AXIS Capital Reports Third Quarter Net Income Available to Common Shareholders of $294 Million, or $3.74 Per Diluted Common Share and Operating Income of $255 Million, or $3.25 Per Diluted Common Share

PEMBROKE, Bermuda--( BUSINESS WIRE)--AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the third quarter ended September 30, 2025.

Commenting on the third quarter 2025 financial results, Vince Tizzio, President and CEO of AXIS Capital said:

"AXIS produced another strong quarter highlighted by a 14% year-over-year increase in diluted book value per common share, and annualized operating return on equity of 18%. These results are direct outcomes of the enhancements we have made to our product portfolio, operating model, and a highly engaged team focused on disciplined execution.

"Our insurance business again delivered an excellent quarter with record third quarter gross premiums written of $1.7 billion, representing 11% growth, record third quarter new business premiums of $570 million, and an 85.9% combined ratio. In parallel, AXIS Re continued its track record of solid performance with a 92.2% combined ratio and a 6% increase in gross premiums written.

"Our "How We Work" program is driving ongoing operational improvements throughout the business, powered by investments in data, technology, and AI. Our team remains resolute in building on the progress we’ve achieved, as we pursue our ambition to become the industry’s leading specialty underwriter."

Third Quarter and Year-to-date Consolidated Results*

* Amounts may not reconcile due to rounding differences.

Footnotes referred to above

1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release.

2 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is provided later in this press release.

Consolidated Underwriting Highlights 3

Three months ended September 30,

Nine months ended September 30,

KEY RATIOS

2025

2024

Change

2025

2024

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses (4) (5)

56.3

55.7

0.6 pts

56.3

55.7

0.6 pts

Catastrophe and weather-related losses ratio (5)

3.0

5.8

(2.8 pts)

3.1

3.7

(0.6 pts)

Current accident year loss ratio (5)

59.3

61.5

(2.2 pts)

59.4

— pts

Prior year reserve development ratio

(1.3

(0.6

(0.7 pts)

(1.4

(0.2

(1.2 pts)

Net losses and loss expenses ratio

58.0

60.9

(2.9 pts)

58.0

59.2

(1.2 pts)

Acquisition cost ratio

19.7

20.1

(0.4 pts)

19.7

20.2

(0.5 pts)

General and administrative expense ratio

11.7

12.1

(0.4 pts)

11.8

12.2

(0.4 pts)

Combined ratio

89.4

93.1

(3.7 pts)

89.5

91.6

(2.1 pts)

Current accident year combined ratio (5)

90.7

93.7

(3.0 pts)

90.9

91.8

(0.9 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses (5)

87.7

87.9

(0.2 pts)

87.8

88.1

(0.3 pts)

Three months ended September 30,

Nine months ended September 30,

Footnotes referred to above

3 All comparisons are with the same period of the prior year, unless otherwise stated.

4 The current accident year loss ratio, excluding catastrophe and weather-related losses is calculated by dividing the current accident year losses less pre-tax catastrophe and weather-related losses, net of reinsurance, by net premiums earned less reinstatement premiums.

5 Current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, and current accident year combined ratio, excluding catastrophe and weather-related losses are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net losses and loss expenses ratio and combined ratio are provided above and a discussion of the rationale for the presentation of these items is provided later in this press release.

6 Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures are provided above/later in this press release, and a discussion of the rationale for the presentation of these items is provided later in this press release. Variances that are unchanged on a constant currency basis are omitted from the narrative.

Segment Highlights

Insurance Segment

Three months ended September 30,

Nine months ended September 30,

($ in thousands)

2025

2024

Change

2025

2024

Change

Gross premiums written

1,691,882

1,526,676

10.8

5,280,220

4,915,247

7.4

Net premiums written

1,084,947

975,911

11.2

3,420,038

3,192,462

7.1

Net premiums earned

1,085,612

1,023,851

6.0

3,128,658

2,900,011

7.9

Underwriting income

153,300

98,786

55.2

439,480

337,414

30.2

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

52.3

— pts

52.3

52.1

0.2 pts

Catastrophe and weather-related losses ratio

3.9

7.0

(3.1 pts)

4.1

4.7

(0.6 pts)

Current accident year loss ratio

56.2

59.3

(3.1 pts)

56.4

56.8

(0.4 pts)

Prior year reserve development ratio

(1.3

(0.4

(0.9 pts)

(1.4

(0.2

(1.2 pts)

Net losses and loss expenses ratio

54.9

58.9

(4.0 pts)

55.0

56.6

(1.6 pts)

Acquisition cost ratio

18.9

19.9

(1.0 pts)

19.0

19.6

(0.6 pts)

Underwriting-related general and administrative expense ratio

12.1

11.6

0.5 pts

12.0

12.2

(0.2 pts)

Combined ratio

85.9

90.4

(4.5 pts)

86.0

88.4

(2.4 pts)

Current accident year combined ratio

87.2

90.8

(3.6 pts)

87.4

88.6

(1.2 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

83.3

83.8

(0.5 pts)

83.3

83.9

(0.6 pts)

Three months ended September 30,

Nine months ended September 30,

Reinsurance Segment

Three months ended September 30,

Nine months ended September 30,

($ in thousands)

2025

2024

Change

2025

2024

Change

Gross premiums written

432,302

409,226

5.6

2,154,587

2,115,317

1.9

Net premiums written

268,042

260,074

3.1

1,318,425

1,339,340

(1.6

Net premiums earned

366,271

342,850

6.8

1,057,475

1,029,210

2.7

Underwriting income

35,012

36,364

(3.7

101,490

104,556

(2.9

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

67.9

66.0

1.9 pts

68.1

66.0

2.1 pts

Catastrophe and weather-related losses ratio

0.3

2.0

(1.7 pts)

0.2

0.9

(0.7 pts)

Current accident year loss ratio

68.2

68.0

0.2 pts

68.3

66.9

1.4 pts

Prior year reserve development ratio

(1.1

— pts

(1.2

(0.4

(0.8 pts)

Net losses and loss expenses ratio

67.1

66.9

0.2 pts

67.1

66.5

0.6 pts

Acquisition cost ratio

21.9

20.9

1.0 pts

21.9

22.1

(0.2 pts)

Underwriting-related general and administrative expense ratio

3.2

3.6

(0.4 pts)

3.1

3.5

(0.4 pts)

Combined ratio

92.2

91.4

0.8 pts

92.1

— pts

Current accident year combined ratio

93.3

92.5

0.8 pts

93.3

92.5

0.8 pts

Current accident year combined ratio, excluding catastrophe and weather-related losses

93.0

90.5

2.5 pts

93.1

91.6

1.5 pts

Three months ended September 30,

Nine months ended September 30,

Investments

Three months ended September 30,

Nine months ended September 30,

($ in thousands)

2025

2024

2025

2024

Net investment income

184,903

205,100

579,911

563,458

Net investment gains (losses)

30,905

32,182

44,365

(30,503

)

Change in net unrealized gains (losses) on fixed maturities, pre-tax (7)

46,402

385,209

324,219

354,478

Interest in income of equity method investments

2,083

1,621

3,669

10,689

Total

264,293

624,112

952,164

898,122

Average cash and investments (8)

16,581,947

17,768,254

17,039,182

17,207,139

Pre-tax, total return on average cash and investments:

Including investment related foreign exchange movements

1.6

3.5

5.6

5.2

Excluding investment related foreign exchange movements (9)

1.7

3.1

4.8

5.0

7 Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end.

8 The average cash and investments balance is the average of the monthly fair value balances.

9 Pre-tax, total return on average cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $(15) million and $70 million for the three months ended September 30, 2025 and 2024, respectively and foreign exchange (losses) gains of $129 million and $40 million for the nine months ended September 30, 2025 and 2024, respectively.

Conference Call

We will host our third quarter earnings conference call on Thursday, October 30, 2025 at 8:30 a.m. (EDT). The earnings conference call can be accessed by dialing 1-877-883-0383 (U.S. callers), 1-866-605-3850 (Canada callers), or 1-412-902-6506 (international callers), and entering the passcode 5022483. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay will be available for two weeks by dialing 1-877-344-7529 (U.S. callers), 1-855-669-9658 (Canada callers), or 1-412-317-0088 (international callers), and entering the passcode 9882391. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended September 30, 2025 is available in the Investor Information section of our website.

About AXIS Capital

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $6.4 billion at September 30, 2025, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2025 (UNAUDITED) AND DECEMBER 31, 2024

2025

2024

(in thousands)

Assets

Investments:

Fixed maturities, available for sale, at fair value

12,879,372

12,152,753

Fixed maturities, held to maturity, at amortized cost

406,658

443,400

Equity securities, at fair value

649,970

579,274

Mortgage loans, held for investment, at fair value

409,699

505,697

Other investments, at fair value

972,867

930,278

Equity method investments

220,022

206,994

Short-term investments, at fair value

17,185

223,666

Total investments

15,555,773

15,042,062

Cash and cash equivalents

825,898

2,143,471

Restricted cash and cash equivalents

532,180

920,150

Accrued interest receivable

117,720

114,012

Insurance and reinsurance premium balances receivable

3,684,736

3,169,355

Reinsurance recoverable on unpaid losses and loss expenses

9,043,009

6,840,897

Reinsurance recoverable on paid losses and loss expenses

648,126

546,287

Deferred acquisition costs

641,467

524,837

Prepaid reinsurance premiums

2,164,297

1,936,979

Receivable for investments sold

3,813

3,693

Goodwill

66,498

Intangible assets

168,446

175,967

Operating lease right-of-use assets

92,706

92,516

Loan advances made

250,537

247,775

Other assets

541,119

695,794

Total assets

34,336,325

32,520,293

Liabilities

Reserve for losses and loss expenses

17,996,236

17,218,929

Unearned premiums

5,994,611

5,211,865

Insurance and reinsurance balances payable

1,855,349

1,713,798

Debt

1,316,321

1,315,179

Federal Home Loan Bank advances

66,380

Payable for investments purchased

194,988

269,728

Operating lease liabilities

108,960

106,614

Other liabilities

436,471

528,421

Total liabilities

27,969,316

26,430,914

Shareholders' equity

Preferred shares

550,000

Common shares

2,206

Additional paid-in capital

2,395,615

2,394,063

Accumulated other comprehensive income (loss)

10,169

(267,557

)

Retained earnings

7,932,969

7,341,569

Treasury shares, at cost

(4,523,950

)

(3,930,902

)

Total shareholders' equity

6,367,009

6,089,379

Total liabilities and shareholders' equity

34,336,325

32,520,293

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

Three months ended

Nine months ended

2025

2024

2025

2024

(in thousands, except per share amounts)

Revenues

Net premiums earned

1,451,883

1,366,701

4,186,133

3,929,221

Net investment income

184,903

205,100

579,911

563,458

Net investment gains (losses)

30,905

32,182

44,365

(30,503

)

Other insurance related income

6,593

6,838

18,835

23,704

Total revenues

1,674,284

1,610,821

4,829,244

4,485,880

Expenses

Net losses and loss expenses

841,435

831,872

2,429,114

2,326,532

Acquisition costs

285,618

274,935

826,094

794,280

General and administrative expenses

171,637

165,203

491,878

477,016

Foreign exchange losses (gains)

(13,492

)

92,204

138,428

61,268

Interest expense and financing costs

16,657

16,849

49,816

51,005

Reorganization expenses

—

26,312

Amortization of intangible assets

2,396

2,729

7,521

8,188

Total expenses

1,304,251

1,383,792

3,942,851

3,744,601

Income before income taxes and interest in income of equity method investments

370,033

227,029

886,393

741,279

Income tax (expense) benefit

(70,252

)

(47,922

)

(170,773

)

36,185

Interest in income of equity method investments

2,083

1,621

3,669

10,689

Net income

301,864

180,728

719,289

788,153

Preferred share dividends

7,563

22,688

Net income available to common shareholders

294,301

173,165

696,601

765,465

Per share data

Earnings per common share:

Earnings per common share

3.79

2.06

8.81

9.07

Earnings per diluted common share

3.74

2.04

8.70

8.97

Weighted average common shares outstanding

77,619

83,936

79,037

84,428

Weighted average diluted common shares outstanding

78,601

85,000

80,090

85,338

Cash dividends declared per common share

0.44

1.32

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA (UNAUDITED)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

2025

2024

Insurance

Reinsurance

Total

Insurance

Reinsurance

Total

(in thousands)

Gross premiums written

1,691,882

432,302

2,124,184

1,526,676

409,226

1,935,902

Net premiums written

1,084,947

268,042

1,352,989

975,911

260,074

1,235,985

Net premiums earned

1,085,612

366,271

1,451,883

1,023,851

342,850

1,366,701

Other insurance related income

261

6,332

6,593

6,745

6,838

Current accident year net losses and loss expenses

(610,650

)

(249,731

)

(860,381

)

(606,663

)

(233,221

)

(839,884

)

Net favorable prior year reserve development

14,843

4,103

18,946

4,009

4,003

8,012

Acquisition costs

(205,440

)

(80,178

)

(285,618

)

(203,255

)

(71,680

)

(274,935

)

Underwriting-related general and

administrative expenses (10)

(131,326

)

(11,785

)

(143,111

)

(119,249

)

(12,333

)

(131,582

)

Underwriting income

153,300

35,012

188,312

98,786

36,364

135,150

Net investment income

184,903

205,100

Net investment gains

30,905

32,182

Corporate expenses (10)

(28,526

)

(33,621

)

Foreign exchange (losses) gains

13,492

(92,204

)

Interest expense and financing costs

(16,657

)

(16,849

)

Amortization of intangible assets

(2,396

)

(2,729

)

Income before income taxes and interest in income of equity method investments

370,033

227,029

Income tax (expense) benefit

(70,252

)

(47,922

)

Interest in income of equity method investments

2,083

1,621

Net income

301,864

180,728

Preferred share dividends

7,563

Net income available to common shareholders

294,301

173,165

Current accident year loss ratio

56.2

68.2

59.3

68.0

61.5

Prior year reserve development ratio

(1.3

(1.1

(1.3

(0.4

(1.1

(0.6

Net losses and loss expenses ratio

54.9

67.1

58.0

58.9

66.9

60.9

Acquisition cost ratio

18.9

21.9

19.7

19.9

20.9

20.1

Underwriting-related general and administrative expense ratio

12.1

3.2

9.7

11.6

3.6

9.6

Corporate expense ratio

2.0

2.5

Combined ratio

85.9

92.2

89.4

90.4

91.4

93.1

10 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $29 million and $34 million for the three months ended September 30, 2025 and 2024, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

2025

2024

Insurance

Reinsurance

Total

Insurance

Reinsurance

Total

(in thousands)

Gross premiums written

5,280,220

2,154,587

7,434,807

4,915,247

2,115,317

7,030,564

Net premiums written

3,420,038

1,318,425

4,738,463

3,192,462

1,339,340

4,531,802

Net premiums earned

3,128,658

1,057,475

4,186,133

2,900,011

1,029,210

3,929,221

Other insurance related income

424

18,411

18,835

23,651

23,704

Current accident year net losses and loss expenses

(1,763,702

)

(722,524

)

(2,486,226

)

(1,646,118

)

(688,425

)

(2,334,543

)

Net favorable prior year reserve development

44,036

13,076

57,112

4,008

4,003

8,011

Acquisition costs

(594,372

)

(231,722

)

(826,094

)

(567,310

)

(226,970

)

(794,280

)

Underwriting-related general and

administrative expenses (11)

(375,564

)

(33,226

)

(408,790

)

(353,230

)

(36,913

)

(390,143

)

Underwriting income

439,480

101,490

540,970

337,414

104,556

441,970

Net investment income

579,911

563,458

Net investment gains (losses)

44,365

(30,503

)

Corporate expenses (11)

(83,088

)

(86,873

)

Foreign exchange (losses) gains

(138,428

)

(61,268

)

Interest expense and financing costs

(49,816

)

(51,005

)

Reorganization expenses

—

(26,312

)

Amortization of intangible assets

(7,521

)

(8,188

)

Income before income taxes and interest in income of equity method investments

886,393

741,279

Income tax (expense) benefit

(170,773

)

36,185

Interest in income of equity method investments

3,669

10,689

Net Income

719,289

788,153

Preferred share dividends

22,688

Net income available to common shareholders

696,601

765,465

Current accident year loss ratio

56.4

68.3

59.4

56.8

66.9

59.4

Prior year reserve development ratio

(1.4

(1.2

(1.4

(0.2

(0.4

(0.2

Net losses and loss expenses ratio

55.0

67.1

58.0

56.6

66.5

59.2

Acquisition cost ratio

19.0

21.9

19.7

19.6

22.1

20.2

Underwriting-related general and administrative expense ratio

12.0

3.1

9.8

12.2

3.5

10.0

Corporate expense ratio

2.0

2.2

Combined ratio

86.0

92.1

89.5

88.4

92.1

91.6

11 Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $83 million and $87 million for the nine months ended September 30, 2025 and 2024, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

Three months ended

Nine months ended

2025

2024

2025

2024

(in thousands, except per share amounts)

Net income available to common shareholders

294,301

173,165

696,601

765,465

Net investment (gains) losses

(30,905

)

(32,182

)

(44,365

)

30,503

Foreign exchange losses (gains)

(13,492

)

92,204

138,428

61,268

Reorganization expenses

—

26,312

Interest in income of equity method investments

(2,083

)

(1,621

)

(3,669

)

(10,689

)

Bermuda net deferred tax asset (12)

—

(162,705

)

Income tax expense (benefit) (13)

7,454

(1,503

)

(12,330

)

(9,938

)

Operating income

255,275

230,063

774,665

700,216

Earnings per diluted common share

3.74

2.04

8.70

8.97

Net investment (gains) losses

(0.39

)

(0.38

)

(0.55

)

0.36

Foreign exchange losses (gains)

(0.17

)

1.08

1.73

0.72

Reorganization expenses

—

0.31

Interest in income of equity method investments

(0.03

)

(0.02

)

(0.05

)

(0.13

)

Bermuda net deferred tax asset

—

(1.91

)

Income tax expense (benefit)

0.10

(0.01

)

(0.16

)

(0.11

)

Operating income per diluted common share

3.25

2.71

9.67

8.21

Weighted average diluted common shares outstanding

78,601

85,000

80,090

85,338

Average common shareholders' equity

5,720,704

5,321,349

5,678,194

5,123,212

Annualized return on average common equity

20.6

13.0

16.4

19.9

Annualized operating return on average common equity (14)

17.8

17.3

18.2

12 Net deferred tax benefit is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax that is effective for fiscal years beginning on or after January 1, 2025.

13 Tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to common shareholders. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

14 Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in this press release.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This press release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements, other than statements of historical fact included in or incorporated by reference in this press release are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "aim", "will", "target", "intend" or similar statements of a future or forward-looking nature or their negative or similar terminology.

Forward-looking statements made in this press release, such as those related to our performance, pricing, growth prospects, the outcome of our strategic initiatives, our expectations relating to our ability to successfully implement and manage technology initiatives – including artificial intelligence, our expectations about the current trade and geopolitical environment on our business, economic and market conditions, and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation:

Insurance Risk: the cyclical nature of insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates; the frequency and severity of natural and man-made catastrophes; the effects of emerging claims, systemic risks, and coverage and regulatory issues; reserve adequacy; losses relating to geopolitical conflicts; the adverse impact of social and economic inflation; failure of our loss limitation methods; failure of our cedants to adequately evaluate risk; and our reliance on industry models.

Strategic Risk: industry competition and consolidation; general economic, capital, and credit market conditions, including market illiquidity, fluctuations in interest rates, credit spreads, equity securities' prices, foreign currency exchange rates, and evolving impacts of tariffs, sanctions, and international trade tensions; our ability to increase the use of data and analytics and technology as part of our business strategy and adapt to new technologies; changes in the political environment of certain countries where we operate or underwrite business; loss of business provided to us by major brokers; rating agency actions; key personnel changes; potential strategic opportunities including acquisitions and our ability to achieve them; evolving expectations regarding environmental, social, and governance matters; and the effect of contagious diseases on our business.

Credit and Market Risk: reinsurance availability and recoverability; premium collection risks; and counterparty defaults in our program business.

Liquidity Risk: the inability to access sufficient cash to meet our obligations when they are due.

Operational Risk: technology and cybersecurity challenges; failures in internal or outsourced operational processes, people, or systems; and changes in accounting policies or practices.

Regulatory Risk: changes in laws and regulations and potential government intervention in our industry; and inadvertent non-compliance with sanctions, anti-corruption, data protection and privacy requirements.

Taxation Risk: change in tax laws.

Readers should carefully consider these risks alongside those detailed in Item 1A, 'Risk Factors' of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and in subsequent filings available at www.sec.gov.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Rationale for the Use of Non-GAAP Financial Measures

We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this press release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, current accident year combined ratio, current accident year combined ratio, excluding catastrophe and weather-related losses, operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Underwriting-Related General and Administrative Expenses

Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Consolidated Underwriting Income (Loss)

Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss).

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Current Accident Year Loss Ratio

Current accident year loss ratio represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year loss ratio provides investors with an enhanced understanding of our results of operations by highlighting net losses and loss expenses associated with our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year loss ratio to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Catastrophe and Weather-Related Losses Ratio and Current Accident Year Loss Ratio, excluding Catastrophe and Weather-Related Losses

Catastrophe and weather-related losses ratio represents net losses and loss expenses ratio associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development.

Current accident year loss ratio, excluding catastrophe and weather-related losses represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events.

We believe that the presentation of these ratios that separately identify net losses and loss expenses associated with catastrophe and weather-related events provide investors with an enhanced understanding of our results of operations due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events.

The reconciliation of catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Current Accident Year Combined Ratio

Current accident year combined ratio represents underwriting results exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year combined ratio provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year combined ratio to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Current Accident Year Combined Ratio, excluding Catastrophe and Weather-Related Losses

Current accident year combined ratio, excluding catastrophe and weather-related losses represents underwriting results exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events.

We believe that the presentation of current accident year combined ratio, excluding catastrophe and weather-related losses provides investors with an enhanced understanding of our results of operations by highlighting the profitability of our underwriting activities excluding the impact of volatile prior year reserve development and by separately identifying net losses and loss expenses associated with catastrophe and weather-related events due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events.

The reconciliation of current accident year combined ratio, excluding catastrophe and weather-related losses to combined ratio, the most comparable GAAP financial measure, is presented in the 'Consolidated Underwriting Highlights' section of this press release.

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset.

Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses) and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).

Bermuda net deferred tax asset is due to the recognition of deferred tax assets net of deferred tax liabilities related to Bermuda corporate income tax that is effective for fiscal years beginning on or after January 1, 2025. The Bermuda net deferred tax asset is not related to the underwriting process. Therefore, this income is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset in order to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

Constant Currency Basis

We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release.

Pre-Tax, Total Return on Average Cash and Investments excluding Foreign Exchange Movements

Pre-tax, total return on average cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax, total return on average cash and investments excluding foreign exchange movements to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.