AXIS Energy Transition

Important information about Syndicate Reports and Accounts

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AXIS Syndicate 2050

Syndicate Annual Reports and Accounts

for the year ended 31 December 2025

For Tagging convenience:

Both for Profit & Loss, Balance Sheet

Current Period

1 January 2025 - 31 December 2025

Prior Period

1 January 2024 - 31 December 2024

Functional Currency

USD

Presentational Currency

USD

PAGE

DIRECTORS AND ADMINISTRATION

ACTIVE UNDERWRITER'S REPORT

MANAGING AGENT'S REPORT

- 7

STATEMENT OF MANAGING AGENT'S RESPONSIBILITIES

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 2050

- 12

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN MEMBERS' BALANCES

BALANCE SHEET - ASSETS

BALANCE SHEET - LIABILITIES

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

18 - 44

AXIS SYNDICATE 2050

CONTENTS

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MANAGING AGENT

AXIS Managing Agency Limited

DIRECTORS

Stephen Cane (Chairman)*

* Independent

Tadeusz Dziurman*

Non-Executive

James Mollett

Elanor Hardwick*

John Owen

Axel Theis*

Toby Read

Sara Farrup (appointed 3 March 2025)

COMPANY SECRETARY

Leena Modi

MANAGING AGENT'S REGISTERED OFFICE

52 Lime Street

London

EC3M 7AF

United Kingdom

MANAGING AGENT'S REGISTERED NUMBER

08702952

ACTIVE UNDERWRITER

Elliot Lyes

SOLICITORS

Willkie Farr & Gallagher (UK) LLP

27th Floor, Citypoint

1 Ropemaker Street

London

EC2Y 9AW

United Kingdom

AUDITOR

Deloitte LLP

2 New Street Square

London

EC4A 3HQ

United Kingdom

PRINCIPAL BANKERS

Citibank NA

RBC Dexia

Citigroup Centre

Investor Services

33 Canada Square

155 Wellington Street W

Canary Wharf

Toronto, Ontario

London, E14 5LB

M5V 3K7

United Kingdom

Canada

AXIS SYNDICATE 2050

DIRECTORS AND ADMINISTRATION

________________________________________________________________________________________________________

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AXIS Energy Transition Syndicate 2050 (the Syndicate) is a Lloyd’s Syndicate of AXIS Capital Holdings Limited (ACHL),

the Bermuda based holding company for the AXIS group of companies (AXIS). The Syndicate is managed by AXIS

Managing Agency Limited (AMAL), who also manage AXIS Syndicate 1686.

ACHL is the Syndicate’s sole capital

provider with 100% ownership of AXIS Corporate Capital UK II Limited (ACCUKIIL) through other, wholly owned, legal

entities.

AXIS Energy Transition Syndicate 2050 was established to provide insurance solutions that support global energy needs.

The Syndicate commenced underwriting on 1 April 2024 and provides a range of specialty insurance coverages to

companies, organisations and countries solely related to assets or activities that are playing a contributory role in the global

transition away from carbon based technologies.

For the financial year ended 31 December 2025, the Syndicate achieved gross premiums written of USD 110.0m (2024:

USD 43.5m).

2025 was the Syndicate’s first full year of trading, with production showing steady growth year over year in

its core Offshore and Onshore Renewable Energy and Construction businesses.

Products are offered to support the

development and operation of a wide range of established and new lower carbon and renewable energy technologies.

The

Syndicate’s underwriting appetite includes projects for either the replacement or the displacement of existing fossil fuel

assets through the development of lower carbon producing alternatives, as well as projects that improve or mitigate the

carbon footprint impact of existing energy generation.

The Syndicate also offers a broad range of products and solutions for ancillary and supporting energy transition related

services.

These include, but are not limited to, Project Finance Credit and Political Risks coverage, Marine Cargo,

Professional Indemnity, Accident & Health, Cyber and Terrorism exposures.

It is expected these products will over time

develop scale into an annually renewable portfolio of complementary coverages to provide balance to the larger project

focused classes.

The Syndicate supports established energy transition technologies such as windfarms, solar, battery storage and nuclear.

global energy demand continues to increase, investment into alternatives to Carbon based energy is expected to accelerate.

The Syndicate anticipates leveraging its deep technical underwriting expertise, in-house engineering resources and

regulatory and governmental policy knowledge to underpin the ongoing development of its underwriting appetite to

cautiously underwrite newer innovative transition technologies.

The project-based nature of the larger classes means that the majority of the business written by the Syndicate each year will

be new business.

Accordingly, the impact of renewal rate change will be less material and performance management will

instead focus on assessing premium adequacy whilst exercising discipline over terms and conditions to deliver a sustainably

profitable portfolio.

In 2025 the Syndicate's Net Combined Ratio for the year was 76.2%, producing an underwriting profit of USD 8.0m.

These

encouraging figures are ahead of expectations, due in part to a relatively benign catastrophe environment.

I have

confidence that the Syndicate’s underwriting leadership and excellence in specialised attractive classes of business will

enable it to further scale its market proposition as a lead insurer in enabling the critically important investment into the

global energy transition.

Elliot Lyes

Active Underwriter

Date: 19 February 2026

AXIS SYNDICATE 2050

ACTIVE UNDERWRITER'S REPORT

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The directors of the Managing Agent, AMAL, present their annual report for the Syndicate for the year ended 31 December

2025.

This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No 1950 of 2008,

The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 (Lloyd's Regulations

2008) and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting

Standards FRS 102 “The Financial Reporting Standards applicable in the UK and Ireland” and FRS 103 “Insurance

Contracts”) and applicable law.

This annual report is also prepared in accordance with the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified

by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

This annual report has been iXBRL tagged in accordance with the Lloyd's XBRL taxonomy Version 2.0, as issued by

Lloyd's.

RESULTS

The results of the Syndicate are set out on pages 13 and 14.

Syndicate 2050 commenced underwriting on 1 April 2024, as

such the 2024 comparatives contain nine months of data.

2025 is the first full year of trading for the syndicate.

PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS

The Syndicate’s principal activity is the underwriting of direct insurance business in the Lloyd’s market. It covers risks

which are a demonstratable part of global energy transition.

The Syndicate predominately writes renewable energy, construction and credit and political risk business.

The Syndicate's key financial performance indicators during the year were as follows:

2025

2024

USD '000

Gross written premium

109,974

43,459

Net written premium

62,920

25,707

Net earned premium

33,606

5,571

Net claims

(16,234)

(2,614)

Other technical income, net of reinsurance

Acquisition costs

(3,375)

(758)

Operating costs

(5,985)

(3,615)

Net technical result (excl. investment return)

8,012

(1,416)

Net loss ratio

48.3 %

46.9 %

Net acquisition ratio

10.0 %

13.6 %

Net expense ratio

17.8 %

64.9 %

Combined ratio

76.2 %

125.4 %

AXIS SYNDICATE 2050

MANAGING AGENT'S REPORT

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PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS (continued)

Climate Change

AXIS remains focused on addressing the impact of climate change. AXIS has an Environmental Working Group, which

includes AMAL representation, to ensure that the potential risks from climate change are identified and then managed as

part of the Enterprise Risk Management framework.

Additionally AXIS has developed a plan to ensure that the exposures

in its managed syndicate are systematically assessed and monitored as appropriate, reviewing its underwriting strategy and

potential impact in light of climate related risks as detailed in note 19 on page 31.

AXIS continues to assess and understand its impact as a company and as a business on the climate.

AXIS’ policy limiting

thermal coal and oil sands underwriting and investment came into effect on 1 January 2020. Further details on the group

wide energy and carbon reduction initiative have been documented in the Corporate Citizenship section of the AXIS Capital

Holdings annual report which can be obtained from the AXIS website.

The Managing Agent is required to address the energy reporting requirements in relation to streamlined energy and carbon

reporting. These reporting requirements for AMAL are consolidated within the streamlined energy and carbon reporting

section of the AXIS Specialty UK Holdings Limited annual accounts.

FUTURE DEVELOPMENTS

ACCUKIIL participated on the 2025 year of account of Syndicate 2050 with one hundred percent participation and will

continue to do so for the 2026 year of account.

PRINCIPAL RISKS AND UNCERTAINTIES

The Syndicate's principal risks are insurance (underwriting and reserving), credit, market, liquidity and operational risks that

arise as a result of doing business.

Insurance risk

Insurance risk is the inherent uncertainty as to the occurrence, amount and timing of insurance liabilities transferred to the

Syndicate through the underwriting process. The two main components are underwriting risk and reserve risk.

Underwriting risk represents the risk that premiums will not be sufficient to cover future incurred losses. Underwriting risk

is managed through rigorous protocols, including peer review and underwriting guidelines, which provide a framework for

consistent pricing and risk analysis while ensuring alignment to the risk appetites and limits. The Syndicate also mitigates

underwriting risk through the purchase of reinsurance.

Reserving risk represents the risk that loss reserves established to cover losses already incurred are insufficient. The

estimation of reserves is subject to uncertainty due to the fact that the settlement of claims that have arisen before the

balance sheet date is dependent on future events and developments. There are many factors that would cause loss reserves to

increase or decrease, which include, but are not limited to, emerging claims and coverage issues, changes in the legislative,

regulatory, social and economic environment and unexpected changes in loss inflation. The Syndicate seeks to mitigate

reserving risk by, among other things, diligently monitoring claims and maintaining a structured process and control

framework for determining carried reserves.

The Syndicate’s approved business plan sets out targets for volumes, pricing, line sizes and retention by class of business.

The AMAL Board then monitors performance against the business plan throughout the year. The Managing Agent also

mitigates insurance risk through the purchase of reinsurance.

AXIS SYNDICATE 2050

MANAGING AGENT'S REPORT

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PRINCIPAL RISKS AND UNCERTAINTIES (continued)

Insurance risk (continued)

Within insurance risk, the Syndicate recognises the following further sub categories of this risk:

Natural peril catastrophe risk, including climate change impacts

Man-made catastrophe risk

Reserving risk

Claims handling risk

Pricing risk

For further details on these risks refer to note 19.

Credit risk

Credit risk represents the risk of incurring financial loss due to the diminished creditworthiness (reduced financial strength

and, ultimately, possible default) of the Syndicate’s third-party counterparties.

The key aspect of credit risk is the risk of

default by one or more of the Syndicate’s reinsurers or intermediaries such as brokers and coverholders. The AMAL

Board’s policy is that the Syndicate will only reinsure with approved reinsurers, supported by collateralisation where

required. The AXIS Capital Reinsurance Security Committee monitors reinsurer ratings and is required to approve all new

reinsurers before business is placed with them. The Syndicate also recognises the credit risk related to its premium

receivables, including those from brokers and other intermediaries. In order to mitigate this risk, the Syndicate's credit

control team monitors aged receivables contractually due from these counterparties, and follows up with them to ensure they

are promptly paid.

Market risk

Market risk is the risk that the Syndicate’s financial instruments may be negatively impacted by movements in financial

market prices or rates such as equity prices, interest rates, credit spreads and foreign exchange rates. Fluctuations in market

rates primarily affect the investment portfolio. Through asset and liability management, the Managing Agent aims to ensure

that risks influence both the economic value of investments and underwriting liabilities in the same way, thus mitigating the

effect of market fluctuations. The Syndicate supplements its asset-liability management with various internal policies and

limits.

Liquidity risk

Liquidity risk is the risk that the Syndicate may not have sufficient financial resources to meet its obligations when they are

due, or would have to incur excessive costs to do so. The Managing Agent aims to ensure that the Syndicate maintains

adequate liquidity to meet its liquidity needs under both normal and stressed conditions, such as following a catastrophic

event. The Managing Agent manages liquidity through regular cash flow forecasts and risk limits which define the

minimum percentage of the Syndicate’s cash and investments to mature within a defined time frame, in addition to

undertaking stress testing to ensure that the Syndicate would be able to withstand extreme loss events and still remain liquid.

AXIS Syndicate 1686 provides an inter-syndicate loan facility to the Syndicate to ensure that it can meet liquidity

requirements even under extreme circumstances.

Operational risk

Operational risk represents the risk of both financial and non-financial loss as a result of inadequate processes, system

failures, human error or external events. This includes but is not limited to direct or indirect financial loss, reputational

damage, customer dissatisfaction, legal and regulatory penalties or impacts from third parties including coverholders or

third-party administrators (TPA). The Syndicate manages operational risks through sound corporate and risk governance

and transaction type operational risks are managed through the application of process controls throughout the business

which are reviewed on a regular basis. In testing these controls, AXIS undertakes regular underwriting and claim peer

audits, supplemented by the work of the internal audit team. A risk register, capturing all known significant operational risks

faced by the Syndicate and the associated risk assessments, is periodically reviewed by the Risk Committee of the AMAL

Board.

The Managing Agent also considers regulatory risk.

Regulatory risk represents the risk arising from failure to comply with

legal, statutory or regulatory obligations, including applicable laws, rules, and codes of conduct applicable to business

activities. The Managing Agent is required to comply with the requirements of the Financial Conduct Authority (FCA),

Prudential Regulatory Authority (PRA) and Lloyd’s. Lloyd’s requirements include those imposed on the Lloyd’s market by

overseas regulators, particularly in respect of US situs business.

AXIS SYNDICATE 2050

MANAGING AGENT'S REPORT

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PRINCIPAL RISKS AND UNCERTAINTIES (continued)

Operational risk (continued)

The Managing Agent has a Compliance Officer who monitors business activity and regulatory developments and assesses

any effects on the Syndicate.

The Syndicate has no appetite for failing to treat customers fairly. The Syndicate manages and

monitors its conduct risk through a suite of risk indicators and reporting metrics as part of its documented conduct risk

framework.

AXIS has a compliance team in place who monitors business activity and regulatory developments and assess

any effects on the Syndicate.

For a more detailed analysis of the insurance and financial risks faced by the Syndicate and how these risks are managed

refer to note 19.

DIRECTORS

Details of the directors of the Managing Agent that served during the year and up to the date of signing of the Syndicate

annual accounts are provided on page 2.

GOING CONCERN

As detailed in note 23: Funds at Lloyd's, the Syndicate's Economic Capital Assessment (ECA) is supported by Funds at

Lloyd's (FAL) primarily provided by affiliate companies, AXIS Specialty Limited (ASL) and ACCUKIIL own funds. These

funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet participating

member's underwriting liabilities. The Managing Agent is able to make a call on the member's FAL to meet liquidity

requirements or to settle losses if required.

The directors have a reasonable expectation that the Syndicate has adequate resources to continue in operational existence

for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1.

DISCLOSURE OF INFORMATION TO THE AUDITOR

So far as each person who was a director of the Managing Agent at the date of approving the report is aware, there is no

relevant audit information, being information needed by the Syndicate auditor in connection with the auditor's report, of

which the auditor are unaware. Each director has taken all the steps that he or she ought to have taken as a director to

become aware of any relevant audit information and to establish that the Syndicate's auditor are aware of that information.

EVENTS SINCE FINANCIAL YEAR END

There have been no significant events affecting the Syndicate since the financial year end other than those highlighted in the

future developments section.

INDEPENDENT AUDITOR

Deloitte LLP acted as the Syndicate’s auditor during the year under review. Pursuant to Section 14(2) of Schedule 1 of the

Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the auditor will be deemed

reappointed and Deloitte LLP will therefore continue in office.

SYNDICATE ANNUAL GENERAL MEETING

In accordance with the Syndicate Meetings (Amendment No 1) Byelaw (No 18 of 2000) the Managing Agent does not

propose holding an annual meeting this year. Objections to this proposal or the intention to reappoint the auditor for a

further 12 months can be made by Syndicate members within 21 days of the issue of these financial statements.

On behalf of the Board

James Mollett

Finance Director

Date: 19 February 2026

AXIS SYNDICATE 2050

MANAGING AGENT'S REPORT

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The directors of the Managing Agent are responsible for preparing the Syndicate annual accounts in accordance with

applicable law and regulations.

The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 require the Managing

Agent to prepare Syndicate annual accounts at 31 December each year in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards) including FRS 102, the Financial Reporting

Standard applicable in the UK and Republic of Ireland and FRS 103 "Insurance Contracts", and applicable laws. The

Managing Agent is also required to prepare the Syndicate annual accounts in accordance with the Lloyd’s Syndicate

Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

The Syndicate annual accounts are required by law to give a true and fair view of the state of affairs of the Syndicate as at

that date and of its profit or loss for that year.

In preparing the Syndicate annual accounts, the Managing Agent is required to:

•

select suitable accounting policies and then apply them consistently, subject to changes arising on the adoption of

new accounting standards in the year;

•

make judgements and estimates that are reasonable and prudent;

•

state whether applicable accounting standards have been followed, subject to any material departures disclosed and

explained in the Syndicate annual accounts; and

•

prepare the Syndicate annual accounts on the basis that the Syndicate will continue to write future business unless

it is inappropriate to presume that the Syndicate will do so.

The directors of the Managing Agent are responsible for keeping adequate accounting records which disclose with

reasonable accuracy at any time the financial position of the Syndicate and enable it to comply with the Insurance Accounts

Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008. They are also responsible for the system of

internal control, for safeguarding the assets of the Syndicate and hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

The directors of the Managing Agent are responsible for the preparation and review of the iXBRL tagging that has been

applied to the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including designing, implementing

and maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with

the instructions issued by Lloyd’s, whether due to fraud or error.

The directors of the Managing Agent are responsible for the maintenance and integrity of the corporate and financial

information included on the holding company's website. Legislation in the United Kingdom governing the preparation and

dissemination of annual accounts may differ from legislation in other jurisdictions.

We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to these

accounts, comply with the requirements of the Lloyd's Syndicate Accounts Instructions version 3.1 as modified by the

Frequently Asked Questions version 1.1 issued by Lloyd's.

James Mollett

Finance Director

Date: 19 February 2026

AXIS SYNDICATE 2050

STATEMENT OF MANAGING AGENT'S RESPONSIBILITIES

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Report on the audit of the syndicate annual financial statements

Opinion

In our opinion the syndicate annual financial statements of Syndicate 2050 (the ‘syndicate’):

•

give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit for the year

then ended;

•

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,

including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic

of Ireland”; and

•

have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate

and Aggregate Accounts) Regulations 2008 and sections 1 and 5 of the Syndicate Accounts Instructions Version

3.1

as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (the “Lloyd’s Syndicate

Accounts Instructions”).

We have audited the syndicate annual financial statements which comprise:

•

the statement of profit or loss and other comprehensive income;

•

the balance sheet;

•

the statement of changes in members’ balances;

•

the statement of cash flows;

•

the related notes 1 to 28

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK

and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), applicable law and the

Lloyd’s Syndicate Accounts Instructions. Our responsibilities under those standards are further described in the auditor's

responsibilities for the audit of the syndicate annual financial statements section of our report.

We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the

syndicate annual financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical

Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the

audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the managing agent’s use of the going concern basis of

accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions

that, individually or collectively, may cast significant doubt on the syndicate’s ability to continue in operations for a period

of at least twelve months from when the syndicate financial statements are authorised for issue.

Our responsibilities and the responsibilities of the managing agent with respect to going concern are described in the

relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the syndicate annual financial

statements and our auditor’s report thereon. The managing agent is responsible for the other information contained within

the annual report. Our opinion on the syndicate annual financial statements does not cover the other information and, except

to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially

inconsistent with the syndicate annual financial statements or our knowledge obtained in the course of the audit, or

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether this gives rise to a material misstatement themselves. If, based on the

work we have performed, we conclude that there is a material misstatement of this other information, we are required to

report that fact.

We have nothing to report in this regard.

AXIS SYNDICATE 2050

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 2050

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Responsibilities of managing agent

As explained more fully in the managing agent’s responsibilities statement, the managing agent is responsible for the

preparation of the syndicate annual financial statements and for being satisfied that they give a true and fair view, and for

such internal control as the managing agent determines is necessary to enable the preparation of syndicate annual financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual financial statements, the managing agent is responsible for assessing the syndicate’s

ability to continue in operation, disclosing, as applicable, matters related to the syndicate’s ability to continue in operation

and to use the going concern basis of accounting unless the managing agent intends to cease the syndicate’s operations, or

has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the syndicate annual financial statements

Our objectives are to obtain reasonable assurance about whether the syndicate annual financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these syndicate annual financial statements.

A further description of our responsibilities for the audit of the syndicate annual financial statements is located on the FRC’s

website at:

www.frc.org.uk/auditorsresponsibilities

. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with

our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent

to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the syndicate and its control environment, and reviewed the syndicate’s documentation of their

policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, those

charged with governance, internal audit about their own identification and assessment of the risks of irregularities

We obtained an understanding of the legal and regulatory frameworks that the syndicate operates in, and identified the key

laws and regulations that:

•

had a direct effect on the determination of material amounts and disclosures in the financial statements. These included

the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s

Syndicate Accounting Byelaw (no. 8 of 2005) and the Lloyd’s Syndicate Accounts Instructions; and

•

do not have a direct effect on the financial statements but compliance with which may be fundamental to the

syndicate’s ability to operate or to avoid a material penalty. These included the requirements of Solvency UK.

We discussed among the audit engagement team including relevant internal specialists such as actuarial and IT specialists

regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might

occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our procedures

performed to address them are described below:

•

Valuation of certain IBNR technical provisions classes, including long tail classes, incorporates assumptions and

methodologies requiring significant management judgement and therefore there is potential for management bias

There is also a risk of overriding controls by making late adjustments to the technical provisions.

In response to these risks, we performed the following:

◦

Engaged our actuarial specialists to:

▪

challenge and assess the appropriateness of the methodology and assumptions used by the syndicate’s

actuarial function;

▪

carry out independent reserve estimations for selected classes of business; and

▪

perform benchmarking analysis for the development patterns for selected classes of business.

In support of the above work, we also tested the relevant controls around the data, models and assumptions used to

determine the syndicate’s reserves and tested the integrity of the data used in the actuarial calculations by agreeing it to the

underlying syndicate records. We also tested for late adjustments to the technical provisions.

AXIS SYNDICATE 2050

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 2050

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•

S2050 is a syndicate in the early stages of development, with a limited track record of underwriting.

We assessed the

risk of fraud in revenue recognition for the syndicate and determined that it related to the unsigned portion of gross

written premium.

We further pinpointed the audit risk to premiums written but unsigned through Lloyd’s as cash with

an inception date of greater than 3 months before the year end.

In order to respond to the risk, we:

▪

tested the design and implementation of the controls over revenue;

▪

increased the level of audit testing over the policies identified as being within this category, agreeing them back

to underlying contracts;

▪

performed substantive analytical procedures over gross written premium, investigating any classes of business

outside our calculated threshold to ensure any deviations from that threshold are valid and reasonable; and

▪

performed a stand back analysis over our full suite of work over revenue.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of

management override. In addressing the risk of fraud through management override of controls, we tested the

appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting

estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are

unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

•

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions

of relevant laws and regulations described as having a direct effect on the financial statements;

•

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of

material misstatement due to fraud;

•

enquiring of management, internal audit and in-house legal counsel concerning actual and potential litigation and

claims, and instances of non-compliance with laws and regulations; and

•

reading minutes of meetings of those charged with governance, reviewing internal audit reports

and reviewing

correspondence with Lloyd’s and the Prudential Regulation Authority (PRA) .

Report on other legal and regulatory requirements

Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate

Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions

In our opinion, based on the work undertaken in the course of the audit:

•

the information given in the managing agent’s report for the financial year for which the financial statements are

prepared is consistent with the financial statements; and

•

the managing agent’s report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we

have not identified any material misstatements in the managing agent’s report.

Matters on which we are required to report by exception

Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to

report in respect of the following matters if, in our opinion:

•

the managing agent in respect of the syndicate has not kept adequate accounting records; or

•

the syndicate annual financial statements are not in agreement with the accounting records; or

•

we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

AXIS SYNDICATE 2050

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 2050

________________________________________________________________________________________________________

_____________________________________________________________________________________________________11

Use of our report

This report is made solely to the syndicate’s members, as a body, in accordance with regulation 10 of The Insurance

Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so

that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s report and for

no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As required by the Lloyd’s Syndicate Accounts Instructions, these financial statements will form part of the Electronic

Format Annual Syndicate Accounts filed with the Council of Lloyd’s and published on the Lloyd’s website. This auditors’

report provides no assurance over whether the Electronic Format Annual Syndicate Accounts have been prepared in

compliance with Section 2 of the Lloyd’s Syndicate Accounts Instructions. We have been engaged to provide assurance on

whether the Electronic Format Annual Syndicate Accounts has been prepared in compliance with Section 2 of the Lloyd’s

Syndicate Accounts Instructions and will report privately to the directors of the managing agent and the Council of Lloyd’s

on this.

Kirstie Hanley (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

February 2026

AXIS SYNDICATE 2050

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 2050

________________________________________________________________________________________________________

_____________________________________________________________________________________________________12

Financial

year ended

Financial

year ended

31 December

2025

2024

Notes

USD '000

Gross premiums written

109,974

43,459

Outward reinsurance premiums

(47,053)

(17,752)

Premiums written, net of reinsurance

62,920

25,707

Changes in unearned premium

Change in the gross provision for unearned premiums

(50,733)

(33,947)

Change in the provision for unearned premiums, reinsurers’ share

21,419

13,811

Net change in provisions for unearned premiums

(29,313)

(20,136)

Earned premiums, net of reinsurance

33,606

5,571

Allocated investment return transferred from the non-technical account

744

265

Other technical income, net of reinsurance

—

34,351

5,836

Claims paid

Gross amount

(1,755)

—

Reinsurers’ share

234

—

Net claims paid

(1,520)

—

Change in the provision for claims

Gross amount

(27,167)

(4,227)

Reinsurers’ share

12,453

1,613

Net change in provisions for claims

(14,714)

(2,614)

Claims incurred, net of reinsurance

(16,234)

(2,614)

Net operating expenses

(9,360)

(4,373)

Balance on the technical account - general business

8,757

(1,151)

AXIS SYNDICATE 2050

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME:

TECHNICAL ACCOUNT - GENERAL BUSINESS

FOR THE YEAR ENDED 31 DECEMBER 2025

________________________________________________________________________________________________________

_____________________________________________________________________________________________________13

Financial

year ended

Financial

year ended

31 December

2025

2024

Notes

USD '000

Balance on the technical account - general business

8,757

(1,151)

Investment income

735

265

Realised gains/(losses) on investments

—

Unrealised gains/(losses) on investments

—

Investment expenses and charges

—

Total investment return

744

265

Allocated investment return transferred to the general business technical

account

(744)

(265)

8,757

(1,151)

Gain/(loss) on foreign exchange

133

(200)

PROFIT / (LOSS) FOR THE FINANCIAL YEAR

8,890

(1,351)

All amounts arise from continuing activities.

There were no recognised gains or losses other than those included in the statement of comprehensive income.

There is no

other comprehensive income as the Syndicate's functional and presentational currency is the US Dollar (USD).

The accompanying notes from page 18 to 44 form an integral part of these financial statements.

STATEMENT OF CHANGES IN MEMBERS' BALANCES

Financial

year ended

Financial

year ended

31 December

2025

2024

USD '000

Members' balances brought forward at 1 January

(1,351)

—

Total comprehensive income/(loss) for the year

8,890

(1,351)

Losses collected in relation to distribution on closure of underwriting year

—

Payments of profit to members' personal reserve funds

—

Other

—

Members' balances carried forward at 31 December

7,538

(1,351)

AXIS SYNDICATE 2050

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME:

NON - TECHNICAL ACCOUNT -

GENERAL BUSINESS

FOR THE YEAR ENDED 31 DECEMBER 2025

________________________________________________________________________________________________________

_____________________________________________________________________________________________________14

2025

2024

Notes

USD '000

ASSETS

Investments

Financial investments

28,269

8,255

Deposits with ceding undertakings

—

28,269

8,255

Reinsurers' share of technical provisions

Provision for unearned premiums

35,694

13,718

Claims outstanding

14,425

1,605

50,118

15,323

Debtors

Debtors arising out of direct insurance operations

50,911

18,338

Debtors arising out of reinsurance operations

12,816

—

Other debtors

—

63,728

18,338

Other assets

Cash at bank and in hand

5,600

8,349

5,600

8,349

Prepayments and accrued income

Accrued interest and rent

—

Deferred acquisition costs

8,450

4,735

Other prepayments and accrued income

1,268

922

9,718

5,657

TOTAL ASSETS

157,433

55,922

AXIS SYNDICATE 2050

BALANCE SHEET - ASSETS

AS AT 31 DECEMBER 2025

________________________________________________________________________________________________________

_____________________________________________________________________________________________________15

2025

2024

Notes

USD '000

MEMBERS' BALANCE

Total capital and reserves

Members' balances

7,538

(1,351)

7,538

(1,351)

LIABILITIES

Technical provisions

Provision for unearned premiums

86,017

33,222

Claims outstanding

32,354

4,151

118,371

37,373

Creditors

Creditors arising out of direct insurance operations

219

Creditors arising out of reinsurance operations

23,111

3,845

Other creditors including taxation and social security

3,561

13,008

26,891

16,863

Accruals and deferred income

4,632

3,037

TOTAL LIABILITIES

149,895

57,273

TOTAL LIABILITIES, CAPITAL AND RESERVES

157,433

55,922

The Syndicate financial statements were approved by the Board of AXIS Managing Agency Limited on 17 February 2026

and were signed on its behalf by:

___________________________________

James Mollett

Finance Director

19 February 2026

AXIS SYNDICATE 2050

BALANCE SHEET - LIABILITIES

AS AT 31 DECEMBER 2025

________________________________________________________________________________________________________

_____________________________________________________________________________________________________16

2025

2024

USD'000

Profit for the financial year

8,890

(1,351)

Adjustments:

Increase in gross technical provisions

80,999

37,373

(Increase) / decrease in reinsurers' share of gross technical provisions

(34,795)

(15,323)

(Increase) / decrease in debtors

(45,389)

(18,338)

(Decrease) / increase in creditors

20,028

6,864

Movement in other assets/liabilities

(3,443)

(2,879)

Investment return

(744)

(265)

Foreign exchange

(560)

—

Other

—

Net cash flows from operating activities

24,984

6,081

Cash flows from investing activities

Purchase of equity and debt instruments

—

Sale of equity and debt instruments

—

Investment income received

744

265

Other

—

Net cash flows from investing activities

744

265

Cash flow from financing activities

Distribution of profit

—

Other

(10,000)

10,000

Net cash flows from financing activities

(10,000)

10,000

Net increase / (decrease) in cash and cash equivalents

15,728

16,346

Cash and cash equivalents at the beginning of the year

16,346

—

Foreign exchange on cash and cash equivalents

560

—

Cash and Cash equivalents at the end of the year

32,635

16,346

AXIS SYNDICATE 2050

STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

________________________________________________________________________________________________________

_____________________________________________________________________________________________________17

BASIS OF PREPARATION

Statement of compliance

The annual report and accounts have been prepared on a going concern basis and in compliance with the Insurance

Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and FRS 102 “The Financial Reporting

Standard applicable in the UK and Republic of Ireland” (FRS 102) and FRS 103 "Insurance Contracts" (FRS 103), being

applicable UK GAAP accounting standards, and in accordance with the provisions of Schedule 3 of the Large and Medium-

sized Companies and Groups (Accounts and Reports) Regulations relating to insurance companies and the Lloyd’s

Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

This annual report has been iXBRL tagged in accordance with the Lloyd's XBRL taxonomy Version 2.0, as issued by

Lloyd's.

The annual report and accounts are prepared under the historical cost convention except for certain financial instruments

which are measured at fair value. The annual report and accounts are prepared in USD which is the functional and

presentational currency of the Syndicate. The annual report and accounts are presented in thousands of US Dollars (USD

'000) unless otherwise stated.

The directors regard AXIS Capital Holdings Limited, a company incorporated in Bermuda, as the ultimate parent of

Syndicate 2050.

Going concern

The Syndicate's business activities, performance and position along with the objectives, policies and processes for managing

its principal risks and uncertainties are set out in the Managing Agent’s Report on pages 4-7. As detailed in note 23, the

Syndicate's ECA is supported by ACCUKIIL with FAL primarily provided by affiliate companies, ASL and ACCUKIIL

own funds. There is no material uncertainty regarding the Syndicate’s ability to meet its liabilities as they fall due. The

directors believe that the Syndicate is well positioned to manage its business risks successfully in the current economic

environment.

The directors have continued to review the business plans, liquidity and operational resilience of the

Syndicate.

As such, the directors have a reasonable expectation that the Syndicate has adequate resources to continue in

operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the

annual financial statements.

Restatement of note 3, analysis of underwriting result

In note 3 of the 2024 financial statements, the reinsurance balances were presented excluding USD 0.7m of reinsurance

commissions.

As such, the 2024 comparatives have been restated to present the correct reinsurance balance and total.

The

restatement is presentational and only impacts note 3.

It does not affect the balance sheet or statement of profit or loss.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________18

SUMMARY OF ACCOUNTING POLICIES

Technical result

The technical result is determined on an annual basis whereby the incurred cost of claims, commission and related expenses

are charged against the earned proportion of premiums, net of reinsurance and related investment income as follows:

Premiums and acquisition costs

Premiums written are recorded in accordance with the terms of the underlying policies. Premiums are earned over the period

during which the Syndicate is exposed to the underlying risk which is generally one to two years with the exception of

multi-year contracts. It is Syndicate practice for non-cancellable policies covering a period of greater than eighteen months

to be entered as multi-year policies.

Given the multi-year energy transition projects that the Syndicate will be providing

holistic insurance risk transfer for, it is expected that a high proportion of policies will be categorised as multi-year.

Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in

force.

Acquisition costs vary with and are directly related to the acquisition of insurance contracts and consist primarily of fees and

commissions paid to brokers. Deferred acquisition costs represent the proportion of acquisition costs which will be

expensed in subsequent accounting periods; the deferral is calculated in the same manner as the unearned premiums

provision. Certain reinsurance commissions and profit participations are also included within expenses for the acquisition of

insurance contracts and are deferred in line with unearned premium.

Under FRS 103, unearned premiums and deferred acquisition costs are monetary assets. These are therefore valued at the

closing exchange rate at the balance sheet date and any foreign currency gains or losses are recognised in the Statement of

Comprehensive Income: Non-technical account.

Reinsurance

In the normal course of business, the Syndicate purchases reinsurance protection to limit its ultimate losses from

catastrophic events and to reduce its loss aggregation risk.

Reinsurance premiums ceded are expensed over the reinsurance

coverage period. Unearned reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term

of the contracts in force.

The Syndicate also participates in a number of group-purchased global reinsurance treaties for certain risks. The premiums

paid to our reinsurers (i.e. outward reinsurance premiums) are expensed over the coverage period. The reinsurers' share of

provision for unearned premiums represents the portion of premiums ceded applicable to the unexpired term of the contract

in force. Outstanding reinsurance commitments relating to subsequent instalments are disclosed in note 25.

Reinsurance recoverables are presented net of a reserve for uncollectible reinsurance. Risk attaching contracts cover claims

that relate to underlying policies written during the terms of such contracts. Loss occurring contracts cover all claims that

occur during the life of the reinsurance contract.

The method for determining the reinsurance recoverable on unpaid losses

and loss expenses involves actuarial estimates and assumptions. Unpaid losses and loss expenses include an amount

determined from individual case estimates and loss reports, and an amount based on past experience, for losses incurred but

not reported. Based on reinsurance coverage, the Syndicate determines the amount of recoverables for unpaid losses and

loss expenses.

Reinsurance commission

Reinsurance commission income is earned over the period in which the related premiums are expensed.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________19

SUMMARY OF ACCOUNTING POLICIES (continued)

Critical accounting estimates and judgments and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect

the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for

revenues and expenses during the year. Management have not identified any critical accounting judgements.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be

relevant. Actual results may differ from those estimates. Estimates and judgments are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only

that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Management considers the following areas to be those where judgements, estimates and assumptions have had the most

significant effect on the amounts recognised in the annual accounts.

Insurance contract technical provisions

Estimates need to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected

ultimate cost of claims incurred but not reported (IBNR), at the reporting date. A variety of actuarial methods are utilised in

estimating the ultimate costs of claims and claims expenses, including the expected loss ratio, Bornhuetter-Ferguson and

chain ladder methods. Shorter tailed lines for example property are more volatile and experience indication is generally

adopted for all underwriting years including the current year, with more weight given to experience based methods. In

contrast for the longer tailed lines, the initial expected loss ratio is generally recommended for the most recent underwriting

years unless there has been materially outsized loss experience compared to expectations greater than the normal volatility

that would be associated with the early stage of development.

In these cases, weighting an experience-based indication is an

option or using a blend of case handler method and the loss ratio.

The provision for claims outstanding is assessed on an individual case basis and is based on the estimated ultimate cost of

each claim notified but not settled by the statement of financial position date. The IBNR provision and related handling

costs are considered for each class of business by using a range of standard actuarial techniques and include an implicit

allowance for claims which are incurred but not reported as well as deteriorations of claims currently incurred. The methods

used, and the estimates made, are reviewed regularly.

The two main critical assumptions with regards to claims provisions are 1) it is assumed unless there is information to the

contrary past development is a reasonable predictor of future claims development and 2) the rating and other models used

are fair reflections of the underlying business. The directors consider the provisions for gross claims and related reinsurance

recoveries are fairly stated based on the information currently available to them. However, the ultimate liability will vary as

a result of subsequent information and events and this may result in significant adjustments to the amounts provided.

Further information is provided in note 19 (c).

Estimates of premiums

Written premiums are recorded in accordance with the terms of the underlying policies and earned over the policy period.

Estimated premium income in respect of facility contracts includes an estimate of the underlying business attaching to each

facility at the statement of financial position date. Of the total gross written premiums, less than one percent is written under

delegated authorities where premiums are declared in to the Syndicate in arrears thus not requiring an estimate of any

material undeclared premium be made.

Profit commissions

Insurance profit commissions are made up of accruals on open market and delegated portfolios.

Included in the Syndicate’s

profit commission accrual balance is an estimation of profit commission payable.

The calculation uses an estimate for the

future profitability of the delegated agreements based on the expected loss ratio of the contracts.

The expected loss ratio can

vary over time and as such, commission payable may vary as the contracts develop.

As the Syndicate is in its second year

of writing business, the quantum is currently immaterial.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________20

SUMMARY OF ACCOUNTING POLICIES (continued)

Claims incurred

Reserves for losses and loss expenses represent an estimate of the unpaid portion of the ultimate liability for losses and loss

expenses for insured events that have occurred at or before the balance sheet date. The balance reflects both claims that have

been reported (case reserves) and IBNR. These amounts are reduced for estimated amounts of salvage and subrogation

recoveries.

Reserves for losses and loss expenses are reviewed on a quarterly basis. Case reserves are primarily established

based on amounts reported from insureds, reassured and/or brokers. Management estimates IBNR after reviewing detailed

actuarial analyses and applying informed judgement regarding qualitative factors that may not be fully captured in the

actuarial estimates. A variety of actuarial methods are utilised in this process, including the Expected Loss Ratio,

Bornhuetter-Ferguson and chain ladder methods. The Syndicate estimate is highly dependent on management's critical

judgement as to which method(s) are most appropriate for a particular accident year and class of business. As the Syndicate

builds historical claims data, it will often be supplemented with industry benchmarks when applying these methodologies.

At each reporting date, liability adequacy tests are performed at a year of account level and reviewed to ensure the adequacy

of the liabilities from insurance and reinsurance contracts net of deferred acquisition costs. In performing these tests, current

best estimates are used of future contractual cash flows, claims handling and administrative expenses as well as investment

income from the assets backing such liabilities.

This analysis is performed for AXIS as a whole and looks at insurance and

reinsurance by class of business and entity to determine whether there is a deficiency. A provision is established for any

deficiency for losses arising from liability adequacy tests (unexpired risk provision).

Any adjustments to previous reserves

for losses and loss expenses estimates are recognised in the period they are determined. While management believes that

reserves for losses and loss expenses are adequate, this estimate requires a significant judgement and new information,

events or circumstances may result in ultimate losses that are materially greater or less than provided for in the balance

sheet.

Financial instruments

Financial instruments are measured in accordance with FRS 102 section 11 and section 12.

Financial assets are measured at fair value with fair value changes recognised immediately in the profit and loss account.

For this purpose, listed investments are stated at bid-market value and deposits with credit institutions and overseas deposits

are stated at cost. Unlisted investments for which a market exists are stated at the average price at which they were traded on

the balance sheet date or the last trading day before that date.

The Syndicate uses the following hierarchy for determining

the fair value of financial instruments by valuation technique:

•

Level 1: the quoted (unadjusted) prices in active markets for identical assets or liabilities that the Syndicate can

access at the measurement date

•

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are

observable, either directly or indirectly

•

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based

on observable market data

Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains

and losses, net of investment expenses, charges and interest.

Realised and unrealised gains and losses arising from changes in the fair value of investments are presented in the Statement

of Profit and Loss in the period in which they arise. Investment income includes interest income on fixed income securities

and dividend income on equity securities. Dividend and interest income is recognised when earned. Investment management

and other related expenses are shown separately to the net change in fair value. These expenses are recognised when

incurred.

Allocation of investment return transferred from the non-technical to the technical account

Investment income is initially recorded in the non-technical income statement. The income is transferred in full to the

general business technical account to reflect the investment return on funds supporting underwriting business.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________21

SUMMARY OF ACCOUNTING POLICIES (continued)

Taxation

Under Schedule 19 of the Finance Act 1993 Managing Agents are not required to deduct basic rate income tax from

Syndicate trading income. In addition, all UK basic rate income tax, currently at 25% (2024: 25%), deducted from

Syndicate investment income is recoverable by Managing Agents and consequently the distribution made to members or

their members’ agents is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.

Foreign exchange

The Syndicate's functional currency and presentational currency is the US Dollar (USD).

Monetary assets and liabilities denominated in foreign currencies are converted into the functional currency at the prevailing

rate of exchange ruling at the balance sheet date and revenues and costs are converted at the rate prevailing at the date of

transaction. Non-monetary assets and liabilities denominated in foreign currencies have been recorded at historical rates.

Profits and losses arising from foreign currency transactions and on settlement of accounts receivable and payable in foreign

currencies are dealt with through the Statement of Comprehensive Incomes: Non-technical account.

Pension

The staff utilised by the Syndicate are employed by an affiliate entity which operates a defined contribution scheme.

Pension costs relating to staff performing duties are charged to the Syndicate and included within net operating expenses.

Syndicate operating expenses

Costs incurred by the Managing Agent exclusively for the Syndicate are charged to the Syndicate on an accrual basis.

Expenses which are incurred jointly for the Managing Agent and the Syndicate are apportioned between the Managing

Agent and the Syndicate depending on the amount of work performed, resources used and volume of business transacted.

In 2025, the Managing Agent charged a Managing Agent fee of 0.025% of Syndicate capacity (2024: 0.025%).

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and investments with maturities of three months or less from the

acquisition date that are subject to an insignificant risk of changes in fair value and are used by the Syndicate in the

management of its short term commitments.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________22

ANALYSIS OF UNDERWRITING RESULT

An analysis of the underwriting result before investment return is set out below:

Gross

premiums

claims

operating Reinsurance Underwriting

written

earned

incurred

Expenses

balance

result

2025

USD'000

Direct insurance:

Accident and health

325

191

(88)

(95)

(5)

Marine, aviation and transport

17,487

7,458

(4,981)

(1,023)

(837)

617

Fire and other damage to property

56,548

35,062

(15,628)

(9,084)

(5,198)

5,152

Third party liability

581

533

(290)

(204)

(91)

(54)

Miscellaneous

3,027

447

(188)

(157)

351

452

Total direct insurance

77,968

43,689

(21,175)

(10,563)

(5,780)

6,171

Reinsurance acceptances

32,006

15,552

(7,747)

(3,534)

(2,430)

1,841

Total

109,974

59,241

(28,922)

(14,097)

(8,210)

8,012

The table below is an additional disclosure for Lloyd's reporting purposes and is included to facilitate the classification of

the above segments into the Lloyd's aggregate classes of business.

Gross

premiums

claims

operating Reinsurance Underwriting

written

earned

incurred

Expenses

balance

result

2025

Additional analysis

USD'000

Fire and damage to property of

which is:

Specialities

295

237

(50)

(46)

(100)

Energy

38,448

30,041

(13,172)

(7,448)

(4,719)

4,702

Third party liability of which is:

Energy

—

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________23

ANALYSIS OF UNDERWRITING RESULT (continued)

Gross

Premiums

Claims

Operating Reinsurance

Written

Earned

Incurred

Expenses

Balance

Total

2024

USD'000

Direct insurance:

Restated

Accident and health

—

Marine, aviation and transport

18,760

5,205

(2,442)

(2,180)

(909)

(325)

Fire and other damage to property

4,922

1,062

(387)

(631)

(154)

(110)

Third party liability

235

(52)

(57)

(9)

Miscellaneous

—

(29)

—

Total direct insurance

23,917

6,356

(2,881)

(2,897)

(1,024)

(445)

Reinsurance acceptances

19,542

3,156

(1,346)

(2,195)

(586)

(971)

Total

43,459

9,512

(4,227)

(5,092)

(1,609)

(1,416)

Refer to note 1 for the background of the restatement of 2024 reinsurance balance.

This restatement only impacts this note

disclosure above and does not impact the primary statements.

Gross

premiums

claims

operating Reinsurance Underwriting

written

earned

incurred

Expenses

balance

result

2024

Additional analysis

USD'000

Fire and damage to property of

which is:

Specialities

257

(42)

(34)

(37)

(17)

Energy

10,602

3,512

(1,428)

(1,459)

(723)

(98)

Third party liability of which is:

Energy

—

The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:

2025

2024

USD'000

United Kingdom

77,968

23,917

European Union Member States

—

Rest of the world

—

Total gross premiums written

77,968

23,917

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________24

INSURANCE ASSETS AND LIABILITIES

Technical provisions

2025

2024

Gross

Reinsurance

Gross

Reinsurance

provisions

assets

Net

provisions

assets

Net

USD'000

Unearned premiums

Balance at 1 January

33,222

(13,718)

19,504

—

Premiums written during the year

109,974

(47,053)

62,920

43,459

(17,752)

25,707

Premiums earned during the year

(59,241)

25,634

(33,606)

(9,512)

3,941

(5,571)

Foreign exchange movements

2,062

(556)

1,506

(725)

(632)

Balance at 31 December

86,017

(35,694)

50,324

33,222

(13,718)

19,504

2025

2024

Gross

Reinsurance

Gross

Reinsurance

provisions

assets

Net

provisions

assets

Net

USD'000

Claims outstanding

Balance at 1 January

4,151

(1,605)

2,546

—

Claims paid during the year

(1,755)

234

(1,520)

—

Expected cost of current year claims

28,574

(12,687)

15,886

4,227

(1,613)

2,614

Change in estimates of prior year

provisions

348

—

348

—

Foreign exchange movements

1,037

(366)

670

(76)

(68)

Balance at 31 December

32,354

(14,425)

17,929

4,151

(1,605)

2,546

2025

2024

Gross

Reinsurance

Gross

Reinsurance

assets

liabilities

Net

assets

liabilities

Net

USD'000

Deferred acquisition costs

Balance at 1 January

4,735

(864)

3,871

—

Incurred deferred acquisition costs

14,008

(8,636)

5,373

6,315

(3,770)

2,545

Amortised deferred acquisition costs

(8,112)

4,966

(3,146)

(1,478)

2,887

1,409

Foreign exchange movements

(2,180)

(97)

(2,278)

(102)

(83)

Balance at 31 December

8,450

(4,629)

3,821

4,735

(864)

3,871

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________25

NET OPERATING EXPENSES

2025

2024

USD'000

Acquisition costs

14,008

6,315

Change in deferred acquisition costs

(5,896)

(4,838)

Administrative expenses

4,990

3,528

Members' standard personal expenses

994

Reinsurance commissions and profit participation

(4,737)

(719)

Net operating expenses

9,360

4,373

Members' standard personal expenses include Lloyd's subscriptions, Central Fund contributions and Managing Agent's fees.

Included in administrative expenses are salary costs for services to the Syndicate provided by employees of AXIS group

companies.

Total commissions for direct insurance business for the year amounted to:

2025

2024

USD'000

Total commission for direct insurance business

5,943

2,977

This includes acquisitions, renewals, collections service companies and portfolio management commissions.

AUDITOR'S REMUNERATION

Administrative expenses in note 5 i

nclude:

2025

2024

Auditors' remuneration

USD'000

fees payable to the Syndicate's auditor for the audit of these financial

statements

240

230

fees payable to the Syndicate's auditor and its associates in respect of

other services pursuant to legislation

137

378

275

Fees payable to Deloitte LLP for the audit of the annual accounts of AXIS Managing Agency Limited are USD 33.8k

(2024: USD 28.9k).

Fees payable for audit-related assurance services provided to the Managing Agent are USD 17.3k

(2024: 15.7k). There were no other fees payable for the provision of other non-audit services.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________26

KEY MANAGEMENT PERSONNEL COMPENSATION

The directors of the Managing Agency are employed by related group Companies. The directors of AMAL received the

following aggregate remuneration charged to the Syndicate.

2025

2024

USD'000

Directors' emoluments

139

125

Fees

—

The active underwriter received the following aggregate remuneration during the year charged to the Syndicate.

2025

2024

USD'000

Emoluments

STAFF NUMBERS AND COSTS

The Syndicate and AMAL have no employees.

Staff are employed by AXIS service companies.

The number of staff

below, analysed by category, represents the total number of staff available to the managing agency in order to service all of

its Lloyd's business including Syndicate 2050.

2025

2024

Administration and Finance

296

312

Underwriting

232

205

Claims

Investments

—

Total

584

570

Administration and Finance includes all ancillary support staff including Operations, Finance, Actuarial, Legal and Risk.

The following amounts were recharges by AXIS service companies to the Syndicate in respect of payroll costs.

2025

2024

USD'000

Wages and salaries

3,038

2,252

Social security costs

487

307

Other pension costs

256

195

Other

Total

3,870

2,763

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________27

INVESTMENT RETURN

2025

2024

Interest and similar income

USD'000

From financial instruments designated at fair value through profit or loss

Interest and similar income

735

265

Other income from investments

From financial instruments designated at fair value through profit or loss

Gains on the realisation of investments

—

Losses on the realisation of investments

(2)

—

Unrealised gains on investments

—

Unrealised losses on the investments

—

Investment management expenses

—

Total investment return

744

265

Transferred to the technical account from the non-technical account

744

265

10.

DISTRIBUTION AND OPEN YEARS OF ACCOUNT

The Syndicate commenced underwriting on 1 April 2024, as such there will be no distribution of profit to members for the

year ended 31 December 2025.

11.

FINANCIAL INVESTMENTS

Carrying value

Cost

2025

2024

2025

2024

USD'000

Shares and other variable yield securities and units in

unit trusts

27,034

7,995

27,034

7,995

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

1,235

260

1,235

260

Total financial investments

28,269

8,255

28,269

8,255

Amounts included within shares and other variable securities include collective investment schemes/unit trusts where funds

are invested in a single entity which invests in other underlying investments. These are treated as cash instruments with the

carrying value and purchase price being the same.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________28

11.

FINANCIAL INVESTMENTS (continued)

The table below presents an analysis of financial investments by their measurement classification.

2025

2024

USD'000

Financial assets measured at fair value through profit or loss

28,269

8,255

Financial assets measured at fair value as available for sale

—

Financial assets measured at amortised cost

—

Total financial investments

28,269

8,255

The following table shows financial investments recorded at fair value analysed between the three levels in the fair value

hierarchy.

The table excludes deposits with ceding undertakings which are valued as level 3.

Level 1

Level 2

Level 3

Total

USD'000

As at 31 December 2025

Shares and other variable yield securities and units in unit trusts

—

27,034

—

27,034

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

—

1,235

—

1,235

Total financial investments

—

28,269

—

28,269

Level 1

Level 2

Level 3

Total

USD'000

As at 31 December 2024

Shares and other variable yield securities and units in unit trusts

—

7,996

—

7,996

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

257

—

259

Total financial investments

8,253

—

8,255

Included in the level 1 category are financial assets that are measured by reference to published quotes in an active market.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an

exchange, dealer, broker, industry syndicate, pricing service or regulatory agency and those prices represent actual and

regularly occurring market transactions on an arm's length basis.

Included in the level 2 category are financial assets measured using a valuation technique based on assumptions that are

supported by prices from observable current market transactions. For example, assets for which pricing is obtained via

pricing services but where prices have not been determined in an active market, financial assets with fair values based on

broker quotes, investments in private equity funds with fair values obtained via fund managers and assets that are valued

using the Syndicate's own models whereby the significant inputs into the assumptions are market observable.

Included in the level 3 category are financial instruments measured at fair value.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________29

12.

DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS

2025

2024

USD'000

Due within one year

50,911

18,338

Due after one year

—

Total

50,911

18,338

13.

DEBTORS ARISING OUT OF REINSURANCE OPERATIONS

2025

2024

USD'000

Due within one year

12,816

—

Due after one year

—

Total

12,816

—

14.

CASH AND CASH EQUIVALENTS

2025

2024

USD'000

Cash at bank and in hand

5,600

8,349

Deposits with credit institutions

27,034

7,997

Total cash and cash equivalents

32,635

16,346

Only financial investments with maturities of three months or less that are used by the Syndicate in the management of its

short-term commitments are included in cash at bank and in hand.

15.

ANALYSIS OF NET DEBT

At 1

Fair value

At 31

January

Cash

and exchange

Non-cash

December

2025

flows

Acquired

movements

changes

2025

Cash and cash equivalents

16,346

15,728

—

560

—

32,635

Other

—

Total

16,346

15,728

—

560

—

32,635

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________30

16.

CREDITORS ARISING OUT OF DIRECT INSURANCE OPERATIONS

2025

2024

USD'000

Due within one year

219

Due after one year

—

219

17.

CREDITORS ARISING OUT OF REINSURANCE OPERATIONS

2025

2024

USD'000

Due within one year

23,111

3,845

Due after one year

—

23,111

3,845

18.

OTHER CREDITORS

2025

2024

USD'000

Other related party balances (non-syndicates)

3,561

3,008

Inter syndicate balances

—

10,000

3,561

13,008

Other related party balances relates to amounts payable to AXIS group companies. At 31 December 2025, the Syndicate had

a USD 150.0m (2024: USD 150.0m) flexible inter-syndicate loan agreement with AXIS Syndicate 1686 to ensure that it can

meet liquidity requirements even in the most extreme circumstances. The outstanding loan balance is nil as at 31 December

2025 (2024: USD 10.0m). Any loans drawn and outstanding under the facility would be repayable on demand.

19.

RISK MANAGEMENT

a) Governance framework

The risk and financial management framework aims to balance the risk to member's capital from events that might

otherwise prevent the Syndicate from meeting its policyholder obligations, with the returns to its member. The directors

recognise the critical importance of having efficient and effective risk management systems in place.

The Managing Agent utilises the AXIS Group risk management function for the Syndicate with a dedicated Chief Risk

Officer (CRO) and clear terms of reference from the AMAL Board, its committees and sub committees, including the

oversight and reporting of agreed service level risk management activities. AMAL supplements this with a clear

organisational structure with documented delegated authorities and responsibilities from the main AMAL Board to the

Syndicate which performs the underwriting activities. Lastly, the AMAL policy Framework sets its standards, risk

management and control and business conduct.

The AMAL Board Risk Committee reviews, approves and monitors risk strategy, risk appetite and key risk limits and

receives regular reports from the Risk Function to ensure any significant risk issues are being addressed by management.

The AMAL Board Risk Committee approves the risk management policies and meets regularly to approve any commercial,

regulatory and organisational requirements of such policies. These policies define the identification of risk and its

interpretation to ensure the appropriate quality and diversification of assets, align underwriting and reinsurance strategy to

the Syndicate goals, and specify reporting requirements. The AMAL Board places significant emphasis on the assessment

and documentation of risks and controls, including the articulation of the Syndicate's risk appetite.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________31

19.

RISK MANAGEMENT (continued)

Capital management objectives, policies and approach

Capital framework at Lloyd's

The Society of Lloyd's (Lloyd's) is a regulated undertaking and subject to the supervision of the Prudential Regulatory

Authority (PRA) under the Financial Services and Markets Act 2000.

Within the supervisory framework, Lloyd's applies

capital requirements at member level and centrally to ensure that Lloyd's com

plies with Solvency UK Insurance Capital

Requirements (Solvency UK), and beyond that to meet its own financial strength, license and ratings objectives.Although

Lloyd's capital setting processes use a capital requirement set at Syndicate level as a starting point, the requirement to meet

Solvency UK and Lloyd's capital requirements apply at overall and member level only respectively, not at Syndicate level.

Accordingly, the capital requirement in respect of the Syndicate is not disclosed in these annual report and accounts.

order to meet Lloyd's requirements, each Syndicate is required to calculate its Solvency Capital Requirement (SCR) for the

prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the

ultimate run-off of underwriting liabilities (SCR 'to ultimate'). The Syndicate must also calculate its SCR at the same

confidence level but reflecting uncertainty over a one year time horizon (one year SCR) for Lloyd's to use in meeting

Solvency UK requirements. The SCRs of each Syndicate are subject to review by Lloyd's and approval by the Lloyd's

Capital and Planning Group.

A Syndicate may be comprised of one or more underwriting members of Lloyd's. Each member is liable for its own share of

underwriting liabilities on the Syndicate on which it is participating but not other members' shares. Accordingly, the capital

requirement that Lloyd's sets for each member operates on a similar basis. Each member's SCR shall thus be determined by

the sum of the members' share of the Syndicate SCR 'to ultimate'. Where a member participates on more than one Syndicate,

a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects

the capital requirement to cover a 1 in 200 year loss 'to ultimate' for that member. Over and above this, Lloyd's applies a

capital uplift to the members' capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this

uplift, which is a Lloyd's not a Solvency UK requirement, is to meet Lloyd's financial strength, license and ratings

objectives. The capital uplift applied for 2026 is 35% (2025: 35%) of the member's SCR to ultimate.

Provision of capital by members

Each member may provide capital to meet its ECA either by assets held in trust by Lloyd's specifically for that member

(Funds at Lloyd's) assets held within and managed within a Syndicate (Funds in Syndicate) or as the member's share of the

member's balances on each Syndicate on which it participates. The Syndicate's ECA is supported by FAL primarily

provided by ASL and ACCUKIIL own funds.

c) Insurance risk management

Insurance risk is the inherent uncertainty as to the occurrence, amount and timing of insurance liabilities transferred to the

Syndicate through the underwriting process.

The insurance risk category encompasses underwriting risks in all relevant lines of business. The two main components are

underwriting risk and reserving risk. Underwriting risk represents the risk that premiums will not be sufficient to cover

future incurred losses.

Reserving risk represents the risk that loss reserves established to cover losses already incurred are

insufficient.

Underwriting risk

Underwriting risk is managed through the Syndicate underwriting risk governance framework. A key component of this is

the peer review process which allows for a collaborative review of risk and pricing by management, and ensures

underwriting is within established protocols and guidelines. Underwriting guidelines are in place to provide a framework for

consistent pricing and risk analysis and to ensure alignment to the Syndicate's risk appetite. Limits are set on underwriting

capacity, and cascade authority to individuals based on their specific roles and expertise. Tiered appetites have been set for

each line of business, with considerations of exposure from each line on the basis of (1) Aggregate (2) Occurrence and (3)

Risk and Clash losses.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________32

19.

RISK MANAGEMENT (continued)

c) Insurance risk management (continued)

Underwriting risk (continued)

Another key component of the Syndicate mitigation of underwriting risk is the purchase of reinsurance.

AXIS Capital has a

centralised Ceded Reinsurance department which coordinates external treaty reinsurance purchasing across the AXIS Group

under the terms of the AXIS Group Reinsurance Management Strategy (REMS) and is overseen by the Reinsurance

Purchasing Group, in conjunction with the Reinsurance Security Committee.

The AMA Board annually reviews and adopts

the strategy defined in the REMS and ensures that this aligns with the reinsurance assumed in the syndicate planning

process and the Syndicate Business Forecast.

Reserving risk

The estimation of reserves is subject to uncertainty due to the fact that the settlement of claims that have arisen before the

balance sheet date is dependent on future events and developments. There are many factors that would cause loss reserves to

increase or decrease, which include, but are not limited to emerging claims and coverage issues, changes in the legislative,

regulatory, social and economic environment and unexpected changes in loss inflation.

The reserves for losses and loss expenses (loss reserves)

are calculated in accordance with actuarial practice based on

substantiated assumptions, methods and assessments. The assumptions are regularly reviewed and updated including

adjusting current and projected inflation rates to reflect prevailing views. Application of AXIS Group-wide reserving policy

and standards of practice ensures a substantially reliable and consistent procedure.

AMAL engages a Signing Actuary to

provide an annual Statement of Actuarial Opinion (SAO) on the Syndicate's worldwide technical provisions, both gross and

net of reinsurance and for each open year of account.

The following sections set the key sub categories of insurance risk recognised by the Syndicate and how they are managed:

Natural peril catastrophe risk

Natural catastrophes such as earthquakes, storms and floods represent a challenge for risk management due to their

accumulation potential and volatility. In managing natural catastrophe risk, the internal risk tolerance framework for the

Syndicate aims to limit the impact to its capital position from an aggregation of natural peril catastrophe events. The Board-

approved risk limit for natural catastrophes sets out the maximum acceptable losses for the Syndicate calibrated to near term

and tail events. There have been no breaches of the Syndicate’s natural catastrophe risk limit during the year.

The Syndicate is potentially exposed to physical risks from climate change.

Climate change may expose the Syndicate to an

increased frequency and / or severity of weather losses. There is a risk that the Syndicate pricing of these perils or the

management of the associated aggregations does not appropriately allow for changes in climate. Over the longer term,

climate change may have an impact on the economic viability of these lines of business if suitable adjustment in price and

coverage cannot be achieved. The Syndicate may also be exposed to losses stemming from climate-related litigation in

liability lines, should the insured face such litigation.

AXIS Capital has in place an Environmental Working Group which includes representation from the Syndicate, to ensure

that the potential risks and opportunities from climate change are identified and then managed in line with the standard risk

management framework.

Additionally, AMAL also has in place a Climate Change Risk Appetite Statement to ensure that

associated risks are managed in line with the Syndicate's standard risk management framework. The Syndicate will continue

to assess all climate change related threats and opportunities, reviewing and adjusting existing risk appetites to ensure they

remain appropriate, reflecting the most recent scientific consensus and the AXIS Group strategic agenda on climate change.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________33

19.

RISK MANAGEMENT (continued)

c) Insurance risk management (continued)

Man-made catastrophe risk

Consistent with the management of natural peril catastrophe exposures, a similarly focused and analytical approach is taken

for the management of man-made catastrophes. Man-made catastrophes include such risks as train collisions, aeroplane

crashes, cyber risks or terrorism. For these risks vendor models, where available, are used with bespoke modelling, scenario

analysis, underwriting judgment and expertise.

This allows the Syndicate to take advantage of business opportunities

related to man-made catastrophe exposures particularly where it can measure and limit the risk sufficiently as well as obtain

risk-adequate pricing.

Limits are set and monitored in respect of key accumulations from man-made perils.

Claims handling risk

In accepting risk, the Syndicate is committing to the payment of claims and therefore these risks must be understood and

controlled. The Claims teams include a diverse group of experienced professionals, including claims adjusters and legal

professionals. The Syndicate also uses approved external service providers, such as independent adjusters and appraisers,

surveyors, accountants, investigators and specialist legal firms, as appropriate. The Syndicate maintains claims handling

guidelines and claims reporting control and escalation procedures in the claims departments. Large claims matters are

reviewed during claims meetings.

Pricing risk

Premiums for (re)insurance contracts are intended to cover expected claim costs

and claim associated expenses

, acquisition

costs, operating costs, and an adequate level of profit margin commensurate to the risk being assumed. Premium amounts

are typically agreed upfront,

but may not cover the actual future costs due to unexpected factors such as social, economic

and legal environments, as well as uncertainty surrounding frequency and severity of claims.

The Syndicate mitigates premium risk in its portfolio through four main levers. Firstly, a vigilant and cautious approach is

taken on claims cost trends, and these assumptions are reviewed regularly and frequently. Secondly, in some of the contracts

loss and / or exposure adjustment features that flex premium and / or acquisition costs are included in response to higher

than expected exposures and / or claim costs.

Thirdly, underwriting action and reinsurance protection are employed to

minimise volatility in claims experience by managing aggregation of limits and by maintaining balance between portfolio

margin and limits deployed. Most importantly, active cycle management is exercised whereby the Syndicate grows the

portfolio at times when pricing is in surplus and shrinks the portfolio at times when pricing is in deficit.

Sensitivity analysis of the reserves for unpaid losses and loss expenses

Expected loss ratios are a key assumption in the estimate of ultimate losses for business at an early stage of development.

All else remaining equal, a higher expected loss ratio would result in a higher ultimate loss estimate. Assumed loss

development patterns are another significant assumption in estimating the loss reserves.

The uncertainty in the timing of the

emergence of claims (i.e. the length of the development pattern) is generally greater for a class of business with limited

historical claims experience, in which case a reliance is often placed on industry benchmarks when establishing loss reserve

estimates.

The following analysis is performed for reasonably possible movements in key assumptions with all other assumptions held

constant, showing the impact on gross and net claims outstanding, profit and members' balances.

The risk variable for the

analysis below is a five percent increase or decrease in the Syndicate's reserves and the subsequent impact on the members'

balance.

General insurance business sensitivities as at 31 December 2025

+5.0%

-5.0%

USD'000

Claims outstanding - gross of reinsurance

1,618

(1,618)

Claims outstanding - net of reinsurance

896

(896)

General insurance business sensitivities as at 31 December 2024

+5.0%

-5.0%

USD'000

Claims outstanding - gross of reinsurance

208

(208)

Claims outstanding - net of reinsurance

127

(127)

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________34

19.

RISK MANAGEMENT (continued)

c) Insurance risk management (continued)

Claims development table

The tables below show the Syndicate's cumulative incurred claims development, including both claims notified and incurred

but not reported for each underwriting year, together with the cumulative payments to date on a gross and net of reinsurance

basis at the balance sheet date.

Pure Underwriting Year

2024

2025

Total

Estimate of gross claims:

USD'000

At end of underwriting year

4,151

19,146

One year later

14,962

Two years later

Three years later

Four years later

Five years later

Six years later

Seven years later

Eight years later

Nine years later

Estimate of gross claims reserve

14,962

19,146

34,108

Less gross claims paid

(291)

(1,464)

(1,755)

Gross claims reserve

14,671

17,683

32,354

Pure Underwriting Year

2024

2025

Total

Estimate of net claims:

USD'000

At end of underwriting year

2,546

10,927

One year later

8,523

Two years later

Three years later

Four years later

Five years later

Six years later

Seven years later

Eight year later

Nine year later

Estimate of net claims reserve

8,523

10,927

19,450

Less net claims paid

(183)

(1,337)

(1,520)

Net claims reserve

8,340

9,590

17,929

The uncertainty associated with the ultimate claims experience of an underwriting year is greatest when the underwriting

year is at an early stage of development and the margin for future experience potentially being more adverse than assumed

is at its highest. As claims develop, and the ultimate cost of the claims becomes more certain, the relative level of margin

should decrease. Due, however, to the uncertainty inherent in the claims estimation process, initial reserves may not always

be sufficient. The Syndicate has translated estimated outstanding claims at a consistent rate of exchange as determined at the

balance sheet date.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________35

19.

RISK MANAGEMENT (continued)

Financial risk

The Syndicate monitors and manages the financial risks relating to the operations of the Syndicate encompassing credit risk,

liquidity risk, market risk, currency risk and interest rate risk.

Credit risk

Credit risk represents the risk of incurring financial loss due to the diminished creditworthiness (eroding credit rating and,

ultimately, default) of our third party counterparties. The key areas of exposure to credit risk for the Syndicate are from its

reinsurance program and amounts due from policyholders and intermediaries.

It should be noted that credit risk in relation

to the Syndicate’s investment portfolio is addressed under the market risk framework, along with the other risks relating to

the investment portfolio. The Syndicate’s investment policy prevents material investment in other counterparties (e.g.

reinsurers) to avoid concentrations of risk.

Risk from the underwriting of credit (re)insurance products is addressed through

the underwriting risk framework described above. Checks are in place to limit any concentrations of risk between

(re)insurance, investments and other counterparty exposures.

The following sections discuss specific components of credit

risk.

Reinsurance recoverable assets

Within the reinsurance purchasing activities the Syndicate is exposed to the credit risk of a reinsurer failing to meet its

obligations under the reinsurance contracts. To help mitigate this, all reinsurance purchasing is subject to financial security

requirements specified by the Reinsurance Security Committee. The Reinsurance Security Committee maintains a list of

approved reinsurers, performs credit risk assessments for potential new reinsurers, regularly monitors approved reinsurers

with consideration for events which may have a material impact on their creditworthiness, recommends counterparty

tolerance levels for different types of ceded business and monitors concentrations of credit risk. This assessment considers a

wide range of individual attributes, including a review of the counterparty’s financial strength, industry position and other

qualitative factors.

Premium receivables

The largest credit risk exposure to receivables is from brokers and other intermediaries; the risk arises where they collect

premiums from customers or pay claims to customers on behalf of the Syndicate. There are policies and standards in place

to manage and monitor credit risk from intermediaries with a focus on day-to-day monitoring of the largest positions.The

tables below show the maximum exposure to credit risk (including an analysis of financial assets exposed to credit risk) for

the components of the statement of financial position. The maximum exposure is shown gross, before the effect of

mitigation through collateral agreements.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________36

19.

RISK MANAGEMENT (continued)

Financial risk

Credit risk (continued)

The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at the

reporting date.

An analysis of the carrying amounts of past due or impaired debtors is presented below.

2025

USD'000

Neither past

Past due

Gross value

due nor

but not

of impaired

impaired assets

assets

Total

Shares and other variable yield securities and

units in unit trusts

27,034

—

27,034

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

1,235

—

1,235

Reinsurers' share of claims outstanding

14,425

—

14,425

Debtors arising out of direct insurance operations

39,734

11,178

—

50,911

Debtors arising out of reinsurance operations

12,808

—

12,816

Other debtors and accrued interest

—

Cash at bank and in hand

5,600

—

5,600

Deposits with ceding undertakings

—

Total

100,834

11,186

—

112,021

2024

USD'000

Neither past

Past due

Gross value

due nor

but not

of impaired

impaired assets

assets

Total

Shares and other variable yield securities and

units in unit trusts

7,995

—

7,995

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

260

—

260

Reinsurers' share of claims outstanding

1,605

—

1,605

Debtors arising out of direct insurance operations

13,918

4,420

—

18,338

Debtors arising out of reinsurance operations

—

Other debtors and accrued interest

—

Cash at bank and in hand

8,349

—

8,349

Deposits with ceding undertakings

—

Total

32,127

4,420

—

36,547

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________37

19.

RISK MANAGEMENT (continued)

Financial risk (continued)

Credit risk (continued)

The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date.

2025

USD'000

Greater

0-3 months

3-6 months

6-12 months

than 1 year

past due

Total

Shares and other variable yield securities and

units in unit trusts

—

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

—

Reinsurers' share of claims outstanding

—

Debtors arising out of direct insurance operations

8,406

1,506

972

294

11,178

Debtors arising out of reinsurance operations

—

Other debtors and accrued interest

—

Cash at bank and in hand

—

Deposits with ceding undertakings

—

Total

8,414

1,506

972

294

11,186

2024

USD'000

Greater

0-3 months

3-6 months

6-12 months

than 1 year

past due

Total

Shares and other variable yield securities and

units in unit trusts

—

Debt securities and other fixed income securities

—

Loans and deposits with credit institutions

—

Reinsurers' share of claims outstanding

—

Debtors arising out of direct insurance operations

3,374

996

—

4,420

Debtors arising out of reinsurance operations

—

Other debtors and accrued interest

—

Cash at bank and in hand

—

Deposits with ceding undertakings

—

Total

3,374

996

—

4,420

The table below provides information regarding the credit risk exposure of the Syndicate at 31 December 2025 by

classifying assets according to independent credit ratings of the counterparties. AAA is the highest possible rating. Assets

that fall outside the range of AAA to BBB are classified as speculative grade and have not been rated. Debtors, other than

amounts due from reinsurers, have been excluded from the table as these are not rated.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________38

19.

RISK MANAGEMENT (continued)

Financial risk (continued)

Credit risk (continued)

The table below provides information regarding the credit risk exposure of the Syndicate at 31 December 2025 by

classifying assets according to independent credit ratings of the counterparties. AAA is the highest possible rating. Assets

that fall outside the range of AAA to BBB are classified as speculative grade and have not been rated.

2025

USD'000

Not

AAA

BBB

Other

rated

Total

Shares and other variable yield securities and units

in unit trusts

—

— 27,034

—

— 27,034

Debt securities & other fixed income securities

—

Loans and deposits with credit institutions

618

366

1,235

Reinsurers share of claims outstanding

56 11,743 2,582

—

44 14,425

Debtors arising out of direct insurance operations

—

— 39,734 39,734

Debtors arising out of reinsurance operations

—

134

—

— 12,646 12,808

Cash at bank and in hand

—

— 5,600

—

5,600

Deposits with ceding undertakings

—

Other debtors and accrued interest

—

Total

674 11,975 35,332

1 52,790 100,834

2024

USD'000

Not

AAA

BBB

Other

rated

Total

Shares and other variable yield securities and units

in unit trusts

—

7,995

—

7,995

Debt securities & other fixed income securities

—

Loans and deposits with credit institutions

159

—

260

Reinsurers share of claims outstanding

1 1,293

311

—

1,605

Debtors arising out of direct insurance operations

—

— 13,918 13,918

Debtors arising out of reinsurance operations

—

Cash at bank and in hand

—

8,349

—

8,349

Deposits with ceding undertakings

—

Other debtors and accrued interest

—

Total

160 1,323 16,684

22 13,918 32,127

It is the Syndicate's policy to maintain accurate and consistent risk ratings across its credit portfolio. This enables

management to focus on the applicable risks and the comparison of credit exposures across all lines of business.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________39

19.

RISK MANAGEMENT (continued)

Financial risk (continued)

ii)

Liquidity risk

Liquidity risk is the risk that there would not be sufficient liquid financial resources to meet liabilities or payment

obligations when they fall due, or the Syndicate would have to incur excessive costs to do so. As an insurer, the core

business generates liquidity primarily through premium receipts and investment income. Exposure to liquidity risk stems

mainly from the need to cover potential extreme loss events. To manage this risk, a range of liquidity policies and measures

are in place including maintaining cash and cash equivalents and high quality, liquid investment portfolios to meet expected

outflows, as well as those that could result from a range of potential stress events. The Managing Agency further undertakes

stress testing to ensure that the Syndicate would be able to withstand extreme loss events and still remain liquid. In addition,

AXIS Syndicate 1686 provides a USD 150.0m loan facility to the Syndicate to ensure that it can meet liquidity requirements

even in extreme circumstances.

The table below summarises the maturity profile of the Syndicate's financial and insurance liabilities based on remaining

undiscounted contractual obligations or expected future undiscounted cashflows, including interest payable. Repayments

which are subject to notice are treated as if notice were to be given immediately.

2025

USD'000

More than 5

Undiscounted net cash flows

0-1 year

1-3 years

3-5 years

years

Total

Claims outstanding

9,418

14,291

5,810

2,834

32,354

Creditors

26,891

—

26,891

Total

36,309

14,291

5,810

2,834

59,246

2024

USD'000

More than 5

Undiscounted net cash flows

0-1 year

1-3 years

3-5 years

years

Total

Claims outstanding

1,206

1,966

697

282

4,151

Creditors

16,863

—

16,863

Total

18,069

1,966

697

282

21,014

iii)

Market risk

Market risk is the risk that financial instruments may be negatively impacted by movements in financial market prices or

rates such as equity prices, interest rates, credit spreads and foreign exchange rates. Fluctuations in market rates primarily

affect the investment portfolio. Credit risk associated with investments is also managed in the market risk framework.

Through asset and liability management, the Syndicate aims to ensure that risks influence both the economic value of

investments and underwriting liabilities in the same way, thus mitigating the effect of market fluctuations. For example,

important features of liabilities are reflected, such as maturity patterns and currency structures, on the asset side of the

balance sheet by acquiring investments with similar characteristics.

Asset-liability management is supplemented with various internal policies and limits. As part of the strategic asset allocation

process, different asset strategies are simulated and stressed in order to assess an appropriate portfolio (given return

objectives and risk constraints). The management of asset classes is centralised to control aggregation of risk, and provide a

consistent approach to constructing portfolios as well as the selection process of external asset managers. Limits are set on

the concentration of investments by single issuers and certain asset classes and on the level of illiquid investments. Further,

the Syndicate's investment guidelines do not permit the use of leverage in any of the fixed maturity portfolios.

Investment portfolios are stress tested using historical and hypothetical scenarios to analyse the impact of unusual market

conditions and to ensure potential investment losses remain within risk appetite.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________40

19.

RISK MANAGEMENT (continued)

Financial risk (continued)

iii)

Market risk (continued)

The table below summarises the exposure of the financial assets and liabilities to foreign currency exchange risk at the

reporting date, as follows:

2025

USD'000

Canadian Australian

Japanese

Sterling

US dollar

Euro

dollar

Yen

Other

Total

Investments

—

22,888

—

4,522

636

—

221

28,269

Reinsurers' share of technical

provisions

13,242

32,149

4,714

—

50,118

Debtors

16,859

35,470

3,127

785

3,894

—

3,593

63,728

Other assets

1,090

1,201

1,309

—

2,000

—

5,600

Prepayments and accrued

income

1,779

5,883

485

258

532

—

781

9,718

Total Assets

32,970

97,592

9,636

5,577

7,064

— 4,595 157,433

Technical provisions

(31,007)

(56,980) (10,343)

(3,365)

(7,021)

— (9,657) (118,371)

Creditors

(7,113)

(19,040)

(1,438)

618

(4)

—

(26,891)

Accruals and deferred income

(1,450)

(2,326)

(855)

—

(4,632)

Total Liabilities

(39,570)

(78,346) (12,636)

(2,747)

(7,025)

— (9,571) (149,895)

Total capital and reserves

6,600

(19,246)

3,000

(2,830)

(39)

— 4,976

(7,538)

2024

USD'000

Canadian Australian

Japanese

Sterling

US dollar

Euro

dollar

Yen

Other

Total

Investments

—

7,264

—

804

168

—

8,255

Reinsurers' share of technical

provisions

3,220

11,431

672

—

— 15,323

Debtors

5,486

5,751

1,071

1,760

1,857

—

2,413 18,338

Other assets

3,070

2,679

1,295

—

1,305

—

8,349

Prepayments and accrued

income

925

3,536

228

252

251

—

465

5,657

Total Assets

12,701

30,661

3,266

2,816

3,581

—

2,897 55,922

Technical provisions

(7,384)

(20,953) (1,311)

(2,034)

(2,778)

— (2,913) (37,373)

Creditors

(2,068)

(14,368)

(448)

—

— (16,863)

Accruals and deferred income

(560)

(2,329)

(148)

—

(3,037)

Total Liabilities

(10,012)

(37,650) (1,907)

(2,034)

(2,757)

— (2,913) (57,273)

Total capital and reserves

(2,689)

6,989 (1,359)

(782)

(824)

—

1,351

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________41

19.

RISK MANAGEMENT (continued)

Financial risk (continued)

iii)

Market risk (continued)

The Syndicate regularly reviews its currency position taking into consideration the underlying currency of the Syndicate's

obligations and invests its assets proportionately across these currencies so as to protect the solvency of the Syndicate,

against variation in foreign exchange rates.

The Syndicate's underwriting capacity is supported by FAL held by its member – which includes the funding of

underwriting deficits. When each year of account closes, the Syndicate calls on its member to fund losses or distributes

profits as applicable.

Sensitivity to changes in foreign exchange rates

The table below gives an indication of the impact on profit of a percentage change in the relative strength of the US Dollar

against the value of Sterling, Canadian Dollar, Euro, Australian Dollar and Japanese Yen simultaneously. The analysis is

based on the information at the financial year end.

iv)

Currency risk

Impact on profit and members' balance

2025

2024

USD'000

US Dollar Weakens

10% against other currencies

(673)

565

20% against other currencies

(1,346)

1,131

US Dollar Strengthens

10% against other currencies

673

(565)

20% against other currencies

1,346

(1,131)

Interest rate risk

The Syndicate is exposed to interest rate risk through its investment portfolio and cash and cash equivalents.

The Syndicate

holds investments in its balance sheet and the performance of its investment portfolio may have an effect on the result.

Changes in interest rates would have an impact on the financial results however AXIS group mitigates this risk by aligning

the portfolio duration to offset the economic impact on the liability duration.

Insurance liabilities are not discounted and therefore not exposed to interest rate risk.

USD'000

2025

2024

Impact on

results

members'

results

members'

before tax

balances

before tax

balances

Interest rate risk

+ 50 basis points shift in yield curves

(137)

(52)

- 50 basis points shift in yield curves

137

The method used for deriving sensitivity information and significant variables did not change from the previous period.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________42

20.

REINSURANCE ASSETS

The Syndicate purchases reinsurance to reduce the risk of exposure to loss. Purchased reinsurance cover generally can be

categorised as: facultative, excess of loss and quota share. Facultative covers are typically individual risk purchases. Excess

of loss covers provide a contractually set amount of cover after an excess point has been reached. This excess point can be

based on the size of an industry loss or a fixed monetary amount. Generally, these covers are purchased on a package policy

basis, and they may provide cover for a number of lines of business within one contract. Quota share covers provide a

proportional amount of coverage from the first dollar of loss.

All of these reinsurance covers provide for recovery of a portion of losses and loss reserves from reinsurers. Under its

reinsurance security policy, the Syndicate predominantly cedes business with reinsurers rated A- or better by Standard &

Poors and/or AM Best. The Syndicate remains liable to the extent that reinsurers do not meet their obligations under these

agreements either due to solvency issues, contractual disputes or some other reason. Included within reinsurance losses

recoverable as at 31 December 2025 were no amounts (2024: Nil) recoverable from a group company. Included within the

provision for unearned premiums ceded as at 31 December 2025 there were no amounts (2024: Nil) ceded from a group

company.

In 2024 an internal quota share agreement was entered into by Syndicate 1686 and Syndicate 2050 whereby Syndicate 1686

cedes one hundred percent of energy transition related credit insurance, political risk and capital risk solutions project

finance business to Syndicate 2050.

This agreement applied to policies written or renewed during the term commencing 1

April 2024 until 31 December 2024.

The agreement automatically renews for subsequent annual periods commencing 1

January unless otherwise cancelled and as such has continued for 2025.

21.

RELATED PARTIES

AMAL has operated as the Managing Agent for the Syndicate since its inception in 2024.

Since this date AMAL has been a

wholly owned subsidiary of AXIS Specialty UK Holdings Limited.

In 2025, the Managing Agent, AMAL, charged the

Syndicate a management fee of USD 37.8k (2024: USD 23.8k) based on 0.025% (2024: 0.025%) of the Syndicate's

capacity.

Harrington Re Ltd. (Harrington Re), a direct, wholly-owned subsidiary of Harrington Reinsurance Holdings Limited

(Harrington), is a Class 4 Bermuda based reinsurance company jointly sponsored by AXIS Capital and The Blackstone

Group L.P. Harrington and Harrington Re commenced operations during 2016. AXIS Ventures Limited, a subsidiary of

AXIS Capital, owns 23% (2024: 22%) of the common equity of Harrington and has the ability to exercise significant

influence over Harrington Re and therefore it is considered a related party.

For the year ended 31 December 2025, the Syndicate did not recognise any amounts in relation to transactions with

Harrington Re and the balances outstanding in relation to transactions with Harrington Re were nil.

AXIS Syndicate 1686 provides a USD 150.0m flexible inter-syndicate loan agreement to the Syndicate to ensure that it can

meet liquidity requirements even in extreme circumstances.

At 31 December 2025, the outstanding loan balance is nil

(2024: USD 10.0m). Any loans drawn and outstanding under the facility would be repayable on demand.

22.

DISCLOSURE OF INTERESTS

Managing Agent's interest

During 2025 AMAL was the Managing Agent for AXIS Syndicate 2050. The financial statements of the Managing Agent

can be obtained by application to the Registered Office (see page 2).

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________43

23.

FUNDS AT LLOYD'S

Every member is required to hold capital at Lloyd's which is held in trust and known as FAL. These funds are intended

primarily to cover circumstances where Syndicate assets prove insufficient to meet participating member's underwriting

liabilities.

The level of FAL that Lloyd's requires a member to maintain is determined by Lloyd's based on PRA requirements and

rating criteria. FAL has regard to a number of factors including the nature and amount of risk to be underwritten by the

member and the assessment of the reserving risk in respect of business that has been underwritten. Since FAL is not under

the management of the Managing Agent, no amount has been shown in these annual accounts in respect of such capital

resources. However, the Managing Agent is able to make a call on the member's FAL to meet Syndicate liquidity

requirements or to settle losses as required.

24.

OFF BALANCE SHEET ITEMS

The Syndicate has not been party to any arrangement which is not reflected in its statement of financial position, where

material risks and benefits arise for the Syndicate.

25.

COMMITMENTS AND CONTINGENCIES

Reinsurance purchase commitments

During the course of it's business the Syndicate may participate in group-purchased global reinsurance policies. Deposit

reinsurance premiums are typically contractually due on a quarterly basis in advance. At 31 December 2025, the Syndicate

has no outstanding reinsurance purchase commitments.

26.

POST BALANCE SHEET EVENTS

The Syndicate conducted a review of events subsequent to the balance sheet date through to the date the financial statements

were signed and determined that there were no such events requiring recognition or disclosure in the financial statements.

27.

FOREIGN EXCHANGE RATES

The following currency exchange rates have been used for principal foreign currency transactions:

2025

2024

Start of

End of

Average

Start of

End of

Average

period rate

Rate

period rate

Rate

Sterling

0.80

0.74

0.76

0.78

0.80

0.78

US dollar

1.00

Euro

—

Canadian dollar

—

Australian dollar

—

Japanese Yen

—

28.

APPROVAL OF ANNUAL REPORT AND ACCOUNTS

The annual report and accounts were approved by the Board of Directors on 17 February 2026.

AXIS SYNDICATE 2050

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025

_________________________________________________________________________________________________

_____________________________________________________________________________________________________44