AXIS Capital Holdings Limited 8K Results of Operations and Financial Condition | AXS 29 Jan 25

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

FOURTH QUARTER 2024

AXIS CAPITAL HOLDINGS LIMITED

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Cliff Gallant

Investor Contact

(415) 262-6843

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 the Company files 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 - iv
I. Financial Highlights						1
II. Income Statements
a. Consolidated Statement of Operations						2-6
b. Consolidated Segment Data						7
c. Gross Premiums Written by Segment by Line of Business						8
d. Consolidated Data						9
e. Segment Data						10-11
f . Net Investment Income						12
III. Balance Sheets
a. Consolidated Balance Sheets						13
b. Cash and Invested Assets:
• Cash and Invested Assets Portfolio						14
• Cash and Invested Assets Composition						15

• Mortgage-Backed and Asset-Backed Securities Composition						16
IV. Loss Reserve Analysis
a. Paid to Incurred Analysis						17
b. Paid to Incurred Analysis by Segment						18

V. Share Analysis
a. Earnings Per Common Share Information						19
b. Book Value Per Diluted Common Share and Tangible Book Value Per Diluted Common Share - Treasury Stock Method						20

VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity						21
b . Rationale for the Use of Non-GAAP Financial Measures						2 2-25

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

AXIS Capital Holdings Limited's ("AXIS Capital" or the "Company") underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.

DEFINITIONS AND PRESENTATION

•All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2023 and consolidated statements of operations for the years ended December 31, 2023 and December 31, 2022.

•Amounts may not reconcile due to rounding differences.

•Unless otherwise noted, all data is in thousands, except for ratio information.

•NM - Not meaningful is defined as a variance greater than +/-100%; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal 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", "aim", "will", "target", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.

Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for losses and loss expenses, measurements of potential losses in the fair value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.

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

Insurance Risk

•the cyclical nature of insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;

•the occurrence and magnitude of natural and man-made disasters, including the potential increase of our exposure to natural catastrophe losses due to climate change and the potential for inherently unpredictable losses from man-made catastrophes, such as cyber-attacks;

•the effects of emerging claims, systemic risks, and coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions;

•actual claims exceeding reserves for losses and loss expenses;

•losses related to the conflict in the Middle East, the Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses;

•the adverse impact of social and economic inflation;

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

•the failure of our cedants to adequately evaluate risks;

•the use of industry models and changes to these models;

Strategic Risk

•increased competition and consolidation in the insurance and reinsurance industry;

•general economic, capital and credit market conditions, including banking and commercial real estate sector instability, financial market illiquidity and fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency exchange rates;

•changes in the political environment of certain countries in which we operate or underwrite business;

•the loss of business provided to us by major brokers;

•a decline in our ratings with rating agencies;

•the loss of one or more of our key executives;

•increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters;

•the adverse impact of contagious diseases (including COVID-19) on our business, results of operations, financial condition, and liquidity;

Credit and Market Risk

•the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;

•the failure of our policyholders or intermediaries to pay premiums;

•breaches by third parties in our program business of their obligations to us;

Liquidity Risk

•the inability to access sufficient cash to meet our obligations when they are due;

Operational Risk

•changes in accounting policies or practices;

•difficulties with technology and/or data security;

•the failure of the processes, people or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties;

Regulatory Risk

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

•inadvertent failure to comply with certain laws and regulations relating to sanctions, foreign corrupt practices, data protection and privacy; and

Risks Related to Taxation

•changes in tax laws.

Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those 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.

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:

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

Property: provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This line of business includes primary and excess risks, some of which are catastrophe-exposed.

Liability: provides cover for primary and low to mid-level excess and umbrella commercial liability, and environmental liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability business predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking, and other services.

Cyber: provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability. Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability.

Marine and Aviation: Marine provides cover for a range of exposures including offshore energy, offshore renewable energy, cargo, liability including kidnap and ransom, fine art, specie, and hull war. Offshore energy coverages include physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. Aviation provides hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.

Accident and Health: includes personal accident, travel insurance and specialty health products for employer and affinity groups, and pet insurance.

Credit and Political Risk: provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign and corporate credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. Surety bonds are also provided to large corporate and commercial clients and to mid to large sized construction clients.

iii

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis written on an excess of loss or a proportional basis. For excess of loss business, we typically indemnify the reinsured for a portion of losses, individually and in the aggregate, in excess of a specified individual or aggregate loss deductible. For proportional business, we assume an agreed percentage of the underlying premiums and accept liability for the same percentage of losses and loss expenses. Our business is primarily produced through reinsurance brokers worldwide. The following are the lines of business in our reinsurance segment:

Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, environmental liability, and excess casualty.

Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis.

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

Credit and Surety: Credit reinsurance provides protection for trade credit insurance and credit and political risk insurance. Trade credit insurance protects sellers of goods and services in the event of a non-payment by the buyer of those goods and services. Credit and political risk insurance covers a range of risks predominantly corporate and sovereign non-payment. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands, contract, and commercial obligations in a variety of jurisdictions around the world. Mortgage reinsurance is provided to mortgage guaranty insurers, U.S. government sponsored entities and other mortgage market participants. These entities seek to manage their credit risk exposure emanating from defined pools of mortgage loans.

Motor: provides protection to insurers for motor liability and motor 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. Traditional non-proportional and proportional reinsurance as well as structured solutions are offered predominantly relating to European exposures.

Agriculture: provides protection 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. This business is written on a proportional and aggregate stop loss reinsurance basis.

Marine and Aviation: Marine includes specialty marine exposures such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis. Aviation provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023.

Run-off lines

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis. The Company exited this line of business in June 2022.

Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company exited this line of business in June 2022.

Engineering: provides protection 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 cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. The Company exited this line of business in 2020.

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS


		Quarters ended December 31,									Years ended December 31,
		2024			2023			Change			2024			2023			Change

HIGHLIGHTS	Gross premiums written	$	1,975,324		$	1,784,293		10.7	%		$	9,005,888		$	8,356,525		7.8	%
	Gross premiums written - Insurance	86.1		%	88.7		%	(2.6)		pts	73.5		%	73.5		%	—		pts
	Gross premiums written - Reinsurance	13.9		%	11.3		%	2.6		pts	26.5		%	26.5		%	—		pts
	Net premiums written	$	1,225,549		$	1,072,255		14.3	%		$	5,757,351		$	5,102,325		12.8	%
	Net premiums earned	$	1,377,014		$	1,265,273		8.8	%		$	5,306,235		$	5,083,781		4.4	%
	Net premiums earned - Insurance	74.5		%	72.5		%	2.0		pts	74.0		%	68.1		%	5.9		pts
	Net premiums earned - Reinsurance	25.5		%	27.5		%	(2.0)		pts	26.0		%	31.9		%	(5.9)		pts
	Net income (loss) available (attributable) to common shareholders	$	286,069		$	(150,145)		nm			$	1,051,536		$	346,042		nm
	Operating income (loss) [a]	$	251,816		$	(106,991)		nm			$	952,035		$	486,133		95.8	%
	Annualized return on average common equity [b]	20.7		%	(13.1		%)	33.8		pts	20.5		%	7.9		%	12.6		pts
	Annualized operating return on average common equity [c]	18.2		%	(9.3		%)	27.5		pts	18.6		%	11.0		%	7.6		pts

	Total shareholders’ equity	$	6,089,379		$	5,263,196		15.7	%		$	6,089,379		$	5,263,196		15.7	%



PER COMMON SHARE AND COMMON SHARE DATA	Earnings (loss) per diluted common share	$3.38			($1.76)			nm			$12.35			$4.02			nm
	Operating income (loss) per diluted common share [d]	$2.97			($1.25)			nm			$11.18			$5.65			97.9	%

	Weighted average diluted common shares outstanding	84,695			85,268			(0.7	%)		85,176			86,012			(1.0	%)
	Book value per common share	$66.75			$55.26			20.8	%		$66.75			$55.26			20.8	%
	Book value per diluted common share (treasury stock method)	$65.27			$54.06			20.7	%		$65.27			$54.06			20.7	%
	Tangible book value per diluted common share (treasury stock method) [a]	$62.97			$51.34			22.7	%		$62.97			$51.34			22.7	%





FINANCIAL RATIOS	Current accident year loss ratio, excluding catastrophe and weather-related losses [a]	55.7		%	55.4		%	0.3		pts	55.7		%	55.9		%	(0.2)		pts
	Catastrophe and weather-related losses ratio [a]	5.9		%	2.1		%	3.8		pts	4.3		%	2.7		%	1.6		pts
	Current accident year loss ratio [a]	61.6		%	57.5		%	4.1		pts	60.0		%	58.6		%	1.4		pts
	Prior year reserve development ratio	(1.2		%)	33.6		%	(34.8)		pts	(0.5		%)	8.1		%	(8.6)		pts
	Net losses and loss expenses ratio	60.4		%	91.1		%	(30.7)		pts	59.5		%	66.7		%	(7.2)		pts
	Acquisition cost ratio	20.1		%	20.1		%	—		pts	20.2		%	19.7		%	0.5		pts
	General and administrative expense ratio [e]	13.7		%	13.4		%	0.3		pts	12.6		%	13.5		%	(0.9)		pts
	Combined ratio	94.2		%	124.6		%	(30.4)		pts	92.3		%	99.9		%	(7.6)		pts


INVESTMENT DATA	Total assets	$	32,520,293		$	30,250,672		7.5	%		$	32,520,293		$	30,250,672		7.5	%
	Total cash and invested assets [f]	$	17,953,660		$	16,733,674		7.3	%		$	17,953,660		$	16,733,674		7.3	%
	Net investment income	$	195,773		$	186,937		4.7	%		$	759,229		$	611,742		24.1	%
	Net investment gains (losses)	$	(108,030)		$	23,041		nm			$	(138,534)		$	(74,630)		85.6	%



	Book yield of fixed maturities	4.5		%	4.2		%	0.3		pts	4.5		%	4.2		%	0.3		pts

[a] Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE"), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses and tangible book value per diluted common share are non-GAAP financial measures as defined by Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, annualized return on average common equity ("ROACE"), net losses and loss expenses ratio and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided above/later in this document.

[b] Annualized ROACE is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

[c] Annualized operating ROACE is calculated by dividing annualized operating income (loss) for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

[d] Operating income (loss) per diluted common share is calculated by dividing operating income (loss) for the period by weighted average diluted common shares outstanding.

[e] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[f] Total cash and invested assets represents the total cash and cash equivalents, fixed maturities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2024 AND 2023



				Quarters ended December 31,						Years ended December 31,
				2024			2023			2024			2023

Revenues
	Net premiums earned	$	1,377,014		$	1,265,273		$	5,306,235		$	5,083,781
	Net investment income	195,773			186,937			759,229			611,742
	Net investment gains (losses)	(108,030)			23,041			(138,534)			(74,630)
	Other insurance related income	7,016			6,050			30,721			22,495

	Total revenues			1,471,773			1,481,301			5,957,651			5,643,388

Expenses
	Net losses and loss expenses	831,956			1,152,262			3,158,487			3,393,102
	Acquisition costs	276,273			253,918			1,070,551			1,000,945
	General and administrative expenses	189,186			169,849			666,202			684,446
	Foreign exchange losses (gains)	(112,090)			69,871			(50,822)			58,115
	Interest expense and financing costs	16,761			18,344			67,766			68,421
	Reorganization expenses	—			—			26,312			28,997

	Amortization of intangible assets	2,729			2,729			10,917			10,917
	Total expenses			1,204,815			1,666,973			4,949,413			5,244,943

Income (loss) before income taxes and interest in income of equity method investments		266,958			(185,672)			1,008,238			398,445
	Income tax (expense) benefit	19,410			41,762			55,595			(26,316)
	Interest in income of equity method investments	7,264			1,328			17,953			4,163
Net income (loss)		293,632			(142,582)			1,081,786			376,292


	Preferred share dividends	7,563			7,563			30,250			30,250

Net income (loss) available (attributable) to common shareholders		$	286,069		$	(150,145)		$	1,051,536		$	346,042

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS


													Year ended December 31,
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022		2023
UNDERWRITING REVENUES
Gross premiums written	$	1,975,324	$	1,935,902	$	2,440,236	$	2,654,427	$	1,784,293	$	1,758,696	$	8,356,525
Ceded premiums written	(749,775)		(699,917)		(866,492)		(932,354)		(712,038)		(662,142)		(3,254,200)
Net premiums written	1,225,549		1,235,985		1,573,744		1,722,073		1,072,255		1,096,554		5,102,325

Gross premiums earned	2,207,338		2,159,646		2,117,937		2,044,647		2,035,926		2,050,239		7,973,577
Ceded premiums earned	(830,324)		(792,945)		(813,459)		(786,606)		(770,653)		(710,077)		(2,889,796)
Net premiums earned	1,377,014		1,366,701		1,304,478		1,258,041		1,265,273		1,340,162		5,083,781
Other insurance related income	7,016		6,838		8,526		8,340		6,050		3,076		22,495
Total underwriting revenues	1,384,030		1,373,539		1,313,004		1,266,381		1,271,323		1,343,238		5,106,276

UNDERWRITING EXPENSES
Net losses and loss expenses	831,956		831,872		765,988		728,671		1,152,262		798,214		3,393,102
Acquisition costs	276,273		274,935		265,091		254,254		253,918		275,573		1,000,945
Underwriting-related general and administrative expenses [a]	146,299		131,582		120,768		137,793		139,216		137,220		551,467
Total underwriting expenses	1,254,528		1,238,389		1,151,847		1,120,718		1,545,396		1,211,007		4,945,514

UNDERWRITING INCOME (LOSS) [b]	129,502		135,150		161,157		145,663		(274,073)		132,231		160,762

OTHER (EXPENSES) REVENUES
Net investment income	195,773		205,100		190,975		167,383		186,937		147,085		611,742
Net investment gains (losses)	(108,030)		32,182		(53,479)		(9,207)		23,041		(42,558)		(74,630)


Corporate expenses [a]	(42,887)		(33,621)		(27,673)		(25,580)		(30,633)		(50,252)		(132,979)
Foreign exchange (losses) gains	112,090		(92,204)		7,384		23,552		(69,871)		(78,989)		(58,115)
Interest expense and financing costs	(16,761)		(16,849)		(17,010)		(17,147)		(18,344)		(16,426)		(68,421)
Reorganization expenses	—		—		(14,014)		(12,299)		—		(9,485)		(28,997)

Amortization of intangible assets	(2,729)		(2,729)		(2,729)		(2,729)		(2,729)		(2,729)		(10,917)
Total other (expenses) revenues	137,456		91,879		83,454		123,973		88,401		(53,354)		237,683

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	266,958		227,029		244,611		269,636		(185,672)		78,877		398,445
Income tax (expense) benefit	19,410		(47,922)		(40,547)		124,654		41,762		(27,341)		(26,316)
Interest in income (loss) of equity method investments	7,264		1,621		7,900		1,169		1,328		(3,045)		4,163

NET INCOME (LOSS)	293,632		180,728		211,964		395,459		(142,582)		48,491		376,292




Preferred share dividends	(7,563)		(7,563)		(7,563)		(7,563)		(7,563)		(7,563)		(30,250)

NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	286,069	$	173,165	$	204,401	$	387,896	$	(150,145)	$	40,928	$	346,042

[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.

[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS


													Year ended December 31,
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022		2023
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio, excluding catastrophe and weather-related losses	55.7	%	55.7	%	55.1	%	56.4	%	55.4	%	55.5	%	55.9	%
Catastrophe and weather-related losses ratio	5.9	%	5.8	%	3.6	%	1.5	%	2.1	%	4.7	%	2.7	%
Current accident year loss ratio	61.6	%	61.5	%	58.7	%	57.9	%	57.5	%	60.2	%	58.6	%
Prior year reserve development ratio	(1.2	%)	(0.6	%)	—	%	—	%	33.6	%	(0.6	%)	8.1	%
Net losses and loss expenses ratio	60.4	%	60.9	%	58.7	%	57.9	%	91.1	%	59.6	%	66.7	%
Acquisition cost ratio	20.1	%	20.1	%	20.3	%	20.2	%	20.1	%	20.6	%	19.7	%
General and administrative expense ratio [a]	13.7	%	12.1	%	11.4	%	13.0	%	13.4	%	13.9	%	13.5	%
Combined ratio	94.2	%	93.1	%	90.4	%	91.1	%	124.6	%	94.1	%	99.9	%

Weighted average common shares outstanding	83,380		83,936		84,475		84,879		85,268		84,667		85,142
Weighted average diluted common shares outstanding [b]	84,695		85,000		85,326		85,693		85,268		85,655		86,012
Earnings (loss) per common share	$3.43		$2.06		$2.42		$4.57		($1.76)		$0.48		$4.06
Earnings (loss) per diluted common share	$3.38		$2.04		$2.40		$4.53		($1.76)		$0.48		$4.02
Annualized ROACE	20.7	%	13.0	%	16.2	%	32.1	%	(13.1	%)	4.2	%	7.9	%
Annualized operating ROACE	18.2	%	17.3	%	19.9	%	18.2	%	(9.3	%)	16.9	%	11.0	%

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

[b] Due to the net loss attributable to common shareholders recognized for the quarter ended December 31, 2023, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS


	Years ended December 31,
	2024		2023		2022
UNDERWRITING REVENUES
Gross premiums written	$	9,005,888	$	8,356,525	$	8,214,595
Ceded premiums written	(3,248,537)		(3,254,200)		(2,951,539)
Net premiums written	5,757,351		5,102,325		5,263,056

Gross premiums earned	8,529,567		7,973,577		7,936,382
Ceded premiums earned	(3,223,332)		(2,889,796)		(2,776,056)
Net premiums earned	5,306,235		5,083,781		5,160,326
Other insurance related income	30,721		22,495		13,073
Total underwriting revenues	5,336,956		5,106,276		5,173,399

UNDERWRITING EXPENSES
Net losses and loss expenses	3,158,487		3,393,102		3,242,410
Acquisition costs	1,070,551		1,000,945		1,022,017
Underwriting-related general and administrative expenses [a]	536,442		551,467		550,289
Total underwriting expenses	4,765,480		4,945,514		4,814,716

UNDERWRITING INCOME [b]	571,476		160,762		358,683

OTHER (EXPENSES) REVENUES
Net investment income	759,229		611,742		418,829
Net investment gains (losses)	(138,534)		(74,630)		(456,789)
Corporate expenses [a]	(129,760)		(132,979)		(130,054)
Foreign exchange (losses) gains	50,822		(58,115)		157,945
Interest expense and financing costs	(67,766)		(68,421)		(63,146)
Reorganization expenses	(26,312)		(28,997)		(31,426)

Amortization of intangible assets	(10,917)		(10,917)		(10,917)
Total other (expenses) revenues	436,762		237,683		(115,558)

INCOME BEFORE INCOME TAX AND INTEREST IN INCOME OF EQUITY METHOD INVESTMENTS	1,008,238		398,445		243,125

Income tax (expense) benefit	55,595		(26,316)		(22,037)
Interest in income of equity method investments	17,953		4,163		1,995

NET INCOME	1,081,786		376,292		223,083





Preferred share dividends	(30,250)		(30,250)		(30,250)


NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,051,536	$	346,042	$	192,833

[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to total general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS


	Years ended December 31,
	2024		2023		2022
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio, excluding catastrophe and weather-related losses	55.7	%	55.9	%	55.5	%
Catastrophe and weather-related losses ratio	4.3	%	2.7	%	7.8	%
Current accident year loss ratio	60.0	%	58.6	%	63.3	%
Prior year reserve development ratio	(0.5	%)	8.1	%	(0.5	%)
Net losses and loss expenses ratio	59.5	%	66.7	%	62.8	%
Acquisition cost ratio	20.2	%	19.7	%	19.8	%
General and administrative expense ratio [a]	12.6	%	13.5	%	13.2	%
Combined ratio	92.3	%	99.9	%	95.8	%

Weighted average common shares outstanding	84,165		85,142		84,864
Weighted average diluted common shares outstanding	85,176		86,012		85,669
Earnings per common share	$12.49		$4.06		$2.27
Earnings per diluted common share	$12.35		$4.02		$2.25
ROACE	20.5	%	7.9	%	4.3	%
Operating ROACE	18.6	%	11.0	%	11.1	%

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENT DATA


	Quarter ended December 31, 2024									Year ended December 31, 2024
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	1,700,337		$	274,987		$	1,975,324		$	6,615,584		$	2,390,304		$	9,005,888
Ceded premium written	(642,254)			(107,521)			(749,775)			(2,365,039)			(883,498)			(3,248,537)
Net premiums written	1,058,083			167,466			1,225,549			4,250,545			1,506,806			5,757,351

Gross premiums earned	1,621,228			586,110			2,207,338			6,254,836			2,274,731			8,529,567
Ceded premiums earned	(595,203)			(235,121)			(830,324)			(2,328,800)			(894,532)			(3,223,332)
Net premiums earned	1,026,025			350,989			1,377,014			3,926,036			1,380,199			5,306,235
Other insurance related income	40			6,976			7,016			94			30,627			30,721
Total underwriting revenues	1,026,065			357,965			1,384,030			3,926,130			1,410,826			5,336,956

UNDERWRITING EXPENSES
Net losses and loss expenses	603,311			228,645			831,956			2,245,420			913,067			3,158,487
Acquisition costs	199,606			76,667			276,273			766,915			303,636			1,070,551
Underwriting-related general and administrative expenses	132,699			13,600			146,299			485,929			50,513			536,442
Total underwriting expenses	935,616			318,912			1,254,528			3,498,264			1,267,216			4,765,480

UNDERWRITING INCOME	$	90,449		$	39,053		$	129,502		$	427,866		$	143,610		$	571,476

Catastrophe and weather-related losses, net of reinstatement premiums	$	80,110		$	953		$	81,063		$	216,093		$	9,903		$	225,996
Net favorable prior year reserve development	$	12,200		$	4,111		$	16,311		$	16,209		$	8,114		$	24,323

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	52.2		%	66.0		%	55.7		%	52.1		%	66.0		%	55.7		%
Catastrophe and weather-related losses ratio	7.8		%	0.3		%	5.9		%	5.5		%	0.7		%	4.3		%
Current accident year loss ratio	60.0		%	66.3		%	61.6		%	57.6		%	66.7		%	60.0		%
Prior year reserve development ratio	(1.2		%)	(1.2		%)	(1.2		%)	(0.4		%)	(0.5		%)	(0.5		%)
Net losses and loss expenses ratio	58.8		%	65.1		%	60.4		%	57.2		%	66.2		%	59.5		%
Acquisition cost ratio	19.5		%	21.8		%	20.1		%	19.5		%	22.0		%	20.2		%
Underwriting-related general and administrative expense ratio	12.9		%	4.0		%	10.6		%	12.4		%	3.6		%	10.2		%
Corporate expense ratio							3.1		%							2.4		%
Combined ratio	91.2		%	90.9		%	94.2		%	89.1		%	91.8		%	92.3		%

AXIS CAPITAL HOLDINGS LIMITED

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS


													Years ended December 31,
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022		2024		2023

INSURANCE SEGMENT
Professional Lines	$	340,463	$	286,108	$	299,087	$	236,665	$	338,938	$	378,336	$	1,162,323	$	1,140,695
Property	496,504		433,843		641,147		478,835		426,500		351,503		2,050,329		1,736,586
Liability	331,130		321,205		311,563		287,705		327,723		312,327		1,251,603		1,256,951
Cyber	134,939		129,543		164,518		132,936		166,312		157,794		561,937		649,160
Marine and Aviation	169,470		163,838		219,850		262,010		162,766		133,712		815,168		771,162
Accident and Health	125,277		119,686		101,243		104,606		79,597		68,551		450,810		333,559
Credit and Political Risk	102,554		72,453		76,658		71,748		81,542		68,582		323,414		252,651
TOTAL INSURANCE SEGMENT	$	1,700,337	$	1,526,676	$	1,814,066	$	1,574,505	$	1,583,378	$	1,470,805	$	6,615,584	$	6,140,764

REINSURANCE SEGMENT
Liability	$	95,980	$	132,245	$	169,933	$	218,175	$	100,041	$	88,911	$	616,333	$	642,801
Accident and Health	45,675		47,452		32,376		310,792		15,524		11,875		436,296		396,668
Professional Lines	28,001		44,013		203,001		146,832		13,838		66,597		421,846		379,222
Credit and Surety	65,041		100,352		88,281		164,043		61,930		63,873		417,717		351,083
Motor	25,481		35,295		26,039		152,145		7,273		30,231		238,961		201,466
Agriculture	3,317		33,265		74,290		39,501		(931)		10,904		150,373		126,300
Marine and Aviation	2,201		11,059		22,881		46,134		2,740		8,863		82,274		62,260
Total	265,696		403,681		616,801		1,077,622		200,415		281,254		2,363,800		2,159,800
Run-off lines
Catastrophe	3,346		1,564		4,491		1,423		(3,414)		1,110		10,823		30,175
Property	(527)		1,800		2,013		(156)		2,795		4,611		3,130		21,513
Engineering	6,472		2,181		2,865		1,033		1,119		916		12,551		4,273
Total run-off lines	9,291		5,545		9,369		2,300		500		6,637		26,504		55,961
TOTAL REINSURANCE SEGMENT	$	274,987	$	409,226	$	626,170	$	1,079,922	$	200,915	$	287,891	$	2,390,304	$	2,215,761

CONSOLIDATED TOTAL	$	1,975,324	$	1,935,902	$	2,440,236	$	2,654,427	$	1,784,293	$	1,758,696	$	9,005,888	$	8,356,525

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED DATA


																			Year ended December 31,
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q4 2022			2023
UNDERWRITING REVENUES
Gross premiums written	$	1,975,324		$	1,935,902		$	2,440,236		$	2,654,427		$	1,784,293		$	1,758,696		$	8,356,525
Ceded premiums written	(749,775)			(699,917)			(866,492)			(932,354)			(712,038)			(662,142)			(3,254,200)
Net premiums written	1,225,549			1,235,985			1,573,744			1,722,073			1,072,255			1,096,554			5,102,325

Gross premiums earned	2,207,338			2,159,646			2,117,937			2,044,647			2,035,926			2,050,239			7,973,577
Ceded premiums earned	(830,324)			(792,945)			(813,459)			(786,606)			(770,653)			(710,077)			(2,889,796)
Net premiums earned	1,377,014			1,366,701			1,304,478			1,258,041			1,265,273			1,340,162			5,083,781
Other insurance related income	7,016			6,838			8,526			8,340			6,050			3,076			22,495
Total underwriting revenues	1,384,030			1,373,539			1,313,004			1,266,381			1,271,323			1,343,238			5,106,276

UNDERWRITING EXPENSES
Net losses and loss expenses	831,956			831,872			765,988			728,671			1,152,262			798,214			3,393,102
Acquisition costs	276,273			274,935			265,091			254,254			253,918			275,573			1,000,945
Underwriting-related general and administrative expenses	146,299			131,582			120,768			137,793			139,216			137,220			551,467
Total underwriting expenses	1,254,528			1,238,389			1,151,847			1,120,718			1,545,396			1,211,007			4,945,514

UNDERWRITING INCOME (LOSS)	$	129,502		$	135,150		$	161,157		$	145,663		$	(274,073)		$	132,231		$	160,762

Catastrophe and weather-related losses, net of reinstatement premiums	$	81,063		$	78,120		$	47,060		$	19,755		$	25,866		$	63,610		$	137,702
Net favorable (adverse) prior year reserve development	$	16,311		$	8,012		$	—		$	—		$	(425,001)		$	7,901		$	(411,882)

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	55.7		%	55.7		%	55.1		%	56.4		%	55.4		%	55.5		%	55.9		%
Catastrophe and weather-related losses ratio	5.9		%	5.8		%	3.6		%	1.5		%	2.1		%	4.7		%	2.7		%
Current accident year loss ratio	61.6		%	61.5		%	58.7		%	57.9		%	57.5		%	60.2		%	58.6		%
Prior year reserve development ratio	(1.2		%)	(0.6		%)	—		%	—		%	33.6		%	(0.6		%)	8.1		%
Net losses and loss expenses ratio	60.4		%	60.9		%	58.7		%	57.9		%	91.1		%	59.6		%	66.7		%
Acquisition cost ratio	20.1		%	20.1		%	20.3		%	20.2		%	20.1		%	20.6		%	19.7		%
General and administrative expense ratio [a]	13.7		%	12.1		%	11.4		%	13.0		%	13.4		%	13.9		%	13.5		%
Combined ratio	94.2		%	93.1		%	90.4		%	91.1		%	124.6		%	94.1		%	99.9		%

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

AXIS CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA


																			Year ended December 31,
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q4 2022			2023
UNDERWRITING REVENUES
Gross premiums written	$	1,700,337		$	1,526,676		$	1,814,066		$	1,574,505		$	1,583,378		$	1,470,805		$	6,140,764
Ceded premiums written	(642,254)			(550,765)			(619,869)			(552,151)			(613,507)			(584,019)			(2,382,044)
Net premiums written	1,058,083			975,911			1,194,197			1,022,354			969,871			886,786			3,758,720

Gross premiums earned	1,621,228			1,592,802			1,541,766			1,499,039			1,485,956			1,368,859			5,713,667
Ceded premiums earned	(595,203)			(568,951)			(583,554)			(581,093)			(569,177)			(538,345)			(2,251,967)
Net premiums earned	1,026,025			1,023,851			958,212			917,946			916,779			830,514			3,461,700
Other insurance related income (loss)	40			93			(61)			21			(289)			89			(198)
Total underwriting revenues	1,026,065			1,023,944			958,151			917,967			916,490			830,603			3,461,502

UNDERWRITING EXPENSES
Net losses and loss expenses	603,311			602,654			542,591			496,864			681,515			439,268			2,080,001
Acquisition costs	199,606			203,255			188,026			176,029			175,050			154,859			648,463
Underwriting-related general and administrative expenses	132,699			119,249			111,894			122,087			121,600			113,106			472,094
Total underwriting expenses	935,616			925,158			842,511			794,980			978,165			707,233			3,200,558

UNDERWRITING INCOME (LOSS)	$	90,449		$	98,786		$	115,640		$	122,987		$	(61,675)		$	123,370		$	260,944

Catastrophe and weather-related losses, net of reinstatement premiums	$	80,110		$	71,038		$	45,793		$	19,153		$	23,074		$	33,218		$	111,040
Net favorable (adverse) prior year reserve development	$	12,200		$	4,009		$	—		$	—		$	(181,787)		$	3,955		$	(176,353)

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	52.2		%	52.3		%	51.8		%	52.0		%	52.0		%	49.3		%	51.8		%
Catastrophe and weather-related losses ratio	7.8		%	7.0		%	4.8		%	2.1		%	2.5		%	4.1		%	3.2		%
Current accident year loss ratio	60.0		%	59.3		%	56.6		%	54.1		%	54.5		%	53.4		%	55.0		%
Prior year reserve development ratio	(1.2		%)	(0.4		%)	—		%	—		%	19.8		%	(0.5		%)	5.1		%
Net losses and loss expenses ratio	58.8		%	58.9		%	56.6		%	54.1		%	74.3		%	52.9		%	60.1		%
Acquisition cost ratio	19.5		%	19.9		%	19.6		%	19.2		%	19.1		%	18.6		%	18.7		%
Underwriting-related general and administrative expense ratio	12.9		%	11.6		%	11.7		%	13.3		%	13.3		%	13.7		%	13.7		%
Combined ratio	91.2		%	90.4		%	87.9		%	86.6		%	106.7		%	85.2		%	92.5		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA


																			Year ended December 31,
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q4 2022			2023
UNDERWRITING REVENUES
Gross premiums written	$	274,987		$	409,226		$	626,170		$	1,079,922		$	200,915		$	287,891		$	2,215,761
Ceded premiums written	(107,521)			(149,152)			(246,623)			(380,203)			(98,531)			(78,123)			(872,156)
Net premiums written	167,466			260,074			379,547			699,719			102,384			209,768			1,343,605

Gross premiums earned	586,110			566,844			576,171			545,608			549,970			681,380			2,259,910
Ceded premiums earned	(235,121)			(223,994)			(229,905)			(205,513)			(201,476)			(171,732)			(637,829)
Net premiums earned	350,989			342,850			346,266			340,095			348,494			509,648			1,622,081
Other insurance related income	6,976			6,745			8,587			8,319			6,339			2,987			22,693
Total underwriting revenues	357,965			349,595			354,853			348,414			354,833			512,635			1,644,774

UNDERWRITING EXPENSES
Net losses and loss expenses	228,645			229,218			223,397			231,807			470,747			358,946			1,313,101
Acquisition costs	76,667			71,680			77,065			78,225			78,868			120,714			352,482
Underwriting-related general and administrative expenses	13,600			12,333			8,874			15,706			17,616			24,114			79,373
Total underwriting expenses	318,912			313,231			309,336			325,738			567,231			503,774			1,744,956

UNDERWRITING INCOME (LOSS)	$	39,053		$	36,364		$	45,517		$	22,676		$	(212,398)		$	8,861		$	(100,182)

Catastrophe and weather-related losses, net of reinstatement premiums	$	953		$	7,082		$	1,267		$	602		$	2,792		$	30,392		$	26,662
Net favorable (adverse) prior year reserve development	$	4,111		$	4,003		$	—		$	—		$	(243,214)		$	3,946		$	(235,529)

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	66.0		%	66.0		%	64.2		%	68.0		%	64.5		%	65.5		%	64.8		%
Catastrophe and weather-related losses ratio	0.3		%	2.0		%	0.3		%	0.2		%	0.8		%	5.7		%	1.6		%
Current accident year loss ratio	66.3		%	68.0		%	64.5		%	68.2		%	65.3		%	71.2		%	66.4		%
Prior year reserve development ratio	(1.2		%)	(1.1		%)	—		%	—		%	69.8		%	(0.8		%)	14.6		%
Net losses and loss expenses ratio	65.1		%	66.9		%	64.5		%	68.2		%	135.1		%	70.4		%	81.0		%
Acquisition cost ratio	21.8		%	20.9		%	22.3		%	23.0		%	22.6		%	23.7		%	21.7		%
Underwriting-related general and administrative expenses ratio	4.0		%	3.6		%	2.5		%	4.6		%	5.1		%	4.7		%	4.9		%
Combined ratio	90.9		%	91.4		%	89.3		%	95.8		%	162.8		%	98.8		%	107.6		%

AXIS CAPITAL HOLDINGS LIMITED

NET INVESTMENT INCOME


													Years ended December 31,
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022		2024		2023

Fixed maturities	$	164,283	$	163,002	$	154,023	$	139,396	$	139,183	$	105,077	$	620,704	$	514,842
Other investments	9,099		19,594		14,301		5,673		24,954		24,242		48,666		20,411
Equity securities	3,574		3,529		3,057		2,762		3,592		3,041		12,922		12,088
Mortgage loans	7,617		8,175		9,108		9,130		9,154		8,084		34,028		35,312
Cash and cash equivalents	17,804		14,402		13,733		13,661		14,622		10,127		59,600		50,261
Short-term investments	1,421		3,919		3,766		3,463		2,939		1,964		12,569		8,924

Gross investment income	203,798		212,621		197,988		174,085		194,444		152,535		788,489		641,838
Investment expense	(8,025)		(7,521)		(7,013)		(6,702)		(7,507)		(5,450)		(29,260)		(30,096)

Net investment income	$	195,773	$	205,100	$	190,975	$	167,383	$	186,937	$	147,085	$	759,229	$	611,742

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS


	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2024			2024			2024			2024			2023			2022
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	12,152,753		$	13,768,193		$	12,585,137		$	12,269,310		$	12,234,742		$	11,326,894
Fixed maturities, held to maturity, at amortized cost	443,400			503,776			637,792			693,042			686,296			698,351
Equity securities, at fair value	579,274			604,834			589,899			582,178			588,511			485,253
Mortgage loans, held for investment, at fair value	505,697			524,929			544,859			609,704			610,148			627,437
Other investments, at fair value	930,278			939,734			936,680			934,724			949,413			996,751
Equity method investments	206,994			197,712			193,705			182,594			174,634			148,288
Short-term investments, at fair value	223,666			127,867			57,436			75,879			17,216			70,310
Total investments	15,042,062			16,667,045			15,545,508			15,347,431			15,260,960			14,353,284
Cash and cash equivalents	3,063,621			1,471,326			1,655,063			1,841,574			1,383,985			1,174,653
Accrued interest receivable	114,012			125,770			118,147			107,131			106,055			94,418
Insurance and reinsurance premium balances receivable	3,169,355			3,408,271			3,686,819			3,517,242			3,067,554			2,733,464
Reinsurance recoverable on unpaid losses and loss expenses	6,840,897			6,810,929			6,591,821			6,503,188			6,323,083			5,831,172
Reinsurance recoverable on paid losses and loss expenses	546,287			476,045			483,447			472,660			575,847			539,676
Deferred acquisition costs	524,837			574,012			592,067			543,343			450,950			473,569
Prepaid reinsurance premiums	1,936,979			2,020,952			2,113,364			2,060,717			1,916,087			1,550,370
Receivable for investments sold	3,693			871			11,899			5,686			8,767			16,052
Goodwill	66,498			100,801			100,801			100,801			100,801			100,801
Intangible assets	175,967			178,696			181,426			184,155			186,883			197,800

Operating lease right-of-use assets	92,516			97,912			101,101			104,162			108,093			92,214
Loan advances made	247,775			283,624			328,921			345,065			305,222			87,160
Other assets	695,794			506,394			568,498			625,535			456,385			438,338
TOTAL ASSETS	$	32,520,293		$	32,722,648		$	32,078,882		$	31,758,690		$	30,250,672		$	27,682,971

LIABILITIES
Reserve for losses and loss expenses	$	17,218,929		$	17,295,329		$	16,738,871		$	16,630,897		$	16,434,018		$	15,168,863
Unearned premiums	5,211,865			5,452,873			5,674,787			5,353,827			4,747,602			4,361,447
Insurance and reinsurance balances payable	1,713,798			1,828,297			2,005,126			1,909,309			1,792,719			1,609,924
Debt	1,315,179			1,314,806			1,314,438			1,314,074			1,313,714			1,312,314
Federal Home Loan Bank advances	66,380			75,580			85,790			85,790			85,790			81,388
Payable for investments purchased	269,728			127,609			118,706			493,582			26,093			19,693
Operating lease liabilities	106,614			115,176			116,264			119,124			123,101			102,577
Other liabilities	528,421			429,751			365,429			346,932			464,439			386,855
TOTAL LIABILITIES	26,430,914			26,639,421			26,419,411			26,253,535			24,987,476			23,043,061

SHAREHOLDERS’ EQUITY
Preferred shares	550,000			550,000			550,000			550,000			550,000			550,000
Common shares	2,206			2,206			2,206			2,206			2,206			2,206
Additional paid-in capital	2,394,063			2,385,905			2,376,244			2,368,144			2,383,030			2,366,253
Accumulated other comprehensive income (loss)	(267,557)			(76,738)			(394,968)			(411,849)			(365,836)			(760,300)
Retained earnings	7,341,569			7,092,817			6,957,185			6,790,558			6,440,528			6,247,022
Treasury shares, at cost	(3,930,902)			(3,870,963)			(3,831,196)			(3,793,904)			(3,746,732)			(3,765,271)


TOTAL SHAREHOLDERS' EQUITY	6,089,379			6,083,227			5,659,471			5,505,155			5,263,196			4,639,910

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	32,520,293		$	32,722,648		$	32,078,882		$	31,758,690		$	30,250,672		$	27,682,971



Book value per common share	$66.75			$66.15			$60.70			$58.51			$55.26			$48.31
Book value per diluted common share	$65.27			$64.65			$59.29			$57.13			$54.06			$46.95
Tangible book value per diluted common share	$62.97			$61.95			$56.59			$54.42			$51.34			$44.13
Debt to total capital [a]	17.8		%	17.8		%	18.8		%	19.3		%	20.0		%	22.0		%

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

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS PORTFOLIO


	At December 31, 2024												At December 31, 2023
	Cost or Amortized Cost		Allowance for Expected Credit Losses		Unrealized Gains		Unrealized Losses		Fair Value or Net Carrying Value		Percentage		Fair Value or Net Carrying Value		Percentage
Fixed Maturities, available for sale, at fair value
U.S. government and agency	$	2,830,111	$	—	$	6,011	$	(33,136)	$	2,802,986	15.5	%	$	3,007,528	18.1	%
Non-U.S. government	753,315		—		2,584		(25,960)		729,939		4.1	%	723,959		4.3	%
Corporate debt	4,941,510		(3,690)		30,594		(126,224)		4,842,190		27.0	%	4,474,172		26.7	%
Agency RMBS	1,245,681		—		1,154		(61,990)		1,184,845		6.6	%	1,634,661		9.8	%
CMBS	852,534		—		1,244		(34,170)		819,608		4.6	%	839,696		5.0	%
Non-Agency RMBS	132,116		(195)		597		(9,982)		122,536		0.7	%	153,396		0.9	%
ABS	1,547,350		(53)		5,812		(13,277)		1,539,832		8.6	%	1,242,971		7.4	%
Municipals	117,288		—		125		(6,596)		110,817		0.6	%	158,359		0.9	%
Total fixed maturities, available for sale, at fair value	12,419,905		(3,938)		48,121		(311,335)		12,152,753		67.7	%	12,234,742		73.1	%

Fixed maturities, held to maturity, at amortized cost
Corporate debt	122,706		—		—		—		122,706		0.7	%	95,200		0.6	%
ABS	320,694		—		—		—		320,694		1.8	%	591,096		3.5	%
Total fixed maturities, held to maturity, at amortized cost	443,400		—		—		—		443,400		2.5	%	686,296		4.1	%
Equity securities, at fair value
Common stocks	3,061		—		65		(488)		2,638		—	%	2,546		—	%
Preferred stocks	5,843		—		136		(112)		5,867		—	%	5,601		—	%
Exchange-traded funds	188,771		—		126,477		(1,206)		314,042		1.7	%	287,275		1.7	%
Bond mutual funds	323,068		—		540		(66,881)		256,727		1.5	%	293,089		1.8	%
Total equity securities, at fair value	520,743		—		127,218		(68,687)		579,274		3.2	%	588,511		3.5	%

Total fixed maturities and equity securities	$	13,384,048	$	(3,938)	$	175,339	$	(380,022)	13,175,427		73.4	%	13,509,549		80.7	%
Mortgage loans, held for investment									505,697		2.8	%	610,148		3.6	%
Other investments									930,278		5.2	%	949,413		5.7	%
Equity method investments									206,994		1.2	%	174,634		1.0	%
Short-term investments									223,666		1.2	%	17,216		0.2	%
Total investments									15,042,062		83.8	%	15,260,960		91.2	%
Cash and cash equivalents [a]									3,063,621		17.1	%	1,383,985		8.3	%
Accrued interest receivable									114,012		0.6	%	106,055		0.6	%
Net receivable/(payable) for investments sold (purchased)									(266,035)		(1.5	%)	(17,326)		(0.1	%)
Total cash and invested assets									$	17,953,660	100.0	%	$	16,733,674	100.0	%

[a] Includes $920 million and $431 million of restricted cash and cash equivalents at December 31, 2024 and December 31, 2023, respectively.


	At December 31, 2024				At December 31, 2023
	Fair Value		Percentage		Fair Value		Percentage
Other Investments:

Multi-strategy funds	24,919		2.7	%	24,619		2.6	%

Direct lending funds	171,048		18.4	%	192,270		20.3	%
Real estate funds	291,640		31.3	%	317,325		33.4	%
Private equity funds	320,690		34.5	%	301,712		31.8	%
Other privately held investments	121,981		13.1	%	108,187		11.4	%
Collateralized loan obligations - equity tranches	—		—	%	5,300		0.5	%

Total	$	930,278	100.0	%	$	949,413	100.0	%

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS COMPOSITION


	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022
	Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities, available for sale:
U.S. government and agency	15.5	%	15.5	%	15.4	%	15.6	%	18.1	%	16.8	%
Non-U.S. government	4.1	%	4.5	%	4.4	%	4.4	%	4.3	%	3.6	%
Corporate debt	27.0	%	31.6	%	29.6	%	29.2	%	26.7	%	27.2	%
MBS:
Agency RMBS	6.6	%	9.6	%	9.3	%	9.4	%	9.8	%	7.7	%
CMBS	4.6	%	4.5	%	4.8	%	4.9	%	5.0	%	6.1	%
Non-agency RMBS	0.7	%	0.7	%	0.7	%	0.8	%	0.9	%	0.9	%
ABS	8.6	%	8.7	%	8.0	%	7.8	%	7.4	%	9.2	%
Municipals	0.6	%	0.8	%	0.9	%	0.9	%	0.9	%	1.0	%

Total Fixed Maturities, available for sale	67.7	%	75.9	%	73.1	%	73.0	%	73.1	%	72.5	%
Fixed Maturities, held to maturity:
Corporate debt	0.7	%	0.7	%	0.6	%	0.6	%	0.6	%	0.5	%
ABS	1.8	%	2.1	%	3.1	%	3.5	%	3.5	%	4.0	%

Total Fixed Maturities, held to maturity	2.5	%	2.8	%	3.7	%	4.1	%	4.1	%	4.5	%
Equity securities	3.2	%	3.3	%	3.4	%	3.5	%	3.5	%	3.1	%
Mortgage loans	2.8	%	2.9	%	3.2	%	3.6	%	3.6	%	4.0	%
Other investments	5.2	%	5.2	%	5.4	%	5.6	%	5.7	%	6.4	%
Equity method investments	1.2	%	1.1	%	1.1	%	1.1	%	1.0	%	0.9	%
Short-term investments	1.2	%	0.7	%	0.4	%	0.4	%	0.2	%	0.5	%

Total investments	83.8	%	91.9	%	90.3	%	91.3	%	91.2	%	91.9	%
Cash and cash equivalents	17.1	%	8.1	%	9.6	%	11.0	%	8.3	%	7.5	%
Accrued interest receivable	0.6	%	0.7	%	0.7	%	0.6	%	0.6	%	0.6	%
Net receivable/(payable) for investments sold (purchased)	(1.5	%)	(0.7	%)	(0.6	%)	(2.9	%)	(0.1	%)	—	%
Total Cash and Invested Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency	22.3	%	19.7	%	20.2	%	20.0	%	23.3	%	21.9	%
AAA [a]	21.2	%	20.1	%	21.0	%	21.7	%	21.3	%	34.9	%
AA [a]	18.7	%	20.5	%	20.4	%	20.4	%	20.5	%	7.3	%
A	16.6	%	17.8	%	16.8	%	16.1	%	15.9	%	15.3	%
BBB	9.5	%	11.9	%	11.4	%	11.6	%	11.0	%	11.5	%
Below BBB	11.7	%	10.0	%	10.2	%	10.2	%	8.0	%	9.1	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

MATURITY PROFILE OF FIXED MATURITIES
Within one year	7.1	%	5.2	%	4.3	%	3.3	%	3.6	%	3.4	%
From one to five years	44.7	%	43.4	%	42.7	%	44.7	%	45.1	%	42.5	%
From five to ten years	14.9	%	17.1	%	18.0	%	16.3	%	15.6	%	16.4	%
Above ten years	1.6	%	1.7	%	1.3	%	1.3	%	1.2	%	1.7	%
Asset-backed and mortgage-backed securities	31.7	%	32.6	%	33.7	%	34.4	%	34.5	%	36.0	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	4.5	%	4.4	%	4.4	%	4.3	%	4.2	%	3.5	%
Yield to maturity of fixed maturities	5.3	%	4.9	%	5.7	%	5.6	%	5.4	%	5.6	%
Average duration of fixed maturities (inclusive of duration hedges)	2.8	yrs	3.0 yrs		3.1 yrs		3.0 yrs		3.0 yrs		3.0 yrs
Average credit quality of fixed maturities	A+		A+		A+		A+		AA-		AA-

[a] Includes U.S. government-sponsored agencies, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS") and reflect the downgrade of the U.S. government on August 1, 2023.

AXIS CAPITAL HOLDINGS LIMITED

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At December 31, 2024


Available for sale, at fair value	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total

Residential MBS	$	1,184,845		$	115,115		$	5,280		$	250		$	81		$	1,810		$	1,307,381
Commercial MBS	142,214			614,801			51,411			7,439			2,732			1,011			819,608
ABS	—			1,296,079			137,321			71,459			33,388			1,585			1,539,832

Total mortgage-backed and asset-backed securities, available for sale, at fair value	$	1,327,059		$	2,025,995		$	194,012		$	79,148		$	36,201		$	4,406		$	3,666,821

Percentage of total	36.2		%	55.3		%	5.3		%	2.2		%	1.0		%	—		%	100.0		%


Held to maturity, at amortized cost	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total

ABS	$	—		$	141,520		$	179,174		$	—		$	—		$	—		$	320,694

Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost	$	—		$	141,520		$	179,174		$	—		$	—		$	—		$	320,694

Percentage of total	—		%	44.1		%	55.9		%	—		%	—		%	—		%	100.0		%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES


	Quarter ended December 31, 2024						Year ended December 31, 2024
	Reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses and loss expenses		Net reserve for losses and loss expenses		Reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses and loss expenses		Net reserve for losses and loss expenses
Reserve for losses and loss expenses

Beginning of period	$	17,295,329	$	(6,810,929)	$	10,484,400	$	16,434,018	$	(6,323,083)	$	10,110,935
Incurred losses and loss expenses	1,386,684		(554,728)		831,956		5,197,084		(2,038,597)		3,158,487
Paid losses and loss expenses	(1,204,981)		447,700		(757,281)		(4,281,275)		1,382,466		(2,898,809)
Foreign exchange and other	(258,103)		77,060		(181,043)		(130,898)		138,317		7,419

End of period [a]	$	17,218,929	$	(6,840,897)	$	10,378,032	$	17,218,929	$	(6,840,897)	$	10,378,032

[a] At December 31, 2024, reserve for losses and loss expenses included IBNR of $11.8 billion, or 68% (December 31, 2023: $10.9 billion, or 66%).

AXIS CAPITAL HOLDINGS LIMITED

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


	Quarter ended December 31, 2024									Year ended December 31, 2024
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

Gross paid losses and loss expenses	$	794,462		$	410,519		$	1,204,981		$	2,621,905		$	1,659,370		$	4,281,275
Reinsurance recoverable on paid losses and loss expenses	(343,683)			(104,017)			(447,700)			(998,697)			(383,769)			(1,382,466)

Net paid losses and loss expenses	450,779			306,502			757,281			1,623,208			1,275,601			2,898,809

Change in gross case reserves	60,681			(18,317)			42,364			222,770			(282,595)			(59,825)
Change in gross IBNR	120,066			19,273			139,339			822,211			153,423			975,634
Change in reinsurance recoverable on unpaid losses and loss expenses	(28,215)			(78,813)			(107,028)			(422,769)			(233,362)			(656,131)
Change in net unpaid losses and loss expenses	152,532			(77,857)			74,675			622,212			(362,534)			259,678

Total net incurred losses and loss expenses	$	603,311		$	228,645		$	831,956		$	2,245,420		$	913,067		$	3,158,487

Gross reserve for losses and loss expenses	$	10,499,702		$	6,719,226		$	17,218,929		$	10,499,702		$	6,719,226		$	17,218,929

Net favorable (adverse) prior year reserve development	$	12,200		$	4,111		$	16,311		$	16,209		$	8,114		$	24,323

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	74.7		%	134.1		%	91.0		%	72.3		%	139.7		%	91.8		%

Net paid losses and loss expenses / Net premiums earned	43.9		%	87.3		%	55.0		%	41.3		%	92.4		%	54.6		%
Net unpaid losses and loss expenses / Net premiums earned	14.9		%	(22.2		%)	5.4		%	15.9		%	(26.2		%)	4.9		%
Net losses and loss expenses ratio	58.8		%	65.1		%	60.4		%	57.2		%	66.2		%	59.5		%

AXIS CAPITAL HOLDINGS LIMITED

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, U.S. GAAP


	Quarters ended December 31,				Years ended December 31,
	2024		2023		2024		2023

Net income (loss) available (attributable) to common shareholders	$	286,069	$	(150,145)	$	1,051,536	$	346,042

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding	83,380		85,268		84,165		85,142
Dilutive share equivalents:

Share-based compensation plans [a]	1,315		—		1,011		870
Weighted average diluted common shares outstanding	84,695		85,268		85,176		86,012

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$3.43		($1.76)		$12.49		$4.06
Earnings (loss) per diluted common share	$3.38		($1.76)		$12.35		$4.02

[a] Due to the net loss attributable to common shareholders recognized for the quarter ended December 31, 2023, the share equivalents were anti-dilutive.

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFORWARD


	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022

Net income (loss) available (attributable) to common shareholders	$	286,069	$	173,165	$	204,401	$	387,896	$	(150,145)	$	40,928

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	83,649		84,179		84,687		85,286		85,228		84,666
Shares issued and treasury shares reissued	28		12		37		682		167		8
Shares repurchased for treasury	(693)		(542)		(545)		(1,281)		(109)		(6)
Common shares - at end of period	82,984		83,649		84,179		84,687		85,286		84,668

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding	83,380		83,936		84,475		84,879		85,268		84,667
Dilutive share equivalents:

Share-based compensation plans [a]	1,315		1,064		851		814		—		988
Weighted average diluted common shares outstanding	84,695		85,000		85,326		85,693		85,268		85,655

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$3.43		$2.06		$2.42		$4.57		($1.76)		$0.48
Earnings (loss) per diluted common share	$3.38		$2.04		$2.40		$4.53		($1.76)		$0.48

[a] Due to the net loss attributable to common shareholders recognized for the quarter ended December 31, 2023, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

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


	At December 31, 2024

	Common Shareholders’ Equity		Common Shares Outstanding, net of Treasury Shares	Per share

Closing stock price				$88.62





Book value per common share	$	5,539,379	82,984	$66.75

Dilutive securities:
Restricted stock units			1,886	(1.48)
Book value per diluted common share	$	5,539,379	84,870	$65.27

	At December 31, 2023

	Common Shareholders’ Equity		Common Shares Outstanding, net of Treasury Shares	Per share

Closing stock price				$55.37

Book value per common share	$	4,713,196	85,286	$55.26





Dilutive securities


Restricted stock units			1,903	(1.20)
Book value per diluted common share	$	4,713,196	87,189	$54.06

[a] Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.

TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE



	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q4 2022
Common shareholders' equity	$	5,539,379	$	5,533,227	$	5,109,471	$	4,955,155	$	4,713,196	$	4,089,910
Less: goodwill	(66,498)		(100,801)		(100,801)		(100,801)		(100,801)		(100,801)
Less: intangible assets	(175,967)		(178,696)		(181,426)		(184,155)		(186,883)		(197,800)
Associated tax impact	47,530		48,507		49,128		49,749		50,371		52,856
Tangible common shareholders' equity	$	5,344,444	$	5,302,237	$	4,876,372	$	4,719,948	$	4,475,883	$	3,844,165

Diluted common shares outstanding, net of treasury shares [a]	84,870		85,583		86,172		86,738		87,189		87,113

Book value per diluted common share	$	65.27	$	64.65	$	59.29	$	57.13	$	54.06	$	46.95

Tangible book value per diluted common share	$	62.97	$	61.95	$	56.59	$	54.42	$	51.34	$	44.13

[a] Diluted common shares outstanding, net of treasury shares is calculated in the table above.

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY



	Quarters ended December 31,						Years ended December 31,
	2024			2023			2024			2023
Net income (loss) available (attributable) to common shareholders	$	286,069		$	(150,145)		$	1,051,536		$	346,042

Net investment (gains) losses	108,030			(23,041)			138,534			74,630
Foreign exchange losses (gains)	(112,090)			69,871			(50,822)			58,115
Reorganization expenses	—			—			26,312			28,997
Interest in income of equity method investments	(7,264)			(1,328)			(17,953)			(4,163)
Bermuda net deferred tax asset [a]	(14,218)			—			(176,923)			—
Income tax benefit [b]	(8,711)			(2,348)			(18,649)			(17,488)
Operating income (loss)	$	251,816		$	(106,991)		$	952,035		$	486,133


Earnings (loss) per diluted common share	$	3.38		$	(1.76)		$	12.35		$	4.02

Net investment (gains) losses	1.28			(0.27)			1.63			0.87

Foreign exchange losses (gains)	(1.32)			0.82			(0.60)			0.68

Reorganization expenses	—			—			0.31			0.34
Interest in income of equity method investments	(0.09)			(0.02)			(0.21)			(0.05)








Bermuda net deferred tax asset	(0.17)			—			(2.08)			—
Income tax benefit	(0.11)			(0.02)			(0.22)			(0.21)
Operating income (loss) per diluted common share	$	2.97		$	(1.25)		$	11.18		$	5.65

Weighted average diluted common shares outstanding	84,695			85,268			85,176			86,012



Average common shareholders' equity	$	5,536,303		$	4,598,202		$	5,126,288		$	4,401,553

Annualized return on average common equity	20.7		%	(13.1		%)	20.5		%	7.9		%

Annualized operating return on average common equity	18.2		%	(9.3		%)	18.6		%	11.0		%

[a] Net deferred tax benefit due to the recognition of deferred tax assets net of deferred tax liabilities related to a future Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023.

[b] Tax expense (benefit) associated with the adjustments to net income (loss) available (attributable) to common shareholders. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

AXIS CAPITAL HOLDINGS LIMITED

RATIONALE FOR THE USE OF NON-GAAP FINANCIAL MEASURES

We present our results of operations in a way we believe will be 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 considered non-GAAP financial measures under SEC rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), current accident year loss ratio, catastrophe and weather-related losses ratio, current accident year loss ratio, excluding catastrophe and weather-related losses, operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), tangible book value per diluted common share which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help 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 accounting principles generally accepted in the United States of America ("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 underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure 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 underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations' section of this document.

Consolidated Underwriting Income (Loss)

Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note 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 a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net

investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance. Therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt and Federal Home Loan Bank advances. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income (loss).

Reorganization expenses in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. Reorganization expenses in 2023 primarily related to impairments of computer software assets and severance costs attributable to our "How We Work" program. Reorganization expenses in 2022 primarily related to severance costs and impairments of computer software assets mainly attributable to our exit from catastrophe and property reinsurance lines of business which was part of an overall approach to reduce our exposure to volatile catastrophe risk. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets arose from business decisions, the nature and timing of which are not related to the underwriting process. Therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) 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 (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations' section of this document.

Current Accident Year Loss Ratio

Current accident year loss ratio represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development. We believe that the presentation of current accident year loss ratio provides investors with an enhanced understanding of our results of operations by highlighting net losses and loss expenses associated with our underwriting activities excluding the impact of volatile prior year reserve development. The reconciliation of current accident year loss ratio to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Financial Highlights' section of this document.

Catastrophe and Weather-Related Losses Ratio and Current Accident Year Loss Ratio, excluding Catastrophe and Weather-Related Losses

Catastrophe and weather-related losses ratio represents net losses and loss expenses ratio associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events exclusive of net favorable (adverse) prior year reserve development.

Current accident year loss ratio, excluding catastrophe and weather-related losses represents net losses and loss expenses ratio exclusive of net favorable (adverse) prior year reserve development and net losses and loss expenses associated with natural disasters, man-made catastrophes, other catastrophe events and other weather-related events.

We believe that the presentation of these ratios that separately identify net losses and loss expenses associated with catastrophe and weather-related events provide investors with an enhanced understanding of our results of operations due to the inherently unpredictable nature of the occurrence of these events, the potential magnitude of these losses and the complexity that affects our ability to accurately estimate ultimate losses associated with these events.

The reconciliation of catastrophe and weather-related losses ratio and current accident year loss ratio, excluding catastrophe and weather-related losses to net losses and loss expenses ratio, the most comparable GAAP financial measure, is presented in the 'Financial Highlights' section of this document.

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset.

Although the investment of premiums to generate income and 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 operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio, including unrealized foreign exchange losses (gains) on our equity securities, and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities recognized in net investment gains (losses), and unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss), generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business. Therefore, foreign exchange losses (gains) are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process. Therefore, this income (loss) is excluded from operating income (loss).

Bermuda net deferred tax asset is due to the recognition of deferred tax assets net of deferred tax liabilities related to a future Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023 effective for fiscal years beginning on or after January 1, 2025. The Bermuda net deferred tax asset is not related to the underwriting process. Therefore, this income is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset in order to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda net deferred tax asset 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 operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

Tangible Book Value per Diluted Common Share

Tangible book value represents common shareholders' equity exclusive of after-tax goodwill and intangible assets. We present tangible book value per diluted common share calculated under the treasury stock method. We believe that this measure, in combination with book value per diluted common share, is useful in assessing value generated for our common shareholders. A reconciliation of tangible book value per diluted common share to book value per diluted common share, the most comparable GAAP financial measure, is presented in the 'Tangible Book Value per Diluted Common Share' section of this document.

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