EX-99.1 2 q32021pressrelease.htm PRESS RELEASE DATED OCTOBER 27, 2021 Document


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


AXIS CAPITAL REPORTS THIRD QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $47 MILLION, or $0.56 PER DILUTED COMMON SHARE


For the third quarter of 2021, the Company reports:
•Improvement of 4.8 points in current accident year combined ratio, excluding catastrophe and weather-related losses to 87.6%, compared to the prior year
•Operating income of $1 million, or $0.01 per diluted common share
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $250 million, or 20.7 points
•Annualized return on average common equity ("ROACE") of 3.9%
•Book value per diluted common share of $54.86, a decrease of $0.64, or 1.2%, compared to June 30, 2021

Pembroke, Bermuda, October 27, 2021 - AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE: AXS) today announced financial results for the third quarter ended September 30, 2021.
Commenting on the third quarter 2021 financial results, Albert Benchimol, President and CEO of AXIS Capital, said:
“Once again our industry was challenged by severe weather events and our focus continues to be on supporting our clients and the communities that have been impacted.

"In the face of these challenges, we continued to deliver, accelerating momentum in our progress highlighted by eight consecutive quarters of year-over-year improvement in our combined ratio ex-cat and weather. Notably, AXIS generated net operating income for the quarter, and our lower market share of the events demonstrates the progress that we’ve made in reducing our net exposure to catastrophes. Our results were underscored by strong top line growth, disciplined underwriting, and solid investment income.

"AXIS is well positioned in key specialty markets and we’re increasingly confident that favorable conditions will continue through 2022 and likely beyond, providing us with an attractive path to further profitable growth.”
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 1 -

Third Quarter Consolidated Results*

•Net income available to common shareholders for the third quarter of 2021 was $47 million, or $0.56 per diluted common share, compared to net loss attributable to common shareholders of $(73) million, or $(0.87) per diluted common share, for the third quarter of 2020.
•Net income available to common shareholders for the nine months ended September 30, 2021 was $391 million, or $4.59 per diluted common share, compared to a net loss attributable to common shareholders of $(146) million, or $(1.73) per diluted common share, for the same period in 2020.
•Operating income1 for the third quarter of 2021 was $1 million, or $0.01 per diluted common share1, compared to an operating loss of $(65) million, or $(0.77) per diluted common share, for the third quarter of 2020.
•Operating income for the nine months ended September 30, 2021 was $254 million, or $2.98 per diluted common share1, compared to an operating loss of $(158) million, or $(1.88) per diluted common share, for the same period in 2020.
•Adjusted for dividends declared, the book value per diluted common share decreased by $0.22, or 0.4%, compared to June 30, 2021.
•Adjusted for dividends declared, the book value per diluted common share increased by $1.79, or 3.3%, 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 three and nine months ended September 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in these periods.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
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Third Quarter Consolidated Underwriting Highlights2

•Gross premiums written increased by $315 million, or 24% ($299 million, or 22%, on a constant currency basis3), to $1.6 billion with an increase of $241 million, or 26%, in the insurance segment and an increase of $75 million, or 19%, in the reinsurance segment.
•Net premiums written increased by $180 million, or 22% ($166 million, or 20%, on a constant currency basis), to $1.0 billion with an increase of $163 million, or 30%, in the insurance segment and an increase of $18 million, or 7%, in the reinsurance segment.
Three months ended September 30,
KEY RATIOS20212020Change
Current accident year loss ratio excluding catastrophe and weather-related losses4
55.4 %58.5 %(3.1  pts)
Catastrophe and weather-related losses ratio20.7 %22.2 %(1.5  pts)
Current accident year loss ratio76.1 %80.7 %(4.6  pts)
Prior year reserve development ratio(0.9 %)(0.1 %)(0.8  pts)
Net losses and loss expenses ratio75.2 %80.6 %(5.4  pts)
Acquisition cost ratio19.1 %21.1 %(2.0  pts)
General and administrative expense ratio13.1 %12.8 %0.3  pts
Combined ratio107.4 %114.5 %(7.1  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses87.6 %92.4 %(4.8  pts)
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $250 million (Insurance: $105 million; Reinsurance: $145 million), or 20.7 points, primarily attributable to Hurricane Ida, July European floods, and other weather-related events, compared to $240 million (Insurance: $132 million; Reinsurance: $108 million), or 22.2 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 $11 million (Insurance: $5 million; Reinsurance: $6 million), compared to $0.6 million (Insurance: $0.3 million; Reinsurance: $0.3 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
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Nine Months Consolidated Underwriting Highlights

•Gross premiums written increased by $645 million, or 12% ($575 million, or 10%, on a constant currency basis), to $6.1 billion with an increase of $634 million, or 22%, in the insurance segment and an increase of $11 million, in the reinsurance segment.
•Net premiums written increased by $428 million, or 12% ($363 million, or 10%, on a constant currency basis), to $4.0 billion with an increase of $399 million, or 23%, in the insurance segment and an increase of $29 million, or 2%, in the reinsurance segment.
Nine months ended September 30,
KEY RATIOS20212020Change
Current accident year loss ratio excluding catastrophe and weather-related losses55.4 %57.8 %(2.4  pts)
Catastrophe and weather-related losses ratio11.3 %17.5 %(6.2  pts)
Current accident year loss ratio66.7 %75.3 %(8.6  pts)
Prior year reserve development ratio(0.7 %)(0.3 %)(0.4  pts)
Net losses and loss expenses ratio66.0 %75.0 %(9.0  pts)
Acquisition cost ratio19.3 %21.2 %(1.9  pts)
General and administrative expense ratio13.8 %13.4 %0.4  pts
Combined ratio99.1 %109.6 %(10.5  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses88.5 %92.4 %(3.9  pts)
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $389 million (Insurance: $152 million; Reinsurance: $237 million), or 11.3 points, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola principally related to the state of Texas, July European floods, and other weather-related events, compared to $576 million (Insurance: $325 million; Reinsurance: $251 million), or 17.5 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 $23 million (Insurance: $13 million; Reinsurance: $10 million), compared to $9 million (Insurance: $5 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 September 30,
($ in thousands)20212020Change
Gross premiums written$1,176,500 $935,817 25.7 %
Net premiums written707,492 544,857 29.8 %
Net premiums earned681,008 570,184 19.4 %
Underwriting income (loss)10,361 (81,465)nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses50.8 %54.7 %(3.9  pts)
Catastrophe and weather-related losses ratio15.0 %23.1 %(8.1  pts)
Current accident year loss ratio65.8 %77.8 %(12.0  pts)
Prior year reserve development ratio(0.8 %)— %(0.8  pts)
Net losses and loss expenses ratio65.0 %77.8 %(12.8  pts)
Acquisition cost ratio18.1 %20.1 %(2.0  pts)
Underwriting-related general and administrative expense ratio15.4 %16.5 %(1.1  pts)
Combined ratio98.5 %114.4 %(15.9  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses84.3 %91.3 %(7.0  pts)
nm - not meaningful is defined as a variance greater than +/-100%
•Gross premiums written increased by $241 million, or 26% ($228 million, or 24%, on a constant currency basis), primarily attributable to increases in professional lines, liability, and property lines driven by new business and favorable rate changes.
•Net premiums written increased by $163 million, or 30% ($152 million, or 28%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter.
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $105 million, primarily attributable to Hurricane Ida and other weather-related events, compared to $132 million in 2020.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 3.9 points in the third quarter, compared to the same period in 2020, principally due to the impact of favorable pricing over loss trends, and underwriting actions most notably in liability, aviation, and property lines.
•Net favorable prior year reserve development was $5 million this quarter, compared to $0.3 million in the third quarter of 2020.
•The acquisition cost ratio decreased by 2.0 points in the third quarter, compared to the same period in 2020, primarily due to the decrease in program business in property lines written in recent periods 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 -


•The underwriting-related general and administrative expense ratio decreased by 1.1 points in the third quarter, compared to the same period in 2020, mainly driven by an increase in net premiums earned, partially offset by an increase in personnel costs.

Nine months ended September 30,
($ in thousands)20212020Change
Gross premiums written$3,548,169 $2,914,100 21.8 %
Net premiums written2,128,190 1,729,268 23.1 %
Net premiums earned1,928,970 1,709,268 12.9 %
Underwriting income (loss)142,703 (169,698)nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses51.6 %54.8 %(3.2  pts)
Catastrophe and weather-related losses ratio7.8 %18.7 %(10.9  pts)
Current accident year loss ratio59.4 %73.5 %(14.1  pts)
Prior year reserve development ratio(0.7 %)(0.2 %)(0.5  pts)
Net losses and loss expenses ratio58.7 %73.3 %(14.6  pts)
Acquisition cost ratio18.0 %20.1 %(2.1  pts)
Underwriting-related general and administrative expense ratio16.0 %16.7 %(0.7  pts)
Combined ratio92.7 %110.1 %(17.4  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses85.6 %91.6 %(6.0  pts)
nm - not meaningful
•Gross premiums written increased by $634 million, or 22% ($596 million, or 20%, on a constant currency basis), primarily attributable to increases in professional lines, liability, property, and marine lines driven by new business and favorable rate changes.
•Net premiums written increased by $399 million, or 23% ($365 million, or 21%, on a constant currency basis), reflecting the increase in gross premiums written, partially offset by increases in premiums ceded in professional lines, liability, and property lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $152 million, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola, and other weather-related events, compared to $325 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 September 30,
($ in thousands)20212020Change
Gross premiums written$469,989 $395,361 18.9 %
Net premiums written288,979 271,125 6.6 %
Net premiums earned530,419 521,128 1.8 %
Underwriting income (loss)(69,176)(53,859)28.4 %
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses61.4 %62.7 %(1.3  pts)
Catastrophe and weather-related losses ratio28.0 %21.1 %6.9  pts
Current accident year loss ratio89.4 %83.8 %5.6  pts
Prior year reserve development ratio(1.0 %)(0.1 %)(0.9  pts)
Net losses and loss expenses ratio88.4 %83.7 %4.7  pts
Acquisition cost ratio20.4 %22.3 %(1.9  pts)
Underwriting-related general and administrative expense ratio5.6 %4.5 %1.1  pts
Combined ratio114.4 %110.5 %3.9  pts
Current accident year combined ratio excluding catastrophe and weather-related losses87.4 %89.5 %(2.1  pts)
•Gross premiums written increased by $75 million, or 19% ($71 million, or 18%, on a constant currency basis), primarily attributable to increases in liability, accident and health, and catastrophe lines, partially offset by a decrease in property lines. The increases in liability and accident and health lines were largely driven by favorable market conditions. The increase in catastrophe lines was attributable to reinstatement premiums. The decrease in property lines was driven by non-renewals and decreased line sizes associated with repositioning the portfolio.
•Net premiums written increased by $18 million, or 7% ($14 million, or 5%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, partially offset by increases in premium ceded in catastrophe, credit and surety, and liability lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $145 million, primarily attributable to Hurricane Ida, July European floods, and other weather-related events, compared to $108 million in 2020.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 1.3 points in the third quarter, compared to the same period in 2020, principally due to improved loss experience in credit and surety, and accident and health lines, and the impact of favorable pricing over loss trends, partially offset by the impact of changes in retrocessional arrangements and changes in business mix.
•Net favorable prior year reserve development was $6 million this quarter, compared to $0.3 million in the third quarter of 2020.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com
- 7 -


•The acquisition cost ratio decreased by 1.9 points in the third quarter, compared to the same period in 2020, primarily due to the impact of retrocessional contracts.
•The underwriting-related general and administrative expense ratio increased by 1.1 points in the third quarter, compared to the same period in 2020, mainly driven by an increase in personnel costs.

Nine months ended September 30,
($ in thousands)20212020Change
Gross premiums written$2,574,987 $2,564,419 0.4 %
Net premiums written1,851,025 1,821,692 1.6 %
Net premiums earned1,543,120 1,574,673 (2.0 %)
Underwriting income (loss)(13,019)(74,982)(82.6 %)
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses60.2 %61.1 %(0.9  pts)
Catastrophe and weather-related losses ratio15.7 %16.1 %(0.4  pts)
Current accident year loss ratio75.9 %77.2 %(1.3  pts)
Prior year reserve development ratio(0.7 %)(0.3 %)(0.4  pts)
Net losses and loss expenses ratio75.2 %76.9 %(1.7  pts)
Acquisition cost ratio20.8 %22.5 %(1.7  pts)
Underwriting-related general and administrative expense ratio5.8 %4.9 %0.9  pts
Combined ratio101.8 %104.3 %(2.5  pts)
Current accident year combined ratio excluding catastrophe and weather-related losses86.8 %88.5 %(1.7  pts)
•Gross premiums written increased by $11 million (decreased by $21 million, or 1%, on a constant currency basis), primarily attributable to increases in liability, professional lines, and accident and health lines, largely due to favorable rate changes. These increases were partially offset by decreases in catastrophe, motor, property, engineering, and credit and surety lines due to non-renewals and decreased line sizes.
•Net premiums written increased by $29 million, or 2% (decreased by $2 million, on a constant currency basis), reflecting the increase in gross premiums written and decreases in premiums ceded in catastrophe and property lines, partially offset by an increase in premiums ceded in liability lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $237 million, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola, July European floods, and other weather-related events, compared to $251 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 $107 million increased from net investment income of $102 million for the third quarter of 2020, primarily attributable to positive returns from other investments in 2021. Net realized and unrealized gains recognized in net income for the quarter were $11 million, including net unrealized losses of $8 million ($1 million excluding foreign exchange movements), following a decrease in the market value of our equity securities portfolio during the quarter, compared to net realized and unrealized gains of $56 million in the third quarter of 2020.

Pre-tax total return on cash and investments5 was 0.3% including foreign exchange movements (0.5% excluding foreign exchange movements6). Net unrealized losses of $81 million ($55 million excluding foreign exchange movements) were recognized in other comprehensive income in the quarter, compared to net unrealized gains of $73 million ($43 million excluding foreign exchange movements) recognized during the third quarter of 2020. The prior year pre-tax total return was 1.5% including foreign exchange movements (1.2% excluding foreign exchange movements).

For the nine months ended September 30, 2021, pre-tax total return on cash and investments was 1.1% including foreign exchange movements (1.3% excluding foreign exchange movements), compared to 3.1% including foreign exchange movements (3.1% excluding foreign exchange movements) for the same period in 2020. Net unrealized losses of $298 million ($257 million excluding foreign exchange movements) were recognized in other comprehensive income in the year, compared to net unrealized gains of $205 million ($213 million excluding foreign exchange movements) for the same period in 2020.

Our fixed income portfolio book yield was 1.9% at September 30, 2021, compared to 2.3% at September 30, 2020. The market yield was 1.4% at September 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 $(30) million and $42 million for the three months ended September 30, 2021 and 2020, respectively, and foreign exchange (losses) gains of $(35) million and $(6) million for the nine months ended September 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 September 30, 2021 was $6.6 billion, including $1.3 billion of debt and $550 million of preferred equity, compared to $6.6 billion at December 31, 2020, with net income generated for the nine months ended September 30, 2021, largely 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, decreased by $0.64 in the current quarter, and increased by $0.11 over the past twelve months, to $54.86. The decrease in the quarter was driven by a decrease in the net unrealized gains reported in other comprehensive income and common share dividends declared, partially offset by the net income generated. 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 third quarter of 2021, the Company declared dividends of $0.42 per common share, with total dividends declared of $1.68 per common share over the past twelve months. Adjusted for dividends declared, the book value per diluted common share decreased by $0.22 for the quarter, and increased by $1.79 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 Thursday, October 28, 2021 at 9:30 a.m. (EDT) to discuss the third 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 9403469. 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 10160458. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended September 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 $5.3 billion at September 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 corporate LinkedIn (AXIS Capital) and 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. 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
SEPTEMBER 30, 2021 (UNAUDITED) AND DECEMBER 31, 2020
20212020
(in thousands)
Assets
Investments:
Fixed maturities, available for sale, at fair value
$12,380,959 $12,041,799 
Fixed maturities, held to maturity, at amortized cost
416,879 — 
Equity securities, at fair value
618,822 518,445 
Mortgage loans, held for investment, at fair value
623,487 593,290 
Other investments, at fair value
892,664 829,156 
Equity method investments
145,080 114,209 
Short-term investments, at fair value
68,267 161,897 
Total investments15,146,158 14,258,796 
Cash and cash equivalents947,542 902,831 
Restricted cash and cash equivalents551,662 600,401 
Accrued interest receivable62,423 65,020 
Insurance and reinsurance premium balances receivable2,978,996 2,738,342 
Reinsurance recoverable on unpaid losses and loss expenses4,989,645 4,496,641 
Reinsurance recoverable on paid losses and loss expenses506,503 434,201 
Deferred acquisition costs544,384 431,439 
Prepaid reinsurance premiums1,460,723 1,194,455 
Receivable for investments sold2,028 2,150 
Goodwill100,801 100,801 
Intangible assets211,557 219,633 
Value of business acquired770 3,854 
Operating lease right-of-use assets107,791 123,579 
Other assets324,154 305,544 
             Total assets$27,935,137 $25,877,687 
Liabilities
Reserve for losses and loss expenses$14,658,996 $13,926,766 
Unearned premiums4,464,282 3,685,886 
Insurance and reinsurance balances payable1,442,729 1,092,042 
Debt1,310,650 1,309,695 
Payable for investments purchased239,073 104,777 
Operating lease liabilities123,874 140,263 
Other liabilities360,478 322,564 
             Total liabilities22,600,082 20,581,993 
Shareholders' equity
Preferred shares550,000 550,000 
Common shares2,206 2,206 
Additional paid-in capital2,336,895 2,330,054 
Accumulated other comprehensive income150,122 414,395 
Retained earnings6,044,843 5,763,607 
Treasury shares, at cost(3,749,011)(3,764,568)
            Total shareholders' equity 5,335,055 5,295,694 
           Total liabilities and shareholders' equity$27,935,137 $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 NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
Three months endedNine months ended
2021202020212020
(in thousands, except per share amounts)
Revenues
Net premiums earned$1,211,427 $1,091,312 $3,472,090 $3,283,941 
Net investment income107,339 101,956 326,174 240,098 
Net investment gains10,932 55,609 113,868 45,777 
Other insurance related income (loss)7,665 1,440 16,262 (5,270)
Total revenues1,337,363 1,250,317 3,928,394 3,564,546 
Expenses
Net losses and loss expenses911,369 879,677 2,292,559 2,464,012 
Acquisition costs231,712 230,564 669,654 697,716 
General and administrative expenses157,960 138,823 478,820 436,538 
Foreign exchange losses (gains)(28,032)60,734 (4,316)8,760 
Interest expense and financing costs15,954 15,574 46,759 59,641 
Reorganization expenses— 1,413 — 822 
Amortization of value of business acquired1,028 1,028 3,083 4,111 
Amortization of intangible assets3,149 2,838 9,163 8,564 
Total expenses1,293,140 1,330,651 3,495,722 3,680,164 
Income (loss) before income taxes and interest in income (loss) of equity method investments44,223 (80,334)432,672 (115,618)
Income tax (expense) benefit(1,186)12,056 (49,827)6,030 
Interest in income (loss) of equity method investments11,911 2,896 30,871 (13,579)
Net income (loss)54,948 (65,382)413,716 (123,167)
Preferred share dividends7,563 7,563 22,688 22,688 
Net income (loss) available (attributable) to common shareholders$47,385 $(72,945)$391,028 $(145,855)
Per share data
 Earnings (loss) per common share:
   Earnings (loss) per common share$0.56 $(0.87)$4.62 $(1.73)
   Earnings (loss) per diluted common share$0.56 $(0.87)$4.59 $(1.73)
 Weighted average common shares outstanding
84,771 84,308 84,684 84,235 
 Weighted average diluted common shares outstanding
85,336 84,308 85,191 84,235 
 Cash dividends declared per common share
$0.42 $0.41 $1.26 $1.23 




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 SEPTEMBER 30, 2021 AND 2020
20212020
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$1,176,500 $469,989 $1,646,489 $935,817 $395,361 $1,331,178 
Net premiums written707,492 288,979 996,471 544,857 271,125 815,982 
Net premiums earned681,008 530,419 1,211,427 570,184 521,128 1,091,312 
Other insurance related income468 7,197 7,665 688 752 1,440 
Net losses and loss expenses(442,681)(468,688)(911,369)(443,389)(436,288)(879,677)
Acquisition costs(123,529)(108,183)(231,712)(114,569)(115,995)(230,564)
Underwriting-related general and
administrative expenses(8)
(104,905)(29,921)(134,826)(94,379)(23,456)(117,835)
Underwriting income (loss)(9)
$10,361 $(69,176)(58,815)$(81,465)$(53,859)(135,324)
Net investment income107,339 101,956 
Net investment gains10,932 55,609 
Corporate expenses(8)
(23,134)(20,988)
Foreign exchange (losses) gains28,032 (60,734)
Interest expense and financing costs(15,954)(15,574)
Reorganization expenses— (1,413)
Amortization of value of business acquired(1,028)(1,028)
Amortization of intangible assets(3,149)(2,838)
Income (loss) before income taxes and interest in income of equity method investments44,223 (80,334)
Income tax (expense) benefit(1,186)12,056 
Interest in income of equity method investments11,911 2,896 
Net income (loss)54,948 (65,382)
Preferred share dividends7,563 7,563 
Net income (loss) available (attributable) to common shareholders$47,385 $(72,945)
Net losses and loss expenses ratio65.0 %88.4 %75.2 %77.8 %83.7 %80.6 %
Acquisition cost ratio18.1 %20.4 %19.1 %20.1 %22.3 %21.1 %
General and administrative
expense ratio
15.4 %5.6 %13.1 %16.5 %4.5 %12.8 %
Combined ratio
98.5 %114.4 %107.4 %114.4 %110.5 %114.5 %
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 $23 million and $21 million for the three months ended September 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 net income (loss), the most comparable GAAP financial measure, is presented in the table 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 NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
20212020
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$3,548,169 $2,574,987 $6,123,156 $2,914,100 $2,564,419 $5,478,519 
Net premiums written2,128,190 1,851,025 3,979,215 1,729,268 1,821,692 3,550,960 
Net premiums earned1,928,970 1,543,120 3,472,090 1,709,268 1,574,673 3,283,941 
Other insurance related income (loss)1,435 14,827 16,262 2,091 (7,361)(5,270)
Net losses and loss expenses(1,131,753)(1,160,806)(2,292,559)(1,252,569)(1,211,443)(2,464,012)
Acquisition costs(348,172)(321,482)(669,654)(343,579)(354,137)(697,716)
Underwriting-related general and
administrative expenses(10)
(307,777)(88,678)(396,455)(284,909)(76,714)(361,623)
Underwriting income (loss)(11)
$142,703 $(13,019)129,684 $(169,698)$(74,982)(244,680)
Net investment income326,174 240,098 
Net investment gains113,868 45,777 
Corporate expenses(10)
(82,365)(74,915)
Foreign exchange (losses) gains4,316 (8,760)
Interest expense and financing costs(46,759)(59,641)
Reorganization expenses— (822)
Amortization of value of business acquired(3,083)(4,111)
Amortization of intangible assets(9,163)(8,564)
Income (loss) before income taxes and interest in income (loss) of equity method investments432,672 (115,618)
Income tax (expense) benefit(49,827)6,030 
Interest in income (loss) of equity method investments30,871 (13,579)
Net income (loss)413,716 (123,167)
Preferred share dividends22,688 22,688 
Net income (loss) available (attributable) to common shareholders$391,028 $(145,855)
Net losses and loss expenses ratio58.7 %75.2 %66.0 %73.3 %76.9 %75.0 %
Acquisition cost ratio18.0 %20.8 %19.3 %20.1 %22.5 %21.2 %
General and administrative
expense ratio
16.0 %5.8 %13.8 %16.7 %4.9 %13.4 %
Combined ratio
92.7 %101.8 %99.1 %110.1 %104.3 %109.6 %
10 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 $82 million and $75 million for the nine months ended September 30, 2021 and 2020, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
11 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 in the table 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 NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
Three months endedNine months ended
2021202020212020
(in thousands, except per share amounts)
Net income (loss) available (attributable) to common shareholders$47,385$(72,945)$391,028$(145,855)
Net investment gains(12)
(10,932)(55,609)(113,868)(45,777)
Foreign exchange losses (gains)(13)
(28,032)60,734(4,316)8,760
Reorganization expenses(14)
—1,413—822
Interest in (income) loss of equity method investments(15)
(11,911)(2,896)(30,871)13,579
Income tax expense4,5344,23512,31610,494
Operating income (loss)$1,044$(65,068)$254,289$(157,977)
Earnings (loss) per diluted common share$0.56$(0.87)$4.59$(1.73)
Net investment gains(0.13)(0.66)(1.34)(0.54)
Foreign exchange losses (gains)(0.33)0.72(0.05)0.10
Reorganization expenses—0.02—0.01
Interest in (income) loss of equity method investments(0.14)(0.03)(0.36)0.16
Income tax expense0.050.050.140.12
Operating income (loss) per diluted common share$0.01$(0.77)$2.98$(1.88)
Weighted average diluted common shares outstanding85,33684,30885,19184,235
Average common shareholders' equity4,812,4084,731,8584,765,3754,742,452
Annualized return on average common equity3.9 %(6.2 %)10.9 %(4.1 %)
Annualized operating return on average common equity(16)
0.1 %(5.5 %)7.1 %(4.4 %)
12 Tax expense (benefit) of $606 and $6,667 for the three months ended September 30, 2021 and 2020, respectively, and $9,581 and $9,104 for the nine months ended September 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 $3,928 and $(2,245) for the three months ended September 30, 2021 and 2020, respectively, and $2,735 and $1,366 for the nine months ended September 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 $(187) for the three months ended September 30, 2020, and $24 for the nine months ended September 30, 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
15 Tax expense (benefit) of $nil for the three and nine months ended September 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, and included 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 United Kingdom's 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 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;
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 net income (loss), 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
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