AXIS Capital : Q4 2024 Financial Supplement

AXS

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

FOURTH QUARTER 2024

AXIS CAPITAL HOLDINGS LIMITED

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Cliff Gallant

Investor Contact

Website Information:

www.axiscapital.com

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

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

Page(s)

Basis of Presentation

i-iv

I. Financial Highlights

1

II. Income Statements

a. Consolidated Statement of Operations

2-6

b. Consolidated Segment Data

7

c. Gross Premiums Written by Segment by Line of Business

8

d. Consolidated Data

9

e. Segment Data

10-11

f. Net Investment Income

12

III. Balance Sheets

a. Consolidated Balance Sheets

13

b. Cash and Invested Assets:

14

• Cash and Invested Assets Portfolio

• Cash and Invested Assets Composition

15

• Mortgage-Backedand Asset-BackedSecurities Composition

16

IV. Loss Reserve Analysis

a. Paid to Incurred Analysis

17

b. Paid to Incurred Analysis by Segment

18

V. Share Analysis

a. Earnings Per Common Share Information

19

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

20

VI. Non-GAAP Financial Measures

a. Operating Income and Operating Return on Average Common Equity

21

b. Rationale for the Use of Non-GAAP Financial Measures

22-25

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

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

DEFINITIONS AND PRESENTATION

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

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

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

Insurance Risk

Strategic Risk

i

Credit and Market Risk

Liquidity Risk

Operational Risk

Regulatory Risk

Risks Related to Taxation

Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10- K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

ii

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

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

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

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

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

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

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

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

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

iii

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

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

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

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

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

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

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

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

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

Run-off lines

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

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

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

iv

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS

Quarters ended December 31,

Years ended December 31,

2024

2023

Change

2024

2023

Change

HIGHLIGHTS

Gross premiums written

$ 1,975,324

$ 1,784,293

10.7%

pts

$ 9,005,888

$ 8,356,525

7.8%

pts

Gross premiums written - Insurance

86.1%

88.7%

(2.6)

73.5%

73.5%

-

Gross premiums written - Reinsurance

13.9%

11.3%

2.6

pts

26.5%

26.5%

-

pts

Net premiums written

$ 1,225,549

$ 1,072,255

14.3%

$ 5,757,351

$ 5,102,325

12.8%

Net premiums earned

$ 1,377,014

$ 1,265,273

8.8%

$ 5,306,235

$ 5,083,781

4.4%

Net premiums earned - Insurance

74.5%

72.5%

2.0

pts

74.0%

68.1%

5.9

pts

Net premiums earned - Reinsurance

25.5%

27.5%

(2.0)

pts

26.0%

31.9%

(5.9)

pts

Net income (loss) available (attributable) to common shareholders

$

286,069

$

(150,145)

nm

$ 1,051,536

$

346,042

nm

Operating income (loss) [a]

$

251,816

$

(106,991)

nm

$

952,035

$

486,133

95.8%

Annualized return on average common equity [b]

20.7%

(13.1%)

33.8

pts

20.5%

7.9%

12.6

pts

Annualized operating return on average common equity [c]

18.2%

(9.3%)

27.5

pts

18.6%

11.0%

7.6

pts

Total shareholders' equity

$ 6,089,379

$ 5,263,196

15.7%

$ 6,089,379

$ 5,263,196

15.7%

PER COMMON SHARE AND

Earnings (loss) per diluted common share

$3.38

($1.76)

nm

$12.35

$4.02

nm

COMMON SHARE DATA

Operating income (loss) per diluted common share [d]

$2.97

($1.25)

nm

$11.18

$5.65

97.9%

Weighted average diluted common shares outstanding

84,695

85,268

(0.7%)

85,176

86,012

(1.0%)

Book value per common share

$66.75

$55.26

20.8%

$66.75

$55.26

20.8%

Book value per diluted common share (treasury stock method)

$65.27

$54.06

20.7%

$65.27

$54.06

20.7%

Tangible book value per diluted common share (treasury stock

$62.97

$51.34

22.7%

$62.97

$51.34

22.7%

method) [a]

FINANCIAL RATIOS

Current accident year loss ratio, excluding catastrophe and

55.7%

55.4%

0.3

pts

55.7%

55.9%

(0.2)

pts

weather-related losses [a]

Catastrophe and weather-related losses ratio [a]

5.9%

2.1%

3.8

pts

4.3%

2.7%

1.6

pts

Current accident year loss ratio [a]

61.6%

57.5%

4.1

pts

60.0%

58.6%

1.4

pts

Prior year reserve development ratio

(1.2%)

33.6%

(34.8)

pts

(0.5%)

8.1%

(8.6)

pts

Net losses and loss expenses ratio

60.4%

91.1%

(30.7)

pts

59.5%

66.7%

(7.2)

pts

Acquisition cost ratio

20.1%

20.1%

-

pts

20.2%

19.7%

0.5

pts

General and administrative expense ratio [e]

13.7%

13.4%

0.3

pts

12.6%

13.5%

(0.9)

pts

Combined ratio

94.2%

124.6%

(30.4)

pts

92.3%

99.9%

(7.6)

pts

INVESTMENT DATA

Total assets

$32,520,293

$30,250,672

7.5%

$32,520,293

$30,250,672

7.5%

Total cash and invested assets [f]

$17,953,660

$16,733,674

7.3%

$17,953,660

$16,733,674

7.3%

Net investment income

$

195,773

$

186,937

4.7%

$

759,229

$

611,742

24.1%

Net investment gains (losses)

$

(108,030)

$

23,041

nm

$

(138,534)

$

(74,630)

85.6%

Book yield of fixed maturities

4.5%

4.2%

0.3

pts

4.5 %

4.2%

0.3

pts

1

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Quarters ended December 31,

Years ended December 31,

2024

2023

2024

2023

Revenues

Net premiums earned

$

1,377,014

$

1,265,273

$

5,306,235

$

5,083,781

Net investment income

195,773

186,937

759,229

611,742

Net investment gains (losses)

(108,030)

23,041

(138,534)

(74,630)

Other insurance related income

7,016

6,050

30,721

22,495

Total revenues

1,471,773

1,481,301

5,957,651

5,643,388

Expenses

Net losses and loss expenses

831,956

1,152,262

3,158,487

3,393,102

Acquisition costs

276,273

253,918

1,070,551

1,000,945

General and administrative expenses

189,186

169,849

666,202

684,446

Foreign exchange losses (gains)

(112,090)

69,871

(50,822)

58,115

Interest expense and financing costs

16,761

18,344

67,766

68,421

Reorganization expenses

-

-

26,312

28,997

Amortization of intangible assets

2,729

2,729

10,917

10,917

Total expenses

1,204,815

1,666,973

4,949,413

5,244,943

Income (loss) before income taxes and interest in income of equity method investments

266,958

(185,672)

1,008,238

398,445

Income tax (expense) benefit

19,410

41,762

55,595

(26,316)

Interest in income of equity method investments

7,264

1,328

17,953

4,163

Net income (loss)

293,632

(142,582)

1,081,786

376,292

Preferred share dividends

7,563

7,563

30,250

30,250

Net income (loss) available (attributable) to common shareholders

$

286,069

$

(150,145)

$

1,051,536

$

346,042

2

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended

December 31,

Q4 2024

Q3 2024

Q2 2024

Q1 2024

Q4 2023

Q4 2022

2023

UNDERWRITING REVENUES

Gross premiums written

$

1,975,324

$

1,935,902

$

2,440,236

$

2,654,427

$

1,784,293

$

1,758,696

$

8,356,525

Ceded premiums written

(749,775)

(699,917)

(866,492)

(932,354)

(712,038)

(662,142)

(3,254,200)

Net premiums written

1,225,549

1,235,985

1,573,744

1,722,073

1,072,255

1,096,554

5,102,325

Gross premiums earned

2,207,338

2,159,646

2,117,937

2,044,647

2,035,926

2,050,239

7,973,577

Ceded premiums earned

(830,324)

(792,945)

(813,459)

(786,606)

(770,653)

(710,077)

(2,889,796)

Net premiums earned

1,377,014

1,366,701

1,304,478

1,258,041

1,265,273

1,340,162

5,083,781

Other insurance related income

7,016

6,838

8,526

8,340

6,050

3,076

22,495

Total underwriting revenues

1,384,030

1,373,539

1,313,004

1,266,381

1,271,323

1,343,238

5,106,276

UNDERWRITING EXPENSES

Net losses and loss expenses

831,956

831,872

765,988

728,671

1,152,262

798,214

3,393,102

Acquisition costs

276,273

274,935

265,091

254,254

253,918

275,573

1,000,945

Underwriting-related general and administrative expenses [a]

146,299

131,582

120,768

137,793

139,216

137,220

551,467

Total underwriting expenses

1,254,528

1,238,389

1,151,847

1,120,718

1,545,396

1,211,007

4,945,514

UNDERWRITING INCOME (LOSS) [b]

129,502

135,150

161,157

145,663

(274,073)

132,231

160,762

OTHER (EXPENSES) REVENUES

Net investment income

195,773

205,100

190,975

167,383

186,937

147,085

611,742

Net investment gains (losses)

(108,030)

32,182

(53,479)

(9,207)

23,041

(42,558)

(74,630)

Corporate expenses [a]

(42,887)

(33,621)

(27,673)

(25,580)

(30,633)

(50,252)

(132,979)

Foreign exchange (losses) gains

112,090

(92,204)

7,384

23,552

(69,871)

(78,989)

(58,115)

Interest expense and financing costs

(16,761)

(16,849)

(17,010)

(17,147)

(18,344)

(16,426)

(68,421)

Reorganization expenses

-

-

(14,014)

(12,299)

-

(9,485)

(28,997)

Amortization of intangible assets

(2,729)

(2,729)

(2,729)

(2,729)

(2,729)

(2,729)

(10,917)

Total other (expenses) revenues

137,456

91,879

83,454

123,973

88,401

(53,354)

237,683

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME

266,958

227,029

244,611

269,636

(185,672)

78,877

398,445

(LOSS) OF EQUITY METHOD INVESTMENTS

Income tax (expense) benefit

19,410

(47,922)

(40,547)

124,654

41,762

(27,341)

(26,316)

Interest in income (loss) of equity method investments

7,264

1,621

7,900

1,169

1,328

(3,045)

4,163

NET INCOME (LOSS)

293,632

180,728

211,964

395,459

(142,582)

48,491

376,292

Preferred share dividends

(7,563)

(7,563)

(7,563)

(7,563)

(7,563)

(7,563)

(30,250)

NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON

$

286,069

$

173,165

$

204,401

$

387,896

$

(150,145)

$

40,928

$

346,042

SHAREHOLDERS

3

Disclaimer

Axis Capital Holdings Limited published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 21:59:48.850.