EX-99.1 2 q22021pressrelease.htm PRESS RELEASE DATED JULY 27, 2021 Document


axislogo1a01b.jpg

Matt Rohrmann (Investor Contact):(212) 940-3339;investorrelations@axiscapital.com
Anna Kukowski (Media Contact):(212) 715-3574;anna.kukowski@axiscapital.com


AXIS CAPITAL REPORTS SECOND QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $228 MILLION, or $2.67 PER DILUTED COMMON SHARE


For the second quarter of 2021, the Company reports:
•Operating income of $171 million, or $2.00 per diluted common share
•Improvement of 2.7 points in current accident year combined ratio, excluding catastrophe and weather-related losses, compared to the prior year
•Annualized return on average common equity ("ROACE") of 19.3% and annualized operating ROACE of 14.4%
•Book value per diluted common share of $55.50, an increase of $2.47, or 4.7%, compared to March 31, 2021

Pembroke, Bermuda, July 27, 2021 - AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE: AXS) today announced financial results for the second quarter ended June 30, 2021.
Commenting on the second quarter 2021 financial results, Albert Benchimol, President and CEO of AXIS Capital, said:
"We are pleased to report record operating earnings per share for the quarter and first half of the year,
along with excellent production and robust underwriting and investment performance.

"Our core underwriting results were strong, as evidenced by this quarter’s current year ex-cat combined         ratio of 88.7%. Our continued progress in underwriting performance provides tangible proof that our efforts to reposition our portfolio are delivering meaningful improvements.

"Our insurance business is well positioned in the markets experiencing the strongest conditions, leading to 22% growth in gross premiums written to achieve a record level of premium production. Our reinsurance business demonstrated agility and discipline, growing in attractive classes, but also holding the line where terms were not deemed sufficiently attractive, and continuing to manage down catastrophe volatility.

"During the quarter, we recorded average rate increases of 14% across our insurance book, which is higher than the previous quarter and on par with the prior year period – and we remain confident that pricing will remain at or above loss cost trends well into 2022 and likely beyond, providing a tailwind to ongoing improvements in underwriting profitability."

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 1 -

Second Quarter Consolidated Results*

•Net income available to common shareholders for the second quarter of 2021 was $228 million, or $2.67 per diluted common share, compared to net income available to common shareholders of $112 million, or $1.33 per diluted common share, for the second quarter of 2020.
•Net income available to common shareholders for the six months ended June 30, 2021 was $344 million, or $4.04 per diluted common share, compared to a net loss attributable to common shareholders of $(73) million, or $(0.87) per diluted common share, for the same period in 2020.
•Operating income1 for the second quarter of 2021 was $171 million, or $2.00 per diluted common share1, compared to an operating income of $72 million, or $0.84 per diluted common share, for the second quarter of 2020.
•Operating income for the six months ended June 30, 2021 was $253 million, or $2.98 per diluted common share1, compared to an operating loss of $(93) million, or $(1.11) per diluted common share, for the same period in 2020.
•Adjusted for dividends declared, the book value per diluted common share increased by $2.89, or 5%, compared to March 31, 2021.
•Adjusted for dividends declared, the book value per diluted common share increased by $2.08, or 4%, over the past twelve months.

























* Amounts may not reconcile due to rounding differences.
1 Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release. 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.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 2 -


Second Quarter Consolidated Underwriting Highlights2

•Gross premiums written increased by $225 million, or 13% ($204 million, or 12% on a constant currency basis3), to $1.9 billion with an increase of $231 million, or 22%, in the insurance segment, partially offset by a decrease of $6 million, or 1%, in the reinsurance segment.
•Net premiums written increased by $148 million, or 14% ($129 million, or 12% on a constant currency basis), to $1.2 billion with an increase of $110 million, or 18%, in the insurance segment and an increase of $38 million, or 8%, in the reinsurance segment.
Three months ended June 30,
KEY RATIOS20212020Change
Current accident year loss ratio excluding catastrophe and weather-related losses4
55.7 %58.0 %(2.3  pts)
Catastrophe and weather-related losses ratio2.5 %3.5 %(1.0  pts)
Current accident year loss ratio58.2 %61.5 %(3.3  pts)
Prior year reserve development ratio(0.6 %)(0.2 %)(0.4  pts)
Net losses and loss expenses ratio57.6 %61.3 %(3.7  pts)
Acquisition cost ratio18.9 %20.7 %(1.8  pts)
General and administrative expense ratio14.1 %12.7 %1.4  pts
Combined ratio90.6 %94.7 %(4.1  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses88.7 %91.4 %(2.7  pts)
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $29 million, (Insurance: $11 million; Reinsurance: $17 million) or 2.5 points, compared to $36 million (Insurance: $16 million; Reinsurance: $20 million), or 3.5 points, in 2020.
•No change to the net loss estimate of $360 million established for the COVID-19 pandemic in 2020.
•Net favorable prior year reserve development was $7 million (Insurance: $6 million; Reinsurance: $0.4 million), compared to $3 million (Insurance: $0.4 million; Reinsurance: $2 million) in 2020.









2 All comparisons are with the same period of the prior year, unless otherwise stated.
3 Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures and a discussion of the rationale for the presentation of these items are provided in this press release.
4 The current accident year loss ratio excluding catastrophe and weather-related losses was calculated by dividing the current accident year losses less estimated pre-tax catastrophe and weather-related losses, net of reinsurance by net premiums earned less reinstatement premiums.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 3 -



Half Year Consolidated Underwriting Highlights

•Gross premiums written increased by $329 million, or 8% ($276 million, or 7% on a constant currency basis), to $4.5 billion with an increase of $393 million, or 20%, in the insurance segment, partially offset by a decrease of $64 million, or 3%, in the reinsurance segment.
•Net premiums written increased by $248 million, or 9% ($198 million, or 7% on a constant currency basis), to $3.0 billion with an increase of $236 million, or 20%, in the insurance segment and an increase of $11 million, or 1%, in the reinsurance segment.
Six months ended June 30,
KEY RATIOS20212020Change
Current accident year loss ratio excluding catastrophe and weather-related losses55.4 %57.5 %(2.1  pts)
Catastrophe and weather-related losses ratio6.2 %15.2 %(9.0  pts)
Current accident year loss ratio61.6 %72.7 %(11.1  pts)
Prior year reserve development ratio(0.5 %)(0.4 %)(0.1  pts)
Net losses and loss expenses ratio61.1 %72.3 %(11.2  pts)
Acquisition cost ratio19.4 %21.3 %(1.9  pts)
General and administrative expense ratio14.2 %13.5 %0.7  pts
Combined ratio94.7 %107.1 %(12.4  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses89.0 %92.3 %(3.3  pts)
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $139 million (Insurance: $47 million; Reinsurance: $92 million), or 6.2 points, primarily attributable to Winter Storms Uri and Viola, principally related to the state of Texas, and other weather-related events, compared to $336 million (Insurance: $193 million; Reinsurance: $143 million), or 15.2 points, in 2020.
•No change to the net loss estimate of $360 million established for the COVID-19 pandemic in 2020.
•Net favorable prior year reserve development was $12 million (Insurance: $8 million; Reinsurance: $4 million), compared to $9 million (Insurance: $4 million; Reinsurance: $5 million) in 2020.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 4 -


Segment Highlights

Insurance Segment
Three months ended June 30,
($ in thousands)20212020Change
Gross premiums written$1,268,472 $1,037,568 22.3 %
Net premiums written712,885 602,761 18.3 %
Net premiums earned631,675 577,019 9.5 %
Underwriting income 93,520 34,397 nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses51.8 %55.6 %(3.8  pts)
Catastrophe and weather-related losses ratio1.8 %2.9 %(1.1  pts)
Current accident year loss ratio53.6 %58.5 %(4.9  pts)
Prior year reserve development ratio(1.0 %)— %(1.0  pts)
Net losses and loss expenses ratio52.6 %58.5 %(5.9  pts)
Acquisition cost ratio16.9 %20.1 %(3.2  pts)
Underwriting-related general and administrative expense ratio15.8 %15.6 %0.2  pts
Combined ratio85.3 %94.2 %(8.9  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses84.5 %91.3 %(6.8  pts)
nm - not meaningful is defined as a variance greater than +/-100%
•Gross premiums written increased by $231 million, or 22% ($214 million, or 21% on a constant currency basis), primarily attributable to increases in professional lines, property and liability lines driven by new business and favorable rate changes.
•Net premiums written increased by $110 million, or 18% ($95 million, or 16% on a constant currency basis), reflecting the increase in gross premiums written in the quarter, partially offset by increases in premiums ceded in professional lines, property and liability lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance were $11 million, compared to $16 million in 2020.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 3.8 points in the second quarter, compared to the same period in 2020, principally due to the impact of favorable pricing over loss trends, and improved loss experience largely associated with underwriting actions.
•The acquisition cost ratio decreased by 3.2 points in the second quarter, compared to the same period in 2020, primarily due to changes in business mix and an increase in ceding commissions.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 5 -


Six months ended June 30,
($ in thousands)20212020Change
Gross premiums written$2,371,670 $1,978,283 19.9 %
Net premiums written1,420,699 1,184,411 19.9 %
Net premiums earned1,247,962 1,139,083 9.6 %
Underwriting income (loss)132,343 (88,233)nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses52.1 %54.9 %(2.8  pts)
Catastrophe and weather-related losses ratio3.8 %16.5 %(12.7  pts)
Current accident year loss ratio55.9 %71.4 %(15.5  pts)
Prior year reserve development ratio(0.7 %)(0.4 %)(0.3  pts)
Net losses and loss expenses ratio55.2 %71.0 %(15.8  pts)
Acquisition cost ratio18.0 %20.1 %(2.1  pts)
Underwriting-related general and administrative expense ratio16.3 %16.8 %(0.5  pts)
Combined ratio89.5 %107.9 %(18.4  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses86.4 %91.8 %(5.4  pts)
nm - not meaningful
•Gross premiums written increased by $393 million, or 20% ($368 million, or 19%, on a constant currency basis), primarily attributable to increases in professional lines, property, liability and marine lines driven by new business and favorable rate changes.
•Net premiums written increased by $236 million, or 20% ($214 million, or 18%, on a constant currency basis), reflecting the increase in gross premiums written, partially offset by increases in premiums ceded in professional lines, property and liability lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $47 million, primarily attributable to Winter Storms Uri and Viola, and other weather-related events, compared to $193 million in 2020.



AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 6 -


Reinsurance Segment
Three months ended June 30,
($ in thousands)20212020Change
Gross premiums written$672,714 $678,615 (0.9 %)
Net premiums written490,973 453,173 8.3 %
Net premiums earned525,266 526,984 (0.3 %)
Underwriting income 54,734 53,015 3.2 %
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses60.4 %60.6 %(0.2  pts)
Catastrophe and weather-related losses ratio3.3 %4.1 %(0.8  pts)
Current accident year loss ratio63.7 %64.7 %(1.0  pts)
Prior year reserve development ratio(0.1 %)(0.4 %)0.3  pts
Net losses and loss expenses ratio63.6 %64.3 %(0.7  pts)
Acquisition cost ratio21.3 %21.3 %—  pts
Underwriting-related general and administrative expense ratio5.7 %4.6 %1.1  pts
Combined ratio90.6 %90.2 %0.4  pts
Current accident year combined ratio excluding catastrophe and weather-related losses87.4 %86.5 %0.9  pts
•Gross premiums written decreased by $6 million, or 1%, primarily attributable to decreases in catastrophe and property lines due to non-renewals and decreased line sizes associated with repositioning the portfolio, partially offset by increases in professional lines and liability lines driven by favorable market conditions.
•Net premiums written increased by $38 million, or 8%, as the decrease in gross premiums written in the quarter was offset by a decrease in premium ceded in catastrophe lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $17 million, compared to $20 million in 2020.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 0.2 points in the second quarter, compared to the same period in 2020, principally due to the impact of favorable pricing over loss trends attributable to most lines of business, partially offset by changes in retrocessional arrangements.
•The underwriting-related general and administrative expense ratio increased by 1.1 points in the second quarter, compared to the same period in 2020, primarily due to an increase in performance-related compensation costs.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 7 -


Six months ended June 30,
($ in thousands)20212020Change
Gross premiums written$2,104,997 $2,169,058 (3.0 %)
Net premiums written1,562,045 1,550,567 0.7 %
Net premiums earned1,012,701 1,053,545 (3.9 %)
Underwriting income (loss)56,158 (21,122)nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses59.5 %60.4 %(0.9  pts)
Catastrophe and weather-related losses ratio9.3 %13.6 %(4.3  pts)
Current accident year loss ratio68.8 %74.0 %(5.2  pts)
Prior year reserve development ratio(0.5 %)(0.4 %)(0.1  pts)
Net losses and loss expenses ratio68.3 %73.6 %(5.3  pts)
Acquisition cost ratio21.1 %22.6 %(1.5  pts)
Underwriting-related general and administrative expense ratio5.8 %5.0 %0.8  pts
Combined ratio95.2 %101.2 %(6.0  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses86.4 %88.0 %(1.6  pts)
nm - not meaningful
•Gross premiums written decreased by $64 million, or 3% ($91 million, or 4%, on a constant currency basis), primarily attributable to decreases in catastrophe, motor, credit and surety, engineering and property lines due to non-renewals and decreased line sizes. These decreases were partially offset by increases in liability and professional lines attributable to favorable rate changes.
•Net premiums written increased by $11 million, or 1% (decreased by $16 million, or 1% on a constant currency basis), primarily attributable to decreases in premiums ceded in catastrophe, property, and credit and surety lines, partially offset by the decrease in gross premiums written and the increase in premiums ceded in liability lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $92 million, primarily attributable to Winter Storms Uri and Viola and other weather-related events, compared to $143 million in 2020.


AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 8 -


Investments

Net investment income of $105 million increased from net investment income of $45 million for the second quarter of 2020, primarily attributable to positive returns from other investments in 2021, in contrast to negative returns from other investments in 2020 due to the impact of the COVID-19 pandemic. Net realized and unrealized gains recognized in net income for the quarter were $73 million, including net unrealized gains of $23 million ($21 million excluding foreign exchange movements), following an increase in the market value of our equity securities portfolio during the quarter, compared to net realized and unrealized gains of $53 million in the second quarter of 2020.

Pre-tax total return on cash and investments5 was 1.2% including foreign exchange movements (1.2% excluding foreign exchange movements6). Net unrealized gains of $10 million ($16 million excluding foreign exchange movements) were recognized in the quarter following an increase in the market value of our fixed income portfolio, compared to net unrealized gains of $407 million ($394 million excluding foreign exchange movements) recognized during the second quarter of 2020. The prior year pre-tax total return was 3.4% including foreign exchange movements (3.3% excluding foreign exchange movements).

For the six months ended June 30, 2021, pre-tax total return on cash and investments was 0.8% including foreign exchange movements (0.8% excluding foreign exchange movements), compared to 1.6% including foreign exchange movements (1.9% excluding foreign exchange movements) for the same period in 2020. Net unrealized losses of $217 million ($202 million excluding foreign exchange movements) were recognized in the year, compared to net unrealized gains of $132 million ($170 million excluding foreign exchange movements) for the same period in 2020.

Our fixed income portfolio book yield was 2.0% at June 30, 2021, compared to 2.5% at June 30, 2020. The market yield was 1.4% at June 30, 2021.





5 Pre-tax total return on cash and investments includes net investment income (loss), net investment gains (losses), interest in income (loss) of equity method investments and change in unrealized investment gains (losses) generated by average cash and investment balances. 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).
6 Pre-tax total return on cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $7m and $13m for the three months ended June 30, 2021 and 2020, respectively, and foreign exchange (losses) gains of $(5)m and $(48)m for the six months ended June 30, 2021 and 2020, respectively.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 9 -


Capitalization / Shareholders’ Equity

Total capital7 at June 30, 2021 was $6.7 billion, including $1.3 billion of debt and $550 million of preferred equity, compared to $6.6 billion at December 31, 2020. The increase in total capital was attributable to the net income generated for the six months ended June 30, 2021, partially offset by a decrease in net unrealized gains reported in other comprehensive income following a decrease in the market value of our fixed income portfolio and common share dividends declared.

Book value per diluted common share, calculated on a treasury stock basis, increased by $2.47 in the current quarter, and by $0.41 over the past twelve months, to $55.50. The increase in the quarter was driven by the net income generated, partially offset by common share dividends declared. The increase over the past twelve months was driven by the net income generated, partially offset by a decrease in the net unrealized gains reported in other comprehensive income, and common share dividends declared.

During the second quarter of 2021, the Company declared dividends of $0.42 per common share, with total dividends declared of $1.67 per common share over the past twelve months. Adjusted for dividends declared, the book value per diluted common share increased by $2.89 for the quarter, and by $2.08 over the past twelve months.




























7 Total capital represents the sum of total shareholders' equity and debt.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 10 -


Conference Call

We will host a conference call on Wednesday, July 28, 2021 at 9:30 a.m. (EDT) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers) or 1-412-902-6506 (international callers) approximately ten minutes in advance of the call and entering the passcode 4304434. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay of the teleconference will be available for two weeks by dialing 1-877-344-7529 (U.S. callers) or 1-412-317-0088 (international callers) and entering the passcode 10157624. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended June 30, 2021 is available in the Investor Information section of our website.

About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global provider of specialty lines insurance and treaty reinsurance with shareholders' equity of $5.4 billion at June 30, 2021, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

Website and Social Media Disclosure
We use our website (www.axiscapital.com) and our LinkedIn (AXIS Capital) and corporate Twitter (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program, which can be found in the Investor Information section of our website (www.axiscapital.com). The contents of our website and social media channels are not part of this press release.

Follow AXIS Capital on LinkedIn and Twitter.
LinkedIn: http://bit.ly/2kRYbZ5
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 11 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2021 (UNAUDITED) AND DECEMBER 31, 2020
20212020
(in thousands)
Assets
Investments:
Fixed maturities, available for sale, at fair value
$11,898,300 $12,041,799 
Fixed maturities, held to maturity, at amortized cost
403,370 — 
Equity securities, at fair value
588,196 518,445 
Mortgage loans, held for investment, at fair value
656,056 593,290 
Other investments, at fair value
865,238 829,156 
Equity method investments
133,169 114,209 
Short-term investments, at fair value
112,862 161,897 
Total investments14,657,191 14,258,796 
Cash and cash equivalents999,899 902,831 
Restricted cash and cash equivalents589,544 600,401 
Accrued interest receivable63,215 65,020 
Insurance and reinsurance premium balances receivable3,393,777 2,738,342 
Reinsurance recoverable on unpaid losses and loss expenses4,626,454 4,496,641 
Reinsurance recoverable on paid losses and loss expenses467,180 434,201 
Deferred acquisition costs574,658 431,439 
Prepaid reinsurance premiums1,479,328 1,194,455 
Receivable for investments sold3,671 2,150 
Goodwill100,801 100,801 
Intangible assets214,286 219,633 
Value of business acquired1,798 3,854 
Operating lease right-of-use assets112,444 123,579 
Other assets297,484 305,544 
             Total assets$27,581,730 $25,877,687 
Liabilities
Reserve for losses and loss expenses$14,157,353 $13,926,766 
Unearned premiums4,698,944 3,685,886 
Insurance and reinsurance balances payable1,409,772 1,092,042 
Debt1,310,328 1,309,695 
Payable for investments purchased205,895 104,777 
Operating lease liabilities130,174 140,263 
Other liabilities279,504 322,564 
             Total liabilities22,191,970 20,581,993 
Shareholders' equity
Preferred shares550,000 550,000 
Common shares2,206 2,206 
Additional paid-in capital2,326,288 2,330,054 
Accumulated other comprehensive income226,317 414,395 
Retained earnings6,034,151 5,763,607 
Treasury shares, at cost(3,749,202)(3,764,568)
            Total shareholders' equity 5,389,760 5,295,694 
           Total liabilities and shareholders' equity$27,581,730 $25,877,687 

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 12 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020
Three months endedSix months ended
2021202020212020
(in thousands, except per share amounts)
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)
Per share data
 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)
 Weighted average common shares outstanding
84,764 84,303 84,640 84,198 
 Weighted average diluted common shares outstanding
85,267 84,600 85,117 84,198 
 Cash dividends declared per common share
$0.42 $0.41 $0.84 $0.82 




AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 13 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020
20212020
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$1,268,472 $672,714 $1,941,186 $1,037,568 $678,615 $1,716,183 
Net premiums written712,885 490,973 1,203,858 602,761 453,173 1,055,934 
Net premiums earned631,675 525,266 1,156,941 577,019 526,984 1,104,003 
Other insurance related income552 5,265 5,817 755 1,241 1,996 
Net losses and loss expenses(332,175)(334,298)(666,473)(337,367)(338,894)(676,261)
Acquisition costs(106,963)(112,107)(219,070)(116,259)(112,243)(228,502)
Underwriting-related general and
administrative expenses(8)
(99,569)(29,392)(128,961)(89,751)(24,073)(113,824)
Underwriting income(9)
$93,520 $54,734 148,254 $34,397 $53,015 87,412 
Net investment income104,672 45,040 
Net investment gains73,293 53,043 
Corporate expenses(8)
(33,491)(26,828)
Foreign exchange losses(19,602)(9,709)
Interest expense and financing costs(15,235)(20,595)
Reorganization expenses— (392)
Amortization of value of business acquired(1,028)(1,285)
Amortization of intangible assets(3,324)(2,855)
Income before income taxes and interest in income of equity method investments$253,539 $123,831 
Net losses and loss expenses ratio52.6 %63.6 %57.6 %58.5 %64.3 %61.3 %
Acquisition cost ratio16.9 %21.3 %18.9 %20.1 %21.3 %20.7 %
General and administrative
expense ratio
15.8 %5.7 %14.1 %15.6 %4.6 %12.7 %
Combined ratio
85.3 %90.6 %90.6 %94.2 %90.2 %94.7 %
8 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 included corporate expenses of $33 million and $27 million for the three months ended June 30, 2021 and 2020, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
9 Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented above.




AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 14 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020
20212020
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$2,371,670 $2,104,997 $4,476,667 $1,978,283 $2,169,058 $4,147,341 
Net premiums written1,420,699 1,562,045 2,982,744 1,184,411 1,550,567 2,734,978 
Net premiums earned1,247,962 1,012,701 2,260,663 1,139,083 1,053,545 2,192,628 
Other insurance related income (loss)967 7,631 8,598 1,403 (8,113)(6,710)
Net losses and loss expenses(689,072)(692,118)(1,381,190)(809,180)(775,155)(1,584,335)
Acquisition costs(224,642)(213,299)(437,941)(229,010)(238,142)(467,152)
Underwriting-related general and
administrative expenses(10)
(202,872)(58,757)(261,629)(190,529)(53,257)(243,786)
Underwriting income (loss)(11)
$132,343 $56,158 188,501 $(88,233)$(21,122)(109,355)
Net investment income218,836 138,140 
Net investment gains (losses)102,936 (9,831)
Corporate expenses(10)
(59,231)(53,926)
Foreign exchange (losses) gains(23,716)51,974 
Interest expense and financing costs(30,806)(44,067)
Reorganization expenses— 591 
Amortization of value of business acquired(2,056)(3,083)
Amortization of intangible assets(6,013)(5,725)
Income (loss) before income taxes and interest in income (loss) of equity method investments$388,451 $(35,282)
Net losses and loss expenses ratio55.2 %68.3 %61.1 %71.0 %73.6 %72.3 %
Acquisition cost ratio18.0 %21.1 %19.4 %20.1 %22.6 %21.3 %
General and administrative
expense ratio
16.3 %5.8 %14.2 %16.8 %5.0 %13.5 %
Combined ratio
89.5 %95.2 %94.7 %107.9 %101.2 %107.1 %
10Underwriting-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 included corporate expenses of $59 million and $54 million for the six months ended June 30, 2021 and 2020, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
11Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented above.



AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 15 -


AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020
Three months endedSix months ended
2021202020212020
(in thousands, except per share amounts)
Net income (loss) available (attributable) to common shareholders$227,910$112,477$343,645$(72,908)
Net investment (gains) losses(12)
(73,293)(53,043)(102,936)9,831
Foreign exchange losses (gains)(13)
19,6029,70923,716(51,974)
Reorganization expenses(14)
—392—(591)
Interest in (income) loss of equity method investments(15)
(9,799)(7,102)(18,960)16,475
Income tax expense 6,0889,0707,7826,259
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)0.230.110.28(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 0.070.110.090.07
Operating income (loss) per diluted common share$2.00$0.84$2.98$(1.11)
Weighted average diluted common shares outstanding85,26784,60085,11784,198
Average common shareholders' equity4,733,0754,518,6994,792,7274,758,414
Annualized return on average common equity19.3 %10.0 %14.3 %(3.1 %)
Annualized operating return on average common equity(16)
14.4 %6.3 %10.6 %(3.9 %)
12 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.
13 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.
14 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.
15 Tax expense (benefit) of $nil for the six months ended June 30, 2021 and 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
16 Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in this press release.



AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 16 -


Risk and Uncertainties Related to the COVID-19 pandemic

The determination of the net loss estimate for the COVID-19 pandemic was based on our ground-up assessment of coverage from individual contracts and treaties across all lines of business, including a review of modeling analyses and market information, where appropriate. In addition, we considered preliminary information received from clients, brokers, and loss adjusters together with global shelter-in-place orders and the outcomes of recent court judgments, including the UK Supreme Court ruling.

The net loss estimate related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include:

•the nature and the duration of the pandemic;
•the effects on health, the economy and our customers;
•the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of our contracts;
•the coverage provided under our contracts;
•the coverage provided by our ceded reinsurance; and
•the evaluation of the net loss estimate and impact of claim mitigation actions.

The actual net loss for this event may ultimately differ materially from the current net loss estimate.

Cautionary Note Regarding Forward-Looking Statements

This press release 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 press release, 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 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.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 17 -


Forward-looking statements contained in this press release 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 values;
•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;
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 18 -


•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;
•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.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 19 -


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 press release, 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"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP 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 Segmental Data' section of this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 20 -


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 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
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 21 -


highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

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 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).

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 22 -


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 press release.

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 press release.

Constant Currency Basis
We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release.

Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movement
Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax total return on cash and investments excluding foreign exchange movements to pre-tax total return on cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 23 -