AXIS’ strategic capital partner fee income rises again in Q2 as Capacity Solutions contributes

AXIS Capital, the global specialty insurance and reinsurance underwriter, reported another rise in fee income earned through strategic capital partner arrangements in the second-quarter of 2026, as insurance-linked securities and third-party capital activities continue to build and its Capacity Solutions capability contributes.

In full-year 2025 AXIS Capital showed the benefits of leveraging alternative capital through partnerships with third-party investors, with these activities generating $54 million of ILS style fee income for the company last year.

In the first-quarter of 2026, AXIS Capital reported a year-on-year increase in strategic capital partner fee income, which reached $23 million, up from $16 million in the prior year period.

Now, for the second-quarter of 2026, AXIS has reported that fee income from third-party capital partner initiatives was up again, reaching $22 million, compared to $20 million in the prior year.

Some $17 million of this has been recognised as a reimbursement of general and administrative expenses, helping to drive the ratio down 2.5% in the half-year.

2026 year-to-date fees are now reported to be $44 million, higher than the $37 million generated in the six months ended June 30th 2025.

One driver of this fee income is AXIS’ partnership with insurance sector focused investor Stone Point on the casualty sidecar structure Monarch Point Re launched in 2023, after a more than $400 million capital raise.

As that strategy has developed, AXIS has been launching new underwriting entities to support Monarch Point Re, the most recent being collateralized insurer Monarch Point Re (ISA 2026) Ltd. launched for the current underwriting year.

AXIS reports the carrying value of its investment in the Monarch Point Re casualty sidecar like structure as having increased further, reaching almost $77.4 million at June 30th 2026, up from almost $73.3 million at the end of March this year

But, in addition, AXIS noted the contribution now being made by its AXIS Capacity Solutions business unit, which began operating in 2025.

AXIS Capacity Solutions works to develop structured and multi-line portfolio solutions at scale for capital partners, which is one way AXIS has been increasing its use of alternative capital to grow its business.

AXIS Capacity Solutions contributed $165 million of premium in the second-quarter, driving more than half of the group’s gross premium growth in the period.

Vince Tizzio, President and CEO of AXIS Capital said, “Our insurance business performed strongly with $2.2 billion in premiums and a 90.0% combined ratio and an 84.5% current accident year ex-cat combined ratio. This was propelled by our expanded classes and contributions from our AXIS Capacity Solutions capability. Within reinsurance, we maintained a disciplined stance, with more than half of our production coming from targeted short-tail lines, complementing our broader underwriting strategy.”

Year-to-date in 2026, the AXIS Capital Solutions division has now contributed $338 million of gross written premium for AXIS, which the company noted brings new reinsurance capital to help optimise its net exposure and lower its balance-sheet volatility.

AXIS sees the earnings from this business unit as “fee-based, capital-light earnings” which help to support high quality returns of the business.

For full-year 2026, AXIS now projects that its Capacity Solutions unit contribute $17 million of fee income for the firm, delivering “capital-efficient fee streams through ceding and structuring,” while also “diversifying revenue sources.”

The company sees an opportunity through AXIS Capacity Solutions to capitalise on the industry trend where “growth of multi-line facilities are outpacing the broader insurance market.”

Leveraging alternative and third-party capital within these activities helps to bolster the fee income further for AXIS and should build these figures over the quarters to come.