Document

EX-99.2 3 q12022financialsupplement.htm EX-99.2 Document

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

FIRST QUARTER 2022

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Matt Rohrmann

Investor Contact

(212) 940-3339

investorrelations@axiscapital.com

Website Information:

www.axiscapital.com

This report is for informational purposes only. It should be read in conjunction with the documents that the Company files with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL SUPPLEMENT TABLE OF CONTENTS


						Page(s)
Basis of Presentation						i - iv
I. Financial Highlights						1
II. Income Statements
a. Consolidated Statement of Operations						2
b. Consolidated Statements of Operations - Quarter and Prior Year						3-4

c. Consolidated Segment Data						5
d. Gross Premiums Written by Segment by Line of Business - Quarter and Prior Year						6
e. Consolidated Data - Quarter and Prior Year						7
f. Segment Data - Quarter and Prior Year						8-9
g. Strategic Capital Partners						10
h. Net Investment Income - Quarter and Prior Year						11
III. Balance Sheets
a. Consolidated Balance Sheets						12
b. Cash and Invested Assets:
• Cash and Invested Assets Portfolio						13
• Cash and Invested Assets Composition - Quarter						14

• Corporate Debt Composition						15
• Ten Largest Corporate Debt Holdings						16
• Mortgage-Backed and Asset-Backed Securities Composition						17
c. Reinsurance Recoverable Analysis						18-19
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis						20



b. Paid to Incurred Analysis by Segment - Quarter and Prior Year						21
c. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures						22
V. Share Analysis
a. Earnings Per Common Share Information						23

b. Book Value Per Diluted Common Share and Tangible Book Value Per Diluted Common Share - Treasury Stock Method						24

VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity						25
b. Rationale for the Use of Non-GAAP Financial Measures						26

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

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

DEFINITIONS AND PRESENTATION

•All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2021 and consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020.

•Amounts may not reconcile due to rounding differences.

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

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.

Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for catastrophes and other weather-related losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.

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

•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 including losses related to the Russian invasion of Ukraine, 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 exchange rates;

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

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

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

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

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

•difficulties with technology and/or data security;

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

•the failure of our cedants to adequately evaluate risks;

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

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

•a decline in our ratings with rating agencies;

•changes in accounting policies or practices;

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

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

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

•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

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

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

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

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

Terrorism: provides cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap and ransom, and crisis management insurance.

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

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

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

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

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

iii

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

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

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

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

Credit and Surety: provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Mortgage reinsurance is also provided to mortgage guaranty insurers and U.S. government-sponsored entities for losses related to credit risk transfer into the private sector.

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

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

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

Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. The Company exited this line of business in 2020.

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

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

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

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS


		Three months ended March 31,
		2022			2021			Change

HIGHLIGHTS	Gross premiums written	$	2,634,608		$	2,535,481		3.9	%
	Gross premiums written - Insurance	50.4		%	43.5		%	6.9		pts
	Gross premiums written - Reinsurance	49.6		%	56.5		%	(6.9)		pts
	Net premiums written	$	1,812,872		$	1,778,886		1.9	%
	Net premiums earned	$	1,258,246		$	1,103,722		14.0	%
	Net premiums earned - Insurance	59.8		%	55.8		%	4.0		pts
	Net premiums earned - Reinsurance	40.2		%	44.2		%	(4.0)		pts
	Net income available to common shareholders	$	141,637		$	115,737		22.4	%
	Operating income [a]	179,825			82,737			nm

	Annualized return on average common equity [b]	12.0		%	9.9		%	2.1		pts
	Annualized operating return on average common equity [c]	15.3		%	7.1		%	8.2		pts
	Total shareholders’ equity	$	5,120,540		$	5,176,390		(1.1	%)




PER COMMON SHARE AND COMMON SHARE DATA	Earnings per diluted common share	$1.65			$1.36			21.3	%
	Operating income per diluted common share [d]	$2.09			$0.97			nm

	Weighted average diluted common shares outstanding	85,808			84,965			1.0	%
	Book value per common share	$53.60			$54.59			(1.8	%)
	Book value per diluted common share (treasury stock method)	$51.97			$53.03			(2.0	%)
	Tangible book value per diluted common share (treasury stock method) [a]	$49.08			$49.91			(1.7	%)






FINANCIAL RATIOS	Current accident year loss ratio, excluding catastrophe and weather-related losses	54.2		%	55.1		%	(0.9)		pts
	Catastrophe and weather-related losses ratio	4.7		%	10.1		%	(5.4)		pts
	Current accident year loss ratio	58.9		%	65.2		%	(6.3)		pts
	Prior year reserve development ratio	(0.7		%)	(0.4		%)	(0.3)		pts
	Net losses and loss expenses ratio	58.2		%	64.8		%	(6.6)		pts
	Acquisition cost ratio	19.7		%	19.8		%	(0.1)		pts
	General and administrative expense ratio [e]	13.5		%	14.3		%	(0.8)		pts
	Combined ratio	91.4		%	98.9		%	(7.5)		pts



INVESTMENT DATA	Total assets	$	27,808,558		$	27,085,827		2.7	%
	Total cash and invested assets [f]	16,023,182			15,643,178			2.4	%
	Net investment income	91,355			114,165			(20.0	%)
	Net investment gains (losses)	(94,508)			29,645			nm



	Book yield of fixed maturities	2.1		%	2.1		%	—		pts

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

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

common shareholders’ equity balances at the beginning and end of the period.

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

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

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

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021


			Three months ended March 31,
			2022			2021

Revenues
Net premiums earned	$	1,258,246		$	1,103,722
Net investment income	91,355			114,165
Net investment gains (losses)	(94,508)			29,645
Other insurance related income	6,693			2,781
Total revenues			1,261,786			1,250,313

Expenses
Net losses and loss expenses	732,699			714,718
Acquisition costs	248,352			218,871
General and administrative expenses	169,041			158,408
Foreign exchange losses (gains)	(44,273)			4,113
Interest expense and financing costs	15,564			15,571
Amortization of value of business acquired	—			1,028
Amortization of intangible assets	2,729			2,690
Total expenses			1,124,112			1,115,399

Income before income taxes and interest in income of equity method investments	137,674			134,914
Income tax expense	(24)			(20,776)
Interest in income of equity method investments	11,550			9,162
Net income	149,200			123,300


Preferred share dividends	7,563			7,563

Net income available to common shareholders	$	141,637		$	115,737

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER AND PRIOR YEAR


													Year ended December 31,
	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020		2021
UNDERWRITING REVENUES
Gross premiums written	$	2,634,608	$	1,562,828	$	1,646,489	$	1,941,186	$	2,535,481	$	2,431,158	$	7,685,984
Ceded premiums written	(821,736)		(615,420)		(650,018)		(737,328)		(756,595)		(752,114)		(2,759,360)
Net premiums written	1,812,872		947,408		996,471		1,203,858		1,778,886		1,679,044		4,926,624

Gross premiums earned	1,902,508		1,936,521		1,879,280		1,794,769		1,671,139		1,657,412		7,281,709
Ceded premiums earned	(644,262)		(698,761)		(667,853)		(637,828)		(567,417)		(568,787)		(2,571,859)
Net premiums earned	1,258,246		1,237,760		1,211,427		1,156,941		1,103,722		1,088,625		4,709,850
Other insurance related income (loss)	6,693		7,033		7,665		5,817		2,781		(8,707)		23,295
Total underwriting revenues	1,264,939		1,244,793		1,219,092		1,162,758		1,106,503		1,079,918		4,733,145

UNDERWRITING EXPENSES
Net losses and loss expenses	732,699		716,225		911,369		666,473		714,718		908,073		3,008,783
Acquisition costs	248,352		252,180		231,712		219,070		218,871		238,650		921,834
Underwriting-related general and administrative expenses [a]	145,096		140,379		134,826		128,961		132,668		129,962		536,834
Total underwriting expenses	1,126,147		1,108,784		1,277,907		1,014,504		1,066,257		1,276,685		4,467,451

UNDERWRITING INCOME (LOSS) [b]	138,792		136,009		(58,815)		148,254		40,246		(196,767)		265,694

OTHER (EXPENSES) REVENUES
Net investment income	91,355		128,128		107,339		104,672		114,165		93,101		454,301
Net investment gains (losses)	(94,508)		20,410		10,932		73,293		29,645		(62,877)		134,279
Corporate expenses [a]	(23,945)		(44,105)		(23,134)		(33,491)		(25,740)		(27,098)		(126,470)
Foreign exchange (losses) gains	44,273		(4,632)		28,032		(19,602)		(4,113)		61,683		(315)
Interest expense and financing costs	(15,564)		(15,543)		(15,954)		(15,235)		(15,571)		(23,472)		(62,302)
Reorganization expenses	—		—		—		—		—		982		—
Amortization of value of business acquired	—		(771)		(1,028)		(1,028)		(1,028)		(1,799)		(3,854)
Amortization of intangible assets	(2,729)		(3,260)		(3,149)		(3,324)		(2,690)		(2,870)		(12,424)
Total other (expenses) revenues	(1,118)		80,227		103,038		105,285		94,668		37,650		383,215

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	137,674		216,236		44,223		253,539		134,914		(159,117)		648,909
Income tax (expense) benefit	(24)		(12,557)		(1,186)		(27,865)		(20,776)		4,867		(62,384)
Interest in income (loss) of equity method investments	11,550		1,213		11,911		9,799		9,162		(23,577)		32,084

NET INCOME (LOSS)	149,200		204,892		54,948		235,473		123,300		(177,827)		618,609





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


NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	141,637	$	197,329	$	47,385	$	227,910	$	115,737	$	(185,390)	$	588,359

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

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS - QUARTER AND PRIOR YEAR


													Year ended December 31,
	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020		2021
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio, excluding catastrophe and weather-related losses	54.2	%	54.3	%	55.4	%	55.7	%	55.1	%	57.1	%	55.1	%
Catastrophe and weather-related losses ratio	4.7	%	4.3	%	20.7	%	2.5	%	10.1	%	26.9	%	9.5	%
Current accident year loss ratio	58.9	%	58.6	%	76.1	%	58.2	%	65.2	%	84.0	%	64.6	%
Prior year reserve development ratio	(0.7	%)	(0.7	%)	(0.9	%)	(0.6	%)	(0.4	%)	(0.6	%)	(0.7	%)
Net losses and loss expenses ratio	58.2	%	57.9	%	75.2	%	57.6	%	64.8	%	83.4	%	63.9	%
Acquisition cost ratio	19.7	%	20.4	%	19.1	%	18.9	%	19.8	%	21.9	%	19.6	%
General and administrative expense ratio [a]	13.5	%	14.8	%	13.1	%	14.1	%	14.3	%	14.5	%	14.0	%
Combined ratio	91.4	%	93.1	%	107.4	%	90.6	%	98.9	%	119.8	%	97.5	%

Weighted average common shares outstanding	84,961		84,774		84,771		84,764		84,514		84,094		84,707
Weighted average diluted common shares outstanding [b]	85,808		85,591		85,336		85,267		84,965		84,094		85,291
Earnings (loss) per common share	$1.67		$2.33		$0.56		$2.69		$1.37		($2.20)		$6.95
Earnings (loss) per diluted common share	$1.65		$2.31		$0.56		$2.67		$1.36		($2.20)		$6.90
Annualized ROACE	12.0	%	16.4	%	3.9	%	19.3	%	9.9	%	nm		12.2	%
Annualized operating ROACE	15.3	%	15.1	%	0.1	%	14.4	%	7.1	%	nm		9.1	%

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

[b] Due to the net loss attributable to common shareholders recognized for the quarter ended March 31, 2020, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENT DATA


	Three months ended March 31, 2022									Three months ended March 31, 2021
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	1,327,264		$	1,307,344		$	2,634,608			$	1,103,198		$	1,432,283		$	2,535,481
Ceded premiums written	(483,352)			(338,384)			(821,736)				(395,384)			(361,211)			(756,595)
Net premiums written	843,912			968,960			1,812,872				707,814			1,071,072			1,778,886

Gross premiums earned	1,233,281			669,227			1,902,508				1,012,941			658,198			1,671,139
Ceded premiums earned	(480,465)			(163,797)			(644,262)				(396,655)			(170,762)			(567,417)
Net premiums earned	752,816			505,430			1,258,246				616,286			487,436			1,103,722
Other insurance related income	82			6,611			6,693				415			2,366			2,781
Total underwriting revenues	752,898			512,041			1,264,939				616,701			489,802			1,106,503

UNDERWRITING EXPENSES
Net losses and loss expenses	405,745			326,954			732,699				356,898			357,820			714,718
Acquisition costs	138,812			109,540			248,352				117,679			101,192			218,871
Underwriting-related general and administrative expenses	113,950			31,146			145,096				103,303			29,365			132,668
Total underwriting expenses	658,507			467,640			1,126,147				577,880			488,377			1,066,257

UNDERWRITING INCOME	$	94,391		$	44,401		$	138,792			$	38,821		$	1,425		$	40,246

Catastrophe and weather-related losses, net of reinstatement premiums	$	32,730		$	27,346		$	60,076			$	36,026		$	74,224		$	110,250
Net favorable prior year reserve development	$	7,062		$	1,894		$	8,956			$	1,505		$	3,812		$	5,317

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	50.5		%	59.7		%	54.2		%		52.3		%	58.6		%	55.1		%
Catastrophe and weather-related losses ratio	4.3		%	5.4		%	4.7		%		5.9		%	15.6		%	10.1		%
Current accident year loss ratio	54.8		%	65.1		%	58.9		%		58.2		%	74.2		%	65.2		%
Prior year reserve development ratio	(0.9		%)	(0.4		%)	(0.7		%)		(0.3		%)	(0.8		%)	(0.4		%)
Net losses and loss expenses ratio	53.9		%	64.7		%	58.2		%		57.9		%	73.4		%	64.8		%
Acquisition cost ratio	18.4		%	21.7		%	19.7		%		19.1		%	20.8		%	19.8		%
Underwriting-related general and administrative expense ratio	15.2		%	6.1		%	11.6		%		16.8		%	6.0		%	12.0		%
Corporate expense ratio							1.9		%								2.3		%
Combined ratio	87.5		%	92.5		%	91.4		%		93.8		%	100.2		%	98.9		%

AXIS CAPITAL HOLDINGS LIMITED

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS - QUARTER AND PRIOR YEAR


													Year ended December 31,
	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020		2021

INSURANCE SEGMENT
Property	$	284,937	$	281,105	$	273,548	$	320,424	$	261,787	$	223,932	$	1,136,864
Marine	198,551		80,355		87,463		114,061		187,948		156,296		469,826
Terrorism	22,982		9,868		14,167		12,339		19,744		16,520		56,117
Aviation	25,967		27,711		32,954		29,742		20,402		17,230		110,809
Credit and Political Risk	47,499		55,360		27,651		43,140		37,451		47,675		163,602
Professional Lines	435,865		549,011		465,576		463,763		337,765		257,071		1,816,116
Liability	253,162		267,726		228,497		241,522		193,254		170,929		930,999
Accident and Health	58,301		43,927		46,644		43,481		44,847		51,062		178,899

TOTAL INSURANCE SEGMENT	$	1,327,264	$	1,315,063	$	1,176,500	$	1,268,472	$	1,103,198	$	940,715	$	4,863,232

REINSURANCE SEGMENT
Catastrophe	$	138,396	$	19,957	$	88,396	$	133,089	$	250,956	$	262,283	$	492,397
Property	76,323		4,042		38,584		44,325		126,455		133,357		213,406
Credit and Surety	103,876		31,667		55,807		37,413		83,221		100,738		208,108
Professional Lines	133,579		49,739		24,279		148,398		131,255		123,570		353,671
Motor	151,714		4,511		12,151		39,781		223,524		279,132		279,966
Liability	284,348		104,956		166,085		182,688		269,201		219,523		722,931
Engineering	10,065		(874)		(660)		(2,502)		(2,428)		15,920		(6,464)
Agriculture	27,826		10,822		11,992		46,874		16,441		18,248		86,128
Marine and Aviation	50,485		3,484		12,428		25,714		32,340		29,993		73,968
Accident and Health	330,732		19,461		60,927		16,934		301,318		307,678		398,641

TOTAL REINSURANCE SEGMENT	$	1,307,344	$	247,765	$	469,989	$	672,714	$	1,432,283	$	1,490,443	$	2,822,752

CONSOLIDATED TOTAL	$	2,634,608	$	1,562,828	$	1,646,489	$	1,941,186	$	2,535,481	$	2,431,158	$	7,685,984

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q1 2020			2021
UNDERWRITING REVENUES
Gross premiums written	$	2,634,608		$	1,562,828		$	1,646,489		$	1,941,186		$	2,535,481		$	2,431,158		$	7,685,984
Ceded premiums written	(821,736)			(615,420)			(650,018)			(737,328)			(756,595)			(752,114)			(2,759,360)
Net premiums written	1,812,872			947,408			996,471			1,203,858			1,778,886			1,679,044			4,926,624

Gross premiums earned	1,902,508			1,936,521			1,879,280			1,794,769			1,671,139			1,657,412			7,281,709
Ceded premiums earned	(644,262)			(698,761)			(667,853)			(637,828)			(567,417)			(568,787)			(2,571,859)
Net premiums earned	1,258,246			1,237,760			1,211,427			1,156,941			1,103,722			1,088,625			4,709,850
Other insurance related income (loss)	6,693			7,033			7,665			5,817			2,781			(8,707)			23,295
Total underwriting revenues	1,264,939			1,244,793			1,219,092			1,162,758			1,106,503			1,079,918			4,733,145

UNDERWRITING EXPENSES
Net losses and loss expenses	732,699			716,225			911,369			666,473			714,718			908,073			3,008,783
Acquisition costs	248,352			252,180			231,712			219,070			218,871			238,650			921,834
Underwriting-related general and administrative expenses	145,096			140,379			134,826			128,961			132,668			129,962			536,834
Total underwriting expenses	1,126,147			1,108,784			1,277,907			1,014,504			1,066,257			1,276,685			4,467,451

UNDERWRITING INCOME (LOSS)	$	138,792		$	136,009		$	(58,815)		$	148,254		$	40,246		$	(196,767)		$	265,694

Catastrophe and weather-related losses, net of reinstatement premiums	$	60,076		$	54,209		$	249,830		$	28,562		$	110,250		$	299,695		$	442,859
Net favorable prior year reserve development	$	8,956		$	9,270		$	11,012		$	6,808		$	5,317		$	6,113		$	32,410

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	54.2		%	54.3		%	55.4		%	55.7		%	55.1		%	57.1		%	55.1		%
Catastrophe and weather-related losses ratio	4.7		%	4.3		%	20.7		%	2.5		%	10.1		%	26.9		%	9.5		%
Current accident year loss ratio	58.9		%	58.6		%	76.1		%	58.2		%	65.2		%	84.0		%	64.6		%
Prior year reserve development ratio	(0.7		%)	(0.7		%)	(0.9		%)	(0.6		%)	(0.4		%)	(0.6		%)	(0.7		%)
Net losses and loss expenses ratio	58.2		%	57.9		%	75.2		%	57.6		%	64.8		%	83.4		%	63.9		%
Acquisition cost ratio	19.7		%	20.4		%	19.1		%	18.9		%	19.8		%	21.9		%	19.6		%
Underwriting-related general and administrative expenses ratio	13.5		%	14.8		%	13.1		%	14.1		%	14.3		%	14.5		%	14.0		%
Combined ratio	91.4		%	93.1		%	107.4		%	90.6		%	98.9		%	119.8		%	97.5		%

AXIS CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q1 2020			2021
UNDERWRITING REVENUES
Gross premiums written	$	1,327,264		$	1,315,063		$	1,176,500		$	1,268,472		$	1,103,198		$	940,715		$	4,863,233
Ceded premiums written	(483,352)			(548,369)			(469,008)			(555,587)			(395,384)			(359,065)			(1,968,347)
Net premiums written	843,912			766,694			707,492			712,885			707,814			581,650			2,894,885

Gross premiums earned	1,233,281			1,212,644			1,142,550			1,076,900			1,012,941			932,078			4,445,035
Ceded premiums earned	(480,465)			(490,275)			(461,542)			(445,225)			(396,655)			(370,014)			(1,793,696)
Net premiums earned	752,816			722,369			681,008			631,675			616,286			562,064			2,651,339
Other insurance related income	82			227			468			552			415			647			1,662
Total underwriting revenues	752,898			722,596			681,476			632,227			616,701			562,711			2,653,001

UNDERWRITING EXPENSES
Net losses and loss expenses	405,745			383,246			442,681			332,175			356,898			471,812			1,514,998
Acquisition costs	138,812			136,172			123,529			106,963			117,679			112,751			484,344
Underwriting-related general and administrative expenses	113,950			121,505			104,905			99,569			103,303			100,778			429,282
Total underwriting expenses	658,507			640,923			671,115			538,707			577,880			685,341			2,428,624

UNDERWRITING INCOME (LOSS)	$	94,391		$	81,673		$	10,361		$	93,520		$	38,821		$	(122,630)		$	224,377

Catastrophe and weather-related losses, net of reinstatement premiums	$	32,730		$	22,654		$	104,873		$	11,088		$	36,026		$	177,583		$	174,559
Net favorable prior year reserve development	$	7,062		$	5,008		$	5,418		$	6,427		$	1,505		$	3,832		$	18,360

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	50.5		%	50.8		%	50.8		%	51.8		%	52.3		%	54.2		%	51.4		%
Catastrophe and weather-related losses ratio	4.3		%	2.9		%	15.0		%	1.8		%	5.9		%	30.4		%	6.4		%
Current accident year loss ratio	54.8		%	53.7		%	65.8		%	53.6		%	58.2		%	84.6		%	57.8		%
Prior year reserve development ratio	(0.9		%)	(0.7		%)	(0.8		%)	(1.0		%)	(0.3		%)	(0.7		%)	(0.7		%)
Net losses and loss expenses ratio	53.9		%	57.1		%	65.0		%	52.6		%	57.9		%	83.9		%	57.1		%
Acquisition cost ratio	18.4		%	18.3		%	18.1		%	16.9		%	19.1		%	20.1		%	18.3		%
Underwriting-related general and administrative expenses ratio	15.2		%	16.2		%	15.4		%	15.8		%	16.8		%	17.9		%	16.2		%
Combined ratio	87.5		%	91.6		%	98.5		%	85.3		%	93.8		%	121.9		%	91.6		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q1 2020			2021
UNDERWRITING REVENUES
Gross premiums written	$	1,307,344		$	247,765		$	469,989		$	672,714		$	1,432,283		$	1,490,443		$	2,822,752
Ceded premiums written	(338,384)			(67,051)			(181,010)			(181,741)			(361,211)			(393,049)			(791,013)
Net premiums written	968,960			180,714			288,979			490,973			1,071,072			1,097,394			2,031,739

Gross premiums earned	669,227			723,877			736,730			717,869			658,198			725,334			2,836,674
Ceded premiums earned	(163,797)			(208,486)			(206,311)			(192,603)			(170,762)			(198,773)			(778,163)
Net premiums earned	505,430			515,391			530,419			525,266			487,436			526,561			2,058,511
Other insurance related income (loss)	6,611			6,806			7,197			5,265			2,366			(9,354)			21,633
Total underwriting revenues	512,041			522,197			537,616			530,531			489,802			517,207			2,080,144

UNDERWRITING EXPENSES
Net losses and loss expenses	326,954			332,979			468,688			334,298			357,820			436,261			1,493,785
Acquisition costs	109,540			116,008			108,183			112,107			101,192			125,899			437,490
Underwriting-related general and administrative expenses	31,146			18,874			29,921			29,392			29,365			29,184			107,552
Total underwriting expenses	467,640			467,861			606,792			475,797			488,377			591,344			2,038,827

UNDERWRITING INCOME (LOSS)	$	44,401		$	54,336		$	(69,176)		$	54,734		$	1,425		$	(74,137)		$	41,317

Catastrophe and weather-related losses, net of reinstatement premiums	$	27,346		$	31,555		$	144,957		$	17,474		$	74,224		$	122,112		$	268,300
Net favorable prior year reserve development	$	1,894		$	4,262		$	5,594		$	381		$	3,812		$	2,281		$	14,050

KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses	59.7		%	59.2		%	61.4		%	60.4		%	58.6		%	60.2		%	59.9		%
Catastrophe and weather-related losses ratio	5.4		%	6.2		%	28.0		%	3.3		%	15.6		%	23.1		%	13.3		%
Current accident year loss ratio	65.1		%	65.4		%	89.4		%	63.7		%	74.2		%	83.3		%	73.2		%
Prior year reserve development ratio	(0.4		%)	(0.6		%)	(1.0		%)	(0.1		%)	(0.8		%)	(0.4		%)	(0.6		%)
Net losses and loss expenses ratio	64.7		%	72.6		%	88.4		%	63.6		%	73.4		%	82.9		%	72.6		%
Acquisition cost ratio	21.7		%	21.3		%	20.4		%	21.3		%	20.8		%	23.9		%	21.3		%
Underwriting-related general and administrative expense ratio	6.1		%	5.1		%	5.6		%	5.7		%	6.0		%	5.5		%	5.1		%
Combined ratio	92.5		%	99.0		%	114.4		%	90.6		%	100.2		%	112.3		%	99.0		%

AXIS CAPITAL HOLDINGS LIMITED

STRATEGIC CAPITAL PARTNERS


	Three months ended March 31,
	2022						2021
TOTAL MANAGED PREMIUMS [a]	Insurance		Reinsurance		Total		Insurance		Reinsurance		Total
Total Managed Premiums	$	1,327,264	$	1,307,344	$	2,634,608	$	1,103,198	$	1,432,283	$	2,535,481
Premiums ceded to Harrington Re	3,987		129,814		133,801		1,729		117,562		119,291
Premiums ceded to Other Strategic Capital Partners	—		208,570		208,570		—		243,649		243,649
Premiums ceded to Other Reinsurers	479,365		—		479,365		393,655		—		393,655
Net premiums written	$	843,912	$	968,960	$	1,812,872	$	707,814	$	1,071,072	$	1,778,886

FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Other insurance related income	$	—	$	6,056	$	6,056	$	—	$	1,705	$	1,705
Offset to general and administrative expenses	—		11,561		11,561		—		10,523		10,523
Total Fee income	$	—	$	17,617	$	17,617	$	—	$	12,228	$	12,228

[a] Total managed premiums represents gross premiums written of $2.6 billion and $2.5 billion for the three months ended March 31, 2022 and 2021, respectively, and includes premiums written by the insurance and reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.

[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners.

AXIS CAPITAL HOLDINGS LIMITED

NET INVESTMENT INCOME - QUARTER AND PRIOR YEAR


													Year ended December 31,
	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020		2021

Fixed maturities	$	64,809	$	67,623	$	63,712	$	61,244	$	69,470	$	89,943	$	262,049
Other investments	26,050		56,965		41,695		41,414		41,833		(2,120)		181,906
Equity securities	2,172		4,430		2,724		3,100		2,498		2,125		12,752
Mortgage loans	4,163		4,461		4,426		4,355		4,187		4,053		17,427
Cash and cash equivalents	1,118		808		692		617		2,336		4,930		4,454
Short-term investments	166		74		391		66		133		1,498		664

Gross investment income	98,478		134,361		113,640		110,796		120,457		100,429		479,252
Investment expenses	(7,123)		(6,233)		(6,301)		(6,124)		(6,292)		(7,328)		(24,951)

Net investment income	$	91,355	$	128,128	$	107,339	$	104,672	$	114,165	$	93,101	$	454,301

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS


	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,
	2022			2021			2021			2021			2021			2020
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,456,024		$	12,313,200		$	12,380,959		$	11,898,300		$	11,728,611		$	12,076,186
Fixed maturities, held to maturity, at amortized cost	493,509			446,016			416,879			403,370			404,690			—
Equity securities, at fair value	563,950			655,675			618,822			588,196			547,676			404,945
Mortgage loans, held for investment, at fair value	627,063			594,088			623,487			656,056			629,576			517,181
Other investments, at fair value	954,602			947,982			892,664			865,238			790,530			797,808
Equity method investments	157,843			146,293			145,080			133,169			123,370			94,244
Short-term investments, at fair value	70,385			31,063			68,267			112,862			185,699			77,101
Total investments	14,323,376			15,134,317			15,146,158			14,657,191			14,410,152			13,967,465
Cash and cash equivalents	1,706,711			1,317,690			1,499,204			1,589,443			1,560,279			1,241,063
Accrued interest receivable	64,906			64,350			62,423			63,215			61,222			76,569
Insurance and reinsurance premium balances receivable	3,163,990			2,622,676			2,978,996			3,393,777			3,367,142			3,485,043
Reinsurance recoverable on unpaid losses and loss expenses	4,957,080			5,017,611			4,989,645			4,626,454			4,533,232			4,101,579
Reinsurance recoverable on paid losses and loss expenses	612,027			642,215			506,503			467,180			459,411			357,185
Deferred acquisition costs	575,250			465,593			544,384			574,658			577,509			611,229
Prepaid reinsurance premiums	1,555,303			1,377,358			1,460,723			1,479,328			1,379,450			1,281,808
Receivable for investments sold	55,473			4,555			2,028			3,671			1,450			34,137
Goodwill	100,801			100,801			100,801			100,801			100,801			102,003
Intangible assets	205,988			208,717			211,557			214,286			216,904			227,821
Value of business acquired	—			—			770			1,798			2,826			7,194
Operating lease right-of-use assets	98,837			103,295			107,791			112,444			116,693			140,149
Other assets	388,816			309,792			324,154			297,484			298,756			315,523
TOTAL ASSETS	$	27,808,558		$	27,368,970		$	27,935,137		$	27,581,730		$	27,085,827		$	25,948,768

LIABILITIES
Reserve for losses and loss expenses	$	14,470,155		$	14,653,094		$	14,658,996		$	14,157,353		$	14,025,274		$	13,082,273
Unearned premiums	4,824,128			4,090,676			4,464,282			4,698,944			4,551,424			4,395,240
Insurance and reinsurance balances payable	1,522,258			1,324,620			1,442,729			1,409,772			1,231,403			1,263,389
Debt	1,311,304			1,310,975			1,310,650			1,310,328			1,310,009			1,808,645
Payable for investments purchased	127,284			31,543			239,073			205,895			389,925			123,678
Operating lease liabilities	113,340			119,512			123,874			130,174			134,002			143,071
Other liabilities	319,549			427,894			360,478			279,504			267,400			292,894
TOTAL LIABILITIES	22,688,018			21,958,314			22,600,082			22,191,970			21,909,437			21,109,190

SHAREHOLDERS’ EQUITY
Preferred shares	550,000			550,000			550,000			550,000			550,000			550,000
Common shares	2,206			2,206			2,206			2,206			2,206			2,206
Additional paid-in capital	2,328,986			2,346,179			2,336,895			2,326,288			2,316,147			2,307,998
Accumulated other comprehensive income (loss)	(338,300)			56,536			150,122			226,317			214,861			(89,919)
Retained earnings	6,308,712			6,204,745			6,044,843			6,034,151			5,842,850			5,836,007
Treasury shares, at cost	(3,731,064)			(3,749,010)			(3,749,011)			(3,749,202)			(3,749,674)			(3,766,714)


TOTAL SHAREHOLDERS' EQUITY	5,120,540			5,410,656			5,335,055			5,389,760			5,176,390			4,839,578

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	27,808,558		$	27,368,970		$	27,935,137		$	27,581,730		$	27,085,827		$	25,948,768

Common shares outstanding	85,276			84,774			84,773			84,767			84,753			84,298
Diluted common shares outstanding [a]	87,948			87,147			87,216			87,197			87,235			86,170
Book value per common share	$53.60			$57.34			$56.45			$57.09			$54.59			$50.89
Book value per diluted common share	$51.97			$55.78			$54.86			$55.50			$53.03			$49.78
Tangible book value per diluted common share	$49.08			$52.84			$51.89			$52.50			$49.91			$46.45
Debt to total capital [b]	20.4		%	19.5		%	19.7		%	19.6		%	20.2		%	27.2		%
Debt and preferred equity to total capital	28.9		%	27.7		%	28.0		%	27.8		%	28.7		%	35.5		%

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

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

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS PORTFOLIO


	At March 31, 2022												At December 31, 2021
	Cost or Amortized Cost		Allowance for Expected Credit Losses		Unrealized Gains		Unrealized Losses		Fair Value or Net Carrying Value		Percentage			Fair Value or Net Carrying Value		Percentage
Fixed Maturities, available for sale, at fair value
U.S. government and agency	$	2,340,104	$	—	$	1,077	$	(67,978)	$	2,273,203	14.3	%		$	2,682,448	16.3	%
Non-U.S. government	761,463		—		2,051		(24,381)		739,133		4.6	%		795,178		4.8	%
Corporate debt	4,658,246		(284)		15,787		(200,198)		4,473,551		27.9	%		4,495,312		27.3	%
Agency RMBS	972,244		—		2,670		(39,077)		935,837		5.8	%		1,074,589		6.5	%
CMBS	1,188,811		—		1,333		(30,759)		1,159,385		7.2	%		1,248,191		7.6	%
Non-Agency RMBS	181,171		(79)		1,250		(7,454)		174,888		1.1	%		186,164		1.1	%
ABS	1,566,692		(20)		1,198		(33,865)		1,534,005		9.6	%		1,622,480		9.8	%
Municipals	171,370		—		828		(6,176)		166,022		1.0	%		208,838		1.3	%
Total fixed maturities, available for sale, at fair value	11,840,101		(383)		26,194		(409,888)		11,456,024		71.5	%		12,313,200		74.7	%

Fixed maturities, held to maturity, at amortized cost
Corporate debt	55,200		—		—		—		55,200		0.3	%		37,700		0.2	%
ABS	438,309		—		—		—		438,309		2.8	%		408,316		2.5	%
Total fixed maturities, held to maturity, at amortized cost	493,509		—		—		—		493,509		3.1	%		446,016		2.7	%

Equity securities, at fair value
Common stocks	1,373		—		578		(442)		1,509		—	%		1,364		—	%
Preferred Stocks	115		—		76		—		191		—	%		179		—	%
Exchange-traded funds	203,455		—		117,952		(1,151)		320,256		2.0	%		336,815		2.0	%
Bond mutual funds	275,816		—		—		(33,822)		241,994		1.5	%		317,317		2.0	%
Total equity securities, at fair value	480,759		—		118,606		(35,415)		563,950		3.5	%		655,675		4.0	%

Total fixed maturities and equity securities	$	12,814,369	$	(383)	$	144,800	$	(445,303)	12,513,483		78.1	%		13,414,891		81.4	%
Mortgage loans, held for investment									627,063		3.9	%		594,088		3.6	%
Other investments									954,602		6.0	%		947,982		5.7	%
Equity method investments									157,843		1.0	%		146,293		0.9	%
Short-term investments									70,385		0.4	%		31,063		0.2	%
Total investments									14,323,376		89.4	%		15,134,317		91.8	%
Cash and cash equivalents [a]									1,706,711		10.7	%		1,317,690		8.0	%
Accrued interest receivable									64,906		0.4	%		64,350		0.4	%
Net receivable/(payable) for investments sold (purchased)									(71,811)		(0.5	%)		(26,988)		(0.2	%)
Total cash and invested assets									$	16,023,182	100.0	%		$	16,489,369	100.0	%

[a] Includes $720 million and $473 million of restricted cash and cash equivalents at March 31, 2022 and December 31, 2021, respectively.


	At March 31, 2022				At December 31, 2021
	Fair Value		Percentage		Fair Value		Percentage
Other Investments:
Long/short equity funds	$	3,056	0.3	%	$	3,476	0.4	%
Multi-strategy funds	48,561		5.1	%	56,012		5.9	%

Direct lending funds	276,211		28.9	%	289,867		30.6	%
Real estate funds	245,823		25.8	%	238,222		25.1	%
Private equity funds	260,596		27.3	%	249,974		26.4	%
Other privately held investments	115,474		12.1	%	104,521		11.0	%
Collateralized loan obligations - equity tranches	4,881		0.5	%	5,910		0.6	%
Total	$	954,602	100.0	%	$	947,982	100.0	%

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS COMPOSITION - QUARTER


	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities, available for sale:
U.S. government and agency	14.3	%	16.3	%	16.3	%	15.9	%	14.0	%	12.4	%
Non-U.S. government	4.6	%	4.8	%	4.4	%	4.2	%	4.6	%	3.9	%
Corporate debt	27.9	%	27.3	%	27.6	%	27.9	%	28.7	%	31.5	%
MBS:
Agency RMBS	5.8	%	6.5	%	7.1	%	6.5	%	7.7	%	10.6	%
CMBS	7.2	%	7.6	%	7.4	%	7.1	%	8.1	%	9.4	%
Non-agency RMBS	1.1	%	1.1	%	1.2	%	1.3	%	1.1	%	0.8	%
ABS	9.6	%	9.8	%	10.0	%	9.3	%	9.0	%	9.5	%
Municipals	1.0	%	1.3	%	1.2	%	1.7	%	1.8	%	1.4	%

Total Fixed Maturities, available for sale	71.5	%	74.7	%	75.2	%	73.9	%	75.0	%	79.5	%
Fixed Maturities, held to maturity:
Corporate debt	0.3	%	0.2	%	0.1	%	—	%	—	%	—	%
ABS	2.8	%	2.5	%	2.4	%	2.5	%	2.6	%	—	%

Total Fixed Maturities, held to maturity	3.1	%	2.7	%	2.5	%	2.5	%	2.6	%	—	%
Equity securities	3.5	%	4.0	%	3.8	%	3.7	%	3.5	%	2.7	%
Mortgage loans	3.9	%	3.6	%	3.8	%	4.1	%	4.0	%	3.4	%
Other investments	6.0	%	5.7	%	5.4	%	5.4	%	5.1	%	5.3	%
Equity method investments	1.0	%	0.9	%	0.9	%	0.8	%	0.8	%	0.6	%
Short-term investments	0.4	%	0.2	%	0.4	%	0.6	%	1.1	%	0.4	%

Total Investments	89.4	%	91.8	%	92.0	%	91.0	%	92.1	%	91.9	%
Cash and cash equivalents	10.7	%	8.0	%	9.1	%	9.9	%	10.0	%	8.2	%
Accrued interest receivable	0.4	%	0.4	%	0.4	%	0.4	%	0.4	%	0.5	%
Net receivable/(payable) for investments sold (purchased)	(0.5	%)	(0.2	%)	(1.5	%)	(1.3	%)	(2.5	%)	(0.6	%)
Total Cash and Invested Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency	19.0	%	21.0	%	21.0	%	20.7	%	18.0	%	15.5	%
AAA	35.0	%	35.2	%	36.1	%	35.2	%	37.0	%	39.8	%
AA	7.6	%	7.7	%	7.1	%	7.4	%	7.8	%	7.0	%
A	15.9	%	15.0	%	14.5	%	14.6	%	15.2	%	15.9	%
BBB	12.8	%	12.5	%	12.4	%	13.2	%	13.4	%	13.0	%
Below BBB	9.7	%	8.6	%	8.9	%	8.9	%	8.6	%	8.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

MATURITY PROFILE OF FIXED MATURITIES
Within one year	4.2	%	3.9	%	4.0	%	4.3	%	5.0	%	3.5	%
From one to five years	38.5	%	38.5	%	38.3	%	38.7	%	36.9	%	36.5	%
From five to ten years	19.5	%	19.8	%	19.3	%	20.3	%	19.5	%	19.1	%
Above ten years	2.3	%	2.2	%	2.2	%	1.7	%	1.9	%	2.7	%
Asset-backed and mortgage-backed securities	35.5	%	35.6	%	36.2	%	35.0	%	36.7	%	38.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.1	%	1.9	%	1.9	%	2.0	%	2.1	%	2.7	%
Yield to maturity of fixed maturities	3.1	%	1.7	%	1.4	%	1.4	%	1.5	%	2.9	%
Average duration of fixed maturities (inclusive of duration hedges)	3.1 yrs		3.0 yrs		3.1 yrs		3.1 yrs		3.3 yrs		3.3 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

AXIS CAPITAL HOLDINGS LIMITED

CORPORATE DEBT INVESTED ASSETS COMPOSITION

At March 31, 2022


	Fair Value or Net Carrying Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks	$	789,992	17.7	%	4.9	%
Non-U.S. banks	388,344		8.7	%	2.4	%
Corporate/commercial finance	295,281		6.6	%	1.8	%
Insurance	171,700		3.8	%	1.1	%
Investment brokerage	74,987		1.7	%	0.5	%
Total financial institutions	1,720,304		38.5	%	10.7	%
Consumer non-cyclicals	396,744		8.9	%	2.5	%
Communications	242,885		5.4	%	1.5	%
Consumer cyclical	214,062		4.8	%	1.3	%
Utilities	185,126		4.1	%	1.2	%
Technology	164,024		3.7	%	1.0	%
Energy	149,394		3.3	%	0.9	%
Industrials	113,067		2.5	%	0.7	%
Transportation	101,419		2.3	%	0.6	%
Non-U.S. government guaranteed	96,574		2.2	%	0.6	%
Total investment grade	3,383,599		75.7	%	21.0	%

Total non-investment grade	1,089,952		24.3	%	6.9	%

Total corporate debt, available for sale, at fair value	$	4,473,551	100.0	%	27.9	%

Total corporate debt, held to maturity, at amortized cost	$	55,200	100.0	%	0.3	%

AXIS CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At March 31, 2022


	Amortized Cost		Net Unrealized Gain (Loss)		Fair Value		% of Total Fixed Maturities
ISSUER [a]
BANK OF AMERICA CORP	$	124,635	$	(6,088)	$	118,547	1.0	%
GOLDMAN SACHS GROUP	120,025		(4,875)		115,150		1.0	%
MORGAN STANLEY	118,192		(5,870)		112,322		0.9	%
JP MORGAN CHASE & CO	100,803		(6,945)		93,858		0.8	%
WELLS FARGO & COMPANY	95,623		(4,172)		91,451		0.8	%
CITIGROUP INC	92,718		(2,858)		89,860		0.8	%
AT&T INC	48,615		(2,644)		45,971		0.4	%
MITSUBISHI UFJ FINANCIAL GROUP INC	39,973		(2,277)		37,696		0.3	%
BRITISH AMERICAN TOBACCO PLC	35,181		(870)		34,311		0.3	%
COMCAST CORPORATION	35,041		(1,174)		33,867		0.3	%

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

AXIS CAPITAL HOLDINGS LIMITED

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At March 31, 2022


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

Residential MBS	$	935,837		$	157,638		$	5,809		$	5,942		$	272		$	5,227		$	1,110,725
Commercial MBS	61,778			1,006,052			86,518			5,037			—			—			1,159,385
ABS	—			1,256,594			117,206			96,388			35,372			28,445			1,534,005

Total mortgage-backed and asset-backed securities, available for sale, at fair value	$	997,615		$	2,420,284		$	209,533		$	107,367		$	35,644		$	33,672		$	3,804,115

Percentage of total	26.2		%	63.6		%	5.5		%	2.8		%	0.9		%	1.0		%	100.0		%


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

ABS	—			280,731			157,578			—			—			—			438,309

Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost	$	—		$	280,731		$	157,578		$	—		$	—		$	—		$	438,309

Percentage of total	—		%	64.0		%	36.0		%	—		%	—		%	—		%	100.0		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS


	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	445,134	$	451,609	$	338,908	$	318,421	$	329,210	$	200,990
Reinsurance	166,893		190,606		167,595		148,759		130,201		156,195
Total	$	612,027	$	642,215	$	506,503	$	467,180	$	459,411	$	357,185

Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance	$	821,432	$	922,709	$	908,182	$	870,602	$	870,816	$	892,354
Reinsurance	639,251		614,125		575,628		518,973		491,517		482,347
Total	$	1,460,683	$	1,536,834	$	1,483,810	$	1,389,575	$	1,362,333	$	1,374,701

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	2,592,388	$	2,554,202	$	2,569,194	$	2,395,835	$	2,329,090	$	2,127,989
Reinsurance	932,801		956,130		963,728		867,253		866,927		617,843
Total	$	3,525,189	$	3,510,332	$	3,532,922	$	3,263,088	$	3,196,017	$	2,745,832

Allowance for expected credit losses:
Insurance	$	(25,475)	$	(25,869)	$	(23,664)	$	(22,749)	$	(22,037)	$	(17,203)
Reinsurance	(3,317)		(3,685)		(3,423)		(3,460)		(3,081)		(1,751)
Total	$	(28,792)	$	(29,554)	$	(27,087)	$	(26,209)	$	(25,118)	$	(18,954)

Reinsurance recoverable on unpaid and paid losses and loss expenses:
Insurance	$	3,833,479	$	3,902,651	$	3,792,620	$	3,562,109	$	3,507,079	$	3,204,130
Reinsurance	1,735,628		1,757,176		1,703,528		1,531,525		1,485,564		1,254,634
Total	$	5,569,107	$	5,659,827	$	5,496,148	$	5,093,634	$	4,992,643	$	4,458,764

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS

At March 31, 2022


Categories	Reinsurance Recoverable, Gross of Collateral		Collateral		Reinsurance Recoverable, Net of Collateral		% of Total Reinsurance Recoverable, Net of Collateral	% of Total Shareholders’ Equity	Allowance for expected credit losses		Allowance for expected credit loss as % of Reinsurance Recoverable, Gross of Collateral	Reinsurance recoverable on unpaid and paid losses and loss expenses
Top 10 reinsurers based on gross recoverable	$	2,930,325	$	(702,180)	$	2,228,145	54.1%	43.5%	$	(11,934)	0.4%	$	2,918,391
Other reinsurers balances > $20 million	2,155,746		(609,779)		1,545,967		37.6%	30.2%	(12,654)		0.6%	2,143,092
Other reinsurers balances < $20 million	511,828		(170,730)		341,098		8.3%	6.7%	(4,204)		0.8%	507,624
Total	$	5,597,899	$	(1,482,689)	$	4,115,210	100.0%	80.4%	$	(28,792)	0.5%	$	5,569,107

At March 31, 2022, reinsurance recoverable balances, gross of collateral, of 86.5% (December 31, 2021: 85.7%) were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.


Top 10 Reinsurers, Net of Collateral		% of Total Reinsurance Recoverable, Net of Collateral	% of Total Shareholders’ Equity
1	Swiss Reinsurance America Corporation	14.1%	11.4%
2	Harrington Re Ltd.	8.0%	6.4%
3	Transatlantic Reinsurance Co	6.1%	4.9%
4	Hannover Ruck SE	5.9%	4.7%
5	Lloyds of London	5.6%	4.4%
6	Partner Reinsurance Co of the US	4.4%	3.6%
7	SCOR Reinsurance Company	4.1%	3.3%
8	Munich Reinsurance America, Inc	3.4%	2.7%
9	Everest Reinsurance Company	3.3%	2.7%
10	Swiss Reinsurance Company Ltd.	2.6%	2.1%
		57.5%	46.2%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES



	Three months ended March 31, 2022						Three months ended March 31, 2021
	Reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses and loss expenses		Net reserve for losses and loss expenses		Reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses and loss expenses		Net reserve for losses and loss expenses
Reserve for losses and loss expenses

Beginning of period	$	14,653,094	$	(5,017,611)	$	9,635,483	$	13,926,766	$	(4,496,641)	$	9,430,125
Incurred losses and loss expenses	1,055,949		(323,250)		732,699		1,092,229		(377,511)		714,718
Paid losses and loss expenses	(1,159,441)		375,995		(783,446)		(981,545)		288,462		(693,083)
Foreign exchange and other	(79,447)		7,786		(71,661)		(12,176)		52,458		40,282

End of period [a]	$	14,470,155	$	(4,957,080)	$	9,513,075	$	14,025,274	$	(4,533,232)	$	9,492,042

[a] At March 31, 2022, reserve for losses and loss expenses included IBNR of $9.2 billion, or 63% (December 31, 2021: $9.1 billion, or 62%).

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS


	Three months ended March 31, 2022									Three months ended March 31, 2021
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total

Gross paid losses and loss expenses	$	699,362		$	460,079		$	1,159,441			$	573,209		$	408,336		$	981,545
Reinsurance recoverable on paid losses and loss expenses	(289,540)			(86,455)			(375,995)				(237,739)			(50,723)			(288,462)
Net paid losses and loss expenses	409,822			373,624			783,446				335,470			357,613			693,083

Gross case reserves	(202,202)			21,633			(180,569)				(19,290)			4,616			(14,674)
Gross IBNR	142,331			(65,254)			77,077				48,294			77,064			125,358
Reinsurance recoverable on unpaid losses and loss expenses	55,794			(3,049)			52,745				(7,576)			(81,473)			(89,049)
Net unpaid losses and loss expenses	(4,077)			(46,670)			(50,747)				21,428			207			21,635

Total net incurred losses and loss expenses	$	405,745		$	326,954		$	732,699			$	356,898		$	357,820		$	714,718

Gross reserve for losses and loss expenses	$	7,719,773		$	6,750,382		$	14,470,155			$	7,368,569		$	6,656,705		$	14,025,274

Net favorable prior year reserve development	$	7,062		$	1,894		$	8,956			$	1,505		$	3,812		$	5,317

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	101.0		%	114.3		%	106.9		%		94.0		%	99.9		%	97.0		%

Net paid losses and loss expenses / Net premiums earned	54.4		%	73.9		%	62.3		%		54.4		%	73.4		%	62.8		%
Net unpaid losses and loss expenses / Net premiums earned	(0.5		%)	(9.2		%)	(4.1		%)		3.5		%	—		%	2.0		%
Net losses and loss expenses ratio	53.9		%	64.7		%	58.2		%		57.9		%	73.4		%	64.8		%

AXIS CAPITAL HOLDINGS LIMITED

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


																			Year ended December 31,
	Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q1 2020			2021
INSURANCE SEGMENT
Gross paid losses and loss expenses	$	699,362		$	691,657		$	441,854		$	493,803		$	573,209		$	509,378		$	2,200,524
Reinsurance recoverable on paid losses and loss expenses	(289,540)			(319,661)			(154,584)			(174,727)			(237,739)			(204,348)			(886,710)
Net paid losses and loss expenses	409,822			371,996			287,270			319,076			335,470			305,030			1,313,814

Gross case reserves	(202,202)			67,731			47,583			(1,372)			(19,290)			18,286			94,651
Gross IBNR	142,331			(66,132)			326,336			83,955			48,294			380,280			392,451
Reinsurance recoverable on unpaid losses and loss expenses	55,794			9,651			(218,508)			(69,484)			(7,576)			(231,784)			(285,918)
Net unpaid losses and loss expenses	(4,077)			11,250			155,411			13,099			21,428			166,782			201,184

Total net incurred losses and loss expenses	$	405,745		$	383,246		$	442,681		$	332,175		$	356,898		$	471,812		$	1,514,998

Gross reserve for losses and loss expenses	$	7,719,773		$	7,803,529		$	7,797,533		$	7,456,368		$	7,368,569		$	6,814,171		$	7,803,529

Net favorable prior year reserve development	$	7,062		$	5,008		$	5,418		$	6,427		$	1,505		$	3,832		$	18,360

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	101.0		%	97.1		%	64.9		%	96.1		%	94.0		%	64.7		%	86.7		%

Net paid losses and loss expenses / Net premiums earned	54.4		%	51.5		%	42.2		%	50.5		%	54.4		%	54.3		%	49.6		%
Net unpaid losses and loss expenses / Net premiums earned	(0.5		%)	1.6		%	22.8		%	2.1		%	3.5		%	29.6		%	7.5		%
Net losses and loss expenses ratio	53.9		%	53.1		%	65.0		%	52.6		%	57.9		%	83.9		%	57.1		%

REINSURANCE SEGMENT
Gross paid losses and loss expenses	$	460,079		$	448,300		$	484,553		$	416,850		$	408,336		$	468,015		$	1,758,039
Reinsurance recoverable on paid losses and loss expenses	(86,455)			(98,494)			(78,672)			(79,713)			(50,723)			(101,950)			(307,602)
Net paid losses and loss expenses	373,624			349,806			405,881			337,137			357,613			366,065			1,450,437

Gross case reserves	21,633			77,796			81,030			58,448			4,616			80,024			221,891
Gross IBNR	(65,254)			(68,857)			142,067			(27,193)			77,064			39,492			123,080
Reinsurance recoverable on unpaid losses and loss expenses	(3,049)			(25,766)			(160,290)			(34,094)			(81,473)			(49,320)			(301,623)
Net unpaid losses and loss expenses	(46,670)			(16,827)			62,807			(2,839)			207			70,196			43,348

Total net incurred losses and loss expenses	$	326,954		$	332,979		$	468,688		$	334,298		$	357,820		$	436,261		$	1,493,785

Gross reserve for losses and loss expenses	$	6,750,382		$	6,849,565		$	6,861,463		$	6,700,985		$	6,656,705		$	6,268,102		$	6,849,565

Net favorable prior year reserve development	$	1,894		$	4,262		$	5,594		$	381		$	3,812		$	2,281		$	14,050

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	114.3		%	105.1		%	86.6		%	100.8		%	99.9		%	83.9		%	97.1		%

Net paid losses and loss expenses / Net premiums earned	73.9		%	67.9		%	76.5		%	64.2		%	73.4		%	69.5		%	70.5		%
Net unpaid losses and loss expenses / Net premiums earned	(9.2		%)	(3.3		%)	11.9		%	(0.6		%)	—		%	13.4		%	2.1		%
Net losses and loss expenses ratio	64.7		%	64.6		%	88.4		%	63.6		%	73.4		%	82.9		%	72.6		%

AXIS CAPITAL HOLDINGS LIMITED

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF APRIL 1, 2022


		Estimated Net Exposures (millions of U.S. dollars)
Territory	Peril	50 Year Return Period		% of Common Shareholders' Equity		100 Year Return Period		% of Common Shareholders' Equity		250 Year Return Period		% of Common Shareholders' Equity
Single zone, single event
Southeast	U.S. Hurricane	$	126	2.8	%	$	178	3.9	%	$	260	5.7	%
Northeast	U.S. Hurricane	40		0.9	%	111		2.4	%	233		5.1	%
Mid-Atlantic	U.S. Hurricane	74		1.6	%	195		4.3	%	361		7.9	%
Gulf of Mexico	U.S. Hurricane	116		2.5	%	157		3.4	%	229		5.0	%
Europe	Windstorm	89		1.9	%	119		2.6	%	161		3.5	%
Japan	Windstorm	38		0.8	%	87		1.9	%	117		2.6	%
Japan	Earthquake	55		1.2	%	112		2.5	%	187		4.1	%
California	Earthquake	96		2.1	%	178		3.9	%	255		5.6	%

The table above shows our net Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at April 1, 2022. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.

As indicated in the table above, our modeled single occurrence 1-in-100 year return period PML for a Southeast U.S. hurricane, net of reinsurance, is approximately $0.2 billion. According to our modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast U.S. hurricane event could be in excess of $0.2 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast U.S. hurricane will fall below $0.2 billion.

We have developed our PML estimates by combining judgment and experience with the outputs from the catastrophe model, commercially available from AIR Worldwide. Additionally, we have included our estimate of non-modeled perils and other factors which we believe provides us with a more complete view of catastrophe risk.

Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, the most important of which is by ensuring that management’s judgment supplements the model outputs. Models are continuously validated at the line of business and at a group level by our catastrophe model validation team. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.

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

AXIS CAPITAL HOLDINGS LIMITED

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


	Three months ended March 31,
		2022		2021

Net income available to common shareholders		$	141,637	$	115,737

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding		84,961		84,514
Dilutive share equivalents:
Share-based compensation plans		847		451
Weighted average diluted common shares outstanding		85,808		84,965

EARNINGS PER COMMON SHARE
Earnings per common share		$1.67		$1.37
Earnings per diluted common share		$1.65		$1.36

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLL FORWARD - QUARTER


	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020

Net income (loss) available (attributable) to common shareholders	$	141,637	$	197,329	$	47,385	$	227,910	$	115,737	$	(185,390)

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	84,774		84,773		84,767		84,753		84,353		83,959
Shares issued and treasury shares reissued	747		5		10		22		589		489
Shares repurchased for treasury	(245)		(4)		(4)		(8)		(189)		(150)
Common shares - at end of period	85,276		84,774		84,773		84,767		84,753		84,298

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding	84,961		84,774		84,771		84,764		84,514		84,094
Dilutive share equivalents:

Share-based compensation plans [a]	847		817		565		503		451		—
Weighted average diluted common shares outstanding	85,808		85,591		85,336		85,267		84,965		84,094

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$1.67		$2.33		$0.56		$2.69		$1.37		($2.20)
Earnings (loss) per diluted common share	$1.65		$2.31		$0.56		$2.67		$1.36		($2.20)

[a] Due to the net loss attributable to common shareholders recognized for the three month ended March 31, 2020, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

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


	At March 31, 2022

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

Closing stock price					$60.47

Book value per common share		$	4,570,540	85,276	$53.60

Dilutive securities: [b]

Restricted stock units				2,672	(1.63)
Book value per diluted common share		$	4,570,540	87,948	$51.97

	At December 31, 2021

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

Closing stock price					$54.47

Book value per common share		$	4,860,656	84,774	$57.34



Dilutive securities: [b]


Restricted stock units				2,373	(1.56)
Book value per diluted common share		$	4,860,656	87,147	$55.78

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

[b] Cash-settled restricted stock units are excluded.

TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE



	Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q1 2020

Common shareholders' equity	$	4,570,540	$	4,860,656	$	4,785,055	$	4,839,760	$	4,626,390	$	4,289,578
Less: goodwill	(100,801)		(100,801)		(100,801)		(100,801)		(100,801)		(102,003)
Less: intangible assets	(205,988)		(208,717)		(211,557)		(214,286)		(216,904)		(227,821)
Associated tax impact	53,055		53,500		53,175		53,241		45,565		42,857
Tangible common shareholders' equity	$	4,316,806	$	4,604,638	$	4,525,872	$	4,577,914	$	4,354,250	$	4,002,611

Diluted common shares outstanding, net of treasury shares [a]	87,948		87,147		87,216		87,197		87,235		86,170

Book value per diluted common share	$	51.97	$	55.78	$	54.86	$	55.50	$	53.03	$	49.78

Tangible book value per diluted common share	$	49.08	$	52.84	$	51.89	$	52.50	$	49.91	$	46.45

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

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY



	Three months ended March 31,
	2022			2021
Net income available to common shareholders	$	141,637		$	115,737
Net investment (gains) losses [a]	94,508			(29,645)
Foreign exchange losses (gains) [b]	(44,273)			4,113
Interest in income of equity method investments [c]	(11,550)			(9,162)
Income tax expense (benefit)	(497)			1,694
Operating income	$	179,825		$	82,737

Earnings per diluted common share	$	1.65		$	1.36
Net investment (gains) losses	1.10			(0.35)
Foreign exchange losses (gains)	(0.52)			0.05
Interest in income of equity method investments	(0.13)			(0.11)
Income tax expense (benefit)	(0.01)			0.02
Operating income per diluted common share	$	2.09		$	0.97

Weighted average diluted common shares outstanding	85,808			84,965

Average common shareholders' equity	$	4,715,599		$	4,686,042

Annualized return on average common equity	12.0		%	9.9		%

Annualized operating return on average common equity	15.3		%	7.1		%

[a] Tax expense (benefit) of ($13,313) and $1,484 for the three months ended March 31, 2022 and 2021, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.

[b] Tax expense (benefit) of $12,816 and $210 for the three months ended March 31, 2022 and 2021, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.

[c] Tax expense (benefit) of $nil for the three months ended March 31, 2022 and 2021, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

AXIS CAPITAL HOLDINGS LIMITED

RATIONALE FOR THE USE OF NON-GAAP FINANCIAL MEASURES

We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), tangible book value per diluted common share which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Underwriting-Related General and Administrative Expenses

Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

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

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

Consolidated Underwriting Income (Loss)

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

We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

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) in our consolidated statements of operations in isolation are not a meaningful contributor to our underwriting performance, therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt. 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).

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

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations - Quarter' and 'Consolidated Statements of Operations - Year' sections of this document.

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), 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, we believe that foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business, therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

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

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), 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), and interest in income (loss) of equity method investments reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

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

Tangible Book Value per Diluted Common Share

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