AXIS Capital Holdings Limited (AXS) 8-K Results of Operations and Financial Condition

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2017

	AXIS Capital Holdings Limited
	92 Pitts Bay Road
	Pembroke HM 08 Bermuda
	Contact Information:
	Linda Ventresca
	Investor Relations
	441 405 2727
	investorrelations@axiscapital.com
	Website Information:
	www.axiscapital.com
This report is for informational purposes only. It should be read in conjunction with the documents that we file with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

AXIS Capital Holdings Limited

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page(s)
Basis of Presentation	i - iii
I. Financial Highlights	1
II. Income Statements
a. Consolidated Statements of Income - Quarterly	2
b. Consolidated Statements of Income - Year to Date	3
c. Consolidated Segment Data	4
d. Gross Premiums Written by Segment by Line of Business	5
e. Segment Data - Quarterly	6-7
f. Strategic Capital Partners - Reinsurance segment	8
g. Net Investment Income - Quarterly and Year to Date	9
III. Balance Sheets
a. Consolidated Balance Sheets	10
b. Cash and Invested Assets:
•    Cash and Invested Assets Portfolio	11
•    Cash and Invested Assets Composition - Quarterly	12
•    Geographic Distribution of Fixed Maturities and Equities	13
•    Corporate Debt Composition	14
•    Ten Largest Corporate Debt Holdings	15
•    Mortgage-Backed and Asset-Backed Securities Composition	16
c. Reinsurance Recoverable Analysis	17-18
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis	19
b. Paid to Incurred Analysis by Segment	20
c. Paid to Incurred Analysis by Segment - Quarterly	21-22
d. Impact of 2017 Catastrophe Events	23
e. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures	24
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, GAAP	25
b. Earnings Per Common Share Information and Common Share Rollforward - Quarterly	26
c. Diluted Book Value Per Common Share Analysis	27
VI. Non-GAAP Financial Measures
a. Non-GAAP operating income	28
b. Diluted Tangible Book Value Per Common Share	29
c. Use of Non-GAAP Financial Measures	30

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information.

• All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2016 and December 31, 2015 and consolidated statements of income for the years then ended.

• Amounts may not reconcile exactly due to rounding differences.

• NM - Not meaningful; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential,” “intend” or similar expressions. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. Forward-looking statements contained in this presentation may include, but are not limited to, information regarding our estimates of losses related to catastrophes and other large losses, measurements of potential losses in the fair market value of our investment portfolio, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, equity securities' prices, credit spreads and foreign currency rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

• the cyclical nature of the re(insurance) business leading to periods with excess underwriting capacity and unfavorable premium rates,

• the occurrence and magnitude of natural and man-made disasters,

• losses from war, terrorism and political unrest or other unanticipated losses,

• actual claims exceeding our loss reserves,

• general economic, capital and credit market conditions,

• the failure of any of the loss limitation methods we employ,

• the effects of emerging claims, coverage and regulatory issues, including uncertainty related to coverage definitions, limits, terms and conditions,

• our inability to purchase reinsurance or collect amounts due to us,

• the breach by third parties in our program business of their obligations to us,

• difficulties with technology and/or data security,

• the failure of our policyholders and intermediaries to pay premiums,

• the failure of our cedants to adequately evaluate risks,

• inability to obtain additional capital on favorable terms, or at all,

• the loss of one or more key executives,

• a decline in our ratings with rating agencies,

• loss of business provided to us by our major brokers and credit risk due to our reliance on brokers,

• changes in accounting policies or practices,

• the use of industry catastrophe models and changes to these models,

• changes in governmental regulations and potential government intervention in our industry,

• failure to comply with certain laws and regulations relating to sanctions and foreign corrupt practices,

• increased competition,

• changes in the political environment of certain countries in which we operate or underwrite business including the United Kingdom's expected withdrawal from the European Union,

• fluctuations in interest rates, credit spreads, equity securities' prices and/or currency values,

• the failure to successfully integrate acquired businesses or realize the expected synergies resulting from such acquisitions, and

• the other factors set forth in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

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

i

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:

Property: provides physical loss or damage, business interruption and machinery breakdown coverage for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine: provides coverage for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, hull and war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases.

Terrorism: provides coverage for physical damage and business interruption of an insured following an act of terrorism.

Aviation: provides hull and liability and specific war coverage primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.

Credit and Political Risk: provides credit and political risk insurance products for banks and corporations. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. For the credit insurance contracts, it is necessary for the buyer of the insurance (most often a bank) to hold an insured asset (most often an underlying loan) in order to claim compensation under the insurance contract.

Professional Lines: provides coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related coverages for commercial enterprises, financial institutions and not-for-profit organizations. This business is predominantly written on a claims-made basis.

Liability: primarily targets primary and low/mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets. Target industry sectors include construction, manufacturing, transportation and trucking and other services.

Accident and Health: includes accidental death, travel insurance and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events on a quota share and/or excess of loss basis, with aggregate and/or per person deductibles.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides non-life reinsurance to insurance companies on a worldwide basis. The following are the lines of business in our reinsurance segment:

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The exposure in the underlying policies is principally property exposure but also covers other exposures including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. We underwrite catastrophe reinsurance principally on an excess of loss basis.

Property: provides coverage for property damage and related losses resulting from natural and man-made perils contained in underlying personal and commercial policies. While our predominant exposure is to property damage, other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. While our most significant exposures typically relate to losses from windstorms, tornadoes and earthquakes, we are also exposed to other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events. We assume business on both a proportional and excess of loss basis.

Professional Lines: covers directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. Business is written on both a proportional and excess of loss basis.

Credit and Surety: consists of reinsurance of trade credit insurance products and includes both proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. The Company provides credit insurance coverage to mortgage guaranty insurers and government sponsored entities. Also included in this line of business is coverage for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world.

Motor: provides coverage to insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. We offer traditional proportional and non-proportional reinsurance as well as structured solutions.

Liability: provides coverage to insurers of standard casualty business, excess and surplus casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, although workers' compensation and auto liability are also written.

Agriculture: provides coverage for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. We provide both proportional and aggregate stop loss reinsurance.

Engineering: provides coverage for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption.

Marine and Other: includes marine, aviation and personal accident reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Quarter ended September 30,									Nine months ended September 30,
		2017			2016			Change			2017			2016			Change
HIGHLIGHTS	Gross premiums written	$	1,185,574		$	959,962		23.5	%		$	4,459,772		$	4,239,558		5.2	%
	Gross premiums written - Insurance	62.8		%	70.4		%	(7.6	)	pts	50.1		%	49.8		%	0.3		pts
	Gross premiums written - Reinsurance	37.2		%	29.6		%	7.6		pts	49.9		%	50.2		%	(0.3	)	pts
	Net premiums written	$	832,743		$	595,431		39.9	%		$	3,297,718		$	3,288,587		0.3	%
	Net premiums earned	$	1,017,131		$	934,415		8.9	%		$	2,937,265		$	2,783,746		5.5	%
	Net premiums earned - Insurance	48.8		%	47.6		%	1.2		pts	49.3		%	47.5		%	1.8		pts
	Net premiums earned - Reinsurance	51.2		%	52.4		%	(1.2	)	pts	50.7		%	52.5		%	(1.8	)	pts
	Net income (loss) available to common shareholders	$	(467,740	)	$	176,644		nm			$	(377,695	)	$	334,554		nm
	Non-GAAP Operating income (loss) [a]	(445,895		)	160,689			nm			(284,436		)	309,450			nm
	Reserve for losses and loss expenses	10,787,575			9,874,807			9.2	%		10,787,575			9,874,807			9.2	%
	Total shareholders’ equity	$	5,454,699		$	6,025,658		(9.5	%)		$	5,454,699		$	6,025,658		(9.5	%)
PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings (loss) per common share		($5.61	)		$1.97		nm				($4.47	)		$3.64		nm
	Diluted earnings (loss) per common share	(5.61		)	1.96			nm			(4.47		)	3.61			nm
	Non-GAAP operating income (loss) per common share - diluted [b]		($5.35	)		$1.78		nm				($3.37	)		$3.34		nm
	Weighted average common shares outstanding	83,305			89,621			(7.0	%)		84,479			91,852			(8.0	%)
	Diluted weighted average common shares outstanding	83,305			90,351			(7.8	%)		84,479			92,579			(8.7	%)
	Book value per common share		$56.28			$61.07		(7.8	%)			$56.28			$61.07		(7.8	%)
	Diluted book value per common share (treasury stock method)	55.33			59.77			(7.4	%)		55.33			59.77			(7.4	%)
	Diluted tangible book value per common share (treasury stock method) [a]	54.30			58.82			(7.7	%)		54.30			58.82			(7.7	%)
	Accumulated dividends declared per common share		$12.77			$11.25		13.5	%			$12.77			$11.25		13.5	%
FINANCIAL RATIOS	ROACE [c]	nm			13.2		%	nm		pts	(10.3		%)	8.4		%	(18.7	)	pts
	Non-GAAP operating ROACE [d]	nm			12.0		%	nm		pts	(7.7		%)	7.8		%	(15.5	)	pts
	Net loss and loss expense ratio	121.5		%	57.0		%	64.5		pts	83.3		%	59.8		%	23.5		pts
	Acquisition cost ratio	19.1		%	20.3		%	(1.2	)	pts	20.0		%	20.1		%	(0.1	)	pts
	General and administrative expense ratio	12.3		%	15.3		%	(3.0	)	pts	14.8		%	15.8		%	(1.0	)	pts
	Combined ratio	152.9		%	92.6		%	60.3		pts	118.1		%	95.7		%	22.4		pts
INVESTMENT DATA	Total assets	$	21,818,150		$	21,222,391		2.8	%		$	21,818,150		$	21,222,391		2.8	%
	Total cash and invested assets [e]	14,647,092			14,551,790			0.7	%		14,647,092			14,551,790			0.7	%
	Net investment income	95,169			116,923			(18.6	%)		299,899			257,818			16.3	%
	Net realized investment gains (losses)	$	14,632		$	5,205		181.1	%		$	(14,811	)	$	(40,295	)	(63.2	%)
	Total return on cash and investments (inclusive of investment related foreign exchange movements) [f]	1.1		%	1.1		%	—		pts	3.4		%	3.6		%	(0.2	)	pts
	Total return on cash and investments (exclusive of investment related foreign exchange movements) [f] [h]	0.9		%	1.1		%	(0.2	)	pts	3.0		%	3.9		%	(0.9	)	pts
	Return on other investments [g]	2.1		%	4.5		%	(2.4	)	pts	7.5		%	3.1		%	4.4		pts
	Book yield of fixed maturities	2.6		%	2.6		%	—		pts	2.6		%	2.6		%	—		pts

[a] Non-GAAPOperating income (loss) and diluted tangible book value per common share are “non-GAAP financial measures” as defined by Regulation G. See page 28 for reconciliation of non-GAAP operating income to net income (loss) available to common shareholders and page 29 for diluted tangible book value per common share to diluted book value per common share.

[b] Non-GAAPOperating income (loss) per common share - diluted, is calculated by dividing non-GAAP operating income (loss) for the period by diluted weighted average common shares and share equivalents.

[c] Return on average common equity (“ROACE”) is calculated by dividing net income (loss) available to common shareholders for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Net income (loss) for the quarter-periods is annualized.

[d] Non-GAAP Operating ROACE, also a “non-GAAP financial measure”, is calculated by dividing non-GAAP operating income (loss) for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Non-GAAP Operating income (loss) for the quarter-periods is annualized.

[e] Total cash and invested assets represents the total cash, available for sale investments, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

[f] In calculating total return, we include net investment income, net realized investment gains (losses), interest in income (loss) of equity method investments and the change in unrealized gains (losses) generated by our average cash and investment balances.

[g] Return on other investments is calculated by dividing other investment income by the average month-end other investment balances for the period.

[h] Pre-tax total return on cash and investments excluding foreign exchange movements is a "non-GAAP financial measure" as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange gains (losses) of $22m and $(8)m for the three months ended September 30, 2017 and 2016, respectively, and foreign exchange gains (losses) of $62m and $(39)m for the nine months ended September 30, 2017 and 2016, respectively.

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
UNDERWRITING REVENUES
Gross premiums written	$	1,185,574		$	1,362,327		$	1,911,871		$	730,650		$	959,962		$	936,583
Premiums ceded	(352,831		)	(406,310		)	(402,912		)	(266,263		)	(364,531		)	(259,366		)
Net premiums written	832,743			956,017			1,508,959			464,387			595,431			677,217
Gross premiums earned	1,370,035			1,300,648			1,245,669			1,213,623			1,214,826			1,148,356
Ceded premiums expensed	(352,904		)	(319,217		)	(306,966		)	(291,744		)	(280,411		)	(229,015		)
Net premiums earned	1,017,131			981,431			938,703			921,879			934,415			919,341
Other insurance related income (loss)	(3,197		)	2,560			(3,783		)	2,372			5,944			1,158
Total underwriting revenues	1,013,934			983,991			934,920			924,251			940,359			920,499
UNDERWRITING EXPENSES
Net losses and loss expenses	1,235,367			605,332			606,942			540,612			532,328			560,387
Acquisition costs	194,724			204,361			189,792			187,305			189,810			182,744
Underwriting-related general and administrative expenses [a]	96,696			117,286			121,801			130,069			114,223			121,123
Total underwriting expenses	1,526,787			926,979			918,535			857,986			836,361			864,254
UNDERWRITING INCOME (LOSS) [b]	(512,853		)	57,012			16,385			66,265			103,998			56,245
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	95,169			106,063			98,664			95,517			116,923			45,685
Net realized investment gains (losses)	14,632			(4,392		)	(25,050		)	(20,229		)	5,205			(69,957		)
Interest expense and financing costs	(12,835		)	(12,751		)	(12,791		)	(12,774		)	(12,839		)	(12,918		)
Total other operating revenues (expenses)	96,966			88,920			60,823			62,514			109,289			(37,190		)
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(32,510		)	(36,118		)	(21,465		)	51,514			13,795			28,088
Termination fee received	—			—			—			—			—			280,000
Corporate expenses [a]	(27,933		)	(30,530		)	(39,459		)	(33,095		)	(28,683		)	(23,604		)
Transaction related expenses	(5,970		)	—			—			—			—			—
Reorganization and related expenses	—			—			—			—			—			(45,867		)
Bargain purchase gain	—			15,044			—			—			—			—
Total other (expenses) revenues	(66,413		)	(51,604		)	(60,924		)	18,419			(14,888		)	238,617
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	(482,300		)	94,328			16,284			147,198			198,399			257,672
Income tax (expense) benefit	25,877			3,333			9,337			1,373			(9,352		)	(30		)
Interest in income (loss) of equity method investments	(661		)	(1,975		)	(5,766		)	340			(2,434		)	—
NET INCOME (LOSS)	(457,084		)	95,686			19,855			148,911			186,613			257,642
Preferred share dividends	(10,656		)	(10,656		)	(14,841		)	(16,690		)	(9,969		)	(10,022		)
Loss on repurchase of preferred shares	—			—			—			(1,309		)	—			—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(467,740	)	$	85,030		$	5,014		$	130,912		$	176,644		$	247,620
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	121.5		%	61.7		%	64.7		%	58.6		%	57.0		%	61.0		%
Acquisition cost ratio	19.1		%	20.8		%	20.2		%	20.3		%	20.3		%	19.9		%
General and administrative expense ratio [a]	12.3		%	15.1		%	17.2		%	17.8		%	15.3		%	15.7		%
Combined ratio	152.9		%	97.6		%	102.1		%	96.7		%	92.6		%	96.6		%
Weighted average basic shares outstanding	83,305			84,141			86,022			87,552			89,621			98,226
Weighted average diluted shares outstanding	83,305			84,511			86,793			88,474			90,351			99,124
Basic earnings (loss) per common share		($5.61	)		$1.01			$0.06			$1.50			$1.97			$2.52
Diluted earnings (loss) per common share		($5.61	)		$1.01			$0.06			$1.48			$1.96			$2.50
ROACE (annualized)	nm			6.7		%	0.4		%	9.9		%	13.2		%	18.8		%
Non-GAAP operating ROACE (annualized)	nm			8.6		%	4.0		%	7.6		%	12.0		%	3.9		%

[a] Underwriting-related general and administrative expenses is a "non-GAAP financial measure" as defined in SEC Regulation G. Our total general and administrative expenses also include corporate expenses. Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Group (or consolidated) underwriting income is also a "non-GAAP financial measure". Reconciliations of consolidated underwriting income to the nearest GAAP financial measure (income (loss) before income taxes and interest in income (loss) of equity method investments) are presented above and on the following page.

2

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR TO DATE

	Nine months ended September 30,									Year ended December 31,
	2017			2016			2015			2016			2015
UNDERWRITING REVENUES
Gross premiums written	$	4,459,772		$	4,239,558		$	3,803,928		$	4,970,208		$	4,603,730
Premiums ceded	(1,162,054		)	(950,971		)	(724,621		)	(1,217,234		)	(929,064		)
Net premiums written	3,297,718			3,288,587			3,079,307			3,752,974			3,674,666
Gross premiums earned	3,916,352			3,548,771			3,421,422			4,762,394			4,567,953
Ceded premiums expensed	(979,087		)	(765,025		)	(656,817		)	(1,056,769		)	(881,536		)
Net premiums earned	2,937,265			2,783,746			2,764,605			3,705,625			3,686,417
Other insurance related income (loss)	(4,420		)	4,850			12,319			7,222			(2,953		)
Total underwriting revenues	2,932,845			2,788,596			2,776,924			3,712,847			3,683,464
UNDERWRITING EXPENSES
Net losses and loss expenses	2,447,640			1,663,584			1,652,868			2,204,197			2,176,199
Acquisition costs	588,879			559,570			537,549			746,876			718,112
Underwriting-related general and administrative expenses [a]	335,782			352,632			372,625			482,701			486,911
Total underwriting expenses	3,372,301			2,575,786			2,563,042			3,433,774			3,381,222
UNDERWRITING INCOME (LOSS)	(439,456		)	212,810			213,882			279,073			302,242
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	299,899			257,818			226,336			353,335			305,336
Net realized investment losses	(14,811		)	(40,295		)	(123,618		)	(60,525		)	(138,491		)
Interest expense and financing costs	(38,377		)	(38,586		)	(38,114		)	(51,360		)	(50,963		)
Total other operating revenues	246,711			178,937			64,604			241,450			115,882
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(90,093		)	69,781			69,200			121,295			102,312
Termination fee received	—			—			280,000			—			280,000
Corporate expenses [a]	(97,922		)	(86,922		)	(83,826		)	(120,016		)	(109,910		)
Transaction related expenses	(5,970		)	—			—			—			—
Reorganization and related expenses	—			—			(45,867		)	—			(45,867		)
Bargain purchase gain	15,044			—			—			—			—
Total other (expenses) revenue	(178,941		)	(17,141		)	219,507			1,279			226,535
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	(371,686		)	374,606			497,993			521,802			644,659
Income tax (expense) benefit	38,547			(7,712		)	(1,155		)	(6,340		)	(3,028		)
Interest in loss of equity method investments	(8,402		)	(2,434		)	—			(2,094		)	—
NET INCOME (LOSS)	(341,541		)	364,460			496,838			513,368			641,631
Preferred share dividends	(36,154		)	(29,906		)	(30,066		)	(46,597		)	(40,069		)
Loss on repurchase of preferred shares	—			—			—			(1,309		)	—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(377,695	)	$	334,554		$	466,772		$	465,462		$	601,562
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	83.3		%	59.8		%	59.8		%	59.5		%	59.0		%
Acquisition cost ratio	20.0		%	20.1		%	19.4		%	20.2		%	19.5		%
General and administrative expense ratio [a]	14.8		%	15.8		%	16.5		%	16.2		%	16.2		%
Combined ratio	118.1		%	95.7		%	95.7		%	95.9		%	94.7		%
Weighted average basic shares outstanding	84,479			91,852			99,464			90,772			98,609
Weighted average diluted shares outstanding	84,479			92,579			100,468			91,547			99,629
Basic earnings per common share		($4.47	)		$3.64			$4.69			$5.13			$6.10
Diluted earnings per common share		($4.47	)		$3.61			$4.65			$5.08			$6.04
ROACE [b]	(10.3		%)	8.4		%	12.0		%	9.0		%	11.5		%
Operating ROACE [b]	(7.7		%)	7.8		%	7.2		%	7.9		%	7.7		%

[a] Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Annualized for the nine-month periods.

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Quarter ended September 30, 2017									Nine months ended September 30, 2017
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	744,366		$	441,208		$	1,185,574		$	2,234,395		$	2,225,377		$	4,459,772
Net premiums written	500,022			332,721			832,743			1,533,029			1,764,689			3,297,718
Gross premiums earned	723,648			646,387			1,370,035			2,118,929			1,797,423			3,916,352
Ceded premiums expensed	(227,644		)	(125,260		)	(352,904		)	(670,659		)	(308,428		)	(979,087		)
Net premiums earned	496,004			521,127			1,017,131			1,448,270			1,488,995			2,937,265
Other insurance related income (loss)	526			(3,723		)	(3,197		)	1,077			(5,497		)	(4,420		)
Total underwriting revenues	496,530			517,404			1,013,934			1,449,347			1,483,498			2,932,845
UNDERWRITING EXPENSES
Net losses and loss expenses	628,865			606,502			1,235,367			1,241,495			1,206,145			2,447,640
Acquisition costs	74,231			120,493			194,724			223,665			365,214			588,879
Underwriting-related general and administrative expenses	75,038			21,658			96,696			253,308			82,474			335,782
Total underwriting expenses	778,134			748,653			1,526,787			1,718,468			1,653,833			3,372,301
UNDERWRITING INCOME (LOSS)	$	(281,604	)	$	(231,249	)	$	(512,853	)	$	(269,121	)	$	(170,335	)	$	(439,456	)
KEY RATIOS
Current accident year loss ratio	127.3		%	125.0		%	126.2		%	87.8		%	88.6		%	88.2		%
Prior period reserve development	(0.5		%)	(8.6		%)	(4.7		%)	(2.1		%)	(7.6		%)	(4.9		%)
Net loss and loss expense ratio	126.8		%	116.4		%	121.5		%	85.7		%	81.0		%	83.3		%
Acquisition cost ratio	15.0		%	23.1		%	19.1		%	15.4		%	24.5		%	20.0		%
Underwriting-related general and administrative expense ratio	15.1		%	4.2		%	9.6		%	17.6		%	5.6		%	11.5		%
Corporate expense ratio							2.7		%							3.3		%
Combined ratio	156.9		%	143.7		%	152.9		%	118.7		%	111.1		%	118.1		%

4

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS

															Nine months ended September 30,
	Q3 2017		Q2 2017		Q1 2017		Q4 2016			Q3 2016		Q3 2015			2017		2016
INSURANCE SEGMENT
Property	$	154,882	$	198,681	$	144,564	$	150,511		$	164,605	$	139,488		$	498,127	$	522,380
Marine	42,483		73,921		65,601		34,311			33,677		38,817			182,005		191,298
Terrorism	12,147		10,509		11,814		10,056			9,394		11,192			34,470		28,090
Aviation	23,814		21,037		14,583		16,062			9,684		10,222			59,434		37,111
Credit and Political Risk	19,793		15,139		16,172		15,631			5,423		8,542			51,105		34,299
Professional Lines	213,009		244,119		155,469		254,942			204,926		196,218			612,597		590,417
Liability	131,975		136,725		90,603		94,233			108,447		104,666			359,304		310,797
Accident and Health	146,263		95,892		195,200		31,700			139,274		97,559			437,353		398,404
TOTAL INSURANCE SEGMENT	744,366		796,023		694,006		607,446			675,430		606,704			2,234,395		2,112,796
REINSURANCE SEGMENT
Catastrophe	89,510		135,560		185,935		8,193			46,338		56,693			411,004		316,692
Property	90,001		56,723		194,541		(1,020		)	61,957		67,539			341,265		283,555
Professional Lines	20,175		120,584		77,012		33,309			19,479		45,509			217,772		235,094
Credit and Surety	38,216		25,143		119,925		3,975			36,174		23,390			183,284		315,102
Motor	40,385		42,093		291,423		7,683			13,344		21,359			373,901		338,403
Liability	139,083		118,095		111,821		57,109			91,387		111,361			368,999		365,380
Agriculture	11,152		58,094		149,191		6,963			1,286		(3,303		)	218,437		151,315
Engineering	10,120		7,347		40,533		12,173			13,588		4,397			58,000		56,719
Marine and Other	2,566		2,665		47,484		(5,181		)	979		2,934			52,715		64,502
TOTAL REINSURANCE SEGMENT	441,208		566,304		1,217,865		123,204			284,532		329,879			2,225,377		2,126,762
CONSOLIDATED TOTAL	$	1,185,574	$	1,362,327	$	1,911,871	$	730,650		$	959,962	$	936,583		$	4,459,772	$	4,239,558

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
UNDERWRITING REVENUES
Gross premiums written	$	744,366		$	796,023		$	694,006		$	607,446		$	675,430		$	606,704
Net premiums written	500,022			527,678			505,329			374,068			433,131			381,118
Gross premiums earned	723,648			716,176			679,105			680,000			668,820			647,024
Ceded premiums expensed	(227,644		)	(222,340		)	(220,675		)	(225,328		)	(224,129		)	(202,474		)
Net premiums earned	496,004			493,836			458,430			454,672			444,691			444,550
Other insurance related income	526			508			42			146			39			542
Total underwriting revenues	496,530			494,344			458,472			454,818			444,730			445,092
UNDERWRITING EXPENSES
Net losses and loss expenses	628,865			325,728			286,903			288,161			273,226			283,272
Acquisition costs	74,231			81,276			68,157			66,138			61,755			69,118
General and administrative expenses	75,038			87,822			90,448			94,205			84,588			85,814
Total underwriting expenses	778,134			494,826			445,508			448,504			419,569			438,204
UNDERWRITING INCOME (LOSS)	$	(281,604	)	$	(482	)	$	12,964		$	6,314		$	25,161		$	6,888
KEY RATIOS
Current accident year loss ratio	127.3		%	69.9		%	64.5		%	66.2		%	66.1		%	64.3		%
Prior period reserve development	(0.5		%)	(3.9		%)	(1.9		%)	(2.8		%)	(4.7		%)	(0.6		%)
Net loss and loss expense ratio	126.8		%	66.0		%	62.6		%	63.4		%	61.4		%	63.7		%
Acquisition cost ratio	15.0		%	16.5		%	14.9		%	14.5		%	13.9		%	15.5		%
General and administrative expense ratio	15.1		%	17.7		%	19.7		%	20.7		%	19.1		%	19.4		%
Combined ratio	156.9		%	100.2		%	97.2		%	98.6		%	94.4		%	98.6		%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
UNDERWRITING REVENUES
Gross premiums written	$	441,208		$	566,304		$	1,217,865		$	123,204		$	284,532		$	329,879
Net premiums written	332,721			428,339			1,003,630			90,319			162,300			296,099
Gross premiums earned	646,387			584,472			566,564			533,623			546,006			501,332
Ceded premiums expensed	(125,260		)	(96,877		)	(86,291		)	(66,416		)	(56,282		)	(26,541		)
Net premiums earned	521,127			487,595			480,273			467,207			489,724			474,791
Other insurance related (loss) income	(3,723		)	2,052			(3,825		)	2,226			5,905			616
Total underwriting revenues	517,404			489,647			476,448			469,433			495,629			475,407
UNDERWRITING EXPENSES
Net losses and loss expenses	606,502			279,604			320,039			252,451			259,102			277,115
Acquisition costs	120,493			123,085			121,635			121,167			128,055			113,626
General and administrative expenses	21,658			29,464			31,353			35,864			29,635			35,309
Total underwriting expenses	748,653			432,153			473,027			409,482			416,792			426,050
UNDERWRITING INCOME (LOSS)	$	(231,249	)	$	57,494		$	3,421		$	59,951		$	78,837		$	49,357
KEY RATIOS
Current accident year loss ratio	125.0		%	67.9		%	70.0		%	65.9		%	64.2		%	67.4		%
Prior period reserve development	(8.6		%)	(10.6		%)	(3.4		%)	(11.9		%)	(11.3		%)	(9.0		%)
Net loss and loss expense ratio	116.4		%	57.3		%	66.6		%	54.0		%	52.9		%	58.4		%
Acquisition cost ratio	23.1		%	25.2		%	25.3		%	25.9		%	26.1		%	23.9		%
General and administrative expense ratio	4.2		%	6.1		%	6.6		%	7.7		%	6.1		%	7.4		%
Combined ratio	143.7		%	88.6		%	98.5		%	87.6		%	85.1		%	89.7		%

7

AXIS Capital Holdings Limited

REINSURANCE SEGMENT - STRATEGIC CAPITAL PARTNERS

	Quarter ended September 30,				Nine months ended September 30,
TOTAL MANAGED PREMIUMS [a]	2017		2016		2017		2016
Total Managed Premiums	$	441,208	$	284,532	$	2,225,377	$	2,126,762
Premiums ceded to Harrington Re	55,900		101,689		178,574		101,689
Premiums ceded to Other Strategic Capital Partners	52,587		20,543		282,114		169,544
Net premiums written	$	332,721	$	162,300	$	1,764,689	$	1,855,529
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income	$	5,516	$	8,072	$	28,261	$	15,007

[a] Total managed premiums represented gross premiums written by the AXIS Reinsurance segment of $441,208 and $284,532 for the three months ended September 30, 2017 and 2016, respectively, and $2,225,377 and $2,126,762 for the nine months ended September 30, 2017 and 2016, respectively, including premiums written on behalf of our strategic capital partners.

[b] Fee income (loss) from strategic capital partners represents service fees and reimbursement of expenses due to the AXIS Reinsurance segment from its strategic capital partners. Fee income (loss) from strategic capital partners included $(4,301) and $4,924 included in other insurance related income (expense) for the three and nine months ended September 30, 2017, respectively, and $3,399 for the three and nine months ended September 30, 2016. It also included $9,816 and $23,337 as an offset to general and administrative expenses for the three and nine months ended September 30, 2017, respectively, and $4,673 for the three and nine months ended September 30, 2016 . Fee income from strategic capital partners for periods prior to June 30, 2016 were included in acquisition costs.

8

AXIS Capital Holdings Limited

NET INVESTMENT INCOME

																			Nine months ended September 30,
	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015			2017			2016
Fixed maturities	$	74,978		$	78,218		$	77,407		$	76,036		$	75,827		$	75,980		$	230,603		$	229,423
Other investments	17,373			23,639			18,962			16,744			38,248			(27,421		)	59,973			25,770
Equity securities	3,223			4,347			3,478			3,462			4,633			3,445			11,048			12,843
Mortgage loans	2,895			2,597			2,477			2,313			2,191			482			7,970			5,683
Cash and cash equivalents	3,111			3,433			3,095			2,138			3,768			993			9,640			7,071
Short-term investments	698			660			438			1,353			337			83			1,797			708
Gross investment income	102,278			112,894			105,857			102,046			125,004			53,562			321,031			281,498
Investment expenses	(7,109		)	(6,831		)	(7,193		)	(6,529		)	(8,081		)	(7,877		)	(21,132		)	(23,680		)
Net investment income	$	95,169		$	106,063		$	98,664		$	95,517		$	116,923		$	45,685		$	299,899		$	257,818

9

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2017			2017			2017			2016			2016			2015
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,086,386		$	11,424,295		$	11,191,529		$	11,397,114		$	11,566,860		$	12,139,595
Equity securities, available for sale, at fair value	659,751			738,489			653,419			638,744			644,344			689,157
Mortgage loans, held for investment, at amortized cost and fair value	360,381			349,916			339,855			349,969			332,753			129,431
Other investments, at fair value	830,253			813,617			780,395			830,219			847,262			800,319
Equity method investments	108,597			109,258			111,233			116,000			111,295			10,805
Short-term investments, at amortized cost and fair value	15,282			10,146			13,338			127,461			39,877			7,152
Total investments	13,060,650			13,445,721			13,089,769			13,459,507			13,542,391			13,776,459
Cash and cash equivalents	1,631,127			1,015,270			1,451,570			1,241,507			1,077,263			1,180,473
Accrued interest receivable	68,023			72,626			69,649			74,971			71,096			75,375
Insurance and reinsurance premium balances receivable	2,968,096			3,050,222			2,891,811			2,313,512			2,694,976			2,169,581
Reinsurance recoverable on paid and unpaid losses	2,360,821			2,184,934			2,070,341			2,334,922			2,336,741			2,036,099
Deferred acquisition costs	562,774			591,397			609,773			438,636			545,618			544,178
Prepaid reinsurance premiums	734,129			733,836			645,663			556,344			582,551			416,451
Receivable for investments sold	9,357			18,754			40,448			14,123			2,285			7,220
Goodwill and intangible assets	87,206			86,220			84,613			85,049			85,501			87,329
Other assets	335,967			300,658			293,330			295,120			283,969			264,176
TOTAL ASSETS	$	21,818,150		$	21,499,638		$	21,246,967		$	20,813,691		$	21,222,391		$	20,557,341
LIABILITIES
Reserve for losses and loss expenses	$	10,787,575		$	9,878,662		$	9,541,963		$	9,697,827		$	9,874,807		$	9,703,583
Unearned premiums	3,521,063			3,704,003			3,629,354			2,969,498			3,453,655			3,107,348
Insurance and reinsurance balances payable	670,292			677,204			514,356			493,183			461,519			301,830
Senior notes	993,797			993,511			993,229			992,950			992,633			991,562
Payable for investments purchased	122,065			95,865			83,783			62,550			141,245			303,916
Other liabilities	268,659			257,698			253,917			325,313			272,874			322,736
TOTAL LIABILITIES	16,363,451			15,606,943			15,016,602			14,541,321			15,196,733			14,730,975
SHAREHOLDERS’ EQUITY
Preferred shares	775,000			775,000			1,126,074			1,126,074			625,000			627,843
Common shares	2,206			2,206			2,206			2,206			2,206			2,202
Additional paid-in capital	2,291,516			2,283,523			2,276,671			2,299,857			2,307,866			2,230,278
Accumulated other comprehensive income (loss)	141,613			84,306			699			(121,841		)	98,505			(117,593		)
Retained earnings	6,051,659			6,551,801			6,499,262			6,527,627			6,430,573			6,093,897
Treasury shares, at cost	(3,807,295		)	(3,804,141		)	(3,674,547		)	(3,561,553		)	(3,438,492		)	(3,010,261		)
TOTAL SHAREHOLDERS' EQUITY	5,454,699			5,892,695			6,230,365			6,272,370			6,025,658			5,826,366
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	21,818,150		$	21,499,638		$	21,246,967		$	20,813,691		$	21,222,391		$	20,557,341
Basic common shares outstanding	83,157			83,203			85,170			86,441			88,439			96,049
Diluted common shares outstanding	84,575			84,655			86,670			88,317			90,363			98,213
Book value per common share		$56.28			$61.51			$59.93			$59.54			$61.07			$54.91
Diluted book value per common share	55.33			60.45			58.89			58.27			59.77			53.68
Diluted tangible book value per common share		$54.30			$59.44			$57.92			$57.31			$58.82			$52.78
Debt to total capital [a]	15.4		%	14.4		%	13.7		%	13.7		%	14.1		%	14.5		%
Debt and preferred equity to total capital	27.4		%	25.7		%	29.3		%	29.2		%	23.0		%	23.8		%

[a] The debt to total capital ratio is calculated by dividing our senior notes by total capital. Total capital represents the sum of total shareholders’ equity and our senior notes.

10

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At September 30, 2017

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value			Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,556,963	$	2,729	$	(12,374	)	$	1,547,318		10.7	%
Non-U.S. government	568,223		13,961		(8,544		)	573,640			3.9	%
Corporate debt	4,460,337		65,230		(21,600		)	4,503,967			30.7	%
Agency RMBS	2,313,096		12,218		(18,492		)	2,306,822			15.7	%
CMBS	665,520		5,954		(1,738		)	669,736			4.6	%
Non-Agency RMBS	42,653		1,968		(804		)	43,817			0.3	%
ABS	1,285,080		4,572		(782		)	1,288,870			8.8	%
Municipals	151,522		1,379		(685		)	152,216			1.0	%
Total fixed maturities	11,043,394		108,011		(65,019		)	11,086,386			75.7	%
Equity securities, available for sale
Common stocks	13,980		1,415		(569		)	14,826			0.1	%
Exchange traded funds	365,412		88,782		—			454,194			3.1	%
Bond mutual funds	183,718		8,686		(1,673		)	190,731			1.3	%
Total equity securities	563,110		98,883		(2,242		)	659,751			4.5	%
Total available for sale investments	$	11,606,504	$	206,894	$	(67,261	)	11,746,137			80.2	%
Mortgage loans, held for investment								360,381			2.5	%
Other investments (see below)								830,253			5.7	%
Equity method investments								108,597			0.7	%
Short-term investments								15,282			0.1	%
Total investments								13,060,650			89.2	%
Cash and cash equivalents [a]								1,631,127			11.1	%
Accrued interest receivable								68,023			0.5	%
Net receivable/(payable) for investments sold (purchased)								(112,708		)	(0.8	%)
Total cash and invested assets								$	14,647,092		100.0	%
								Fair Value			Percentage
Other Investments:
Long/short equity funds								$	64,067		7.7	%
Multi-strategy funds								286,452			34.5	%
Event-driven funds								48,578			5.9	%
Direct lending funds								232,389			28.0	%
Real estate funds								46,691			5.6	%
Private equity funds								71,896			8.7	%
Other privately held investments								43,398			5.2	%
Collateralized loan obligations - equity tranches								36,782			4.4	%
Total								$	830,253		100.0	%

[a] Includes $281 million of restricted cash and cash equivalents.

11

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

	Q3 2017		Q2 2017		Q1 2017		Q4 2016		Q3 2016		Q3 2015
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency	10.7	%	11.3	%	11.5	%	11.4	%	10.8	%	12.7	%
Non-U.S. government	3.9	%	3.7	%	3.8	%	3.8	%	4.0	%	5.2	%
Corporate debt	30.7	%	32.8	%	30.5	%	31.2	%	31.4	%	30.4	%
MBS:
Agency RMBS	15.7	%	15.9	%	15.6	%	16.7	%	17.3	%	15.0	%
CMBS	4.6	%	4.5	%	4.7	%	4.5	%	6.1	%	7.3	%
Non-agency RMBS	0.3	%	0.3	%	0.4	%	0.4	%	0.5	%	0.7	%
ABS	8.8	%	9.5	%	9.4	%	8.3	%	8.5	%	9.8	%
Municipals	1.0	%	1.0	%	0.9	%	1.1	%	0.9	%	1.2	%
Total Fixed Maturities	75.7	%	79.0	%	76.8	%	77.4	%	79.5	%	82.3	%
Equity securities	4.5	%	5.1	%	4.5	%	4.3	%	4.4	%	4.7	%
Mortgage loans	2.5	%	2.4	%	2.3	%	2.4	%	2.3	%	0.9	%
Other investments	5.7	%	5.6	%	5.4	%	5.6	%	5.8	%	5.4	%
Equity method investments	0.7	%	0.8	%	0.8	%	0.8	%	0.8	%	0.1	%
Short-term investments	0.1	%	0.1	%	0.1	%	0.9	%	0.3	%	0.1	%
Total Investments	89.2	%	93.0	%	89.9	%	91.4	%	93.1	%	93.5	%
Cash and cash equivalents	11.1	%	7.0	%	10.0	%	8.4	%	7.4	%	8.0	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%
Net receivable/(payable) for investments sold or purchased	(0.8	%)	(0.5	%)	(0.4	%)	(0.3	%)	(1.0	%)	(2.0	%)
Total Cash and Invested Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
CREDIT QUALITY OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
U.S. government and agency	14.0	%	14.3	%	15.2	%	14.5	%	13.5	%	15.4	%
AAA	39.5	%	38.1	%	37.8	%	36.5	%	37.7	%	35.0	%
AA	7.9	%	8.1	%	8.7	%	9.9	%	10.1	%	10.9	%
A	15.0	%	15.8	%	14.7	%	15.3	%	15.3	%	18.7	%
BBB	14.5	%	14.7	%	14.1	%	13.7	%	13.9	%	11.6	%
Below BBB	9.1	%	9.0	%	9.5	%	10.1	%	9.5	%	8.4	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
MATURITY PROFILE OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
Within one year	3.9	%	3.5	%	2.9	%	2.7	%	3.0	%	3.5	%
From one to five years	34.7	%	36.2	%	35.8	%	33.8	%	32.9	%	36.5	%
From five to ten years	20.5	%	20.0	%	19.7	%	22.0	%	20.2	%	17.7	%
Above ten years	2.0	%	2.0	%	2.6	%	2.8	%	3.1	%	2.5	%
Asset-backed and mortgage-backed securities	38.9	%	38.3	%	39.0	%	38.7	%	40.8	%	39.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.6	%	2.6	%	2.7	%	2.6	%	2.6	%	2.5	%
Yield to maturity of fixed maturities	2.6	%	2.6	%	2.7	%	2.8	%	2.3	%	2.5	%
Average duration of fixed maturities (inclusive of duration hedges)	3.2 yrs		3.1 yrs		3.3 yrs		3.5 yrs		3.2 yrs		3.1 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

12

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At September 30, 2017

				Corporate Debt
	Governments and Agencies			Financials		Non-Financials		Government Guaranteed		Total		Agency RMBS		Non-Agency RMBS/CMBS		ABS		Total Fixed Maturities		Equities			Total Fixed Maturities and Equities
Composition by country
Eurozone countries:
Netherlands	$	21,001		$	14,951	$	76,402	$	—	$	91,353	$	—	$	—	$	—	$	112,354	$	1,423		$	113,777
Germany	45,633			6,130		19,837		—		25,967		—		—		—		71,600		1,577			73,177
Belgium	31,748			427		20,115		—		20,542		—		—		—		52,290		531			52,821
France	—			10,162		31,556		—		41,718		—		—		—		41,718		4,409			46,127
Luxembourg	—			—		45,518		—		45,518		—		—		—		45,518		—			45,518
Ireland	—			22,139		11,724		—		33,863		—		—		4,241		38,104		81			38,185
Italy	7,241			406		6,914		—		7,320		—		—		—		14,561		810			15,371
Spain	2,885			7,320		4,300		—		11,620		—		—		—		14,505		436			14,941
Supranational [a]	9,661			—		—		—		—		—		—		—		9,661		—			9,661
Austria	—			791		1,221		—		2,012		—		—		—		2,012		261			2,273
Portugal	—			—		949		—		949		—		—		—		949		—			949
Finland	—			—		693		—		693		—		—		—		693		227			920
Other [b]	—			—		—		—		—		—		—		—		—		88,617			88,617
Total eurozone	118,169			62,326		219,229		—		281,555		—		—		4,241		403,965		98,372			502,337
Other concentrations:
United Kingdom	184,220			50,872		119,005		20,755		190,632		—		12,621		—		387,473		11,918			399,391
Canada	91,259			122,380		96,385		77,884		296,649		—		—		6,814		394,722		—			394,722
Japan	—			93,025		2,999		5,914		101,938		—		—		7,351		109,289		22,665			131,954
Australia	—			62,674		12,074		—		74,748		—		—		—		74,748		—			74,748
Mexico	36,997			—		1,475		—		1,475		—		—		—		38,472		—			38,472
Other	142,995			18,127		68,737		16,665		103,529		—		—		—		246,524		27,792		[c]	274,316
Total other concentrations	455,471			347,078		300,675		121,218		768,971		—		12,621		14,165		1,251,228		62,375			1,313,603
Total Non-U.S. concentrations	573,640			409,404		519,904		121,218		1,050,526		—		12,621		18,406		1,655,193		160,747			1,815,940
United States	1,495,423		[d]	1,372,278		2,080,359		804		3,453,441		2,306,822		700,932		1,270,464		9,227,082		499,004		[e]	9,726,086
United States agencies	51,895			—		—		—		—		—		—		—		51,895		—			51,895
United States local governments	152,216			—		—		—		—		—		—		—		152,216		—			152,216
Total U.S. concentrations	1,699,534			1,372,278		2,080,359		804		3,453,441		2,306,822		700,932		1,270,464		9,431,193		499,004			9,930,197
Totals	$	2,273,174		$	1,781,682	$	2,600,263	$	122,022	$	4,503,967	$	2,306,822	$	713,553	$	1,288,870	$	11,086,386	$	659,751		$	11,746,137

[a] Represents holdings of the European Investment Bank.

[b] Represents holdings in exchange-traded funds ("ETFs"). The primary countries of risk for these underlying securities are countries within the eurozone.

[c] Represents exchange-traded funds ("ETFs") designed to track indexes with primary underlying exposures to countries other than the United States and those within the eurozone.

[d] Represents United States Treasuries.

[e] Represents ETFs designed to track the S&P 500 and a U.S. bond mutual fund.

13

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At September 30, 2017

	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking	$	970,474	21.5	%	6.6	%
Foreign banking [a]	325,341		7.2	%	2.2	%
Corporate/commercial finance	211,157		4.7	%	1.4	%
Insurance	117,361		2.6	%	0.8	%
Investment brokerage	11,779		0.3	%	0.1	%
Total financial institutions	1,636,112		36.3	%	11.1	%
Consumer non-cyclicals	516,251		11.5	%	3.5	%
Consumer cyclical	320,126		7.1	%	2.2	%
Communications	245,361		5.4	%	1.7	%
Technology	210,374		4.7	%	1.4	%
Energy	197,815		4.4	%	1.4	%
Non-U.S. government guaranteed [b]	121,218		2.7	%	0.8	%
Transportation	97,053		2.2	%	0.7	%
Industrials	89,186		2.0	%	0.6	%
Utilities	88,775		2.0	%	0.6	%
Total investment grade	3,522,271		78.3	%	24.0	%
Total non-investment grade	981,696		21.7	%	6.7	%
Total corporate debt	$	4,503,967	100.0	%	30.7	%

[a] Located in Canada, Japan, Australia, United Kingdom, Switzerland, Norway, Denmark, Chile, Germany, France, Netherlands and Spain.

[b] No corporate debt guaranteed by a eurozone country.

14

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At September 30, 2017

	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value		% of Total Fixed  Maturities
ISSUER [a]
MORGAN STANLEY	$	131,740	$	812		$	132,552	1.2	%
GOLDMAN SACHS GROUP	122,539		727			123,266		1.1	%
JP MORGAN CHASE & CO	118,202		749			118,951		1.1	%
WELLS FARGO & COMPANY	112,131		761			112,892		1.0	%
BANK OF AMERICA CORP	82,147		963			83,110		0.7	%
FORD MOTOR COMPANY	60,628		(313		)	60,315		0.5	%
AMERICAN EXPRESS COMPANY	52,639		300			52,939		0.5	%
VERIZON COMMUNICATIONS INC	53,006		(114		)	52,892		0.5	%
AT&T INC	49,267		545			49,812		0.4	%
GENERAL MOTORS COMPANY	46,934		903			47,837		0.4	%

[a] The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

15

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At September 30, 2017

	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total
Residential MBS	$	2,306,822		$	18,073		$	457		$	1,995		$	6,939		$	16,353		$	2,350,639
Commercial MBS	130,401			441,160			65,968			24,091			8,116			—			669,736
ABS	—			1,091,864			138,219			36,309			16,029			6,449			1,288,870
Total mortgage-backed and asset-backed securities	$	2,437,223		$	1,551,097		$	204,644		$	62,395		$	31,084		$	22,802		$	4,309,245
Percentage of total	56.6		%	36.0		%	4.7		%	1.4		%	0.7		%	0.6		%	100.0		%

16

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	38,654		$	59,391		$	26,009		$	40,413		$	32,853		$	28,812
Reinsurance	24,145			14,674			15,301			18,400			27,096			—
Total	$	62,799		$	74,065		$	41,310		$	58,813		$	59,949		$	28,812
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	587,061		$	563,510		$	576,914		$	723,265		$	712,987		$	660,861
Reinsurance	99,302			45,525			39,069			36,326			31,789			8,039
Total	$	686,363		$	609,035		$	615,983		$	759,591		$	744,776		$	668,900
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,406,026		$	1,406,141		$	1,366,078		$	1,489,953		$	1,523,537		$	1,323,350
Reinsurance	221,872			113,483			67,121			46,955			28,700			32,457
Total	$	1,627,898		$	1,519,624		$	1,433,199		$	1,536,908		$	1,552,237		$	1,355,807
Provision against reinsurance recoverables:
Insurance	$	(15,973	)	$	(17,629	)	$	(20,017	)	$	(19,889	)	$	(20,087	)	$	(17,420	)
Reinsurance	(266		)	(161		)	(134		)	(501		)	(134		)	—
Total	$	(16,239	)	$	(17,790	)	$	(20,151	)	$	(20,390	)	$	(20,221	)	$	(17,420	)
Net reinsurance recoverables:
Insurance	$	2,015,768		$	2,011,413		$	1,948,984		$	2,233,742		$	2,249,290		$	1,995,603
Reinsurance	345,053			173,521			121,357			101,180			87,451			40,496
Total	$	2,360,821		$	2,184,934		$	2,070,341		$	2,334,922		$	2,336,741		$	2,036,099

17

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At September 30, 2017

Categories	Gross Recoverable		Collateral			Gross Recoverable Net of Collateral		% of  Total Gross Recoverable Net  of Collateral	% of  Total Shareholders’ Equity	Provision Against Reinsurance Recoverable			Provision Against  Reinsurance Recoverable as % of Gross Recoverable	Net Recoverable
Top 10 reinsurers based on gross recoverables	$	1,442,169	$	(142,870	)	$	1,299,299	62.8%	23.8%	$	(9,195	)	0.6%	$	1,432,974
Other reinsurers balances > $20 million	609,352		(91,510		)	517,842		25.0%	9.5%	(4,489		)	0.7%	604,863
Other reinsurers balances < $20 million	325,539		(73,143		)	252,396		12.2%	4.6%	(2,555		)	0.8%	322,984
Total	$	2,377,060	$	(307,523	)	$	2,069,537	100.0%	37.9%	$	(16,239	)	0.7%	$	2,360,821

At September 30, 2017, 91.7% (December 31, 2016: 96.7%) of our gross recoverables were collectible from reinsurers rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral)	% of  Total Gross Recoverable Net  of Collateral	% of  Total Shareholders’ Equity
Swiss Reinsurance America Corporation	17.1%	6.5%
Transatlantic Reinsurance Company	9.4%	3.6%
Partner Reinsurance Co of US	9.0%	3.4%
Lloyds of London	7.8%	3.0%
Hannover Ruck SE	4.2%	1.6%
Berkley Insurance Company	4.2%	1.6%
Harrington Re Ltd.	3.8%	1.4%
Everest Reinsurance Company	3.7%	1.4%
Munich Reinsurance America, Inc	3.6%	1.3%
Liberty Mutual Insurance Company	3.4%	1.2%
	66.2%	25.0%

18

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Quarter ended September 30, 2017									Nine months ended September 30, 2017
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for unpaid losses and loss expenses
Beginning of period	$	9,878,662		$	(2,110,869	)	$	7,767,793		$	9,697,827		$	(2,276,109	)	$	7,421,718
Incurred	1,550,221			(314,854		)	1,235,367			3,122,745			(675,105		)	2,447,640
Paid	(741,324		)	137,234			(604,090		)	(2,181,786		)	468,525			(1,713,261		)
Foreign exchange and other	100,016			(9,533		)	90,483			148,789			184,667			333,456
End of period [a]	$	10,787,575		$	(2,298,022	)	$	8,489,553		$	10,787,575		$	(2,298,022	)	$	8,489,553

[a] At September 30, 2017, the gross reserve for losses and loss expenses included IBNR of $7,156 million, or 66%, of total gross reserves for loss and loss expenses. At December 31, 2016, the comparable amount was $6,339 million, or 65%.

19

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT

	Quarter ended September 30, 2017									Nine months ended September 30, 2017
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross losses paid	$	459,648		$	281,676		$	741,324		$	1,401,987		$	779,799		$	2,181,786
Reinsurance recoveries	(113,348		)	(23,886		)	(137,234		)	(435,345		)	(33,180		)	(468,525		)
Net losses paid	346,300			257,790			604,090			966,642			746,619			1,713,261
Change in:
Reported case reserves	34,012			158,461			192,473			(95,802		)	247,469			151,667
IBNR	266,928			349,496			616,424			343,197			446,095			789,292
Reinsurance recoveries on unpaid loss and loss expense reserves	(18,375		)	(159,245		)	(177,620		)	27,458			(234,038		)	(206,580		)
Total net incurred losses and loss expenses	$	628,865		$	606,502		$	1,235,367		$	1,241,495		$	1,206,145		$	2,447,640
Gross reserve for losses and loss expenses	$	5,525,000		$	5,262,575		$	10,787,575		$	5,525,000		$	5,262,575		$	10,787,575
Net favorable prior year reserve development	$	2,603		$	45,165		$	47,768		$	30,740		$	112,755		$	143,495
Key Ratios
Net paid to net incurred percentage	55.1		%	42.5		%	48.9		%	77.9		%	61.9		%	70.0		%
Net paid losses / Net premiums earned	69.8		%	49.5		%	59.4		%	66.7		%	50.1		%	58.3		%
Change in net loss and loss expense reserves / Net premiums earned	57.0		%	66.9		%	62.1		%	19.0		%	30.9		%	25.0		%
Net loss and loss expense ratio	126.8		%	116.4		%	121.5		%	85.7		%	81.0		%	83.3		%

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AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
Gross losses paid	$	459,648		$	424,631		$	517,708		$	456,485		$	365,160		$	388,142
Reinsurance recoveries	(113,348		)	(118,232		)	(203,766		)	(121,990		)	(102,625		)	(121,560		)
Net losses paid	346,300			306,399			313,942			334,495			262,535			266,582
Change in:
Reported case reserves	34,012			(57,989		)	(71,825		)	37,738			(5,561		)	(29,415		)
IBNR	266,928			95,220			(18,949		)	(88,366		)	55,505			46,941
Reinsurance recoveries on unpaid loss and loss expense reserves	(18,375		)	(17,902		)	63,735			4,294			(39,253		)	(836		)
Total net incurred losses and loss expenses	$	628,865		$	325,728		$	286,903		$	288,161		$	273,226		$	283,272
Gross reserve for losses and loss expenses	$	5,525,000		$	5,200,224		$	5,055,410		$	5,345,655		$	5,430,238		$	5,243,445
Net favorable prior year reserve development	$	2,603		$	19,517		$	8,619		$	12,725		$	20,688		$	2,444
Key Ratios
Net paid to net incurred percentage	55.1		%	94.1		%	109.4		%	116.1		%	96.1		%	94.1		%
Net paid losses/Net premiums earned	69.8		%	62.0		%	68.5		%	73.6		%	59.0		%	60.0		%
Change in net loss and loss expense reserves / Net premiums earned	57.0		%	4.0		%	(5.9		%)	(10.2		%)	2.4		%	3.7		%
Net loss and loss expense ratio	126.8		%	66.0		%	62.6		%	63.4		%	61.4		%	63.7		%

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AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
Gross losses paid	$	281,676		$	254,182		$	243,941		$	297,741		$	231,506		$	212,859
Reinsurance recoveries	(23,886		)	(3,936		)	(5,358		)	(8,284		)	(5,463		)	(1,664		)
Net losses paid	257,790			250,246			238,583			289,457			226,043			211,195
Change in:
Reported case reserves	158,461			90,172			(1,164		)	37,735			20,139			22,545
IBNR	349,496			(8,890		)	105,490			(50,686		)	23,473			40,444
Reinsurance recoveries on unpaid loss and loss expense reserves	(159,245		)	(51,924		)	(22,870		)	(24,055		)	(10,553		)	2,931
Total net incurred losses and loss expenses	$	606,502		$	279,604		$	320,039		$	252,451		$	259,102		$	277,115
Gross reserve for losses and loss expenses	$	5,262,575		$	4,678,438		$	4,486,553		$	4,352,172		$	4,444,569		$	4,460,138
Net favorable prior year reserve development	$	45,165		$	51,416		$	16,174		$	55,522		$	55,331		$	42,681
Key Ratios
Net paid to net incurred percentage	42.5		%	89.5		%	74.5		%	114.7		%	87.2		%	76.2		%
Net paid losses / Net premiums earned	49.5		%	51.3		%	49.7		%	62.0		%	46.2		%	44.5		%
Change in net loss and loss expense reserves / Net premiums earned	66.9		%	6.0		%	16.9		%	(8.0		%)	6.7		%	13.9		%
Net loss and loss expense ratio	116.4		%	57.3		%	66.6		%	54.0		%	52.9		%	58.4		%

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AXIS Capital Holdings Limited

IMPACT OF THIRD QUARTER 2017 CATASTROPHE EVENTS

At September 30, 2017

(Amounts in millions of U.S. dollars)

	Hurricane Harvey		Hurricane Irma		Hurricane Maria		Mexico Earthquakes		Total
Gross loss and loss expenses
Insurance	$	148	$	137	$	26	$	10	$	321
Reinsurance	139		158		126		35		458
Total	$	287	$	295	$	152	$	45	$	779
Net loss and loss expenses
Insurance	$	144	$	136	$	25	$	10	$	315
Reinsurance	99		104		96		23		322
Total	$	243	$	240	$	121	$	33	$	637
Net reinstatement premiums
Reinsurance	$	3	$	12	$	5	$	—	$	20
Total impact before income tax
Insurance	$	144	$	136	$	25	$	10	$	315
Reinsurance	96		92		91		23		302
Total	$	240	$	228	$	116	$	33	$	617
Income tax benefit	20		15		3		1		39
Total impact after income tax	$	220	$	213	$	113	$	32	$	578

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AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF OCTOBER 1, 2017

		Estimated Net Exposures (millions of U.S. dollars)
Territory	Peril	50 Year Return Period		100 Year Return Period		250 Year Return Period
Single zone, single event
Southeast	U.S. Hurricane	$	468	$	530	$	675
Northeast	U.S. Hurricane	39		114		279
Mid-Atlantic	U.S. Hurricane	103		298		538
Gulf of Mexico	U.S. Hurricane	316		390		462
California	Earthquake	318		437		516
Europe	Windstorm	173		239		307
Japan	Earthquake	143		183		294
Japan	Windstorm	50		86		122

The above table shows our Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at October 1, 2017. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.

As indicated in the table above, our modeled single occurrence 1-in-100 year return period PML for a Southeast hurricane, net of reinsurance, is approximately $0.5 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.5 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.5 billion.

We have developed our PML estimates using multiple commercially available catastrophe vendor models, including AIR and RMS. We weight the use of these vendor models based upon our own judgment and experience, and include in our estimates non-modeled perils and other factors which we believe provide us with a more complete view of catastrophe risk.

A supplementary disclosure entitled “Overview of AXIS Natural Peril Catastrophe Risk Measurement and Management” dated August 3, 2011 is available in the Investor Information section of our website. This disclosure provides an overview of our PML methodology, including our approach to zonal aggregation, as well as information about zonal definitions commonly used by other external parties.

Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, foremost by ensuring that management’s judgment supplements the model outputs. We also perform ongoing model validation both within our business units and through our catastrophe model validation unit. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.

Our estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, which include but are not limited to, updates to vendor catastrophe models, changes in our own modeling, changes in our underwriting portfolios, changes to our reinsurance purchasing strategy and changes in foreign exchange rates.

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AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Quarter ended September 30,					Nine months ended September 30,
	2017			2016		2017			2016
Net income (loss) available to common shareholders	$	(467,740	)	$	176,644	$	(377,695	)	$	334,554
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic	83,305			89,621		84,479			91,852
Dilutive share equivalents:
Share-based compensation plans [a]	—			730		—			727
Weighted average shares outstanding - diluted	83,305			90,351		84,479			92,579
EARNINGS (LOSS) PER COMMON SHARE
Basic		($5.61	)		$1.97		($4.47	)		$3.64
Diluted		($5.61	)		$1.96		($4.47	)		$3.61

[a] Due to the net loss incurred in the three and nine months ended September 30, 2017, all the share equivalents were anti-dilutive.

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AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY

	Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q3 2015
Net income (loss) available to common shareholders	$	(467,740	)	$	85,030		$	5,014		$	130,912		$	176,644		$	247,620
COMMON SHARES OUTSTANDING
Common shares - at beginning of period	83,203			85,170			86,441			88,439			90,654			100,284
Shares issued, including those sourced from treasury	5			37			958			11			37			22
Shares repurchased for treasury	(51		)	(2,004		)	(2,229		)	(2,009		)	(2,252		)	(4,257		)
Common shares - at end of period	83,157			83,203			85,170			86,441			88,439			96,049
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic	83,305			84,141			86,022			87,552			89,621			98,226
Dilutive share equivalents:
Share-based compensation plans [a]	—			370			771			922			730			898
Weighted average shares outstanding - diluted	83,305			84,511			86,793			88,474			90,351			99,124
EARNINGS (LOSS) PER COMMON SHARE
Basic		($5.61	)		$1.01			$0.06			$1.50			$1.97			$2.52
Diluted		($5.61	)		$1.01			$0.06			$1.48			$1.96			$2.50

[a] Due to the net loss incurred in the three and nine months ended September 30, 2017, all the share equivalents were anti-dilutive.

26

AXIS Capital Holdings Limited

DILUTED BOOK VALUE PER COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a]

	At September 30, 2017
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$57.31
Book value per common share		$	4,679,699	83,157		$56.28
Dilutive securities: [b]
Restricted units				1,418	(0.95		)
Diluted book value per common share		$	4,679,699	84,575		$55.33
	At December 31, 2016
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$65.27
Book value per common share		$	5,146,296	86,441		$59.54
Dilutive securities: [b]
Restricted units				1,876	(1.27		)
Diluted book value per common share		$	5,146,296	88,317		$58.27

[a] Under this method unvested restricted stock units are added to determine the diluted common shares outstanding.

[b] Excludes cash-settled restricted stock unit awards.

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AXIS Capital Holdings Limited

NON-GAAP OPERATING INCOME [a]

NON-GAAP OPERATING INCOME	Quarter ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Net income (loss) available to common shareholders	$	(467,740	)	$	176,644		$	(377,695	)	$	334,554
Adjustment for:
Net realized investment (gains) losses	(14,632		)	(5,205		)	14,811			40,295
Associated tax impact	2,657			2,479			1,892			2,372
Foreign exchange losses (gains)	32,510			(13,795		)	90,093			(69,781		)
Associated tax impact	(4,439		)	566			(4,242		)	2,010
Bargain purchase gain	—			—			(15,044		)	—
Associated tax impact	—			—			—			—
Transaction related expenses	5,970			—			5,970			—
Associated tax impact	(221		)	—			(221		)	—
Non-GAAP operating income (loss)	$	(445,895	)	$	160,689		$	(284,436	)	$	309,450
Net earnings (loss) per share - diluted	$	(5.61	)	$	1.96		$	(4.47	)	$	3.61
Adjustment for:
Net realized investment (gains) losses	(0.18		)	(0.06		)	0.16			0.44
Associated tax impact	0.03			0.03			0.03			0.02
Foreign exchange losses (gains)	0.39			(0.15		)	1.07			(0.75		)
Associated tax impact	(0.05		)	—			(0.05		)	0.02
Bargain purchase gain	—			—			(0.18		)	—
Associated tax impact	—			$	—		—			—
Transaction related expenses	0.07			—			0.07			—
Associated tax impact	—			$	—		—			—
Non-GAAP operating income (loss) per share - diluted	$	(5.35	)	$	1.78		$	(3.37	)	$	3.34
Weighted average common shares and common share equivalents - diluted	83,305			90,351			84,479			92,579
Average common shareholders' equity	$	4,898,698		$	5,369,921		$	4,912,998		$	5,319,849
Annualized return on average common equity	nm			13.2		%	(10.3		)%	8.4		%
Annualized non-GAAP operating return on average common equity	nm			12.0		%	(7.7		)%	7.8		%

[a] Non-GAAP operating income is a “non-GAAP financial measure” as defined by Regulation G. A reconciliation of non-GAAP operating income to net income available to common shareholders is presented above.

28

AXIS Capital Holdings Limited

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [a]
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2017			2017			2017			2016			2016			2015
Common shareholders' equity	$	4,679,699		$	5,117,695		$	5,104,291		$	5,146,296		$	5,400,658		$	5,198,523
Less: goodwill and intangible assets	(87,206		)	(86,220		)	(84,613		)	(85,049		)	(85,501		)	(87,329		)
Tangible common shareholders' equity	$	4,592,493		$	5,031,475		$	5,019,678		$	5,061,247		$	5,315,157		$	5,111,194
Outstanding diluted common shares, net of treasury shares	84,575			84,655			86,670			88,317			90,363			98,213
Diluted book value per common share	$	55.33		$	60.45		$	58.89		$	58.27		$	59.77		$	53.68
Diluted tangible book value per common share	$	54.30		$	59.44		$	57.92		$	57.31		$	58.82		$	52.78

[a] This method assumes that proceeds received upon exercise of options will be used to repurchase our common shares at the closing market price. Unvested restricted stocks and units and unrestricted phantom stock units are also added to determine the diluted common

shares outstanding. Cash-settled restricted stock unit awards are excluded.

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AXIS Capital Holdings Limited

USE OF NON-GAAP FINANCIAL MEASURES

We present our results of operations in the way we believe will be most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are "non-GAAP financial measures" under Securities and Exchange Commission ("SEC") rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income, non-GAAP operating income (in total and on a per share basis), diluted tangible book value per common share and pre-tax total return on cash and investments excluding foreign exchange movements, which are "non-GAAP financial measures" as defined in SEC Regulation G. We believe that these non-GAAP measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP.

Underwriting-Related General and Administrative Expenses

Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our individual underwriting operations. While these measures are presented in the Segment Information footnote to our Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis.

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

A reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP measure, is included in the ''Consolidated Statements of Income - Quarterly'' and ''Consolidated Statements of Income - Year to Date'' sections of this document.

Consolidated Underwriting Income

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

We evaluate our underwriting results separately from the performance of our investment portfolio. As such, we believe it appropriate to exclude net investment income and net realized investment gains (losses) from our underwriting profitability measure. Interest expense and financing costs primarily relate to interest payable on our senior notes and are excluded from consolidated underwriting income for the same reason.

30

As noted above, foreign exchange losses (gains) in our Consolidated Statement of Income primarily relate to our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange rate losses (gains) on our investment portfolio generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio. As a result, we believe that foreign exchange losses (gains) are not a meaningful contributor to our underwriting performance and, therefore, exclude them from consolidated underwriting income.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeds the fair value of consideration transferred and should be excluded from consolidated underwriting income since it is not related to underwriting operations.

Transaction related expenses and reorganization and related expenses are driven by business decisions, the nature and timing of which are unrelated to the underwriting process and for this reason they are excluded from consolidated underwriting income.

We believe that presentation of underwriting-related general and administrative expenses and consolidated underwriting income provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income to income before income taxes and interest in income (loss) of equity method investments (the most comparable GAAP financial measure) is included in the''Consolidated Statements of Income - Quarterly'' and ''Consolidated Statements of Income - Year to Date'' sections of this document.

Non-GAAP Operating Income

Non-GAAP operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses), foreign exchange losses (gains), bargain purchase gain and transaction related expenses.

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

Foreign exchange losses (gains) in our Consolidated Statements of Income are primarily driven by the impact of foreign exchange rate movements on net insurance-related liabilities. However, this movement is only one element of the overall impact of foreign exchange rate fluctuations on our financial position. In addition, we recognize unrealized foreign exchange losses (gains) on our available-for-sale investments in other comprehensive income and foreign exchange losses (gains) realized upon the sale of these investments in net realized investment gains (losses). These unrealized and realized foreign exchange movements generally offset a large portion of the foreign exchange losses (gains) reported separately in earnings, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As such, the Statement of Income foreign exchange losses (gains) in isolation are not a fair representation of the performance of our business.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeds the fair value of consideration transferred and is not indicative of future revenues of the company.

31

Transaction related expenses are primarily driven by business decisions, the nature and timing of which are unrelated to the underwriting process and which are not representative of underlying business performance.

In this regard, certain users of our financial statements evaluate earnings excluding after-tax net realized investment gains (losses), foreign exchange losses (gains), bargain purchase gain and transaction related expenses to understand the profitability of recurring sources of income.

We believe that showing net income available to common shareholders exclusive of net realized gains (losses), foreign exchange losses (gains), bargain purchase gain and transaction expenses reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of non-GAAP operating income to net income available to common shareholders, the most comparable GAAP measure, is presented in the "Non-GAAP Operating Income" section in this document.

Diluted Tangible Book Value per Common Share

Tangible book value is defined as common shareholders' equity excluding goodwill and intangible assets. Diluted tangible book value per common share uses this measure as the numerator, with the denominator being outstanding diluted common shares calculated under the treasury stock method. A reconciliation of diluted tangible book value per common share to diluted book value per common share (the nearest GAAP financial measure) is included in the "Diluted Tangible Book Value per Common Share'"section of this document.

Diluted tangible book value per common share removes certain effects of purchase accounting. We believe that this measure, in combination with diluted book value per common share, is useful in assessing value generated for our common shareholders.

Non-GAAP Financial Measures

We present pre-tax total return on cash and investments excluding foreign exchange movements, which measures net investment income (loss), net realized investments gains (losses), interest in income (loss) of equity method investments, and pre-tax change in unrealized gains (losses) generated by our average cash and investment balances which is derived from pre-tax total return on cash and investments and reconciled to the most comparable GAAP financial measure in the "Financial Highlights" section of this document". We believe this presentation enables investors and other users of our financial information to analyze the performance of our investments.

We also present diluted non-GAAP operating income per share and annualized non-GAAP operating return on average common equity ("annualized non-GAAP operating ROACE"), which are derived from the non-GAAP operating income measure and are reconciled to the most comparable GAAP financial measure in the "Non-GAAP Operating Income" section of this document.

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