Jane

Jane from KBW inquired about the sustained momentum in AXIS Capital's lower middle market growth, which significantly contributed to property growth in Q4 2025, asking for more details and an update on the competitive landscape. She also asked for an explanation regarding the core loss ratio's tick-up, specifically where loss trends are running ahead of pricing.

Answer

President and CEO Vince Tizzio explained that the lower middle market is a dedicated and new customer segment for AXIS, pursued over the last couple of years, leveraging both wholesale and retail distribution. He highlighted customized solutions, a lower complex risk profile, and substantial submission volume, expressing satisfaction with channel partnerships, product design, and technology investments for enhanced productivity. Vince Tizzio noted that competition exists but the segment offers good margin and stickiness. CFO Pete Vogt identified some property books, particularly E&S property and global property in London, as areas where pricing pressure is most acute. He contrasted this with long-tail lines, where rate continues to exceed trends, giving confidence. Vince Tizzio added that AXIS maintains strong observation and control over long-tail lines, leveraging its short-tail versus long-tail portfolio composition and vigilant accounting of trends with actuaries, claims, and underwriting.