EX-99.2 3 q22021financialsupplement.htm EX-99.2 Document






 

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AXIS CAPITAL HOLDINGS LIMITED








INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2021











AXIS Capital Holdings Limited
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Matt Rohrmann
Investor Contact
(212) 940-3339
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.


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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
   Page(s)
  
i - iv
  
II. Income Statements  
  
  
  
  
  
III. Balance Sheets  
  
b. Cash and Invested Assets:  
  
  
  
  
  
  
IV. Losses Reserve Analysis  
  
  
  
  
V. Share Analysis  
  
  
  
VI. Non-GAAP Financial Measures  
  


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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, 2020 and and consolidated statements of operations for the years ended December 31, 2020 and December 31, 2019.
•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 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", "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 catastrophes and other weather-related losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market 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 conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices and foreign currency 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:

•the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition and liquidity;
•the cyclical nature of the 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;
•the impact of global climate change on our business, including the possibility that we do not adequately assess or reserve for the increased frequency and severity of natural catastrophes;
•losses from war, terrorism and political unrest or other unanticipated losses;
•actual claims exceeding loss reserves;
•general economic, capital and credit market conditions, including fluctuations in interest rates, credit spreads, equity securities' prices and/or foreign currency rates;
•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;
•the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;
•the loss of business provided to us by major brokers;
•breaches by third parties in our program business of their obligations to us;
•difficulties with technology and/or data security;
•the failure of our policyholders or intermediaries to pay premiums;
•the failure of our cedants to adequately evaluate risks;
•the inability to obtain additional capital on favorable terms, or at all;
•the loss of one or more of our key executives;
•a decline in our ratings with rating agencies;
•changes in accounting policies or practices;
•the use of industry models and changes to these models;
•changes in governmental regulations and potential government intervention in our industry;
•inadvertent failure to comply with certain laws and regulations relating to sanctions and foreign corrupt practices;
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•changes in the political environment of certain countries in which we operate or underwrite business including the United Kingdom's withdrawal from the European Union;
•changes in tax laws; and
•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. Readers are urged to carefully consider all such factors as the COVID-19 pandemic may have the effect of heightening many of the other risks and uncertainties described.


We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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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 cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore renewable energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed.
Marine: provides cover for traditional marine classes, including offshore energy, renewable offshore energy, cargo, liability, recreational marine, fine art, specie, and hull war. Offshore energy coverage includes 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.
Terrorism: provides cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap and ransom, and crisis management insurance.
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.
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 default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events.
Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy insurance, medical malpractice and other financial insurance related covers for commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
Liability: primarily targets primary and low to mid-level excess and umbrella commercial 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.
Accident and Health: includes accidental death, travel insurance and specialty health products for employer and affinity groups.
Discontinued Lines - Novae: includes those lines of business that Novae Group plc ("Novae") exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued insurance lines include financial institutions, professional indemnity, international liability, and international direct and facultative property.


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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. 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 underlying policies principally cover property-related exposures but other exposures including workers compensation and 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 excess of loss basis.
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 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, flood, industrial explosions, fire, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis.
Credit and Surety: provides reinsurance of trade credit insurance products and includes 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. Surety reinsurance provides protection 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. Mortgage reinsurance is also provided to mortgage guaranty insurers and U.S. government-sponsored entities for losses related to credit risk transfer into the private sector.
Professional Lines: provides protection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, 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.
Motor: provides protection 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. Traditional proportional and non-proportional reinsurance as well as structured solutions are offered.
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, and excess casualty.
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.
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: includes specialty marine classes 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.

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.
Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued reinsurance lines include motor reinsurance, general liability reinsurance, and international facultative property.

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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
  Three months ended June 30,Six months ended June 30,
  20212020Change20212020Change
HIGHLIGHTSGross premiums written$1,941,186 $1,716,183 13.1 %$4,476,667 $4,147,341 7.9 %
Gross premiums written - Insurance65.3 %60.5 %4.8 pts53.0 %47.7 %5.3 pts
Gross premiums written - Reinsurance34.7 %39.5 %(4.8)pts47.0 %52.3 %(5.3)pts
Net premiums written$1,203,858 $1,055,934 14.0 %$2,982,744 $2,734,978 9.1 %
Net premiums earned$1,156,941 $1,104,003 4.8 %$2,260,663 $2,192,628 3.1 %
Net premiums earned - Insurance54.6 %52.3 %2.3 pts55.2 %52.0 %3.2 pts
Net premiums earned - Reinsurance45.4 %47.7 %(2.3)pts44.8 %48.0 %(3.2)pts
Net income (loss) available (attributable) to common shareholders$227,910 $112,477 nm$343,645 $(72,908)nm
Operating income (loss) [a]
170,508 71,503 nm253,247 (92,908)nm
Annualized return on average common equity [b]
19.3 %10.0 %9.3 pts14.3 %(3.1)%17.4 pts
Annualized operating return on average common equity [c]
14.4 %6.3 %8.1 pts10.6 %(3.9)%14.5 pts
Total shareholders’ equity$5,389,760 $5,297,820 1.7 %$5,389,760 $5,297,820 1.7 %
PER COMMON SHARE AND COMMON SHARE DATAEarnings (loss) per diluted common share$2.67 $1.33 nm$4.04 ($0.87)nm
Operating income (loss) per diluted common share [d]
$2.00 $0.84 nm$2.98 ($1.11)nm
Weighted average diluted common shares outstanding85,267 84,600 0.8 %85,117 84,198 1.1 %
Book value per common share$57.09 $56.32 1.4 %$57.09 $56.32 1.4 %
Book value per diluted common share (treasury stock method)$55.50 $55.09 0.7 %$55.50 $55.09 0.7 %
Tangible book value per diluted common share (treasury stock method) [a]
$52.50 $51.79 1.4 %$52.50 $51.79 1.4 %
FINANCIAL RATIOSCurrent accident year loss ratio excluding catastrophe and weather-related losses55.7 %58.0 %(2.3)pts55.4 %57.5 %(2.1)pts
Catastrophe and weather-related losses ratio2.5 %3.5 %(1.0)pts6.2 %15.2 %(9.0)pts
Current accident year loss ratio58.2 %61.5 %(3.3)pts61.6 %72.7 %(11.1)pts
Prior year reserve development ratio(0.6 %)(0.2 %)(0.4)pts(0.5 %)(0.4 %)(0.1)pts
Net losses and loss expenses ratio57.6 %61.3 %(3.7)pts61.1 %72.3 %(11.2)pts
Acquisition cost ratio18.9 %20.7 %(1.8)pts19.4 %21.3 %(1.9)pts
General and administrative expense ratio [e]
14.1 %12.7 %1.4 pts14.2 %13.5 %0.7 pts
Combined ratio90.6 %94.7 %(4.1)pts94.7 %107.1 %(12.4)pts
INVESTMENT DATATotal assets$27,581,730 $26,359,173 4.6 %$27,581,730 $26,359,173 4.6 %
Total cash and invested assets [f]
16,107,625 15,224,701 5.8 %16,107,625 15,224,701 5.8 %
Net investment income104,672 45,040 nm218,836 138,140 58.4 %
Net investment gains (losses)73,293 53,043 38.2 %$102,936 $(9,831)nm
Book yield of fixed maturities2.0 %2.5 %(0.5)pts2.0 %2.5 %(0.5)pts
[a]    Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE") 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") and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this document. Loss per diluted common share and operating loss per diluted common share for the six months ended June 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in the period.
[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).
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020
Three months ended June 30,Six months ended June 30,
2021202020212020
Revenues
Net premiums earned$1,156,941 $1,104,003 $2,260,663 $2,192,628 
Net investment income104,672 45,040 218,836 138,140 
Net investment gains (losses)73,293 53,043 102,936 (9,831)
Other insurance related income (loss)5,817 1,996 8,598 (6,710)
Total revenues1,340,723 1,204,082 2,591,033 2,314,227 
Expenses
Net losses and loss expenses666,473 676,261 1,381,190 1,584,335 
Acquisition costs219,070 228,502 437,941 467,152 
General and administrative expenses162,452 140,652 320,860 297,712 
Foreign exchange losses (gains)19,602 9,709 23,716 (51,974)
Interest expense and financing costs15,235 20,595 30,806 44,067 
Reorganization expenses— 392 — (591)
Amortization of value of business acquired1,028 1,285 2,056 3,083 
Amortization of intangible assets3,324 2,855 6,013 5,725 
Total expenses1,087,184 1,080,251 2,202,582 2,349,509 
Income (loss) before income taxes and interest in income (loss) of equity method investments253,539 123,831 388,451 (35,282)
Income tax expense(27,865)(10,893)(48,641)(6,026)
Interest in income (loss) of equity method investments9,799 7,102 18,960 (16,475)
Net income (loss)235,473 120,040 358,770 (57,783)
Preferred share dividends7,563 7,563 15,125 15,125 
Net income (loss) available (attributable) to common shareholders$227,910 $112,477 $343,645 $(72,908)




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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
UNDERWRITING REVENUES
Gross premiums written$1,941,186 $2,535,481 $1,348,419 $1,331,178 $1,716,183 $1,647,760 
Ceded premiums written(737,328)(756,595)(562,970)(515,196)(660,249)(577,439)
Net premiums written1,203,858 1,778,886 785,449 815,982 1,055,934 1,070,321 
Gross premiums earned1,794,769 1,671,139 1,735,932 1,680,529 1,694,861 1,680,663 
Ceded premiums earned(637,828)(567,417)(648,564)(589,217)(590,858)(557,056)
Net premiums earned1,156,941 1,103,722 1,087,368 1,091,312 1,104,003 1,123,607 
Other insurance related income (loss)5,817 2,781 (2,819)1,440 1,996 2,925 
Total underwriting revenues1,162,758 1,106,503 1,084,549 1,092,752 1,105,999 1,126,532 
UNDERWRITING EXPENSES
Net losses and loss expenses666,473 714,718 817,239 879,677 676,261 672,463 
Acquisition costs219,070 218,871 231,800 230,564 228,502 242,363 
Underwriting-related general and administrative expenses [a]
128,961 132,668 116,345 117,835 113,824 133,047 
Total underwriting expenses1,014,504 1,066,257 1,165,384 1,228,076 1,018,587 1,047,873 
UNDERWRITING INCOME (LOSS) [b]148,254 40,246 (80,835)(135,324)87,412 78,659 
OTHER (EXPENSES) REVENUES
Net investment income104,672 114,165 109,503 101,956 45,040 137,949 
Net investment gains73,293 29,645 83,356 55,609 53,043 21,225 
Corporate expenses [a]
(33,491)(25,740)(26,907)(20,988)(26,828)(32,348)
Foreign exchange (losses) gains(19,602)(4,113)(72,309)(60,734)(9,709)12,381 
Interest expense and financing costs(15,235)(15,571)(15,408)(15,574)(20,595)(15,607)
Reorganization expenses— — (7,059)(1,413)(392)(3,276)
Amortization of value of business acquired(1,028)(1,028)(1,028)(1,028)(1,285)(7,194)
Amortization of intangible assets(3,324)(2,690)(2,827)(2,838)(2,855)(2,912)
Total other (expenses) revenues105,285 94,668 67,321 54,990 36,419 110,218 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS253,539 134,914 (13,514)(80,334)123,831 188,877 
Income tax (expense) benefit(27,865)(20,776)6,291 12,056 (10,893)(14,469)
Interest in income of equity method investments9,799 9,162 9,967 2,896 7,102 2,635 
NET INCOME (LOSS)235,473 123,300 2,744 (65,382)120,040 177,043 
Preferred share dividends(7,563)(7,563)(7,563)(7,563)(7,563)(10,656)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$227,910 $115,737 $(4,819)$(72,945)$112,477 $166,387 
[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 and in the 'Consolidated Statements of Operations - Year' section of this document.

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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses55.7 %55.1 %57.4 %58.5 %58.0 %59.7 %
Catastrophe and weather-related losses ratio2.5 %10.1 %18.4 %22.2 %3.5 %2.3 %
Current accident year loss ratio58.2 %65.2 %75.8 %80.7 %61.5 %62.0 %
Prior year reserve development ratio(0.6 %)(0.4 %)(0.6 %)(0.1 %)(0.2 %)(2.2 %)
Net losses and loss expenses ratio57.6 %64.8 %75.2 %80.6 %61.3 %59.8 %
Acquisition cost ratio18.9 %19.8 %21.3 %21.1 %20.7 %21.6 %
General and administrative expense ratio [a]
14.1 %14.3 %13.1 %12.8 %12.7 %14.7 %
Combined ratio90.6 %98.9 %109.6 %114.5 %94.7 %96.1 %
Weighted average common shares outstanding84,764 84,514 84,341 84,308 84,303 83,941 
Weighted average diluted common shares outstanding85,267 84,965 84,341 84,308 84,600 84,401 
Earnings (loss) per common share$2.69 $1.37 ($0.06)($0.87)$1.33 $1.98 
Earnings (loss) per diluted common share$2.67 $1.36 ($0.06)($0.87)$1.33 $1.97 
Annualized ROACE19.3 %9.9 %(0.4 %)(6.2 %)10.0 %14.3 %
Annualized operating ROACE14.4 %7.1 %(1.4 %)(5.5 %)6.3 %11.8 %
[a]    Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - YEAR
 Six months ended June 30,Year ended December 31,
 20212020201920202019
UNDERWRITING REVENUES
Gross premiums written$4,476,667 $4,147,341 $4,230,986 $6,826,938 $6,898,858 
Ceded premiums written(1,493,923)(1,412,363)(1,383,605)(2,490,529)(2,409,243)
Net premiums written2,982,744 2,734,978 2,847,381 4,336,409 4,489,615 
Gross premiums earned3,465,908 3,352,273 3,365,477 6,768,733 6,910,677 
Ceded premiums earned(1,205,245)(1,159,645)(1,107,658)(2,397,424)(2,323,499)
Net premiums earned2,260,663 2,192,628 2,257,819 4,371,309 4,587,178 
Other insurance related income (loss)8,598 (6,710)9,852 (8,089)16,444 
Total underwriting revenues2,269,261 2,185,918 2,267,671 4,363,220 4,603,622 
UNDERWRITING EXPENSES
Net losses and loss expenses1,381,190 1,584,335 1,336,491 3,281,252 3,044,798 
Acquisition costs437,941 467,152 502,781 929,517 1,024,582 
Underwriting-related general and administrative expenses [a]
261,629 243,786 271,920 477,968 505,735 
Total underwriting expenses2,080,760 2,295,273 2,111,192 4,688,737 4,575,115 
UNDERWRITING INCOME (LOSS)188,501 (109,355)156,479 (325,517)28,507 
OTHER (EXPENSES) REVENUES
Net investment income218,836 138,140 245,254 349,601 478,572 
Net investment gains (losses)102,936 (9,831)33,996 129,133 91,233 
Corporate expenses [a]
(59,231)(53,926)(68,566)(101,822)(129,096)
Foreign exchange (losses) gains(23,716)51,974 5,325 (81,069)12,041 
Interest expense and financing costs(30,806)(44,067)(31,502)(75,049)(68,107)
Reorganization expenses— 591 (18,096)(7,881)(37,384)
Amortization of value of business acquired(2,056)(3,083)(20,298)(5,139)(26,722)
Amortization of intangible assets(6,013)(5,725)(5,914)(11,390)(11,597)
Total other (expenses) revenues199,950 74,073 140,199 196,384 308,940 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS388,451 (35,282)296,678 (129,133)337,447 
Income tax (expense) benefit(48,641)(6,026)(15,703)12,321 (23,692)
Interest in income (loss) of equity method investments18,960 (16,475)4,853 (3,612)9,718 
NET INCOME (LOSS)358,770 (57,783)285,828 (120,424)323,473 
Preferred share dividends(15,125)(15,125)(21,313)(30,250)(41,112)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$343,645 $(72,908)$264,515 $(150,674)$282,361 
[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.

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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - YEAR
 Six months ended June 30,Year ended December 31,
 20212020201920202019
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses55.4 %57.5 %59.3 %57.7 %60.6 %
Catastrophe and weather-related losses ratio6.2 %15.2 %1.6 %17.7 %7.5 %
Current accident year loss ratio61.6 %72.7 %60.9 %75.4 %68.1 %
Prior year reserve development ratio(0.5 %)(0.4 %)(1.7 %)(0.3 %)(1.7 %)
Net losses and loss expenses ratio61.1 %72.3 %59.2 %75.1 %66.4 %
Acquisition cost ratio19.4 %21.3 %22.3 %21.3 %22.3 %
General and administrative expense ratio [a]
14.2 %13.5 %15.0 %13.2 %13.9 %
Combined ratio94.7 %107.1 %96.5 %109.6 %102.6 %
Weighted average common shares outstanding84,640 84,198 83,834 84,262 83,894 
Weighted average diluted common shares outstanding85,117 84,198 84,338 84,262 84,473 
Earnings (loss) per common share$4.06 ($0.87)$3.16 ($1.79)$3.37 
Earnings (loss) per diluted common share$4.04 ($0.87)$3.14 ($1.79)$3.34 
Annualized ROACE14.3 %(3.1 %)11.7 %(3.2 %)6.3 %
Annualized operating ROACE10.6 %(3.9 %)10.7 %(3.7 %)4.7 %
[a]     Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA
 Three months ended June 30, 2021Six months ended June 30, 2021
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
UNDERWRITING REVENUES
Gross premiums written$1,268,472 $672,714 $1,941,186 $2,371,670 $2,104,997 $4,476,667 
Ceded premiums written(555,587)(181,741)(737,328)(950,971)(542,952)(1,493,923)
Net premiums written712,885 490,973 1,203,858 1,420,699 1,562,045 2,982,744 
Gross premiums earned1,076,900 717,869 1,794,769 2,089,841 1,376,067 3,465,908 
Ceded premiums earned(445,225)(192,603)(637,828)(841,879)(363,366)(1,205,245)
Net premiums earned631,675 525,266 1,156,941 1,247,962 1,012,701 2,260,663 
Other insurance related income552 5,265 5,817 967 7,631 8,598 
Total underwriting revenues632,227 530,531 1,162,758 1,248,929 1,020,332 2,269,261 
UNDERWRITING EXPENSES
Net losses and loss expenses332,175 334,298 666,473 689,072 692,118 1,381,190 
Acquisition costs106,963 112,107 219,070 224,642 213,299 437,941 
Underwriting-related general and administrative expenses99,569 29,392 128,961 202,872 58,757 261,629 
Total underwriting expenses538,707 475,797 1,014,504 1,116,586 964,174 2,080,760 
UNDERWRITING INCOME$93,520 $54,734 $148,254 $132,343 $56,158 $188,501 
Catastrophe and weather-related losses, net of reinstatement premiums$11,088 $17,474 $28,562 $47,114 $91,698 $138,812 
Net favorable prior year reserve development$6,427 $381 $6,808 $7,932 $4,194 $12,126 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses51.8 %60.4 %55.7 %52.1 %59.5 %55.4 %
Catastrophe and weather-related losses ratio1.8 %3.3 %2.5 %3.8 %9.3 %6.2 %
Current accident year loss ratio53.6 %63.7 %58.2 %55.9 %68.8 %61.6 %
Prior year reserve development ratio(1.0 %)(0.1 %)(0.6 %)(0.7 %)(0.5 %)(0.5 %)
Net losses and loss expenses ratio52.6 %63.6 %57.6 %55.2 %68.3 %61.1 %
Acquisition cost ratio16.9 %21.3 %18.9 %18.0 %21.1 %19.4 %
Underwriting-related general and administrative expense ratio15.8 %5.7 %11.2 %16.3 %5.8 %11.6 %
Corporate expense ratio2.9 %2.6 %
Combined ratio85.3 %90.6 %90.6 %89.5 %95.2 %94.7 %


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AXIS CAPITAL HOLDINGS LIMITED
GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS
Six months ended June 30,Year ended December 31,
 Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019202120202020
INSURANCE SEGMENT
Property$320,393 $261,786 $255,606 $238,599 $278,841 $259,295 $582,179 $502,444 $996,650 
Marine114,061 187,948 63,901 82,810 116,398 99,389 302,009 272,694 419,405 
Terrorism12,339 19,744 13,486 14,767 11,008 15,157 32,083 27,528 55,781 
Aviation29,742 20,402 23,946 22,702 23,794 18,539 50,143 41,024 87,671 
Credit and Political Risk43,140 37,451 56,264 24,473 28,002 36,076 80,592 75,677 156,414 
Professional Lines463,796 337,765 434,868 338,907 346,338 321,284 801,561 604,729 1,378,503 
Liability241,630 193,151 215,131 172,747 204,398 190,030 434,781 375,276 763,155 
Accident and Health43,481 44,847 40,843 39,262 27,419 28,126 88,328 78,480 158,585 
Discontinued Lines - Novae(110)104 254 1,550 1,370 429 (6)431 2,235 
TOTAL INSURANCE SEGMENT$1,268,472 $1,103,198 $1,104,299 $935,817 $1,037,568 $968,325 $2,371,670 $1,978,283 $4,018,399 
REINSURANCE SEGMENT
Catastrophe$133,089 $250,956 $24,497 $74,656 $189,706 $245,203 $384,045 $451,990 $551,143 
Property44,325 126,455 (1,115)58,907 54,763 43,135 170,780 187,952 245,744 
Credit and Surety37,413 83,221 43,519 38,110 50,332 38,465 120,634 151,070 232,699 
Professional Lines148,398 131,255 45,888 31,752 111,725 92,915 279,653 235,295 312,935 
Motor39,781 223,524 (15,427)(2,235)42,970 6,846 263,304 322,102 304,439 
Liability182,106 269,201 113,591 136,791 149,635 125,990 451,308 368,531 618,913 
Engineering(2,502)(2,428)5,552 1,408 3,006 7,600 (4,930)18,926 25,886 
Agriculture46,874 16,441 901 7,455 43,896 70,077 63,314 62,144 70,500 
Marine and Aviation25,613 32,340 10,900 6,341 25,867 22,042 57,954 55,861 73,103 
Accident and Health16,934 301,318 15,706 41,820 6,625 27,723 318,252 314,303 371,828 
Discontinued Lines - Novae683 — 108 356 90 (561)683 884 1,349 
TOTAL REINSURANCE SEGMENT$672,714 $1,432,283 $244,120 $395,361 $678,615 $679,435 $2,104,997 $2,169,058 $2,808,539 
CONSOLIDATED TOTAL$1,941,186 $2,535,481 $1,348,419 $1,331,178 $1,716,183 $1,647,760 $4,476,667 $4,147,341 $6,826,938 








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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 20192020
UNDERWRITING REVENUES
Gross premiums written$1,941,186 $2,535,481 $1,348,419 $1,331,178 $1,716,183 $1,647,760 $6,826,938 
Ceded premiums written(737,328)(756,595)(562,970)(515,196)(660,249)(577,439)(2,490,529)
Net premiums written1,203,858 1,778,886 785,449 815,982 1,055,934 1,070,321 4,336,409 
Gross premiums earned1,794,769 1,671,139 1,735,932 1,680,529 1,694,861 1,680,663 6,768,733 
Ceded premiums earned(637,828)(567,417)(648,564)(589,217)(590,858)(557,056)(2,397,424)
Net premiums earned1,156,941 1,103,722 1,087,368 1,091,312 1,104,003 1,123,607 4,371,309 
Other insurance related income (loss)5,817 2,781 (2,819)1,440 1,996 2,925 (8,089)
  Total underwriting revenues1,162,758 1,106,503 1,084,549 1,092,752 1,105,999 1,126,532 4,363,220 
UNDERWRITING EXPENSES
Net losses and loss expenses666,473 714,718 817,239 879,677 676,261 672,463 3,281,252 
Acquisition costs219,070 218,871 231,800 230,564 228,502 242,363 929,517 
Underwriting-related general and administrative expenses128,961 132,668 116,345 117,835 113,824 133,047 477,968 
  Total underwriting expenses1,014,504 1,066,257 1,165,384 1,228,076 1,018,587 1,047,873 4,688,737 
UNDERWRITING INCOME (LOSS)$148,254 $40,246 $(80,835)$(135,324)$87,412 $78,659 $(325,517)
Catastrophe and weather-related losses, net of reinstatement premiums$28,562 $110,250 $198,028 $240,025 $36,047 $25,564 $773,919 
Net favorable prior year reserve development$6,808 $5,317 $6,559 $584 $2,655 $23,621 $15,909 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses55.7 %55.1 %57.4 %58.5 %58.0 %59.7 %57.7 %
Catastrophe and weather-related losses ratio2.5 %10.1 %18.4 %22.2 %3.5 %2.3 %17.7 %
Current accident year loss ratio58.2 %65.2 %75.8 %80.7 %61.5 %62.0 %75.4 %
Prior year reserve development ratio(0.6 %)(0.4 %)(0.6 %)(0.1 %)(0.2 %)(2.2 %)(0.3 %)
Net losses and loss expenses ratio57.6 %64.8 %75.2 %80.6 %61.3 %59.8 %75.1 %
Acquisition cost ratio18.9 %19.8 %21.3 %21.1 %20.7 %21.6 %21.3 %
Underwriting-related general and administrative expenses ratio14.1 %14.3 %13.1 %12.8 %12.7 %14.7 %13.2 %
Combined ratio90.6 %98.9 %109.6 %114.5 %94.7 %96.1 %109.6 %

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AXIS CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 20192020
UNDERWRITING REVENUES
Gross premiums written$1,268,472 $1,103,198 $1,104,299 $935,817 $1,037,568 $968,325 $4,018,399 
Ceded premiums written(555,587)(395,384)(476,066)(390,960)(434,807)(376,416)(1,660,898)
Net premiums written712,885 707,814 628,233 544,857 602,761 591,909 2,357,501 
Gross premiums earned1,076,900 1,012,941 1,006,930 948,478 952,241 884,480 3,839,727 
Ceded premiums earned(445,225)(396,655)(417,160)(378,294)(375,222)(347,220)(1,540,689)
Net premiums earned631,675 616,286 589,770 570,184 577,019 537,260 2,299,038 
Other insurance related income (loss)552 415 556 688 755 (695)2,647 
Total underwriting revenues632,227 616,701 590,326 570,872 577,774 536,565 2,301,685 
UNDERWRITING EXPENSES
Net losses and loss expenses332,175 356,898 444,444 443,389 337,367 308,703 1,697,014 
Acquisition costs106,963 117,679 117,954 114,569 116,259 111,655 461,533 
Underwriting-related general and administrative expenses99,569 103,303 93,930 94,379 89,751 104,898 378,839 
Total underwriting expenses538,707 577,880 656,328 652,337 543,377 525,256 2,537,386 
UNDERWRITING INCOME (LOSS)$93,520 $38,821 $(66,002)$(81,465)$34,397 $11,309 $(235,701)
Catastrophe and weather-related losses, net of reinstatement premiums$11,088 $36,026 $118,185 $131,853 $15,786 $14,483 $443,440 
Net favorable prior year reserve development$6,427 $1,505 $4,417 $270 $420 $21,326 $8,937 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses51.8 %52.3 %56.1 %54.7 %55.6 %58.7 %55.1 %
Catastrophe and weather-related losses ratio1.8 %5.9 %20.0 %23.1 %2.9 %2.7 %19.1 %
Current accident year loss ratio53.6 %58.2 %76.1 %77.8 %58.5 %61.4 %74.2 %
Prior year reserve development ratio(1.0 %)(0.3 %)(0.7 %)— %— %(3.9 %)(0.4 %)
Net losses and loss expenses ratio52.6 %57.9 %75.4 %77.8 %58.5 %57.5 %73.8 %
Acquisition cost ratio16.9 %19.1 %20.0 %20.1 %20.1 %20.8 %20.1 %
Underwriting-related general and administrative expenses ratio15.8 %16.8 %15.9 %16.5 %15.6 %19.5 %16.5 %
Combined ratio85.3 %93.8 %111.3 %114.4 %94.2 %97.8 %110.4 %

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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 20192020
UNDERWRITING REVENUES
Gross premiums written$672,714 $1,432,283 $244,120 $395,361 $678,615 $679,435 $2,808,539 
Ceded premiums written(181,741)(361,211)(86,904)(124,236)(225,442)(201,023)(829,631)
Net premiums written490,973 1,071,072 157,216 271,125 453,173 478,412 1,978,908 
Gross premiums earned717,869 658,198 729,002 732,051 742,620 796,183 2,929,006 
Ceded premiums earned(192,603)(170,762)(231,404)(210,923)(215,636)(209,836)(856,735)
Net premiums earned525,266 487,436 497,598 521,128 526,984 586,347 2,072,271 
Other insurance related income (loss)5,265 2,366 (3,375)752 1,241 3,620 (10,736)
Total underwriting revenues530,531 489,802 494,223 521,880 528,225 589,967 2,061,535 
UNDERWRITING EXPENSES
Net losses and loss expenses334,298 357,820 372,795 436,288 338,894 363,760 1,584,238 
Acquisition costs112,107 101,192 113,846 115,995 112,243 130,708 467,984 
Underwriting-related general and administrative expenses29,392 29,365 22,415 23,456 24,073 28,149 99,129 
Total underwriting expenses475,797 488,377 509,056 575,739 475,210 522,617 2,151,351 
UNDERWRITING INCOME (LOSS)$54,734 $1,425 $(14,833)$(53,859)$53,015 $67,350 $(89,816)
Catastrophe and weather-related losses, net of reinstatement premiums$17,474 $74,224 $79,843 $108,172 $20,261 $11,081 $330,479 
Net favorable prior year reserve development$381 $3,812 $2,142 $314 $2,235 $2,295 $6,972 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses60.4 %58.6 %59.0 %62.7 %60.6 %60.5 %60.6 %
Catastrophe and weather-related losses ratio3.3 %15.6 %16.3 %21.1 %4.1 %1.9 %16.2 %
Current accident year loss ratio63.7 %74.2 %75.3 %83.8 %64.7 %62.4 %76.8 %
Prior year reserve development ratio(0.1 %)(0.8 %)(0.4 %)(0.1 %)(0.4 %)(0.4 %)(0.4 %)
Net losses and loss expenses ratio63.6 %73.4 %74.9 %83.7 %64.3 %62.0 %76.4 %
Acquisition cost ratio21.3 %20.8 %22.9 %22.3 %21.3 %22.3 %22.6 %
Underwriting-related general and administrative expense ratio5.7 %6.0 %4.5 %4.5 %4.6 %4.8 %4.8 %
Combined ratio90.6 %100.2 %102.3 %110.5 %90.2 %89.1 %103.8 %




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AXIS CAPITAL HOLDINGS LIMITED
STRATEGIC CAPITAL PARTNERS
Three months ended June 30,Six months ended June 30,
2021202020212020
TOTAL MANAGED PREMIUMS [a]InsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotal
Total Managed Premiums$1,268,472 $672,714 $1,941,186 $1,037,568 $678,615 $1,716,183 $2,371,670 $2,104,997 $4,476,667 $1,978,283 $2,169,058 $4,147,341 
Premiums ceded to Harrington Re
2,316 67,915 70,231 4,081 59,583 63,664 4,045 185,477 189,522 5,200 173,134 178,334 
Premiums ceded to Other Strategic Capital Partners
— 113,826 113,826 17,266 165,859 183,125 — 357,475 357,475 35,800 445,357 481,157 
Premiums ceded to Other Reinsurers
553,271 — 553,271 413,460 — 413,460 946,926 — 946,926 752,872 — 752,872 
Net premiums written$712,885 $490,973 $1,203,858 $602,761 $453,173 $1,055,934 $1,420,699 $1,562,045 $2,982,744 $1,184,411 $1,550,567 $2,734,978 
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income$— $15,467 $15,467 $2,713 $13,600 $16,313 $— $27,695 $27,695 $5,419 $26,569 $31,988 
[a] Total managed premiums represents gross premiums written of $1.9 billion and $1.7 billion for the three months ended June 30, 2021 and 2020, respectively, and $4.5 billion and $4.1 billion for the six months ended June 30, 2021 and 2020, respectively and includes premiums written by the insurance and reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.
[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners. Fee income from strategic capital partners included $5.0 million and $0.8 million in other insurance related income (loss) for the three months ended June 30, 2021 and 2020, respectively and $6.6 million and $1.6 million for the six months ended June 30, 2021 and 2020, respectively. It also included $10.5 million and $15.5 million as an offset to general and administrative expenses for the three months ended June 30, 2021 and 2020, respectively and $21.1 million and $30.4 million for the six months ended June 30, 2021 and 2020, respectively.



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AXIS CAPITAL HOLDINGS LIMITED
NET INVESTMENT INCOME - QUARTER AND YEAR
       Six months ended June 30,
 Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 201920212020
Fixed maturities$61,244 $69,470 $72,727 $73,992 $80,459 $97,370 $130,714 $170,402 
Other investments41,414 41,833 30,634 25,125 (37,580)31,232 83,248 (39,700)
Equity securities3,100 2,498 3,069 1,871 2,263 3,197 5,598 4,387 
Mortgage loans4,355 4,187 4,110 3,609 3,660 3,689 8,541 7,713 
Cash and cash equivalents617 2,336 3,768 2,491 2,392 8,138 2,953 7,323 
Short-term investments66 133 446 440 366 1,108 199 1,863 
Gross investment income110,796 120,457 114,754 107,528 51,560 144,734 231,253 151,988 
Investment expenses(6,124)(6,292)(5,251)(5,572)(6,520)(6,785)(12,417)(13,848)
Net investment income$104,672 $114,165 $109,503 $101,956 $45,040 $137,949 $218,836 $138,140 


13
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
June 30,March 31,December 31,September 30,June 30,June 30,
202120212020202020202019
ASSETS
Investments:
Fixed maturities, available for sale, at fair value$11,898,300 $11,728,611 $12,041,799 $12,609,241 $12,046,415 $12,522,955 
Fixed maturities, held to maturity, at amortized cost403,370 404,690 — — — — 
Equity securities, at fair value588,196 547,676 518,445 417,886 378,860 433,407 
Mortgage loans, held for investment, at fair value656,056 629,576 593,290 544,095 524,757 394,179 
Other investments, at fair value865,238 790,530 829,156 760,206 768,635 802,064 
Equity method investments133,169 123,370 114,209 104,242 101,346 112,956 
Short-term investments, at fair value112,862 185,699 161,897 69,996 34,337 32,421 
Total investments14,657,191 14,410,152 14,258,796 14,505,666 13,854,350 14,297,982 
Cash and cash equivalents1,589,443 1,560,279 1,503,232 1,440,816 1,648,833 1,094,714 
Accrued interest receivable63,215 61,222 65,020 70,013 68,880 82,567 
Insurance and reinsurance premium balances receivable3,393,777 3,367,142 2,738,342 3,131,791 3,527,147 3,732,529 
Reinsurance recoverable on unpaid losses and loss expenses4,626,454 4,533,232 4,496,641 4,337,683 4,160,521 3,564,812 
Reinsurance recoverable on paid losses and loss expenses467,180 459,411 434,201 373,431 395,990 364,536 
Deferred acquisition costs574,658 577,509 431,439 520,706 583,484 657,275 
Prepaid reinsurance premiums1,479,328 1,379,450 1,194,455 1,278,672 1,352,090 1,291,979 
Receivable for investments sold3,671 1,450 2,150 17,513 2,985 25,850 
Goodwill100,801 100,801 100,801 102,003 102,003 102,003 
Intangible assets214,286 216,904 219,633 222,362 225,092 236,009 
Value of business acquired1,798 2,826 3,854 4,881 5,909 15,416 
Operating lease right-of-use assets112,444 116,693 123,579 131,776 136,815 132,940 
Other assets297,484 298,756 305,544 315,683 295,074 271,562 
TOTAL ASSETS$27,581,730 $27,085,827 $25,877,687 $26,452,996 $26,359,173 $25,870,174 
LIABILITIES
Reserve for losses and loss expenses$14,157,353 $14,025,274 $13,926,766 $13,653,488 $13,179,166 $12,254,711 
Unearned premiums4,698,944 4,551,424 3,685,886 4,070,649 4,418,728 4,503,132 
Insurance and reinsurance balances payable1,409,772 1,231,403 1,092,042 1,244,846 1,365,799 1,484,285 
Debt1,310,328 1,310,009 1,309,695 1,309,384 1,309,076 1,387,748 
Payable for investments purchased205,895 389,925 104,777 458,111 350,347 181,274 
Operating lease liabilities130,174 134,002 140,263 140,058 141,621 133,257 
Other liabilities279,504 267,400 322,564 310,565 296,616 359,290 
TOTAL LIABILITIES22,191,970 21,909,437 20,581,993 21,187,101 21,061,353 20,303,697 
SHAREHOLDERS’ EQUITY
Preferred shares550,000 550,000 550,000 550,000 550,000 775,000 
Common shares2,206 2,206 2,206 2,206 2,206 2,206 
Additional paid-in capital2,326,288 2,316,147 2,330,054 2,325,196 2,317,354 2,303,592 
Accumulated other comprehensive income226,317 214,861 414,395 350,111 281,599 156,145 
Retained earnings6,034,151 5,842,850 5,763,607 5,804,637 5,913,029 6,108,577 
Treasury shares, at cost(3,749,202)(3,749,674)(3,764,568)(3,766,255)(3,766,368)(3,779,043)
TOTAL SHAREHOLDERS' EQUITY5,389,760 5,176,390 5,295,694 5,265,895 5,297,820 5,566,477 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$27,581,730 $27,085,827 $25,877,687 $26,452,996 $26,359,173 $25,870,174 
Common shares outstanding84,767 84,753 84,353 84,309 84,306 83,947 
Diluted common shares outstanding [a]
87,197 87,235 86,143 86,132 86,178 85,579 
Book value per common share
$57.09 $54.59 $56.26 $55.94 $56.32 $57.08 
Book value per diluted common share$55.50 $53.03 $55.09 $54.75 $55.09 $55.99 
Tangible book value per diluted common share$52.50 $49.91 $51.90 $51.52 $51.79 $52.54 
Debt to total capital [b]
19.6 %20.2 %19.8 %19.9 %19.8 %20.0 %
Debt and preferred equity to total capital27.8 %28.7 %28.2 %28.3 %28.1 %31.1 %
[a]      Treasury stock method was applied. Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]      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.
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AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS PORTFOLIO
At June 30, 2021
Cost or
Amortized Cost
Allowance for Expected Credit Losses
Unrealized
Gains
Unrealized
Losses
Fair Value or Net Carrying ValuePercentage
Fixed Maturities, available for sale, at fair value
U.S. government and agency$2,542,892 $— $18,830 $(9,782)$2,551,940 15.9 %
Non-U.S. government658,176 — 25,177 (2,781)680,572 4.2 %
Corporate debt4,358,107 (42)154,343 (13,014)4,499,394 27.9 %
Agency RMBS1,022,259 — 25,789 (3,492)1,044,556 6.5 %
CMBS1,097,457 — 48,538 (1,403)1,144,592 7.1 %
Non-Agency RMBS204,437 (42)4,016 (922)207,489 1.3 %
ABS1,493,549 — 8,488 (2,398)1,499,639 9.3 %
Municipals261,482 — 8,776 (140)270,118 1.7 %
Total fixed maturities, available for sale, at fair value11,638,359 (84)293,957 (33,932)11,898,300 73.9 %
Fixed maturities, held to maturity, at amortized cost403,370 — — — 403,370 2.5 %
Equity securities, at fair value
Common stocks943 — 424 (415)952 — %
Preferred Stocks115 — 136 — 251 — %
Exchange traded funds203,336 — 107,019 (370)309,985 1.9 %
Bond mutual funds267,820 — 9,188 — 277,008 1.8 %
Total equity securities, at fair value472,214 — 116,767 (785)588,196 3.7 %
Total fixed maturities and equity securities$12,513,943 $(84)$410,724 $(34,717)12,889,866 80.1 %
Mortgage loans, held for investment656,056 4.1 %
Other investments (see below)865,238 5.4 %
Equity method investments133,169 0.8 %
Short-term investments112,862 0.6 %
Total investments14,657,191 91.0 %
Cash and cash equivalents [a]1,589,443 9.9 %
Accrued interest receivable63,215 0.4 %
Net receivable/(payable) for investments sold (purchased)(202,224)(1.3 %)
Total cash and invested assets$16,107,625 100.0 %
Fair ValuePercentage
Other Investments:
Long/short equity funds$3,774 0.4 %
Multi-strategy funds108,974 12.6 %
Direct lending funds288,404 33.3 %
Real estate funds201,833 23.3 %
Private equity funds190,465 22.0 %
Other privately held investments64,786 7.5 %
Collateralized loan obligations - equity tranches7,002 0.9 %
Total$865,238 100.0 %
[a]    Includes $590 million of restricted cash and cash equivalents.
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AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS COMPOSITION - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
 Fair Value %Fair Value %Fair Value %Fair Value %Fair Value %Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities, available for sale:
U.S. government and agency15.9 %14.0 %12.2 %12.8 %13.2 %15.1 %
Non-U.S. government4.2 %4.6 %4.3 %4.3 %4.0 %3.5 %
Corporate debt27.9 %28.7 %29.6 %30.8 %30.6 %32.3 %
MBS:
Agency RMBS6.5 %7.7 %8.2 %10.8 %10.1 %11.0 %
CMBS7.1 %8.1 %8.6 %8.9 %9.0 %7.7 %
Non-agency RMBS1.3 %1.1 %0.9 %0.9 %0.8 %0.4 %
ABS9.3 %9.0 %10.9 %10.7 %10.1 %10.4 %
Municipals1.7 %1.8 %1.9 %1.8 %1.3 %1.3 %
Total Fixed Maturities, available for sale73.9 %75.0 %76.6 %81.0 %79.1 %81.7 %
Fixed Maturities, held to maturity2.5 %2.6 %— %— %— %— %
Equity securities3.7 %3.5 %3.3 %2.7 %2.5 %2.8 %
Mortgage loans4.1 %4.0 %3.8 %3.5 %3.4 %2.6 %
Other investments5.4 %5.1 %5.3 %4.9 %5.0 %5.2 %
Equity method investments0.8 %0.8 %0.7 %0.7 %0.7 %0.7 %
Short-term investments0.6 %1.1 %1.0 %0.3 %0.3 %0.3 %
Total Investments91.0 %92.1 %90.7 %93.1 %91.0 %93.3 %
Cash and cash equivalents9.9 %10.0 %9.6 %9.3 %10.8 %7.1 %
Accrued interest receivable0.4 %0.4 %0.4 %0.4 %0.5 %0.5 %
Net receivable/(payable) for investments sold (purchased)(1.3 %)(2.5 %)(0.7 %)(2.8 %)(2.3 %)(0.9 %)
Total Cash and Invested Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency20.7 %18.0 %15.9 %15.8 %16.7 %18.5 %
AAA35.2 %37.0 %37.8 %39.8 %38.9 %35.8 %
AA7.4 %7.8 %7.6 %7.4 %6.8 %8.6 %
A14.6 %15.2 %15.7 %15.7 %16.4 %14.1 %
BBB13.2 %13.4 %14.4 %13.4 %13.2 %13.6 %
Below BBB8.9 %8.6 %8.6 %7.9 %8.0 %9.4 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
MATURITY PROFILE OF FIXED MATURITIES
Within one year4.3 %5.0 %3.6 %2.9 %3.3 %3.1 %
From one to five years38.7 %36.9 %36.0 %35.3 %36.3 %41.8 %
From five to ten years20.3 %19.5 %20.7 %21.1 %20.7 %15.7 %
Above ten years1.7 %1.9 %2.3 %2.1 %1.8 %3.2 %
Asset-backed and mortgage-backed securities35.0 %36.7 %37.4 %38.6 %37.9 %36.2 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities2.0 %2.1 %2.3 %2.3 %2.5 %3.0 %
Yield to maturity of fixed maturities1.4 %1.5 %1.3 %1.4 %1.6 %2.7 %
Average duration of fixed maturities3.1 yrs3.3 yrs3.3 yrs3.4 yrs3.4 yrs3.0 yrs
Average credit qualityAA-AA-AA-AA-AA-AA-

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AXIS CAPITAL HOLDINGS LIMITED
CORPORATE DEBT INVESTED ASSETS COMPOSITION
At June 30, 2021
Fair Value
% of Total
Corporate Debt
% of Total
Cash and
Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks$802,396 17.8 %5.0 %
Non-U.S. banks350,022 7.8 %2.2 %
Corporate/commercial finance219,516 4.9 %1.4 %
Insurance155,260 3.5 %1.0 %
Investment brokerage60,434 1.3 %0.4 %
Total financial institutions1,587,628 35.3 %10.0 %
Consumer non-cyclicals461,113 10.2 %2.9 %
Communications270,391 6.0 %1.7 %
Consumer cyclical225,595 5.0 %1.4 %
Technology208,966 4.6 %1.3 %
Utilities188,078 4.2 %1.2 %
Energy170,181 3.8 %1.1 %
Non-U.S. government guaranteed 147,176 3.3 %0.9 %
Industrials123,334 2.7 %0.8 %
Transportation99,998 2.2 %0.6 %
Total investment grade3,482,460 77.3 %21.9 %
Total non-investment grade1,016,934 22.7 %6.0 %
Total corporate debt$4,499,394 100.0 %27.9 %

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AXIS CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO
TEN LARGEST CORPORATE DEBT HOLDINGS
At June 30, 2021  
Amortized
Cost
Net Unrealized
Gain (Loss)
Fair Value
% of Total
Fixed  Maturities
ISSUER [a]
BANK OF AMERICA CORP$122,578 $5,573 $128,151 1.1 %
MORGAN STANLEY115,061 5,722 120,783 1.0 %
JP MORGAN CHASE & CO99,731 2,677 102,408 0.9 %
GOLDMAN SACHS GROUP93,578 3,743 97,321 0.8 %
WELLS FARGO & COMPANY88,954 4,216 93,170 0.8 %
CITIGROUP INC74,063 4,458 78,521 0.7 %
AT&T INC46,542 1,424 47,966 0.4 %
MITSUBISHI UFJ FINANCIAL GROUP INC40,613 1,101 41,714 0.4 %
COMCAST CORPORATION36,834 2,179 39,013 0.3 %
VERIZON COMMUNICATIONS INC34,597 1,930 36,527 0.3 %
[a]  These 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.
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AXIS CAPITAL HOLDINGS LIMITED
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION
At June 30, 2021
Available for sale, at fair valueAgenciesAAAAAABBB
Non-Investment
Grade
Total
Residential MBS$1,044,556 $180,702 $4,294 $13,223 $866 $8,404 $1,252,045 
Commercial MBS89,541 973,052 68,272 5,612 — 8,115 1,144,592 
ABS— 1,234,994 100,217 84,567 44,948 34,913 1,499,639 
Total mortgage-backed and asset-backed securities, available for sale, at fair value$1,134,097 $2,388,748 $172,783 $103,402 $45,814 $51,432 $3,896,276 
Percentage of total29.1 %61.3 %4.4 %2.7 %1.2 %1.3 %100.0 %
Held to maturity, at amortized costAgenciesAAAAAABBB
Non-Investment
Grade
Total
ABS— 274,106 129,264 — — — 403,370 
Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost$— $274,106 $129,264 $— $— $— $403,370 
Percentage of total— %68.0 %32.0 %— %— %— %100.0 %

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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
Reinsurance recoverable on paid losses and loss expenses:
Insurance$318,421 $329,210 $265,494 $234,072 $205,112 $159,259 
Reinsurance148,759 130,201 168,707 139,359 190,878 205,558 
Total$467,180 $459,411 $434,201 $373,431 $395,990 $364,817 
Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance$870,602 $870,816 $878,107 $874,612 $898,849 $871,493 
Reinsurance518,973 491,517 505,437 452,201 406,723 351,230 
Total$1,389,575 $1,362,333 $1,383,544 $1,326,813 $1,305,572 $1,222,723 
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance$2,395,835 $2,329,090 $2,339,557 $2,258,508 $2,151,986 $1,889,003 
Reinsurance
867,253 866,927 797,251 775,187 723,950 470,322 
Total$3,263,088 $3,196,017 $3,136,808 $3,033,695 $2,875,936 $2,359,325 
Allowance for expected credit losses:
Insurance$(22,749)$(22,037)$(21,298)$(20,369)$(19,025)$(16,722)
Reinsurance(3,460)(3,081)(2,413)(2,456)(1,962)(795)
Total$(26,209)$(25,118)$(23,711)$(22,825)$(20,987)$(17,517)
Reinsurance recoverable on unpaid and paid losses and loss expenses:
Insurance$3,562,109 $3,507,079 $3,461,860 $3,346,823 $3,236,922 $2,903,033 
Reinsurance1,531,525 1,485,564 1,468,982 1,364,291 1,319,589 1,026,315 
Total$5,093,634 $4,992,643 $4,930,842 $4,711,114 $4,556,511 $3,929,348 

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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
At June 30, 2021
CategoriesReinsurance Recoverable, Gross of CollateralCollateralReinsurance
Recoverable,
Net of
Collateral		% of Total
Reinsurance
Recoverable,
Net  of
Collateral
% of Total
Shareholders’
Equity
Allowance for expected credit lossesAllowance for expected credit loss as %
of Reinsurance 
Recoverable, Gross of Collateral		Reinsurance recoverable on unpaid and paid losses and loss expenses
Top 10 reinsurers based on gross recoverable$2,687,243 $(626,577)$2,060,666 52.8%38.2%$(11,016)0.4%$2,676,227 
Other reinsurers balances > $20 million1,939,266 (446,082)1,493,184 38.2%27.7%(11,032)0.6%1,928,234 
Other reinsurers balances < $20 million493,334 (143,145)350,189 9.0%6.5%(4,161)0.8%489,173 
Total$5,119,843 $(1,215,804)$3,904,039 100.0%72.4%$(26,209)0.5%$5,093,634 
At June 30, 2021, reinsurance recoverable balances, gross of collateral, of 87.7% (December 31, 2020: 87.6%) were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.
 
Top 10 Reinsurers, Net of Collateral
% of  Total
Reinsurance
Recoverable,
Net of Collateral
% of  Total
Shareholders’ Equity
1Swiss Reinsurance America Corporation13.5%9.8%
2Harrington Re Ltd.8.9%6.4%
3Lloyds of London7.0%5.1%
4Transatlantic Reinsurance Co5.8%4.2%
5Hannover Ruck SE5.0%3.6%
6Partner Reinsurance Co of the US4.3%3.1%
7SCOR Reinsurance Company3.5%2.5%
8Everest Reinsurance Company3.3%2.4%
9Munich Reinsurance America, Inc3.1%2.3%
10Swiss Reinsurance Company Ltd2.0%1.5%
56.4%40.9%

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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES
 Three months ended June 30, 2021Six months ended June 30, 2021
 Reserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expensesReserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expenses
Reserve for losses and loss expenses
Beginning of period$14,025,274 $(4,533,232)$9,492,042 $13,926,766 $(4,496,641)$9,430,125 
Incurred losses and loss expenses1,024,491 (358,018)666,473 2,116,720 (735,530)1,381,190 
Paid losses and loss expenses(910,653)254,440 (656,213)(1,892,199)542,903 (1,349,296)
Foreign exchange and other18,241 10,356 28,597 6,066 62,814 68,880 
End of period [a]
$14,157,353 $(4,626,454)$9,530,899 $14,157,353 $(4,626,454)$9,530,899 
[a]   At June 30, 2021, reserve for losses and loss expenses included IBNR of $8.8 billion, or 62% (December 31, 2020: $8.6 billion, or 62%).
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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT
 Three months ended June 30, 2021Six months ended June 30, 2021
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
Gross paid losses and loss expenses$493,803 $416,850 $910,653 $1,067,013 $825,186 $1,892,199 
Reinsurance recoverable on paid losses and loss expenses(174,727)(79,713)(254,440)(412,467)(130,436)(542,903)
Net paid losses and loss expenses319,076 337,137 656,213 654,546 694,750 1,349,296 
Gross case reserves(1,372)58,448 57,076 (20,662)63,064 42,402 
Gross IBNR83,955 (27,193)56,762 132,248 49,871 182,119 
Reinsurance recoverable on unpaid losses and loss expenses(69,484)(34,094)(103,578)(77,060)(115,567)(192,627)
Net unpaid losses and loss expenses13,099 (2,839)10,260 34,526 (2,632)31,894 
Total net incurred losses and loss expenses$332,175 $334,298 $666,473 $689,072 $692,118 $1,381,190 
Gross reserve for losses and loss expenses$7,456,368 $6,700,985 $14,157,353 $7,456,368 $6,700,985 $14,157,353 
Net favorable prior year reserve development$6,427 $381 $6,808 $7,932 $4,194 $12,126 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses96.1 %100.8 %98.5 %95.0 %100.4 %97.7 %
Net paid losses and loss expenses / Net premiums earned50.5 %64.2 %56.7 %52.4 %68.6 %59.7 %
Net unpaid losses and loss expenses / Net premiums earned2.1 %(0.6 %)0.9 %2.8 %(0.3 %)1.4 %
Net losses and loss expenses ratio52.6 %63.6 %57.6 %55.2 %68.3 %61.1 %


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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
INSURANCE - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
Gross paid losses and loss expenses$493,803 $573,209 $683,379 $502,517 $543,599 $537,634 
Reinsurance recoverable on paid losses and loss expenses(174,727)(237,739)(273,686)(203,805)(218,928)(175,788)
Net paid losses and loss expenses319,076 335,470 409,693 298,712 324,671 361,846 
Gross case reserves(1,372)(19,290)(34,344)(68,443)72,563 (8,250)
Gross IBNR83,955 48,294 132,082 277,499 (35,502)(57,015)
Reinsurance recoverable on unpaid losses and loss expenses(69,484)(7,576)(62,987)(64,379)(24,365)12,122 
Net unpaid losses and loss expenses13,099 21,428 34,751 144,677 12,696 (53,143)
Total net incurred losses and loss expenses$332,175 $356,898 $444,444 $443,389 $337,367 $308,703 
Gross reserve for losses and loss expenses$7,456,368 $7,368,569 $7,310,498 $7,135,537 $6,865,343 $6,395,448 
Net favorable prior year reserve development$6,427 $1,505 $4,417 $270 $420 $21,326 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses96.1 %94.0 %92.2 %67.4 %96.2 %117.2 %
Net paid losses and loss expenses / Net premiums earned50.5 %54.4 %69.5 %52.4 %56.3 %67.4 %
Net unpaid losses and loss expenses / Net premiums earned2.1 %3.5 %5.9 %25.4 %2.2 %(9.9 %)
Net losses and loss expenses ratio52.6 %57.9 %75.4 %77.8 %58.5 %57.5 %

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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
REINSURANCE - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
Gross paid losses and loss expenses$416,850 $408,336 $594,863 $467,319 $466,692 $428,428 
Reinsurance recoverable on paid losses and loss expenses(79,713)(50,723)(125,680)(69,218)(100,748)(82,907)
Net paid losses and loss expenses337,137 357,613 469,183 398,101 365,944 345,521 
Gross case reserves58,448 4,616 104,547 65,919 97,573 25,790 
Gross IBNR(27,193)77,064 (137,925)59,996 (92,099)20,656 
Reinsurance recoverable on unpaid losses and loss expenses(34,094)(81,473)(63,010)(87,728)(32,524)(28,207)
Net unpaid losses and loss expenses(2,839)207 (96,388)38,187 (27,050)18,239 
Total net incurred losses and loss expenses$334,298 $357,820 $372,795 $436,288 $338,894 $363,760 
Gross reserve for losses and loss expenses$6,700,985 $6,656,705 $6,616,268 $6,517,951 $6,313,823 $5,859,263 
Net favorable prior year reserve development$381 $3,812 $2,142 $314 $2,235 $2,295 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses100.8 %99.9 %125.9 %91.2 %108.0 %95.0 %
Net paid losses and loss expenses / Net premiums earned64.2 %73.4 %94.3 %76.4 %69.4 %58.9 %
Net unpaid losses and loss expenses / Net premiums earned(0.6 %)— %(19.4 %)7.3 %(5.1 %)3.1 %
Net losses and loss expenses ratio63.6 %73.4 %74.9 %83.7 %64.3 %62.0 %

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AXIS CAPITAL HOLDINGS LIMITED
NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AT JULY 1, 2021
  
Estimated Net Exposures
(millions of U.S. dollars)
TerritoryPeril
50 Year
Return
Period
% of Common Shareholders' Equity
100 Year
Return
Period
% of Common Shareholders' Equity
250 Year
Return
Period
% of Common Shareholders' Equity
Single zone, single event
SoutheastU.S. Hurricane$194 4.0 %$249 5.1 %$306 6.3 %
NortheastU.S. Hurricane42 0.9 %123 2.5 %257 5.3 %
Mid-AtlanticU.S. Hurricane93 1.9 %226 4.7 %366 7.6 %
Gulf of MexicoU.S. Hurricane160 3.3 %216 4.5 %286 5.9 %
CaliforniaEarthquake178 3.7 %297 6.1 %392 8.1 %
EuropeWindstorm142 2.9 %188 3.9 %251 5.2 %
JapanEarthquake76 1.6 %140 2.9 %258 5.3 %
JapanWindstorm64 1.3 %122 2.5 %140 2.9 %
The table above shows our net Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at July 1, 2021. 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 U.S. hurricane, net of reinsurance, is approximately $0.2 billion. According to our modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast U.S. hurricane event could be in excess of $0.2 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast U.S. hurricane will fall below $0.2 billion.
We have developed our PML estimates by combining judgment and experience with the outputs from the catastrophe model, commercially available from AIR Worldwide. Additionally, we have included our estimate of non-modeled perils and other factors which we believe provides us with a more complete view of catastrophe risk.
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, the most important of which is by ensuring that management’s judgment supplements the model outputs. Models are continuously validated at the line of business and at a group level by our catastrophe model validation team. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.
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 internal modeling, underwriting portfolios, reinsurance purchasing strategy and in foreign exchange rates.
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AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, U.S. GAAP
 Three months ended June 30,Six months ended June 30,
2021202020212020
Net income (loss) available (attributable) to common shareholders$227,910 $112,477 $343,645 $(72,908)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding84,764 84,303 84,640 84,198 
Dilutive share equivalents:
Share-based compensation plans [a]
503 297 477 — 
Weighted average diluted common shares outstanding85,267 84,600 85,117 84,198 
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share
$2.69 $1.33 $4.06 ($0.87)
Earnings (loss) per diluted common share
$2.67 $1.33 $4.04 ($0.87)
[a] Due to the net loss attributable to common shareholders recognized for the six months ended June 30, 2020, the share equivalents were anti-dilutive.
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AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLL FORWARD - QUARTER
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q2 2019
Net income (loss) available (attributable) to common shareholders$227,910 $115,737 $(4,819)$(72,945)$112,477 $166,387 
COMMON SHARES OUTSTANDING
Common shares - at beginning of period84,753 84,353 84,309 84,306 84,298 83,934 
Shares issued and treasury shares reissued22 589 83 5 11 20 
Shares repurchased for treasury(8)(189)(39)(2)(3)(7)
Common shares - at end of period84,767 84,753 84,353 84,309 84,306 83,947 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding84,764 84,514 84,341 84,308 84,303 83,941 
Dilutive share equivalents:
Share-based compensation plans [a]
503 451 — — 297 460 
Weighted average diluted common shares outstanding85,267 84,965 84,341 84,308 84,600 84,401 
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share$2.69 $1.37 ($0.06)($0.87)$1.33 $1.98 
Earnings (loss) per diluted common share$2.67 $1.36 ($0.06)($0.87)$1.33 $1.97 
[a] Due to the net loss attributable to common shareholders recognized for the three months ended December 31, 2020 and September 30, 2020, the share equivalents were anti-dilutive.
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AXIS CAPITAL HOLDINGS LIMITED
BOOK VALUE PER DILUTED COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a]
 At June 30, 2021
 
Common
Shareholders’
Equity

Common Shares Outstanding
net of
Treasury Shares
Per share
Closing stock price$49.01 
Book value per common share $4,839,760 84,767 $57.09 
Dilutive securities: [b]
Restricted stock units2,430 (1.59)
Book value per diluted common share$4,839,760 87,197 $55.50 
 At December 31, 2020
 
Common
Shareholders’
Equity

Common Shares Outstanding
net of
Treasury Shares		Per share
Closing stock price$50.39 
Book value per common share $4,745,694 84,353 $56.26 
Dilutive securities: [b]
Restricted stock units1,790 (1.17)
Book value per diluted common share$4,745,694 86,143 $55.09 
[a]    Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]    Cash-settled restricted stock units are excluded.


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AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
Three months ended June 30,Six months ended June 30,
 2021202020212020
Net income (loss) available (attributable) to common shareholders$227,910 $112,477 $343,645 $(72,908)
Net investment (gains) losses [a]
(73,293)(53,043)(102,936)9,831 
Foreign exchange losses (gains) [b]
19,602 9,709 23,716 (51,974)
Reorganization expenses [c]

— 392 — (591)
Interest in (income) loss of equity method investments [d]
(9,799)(7,102)(18,960)16,475 
Income tax expense
6,088 9,070 7,782 6,259 
Operating income (loss) $170,508 $71,503 $253,247 $(92,908)
Earnings (loss) per diluted common share $2.67 $1.33 $4.04 $(0.87)
Net investment (gains) losses
(0.86)(0.63)(1.21)0.12 
Foreign exchange losses (gains)0.23 0.11 0.28 (0.62)
Reorganization expenses— — — (0.01)
Interest in (income) loss of equity method investments
(0.11)(0.08)(0.22)0.20 
Income tax expense
0.07 0.11 0.09 0.07 
Operating income (loss) per diluted common share $2.00 $0.84 $2.98 $(1.11)
Weighted average diluted common shares outstanding85,267 84,600 85,117 84,198 
Average common shareholders' equity$4,733,075 $4,518,699 $4,792,727 $4,758,414 
Annualized return on average common equity19.3 %10.0 %14.3 %(3.1 %)
Annualized operating return on average common equity14.4 %6.3 %10.6 %(3.9 %)
[a] Tax expense (benefit) of $7,491 and $8,114 for the three months ended June 30, 2021 and 2020, respectively, and $8,975 and $2,437 for the six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
[b]  Tax expense (benefit) of ($1,403) and $1,084 for the three months ended June 30, 2021 and 2020, respectively, and ($1,193) and $3,611 for the six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
[c] Tax expense (benefit) of $(128) for the three months ended June 30, 2020 and $211 for the six months ended June 30, 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
[d]  Tax expense (benefit) of $nil for the three and six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

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AXIS CAPITAL HOLDINGS LIMITED
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE - TREASURY STOCK METHOD [a]
June 30,March 31,December 31,September 30,June 30,June 30,
202120212020202020202019
Common shareholders' equity$4,839,760 $4,626,390 $4,745,694 $4,715,895 $4,747,820 $4,791,477 
Less: goodwill(100,801)(100,801)(100,801)(102,003)(102,003)(102,003)
Less: intangible assets(214,286)(216,904)(219,633)(222,362)(225,092)(236,009)
     Associated tax impact53,241 45,565 45,991 46,333 42,515 43,205 
Tangible common shareholders' equity$4,577,914 $4,354,250 $4,471,251 $4,437,863 $4,463,240 $4,496,670 
Diluted common shares outstanding, net of treasury shares87,197 87,235 86,143 86,132 86,178 85,579 
Book value per diluted common share $55.50 $53.03 $55.09 $54.75 $55.09 $55.99 
Tangible book value per diluted common share$52.50 $49.91 $51.90 $51.52 $51.79 $52.54 
[a]     Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding. Cash-settled restricted stock units are excluded.



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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), 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 - Quarter' and 'Consolidated Statements of Operations - Year' sections 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.

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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 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, 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. 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 are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae Group plc ("Novae"), which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. 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 including value of business acquired ("VOBA") 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 - Quarter' and 'Consolidated Statements of Operations - Year' sections 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, and interest in income (loss) of equity method investments.

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. In addition, we recognize 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 in net investment gains (losses). We also recognize unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss). These unrealized foreign exchange losses (gains) generally offset a large portion of the foreign exchange losses (gains) reported in net income (loss), thereby minimizing
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the impact of foreign exchange rate movements on total shareholders’ equity. As a result, foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business.

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. 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 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).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments 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, and interest in income (loss) of equity method investments 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.
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