Axis Capital reported a 32 per cent fall in third-quarter profit as underwriting margins narrowed and investment losses weighed on earnings, despite double-digit premium growth.

The Bermudian-based insurer and reinsurer earned net income available to common shareholders of $202 million, or $2.75 per diluted share, for the three months ended September 30, compared with $294 million, or $3.74 per share, a year earlier.

Net investment income increased to $211 million from $185 million. However, Axis recorded net investment losses of $47 million, compared with gains of $31 million a year earlier.

Operating income, which excludes investment gains and losses and certain other items, fell 10 per cent to $229 million, or $3.12 per diluted share. Annualised operating return on average common equity was 15.7 per cent.

Gross premiums written increased 11 per cent to $2.4 billion, led by growth in the insurance business. However, underwriting income declined 29 per cent to $134 million.

The group’s combined ratio deteriorated to 94 per cent from 89.4 per cent a year earlier. A ratio below 100 per cent indicates an underwriting profit.

Axis recorded $75 million in pre-tax catastrophe and weather-related losses, net of reinsurance, including $44 million attributable to the Middle East conflict and the Russia-Ukraine war. The remaining $31 million related to weather events.

These losses added 4.6 percentage points to the combined ratio.

Vince Tizzio, chief executive of Axis, said the company continued to find opportunities while managing changing market conditions.

“This was a strong quarter for Axis, as our team leaned into attractive underwriting opportunities while practising disciplined cycle management in a transitioning market,” he said.

The insurance division increased gross premiums written by 13 per cent to $1.9 billion.

Its underwriting income nevertheless fell 32 per cent to $104 million, while its combined ratio rose to 92 per cent from 85.9 per cent.

Axis said an acceleration in property market softening and increasingly competitive conditions in casualty lines contributed to a higher underlying loss ratio.

Axis Re produced its 11th consecutive profitable quarter. Reinsurance gross premiums written rose 4 per cent to $449 million, principally reflecting higher premiums associated with two agriculture contracts.

The division’s underwriting income fell 15 per cent to $30 million, while its combined ratio edged up to 92.4 per cent from 92.2 per cent. Net premiums written declined 5 per cent as Axis ceded a greater proportion of liability and motor premiums to reinsurers.

For the first nine months of 2026, net income available to common shareholders was broadly steady at $699 million, while operating income declined 10 per cent to $697 million. Gross premiums written increased 9 per cent to $8.1 billion.

Axis returned $141 million to common shareholders during the quarter, comprising $109 million in share repurchases and $32 million in dividends.

Book value per diluted common share stood at $79.06 at September 30, down 2 per cent from June 30 but up 7.1 per cent over the preceding 12 months.