprising $109 million of share repurchases and $32 million of dividends. Its capital framework prioritizes organic growth and operational investment, followed by shareholder distributions when excess capital and liquidity are available. Management said potential acquisitions must exceed a high return threshold relative to opportunities within the existing business.
The company’s year-to-date group general and administrative expense ratio declined to 10.7% from 11.8% a year earlier. AXIS said simplified operating structures and shorter underwriting and claims turnaround times have created additional capacity for growth. Its next phase includes applying artificial intelligence across underwriting, claims and operations, while continuing to invest in talent, data, core technology and cybersecurity.
AXIS ended the quarter with $18.0 billion of cash and investments. Its fixed-maturity portfolio had a weighted-average credit rating of A+, an average duration of 3.2 years including duration hedges, and book and market yields of 4.9% and 5.8%, respectively.
The company cautioned that future results remain exposed to catastrophe frequency and severity, reserve adequacy, pricing cycles, social and economic inflation, geopolitical conflict and reinsurance availability. Other identified uncertainties include interest-rate and foreign-exchange movements, tariffs and trade tensions, cybersecurity and technology risks, counterparty defaults, regulatory changes and evolving tax laws.
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