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Published: 2021-07-27 00:00:00 ET

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EX-99.2 3 q22021financialsupplement.htm EX-99.2 Document

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Matt Rohrmann

Investor Contact

(212) 940-3339

investorrelations@axiscapital.com

Website Information:

www.axiscapital.com

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

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						3-4
c. Consolidated Statements of Operations - Year						5-6
d. Consolidated Segment Data						7
e. Gross Premiums Written by Segment by Line of Business						8
f. Consolidated Data - Quarter and Prior Year						9
g. Segment Data - Quarter and Prior Year						10-11
h. Strategic Capital Partners						12
i. Net Investment Income - Quarter and Year						13
III. Balance Sheets
a. Consolidated Balance Sheets						14
b. Cash and Invested Assets:
• Cash and Invested Assets Portfolio						15
• Cash and Invested Assets Composition - Quarter						16

• Corporate Debt Composition						17
• Ten Largest Corporate Debt Holdings						18
• Mortgage-Backed and Asset-Backed Securities Composition						19
c. Reinsurance Recoverable Analysis						20-21
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis						22
b. Paid to Incurred Analysis by Segment						23
c. Paid to Incurred Analysis by Segment - Quarter						24-25

d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures						26
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, U.S. GAAP						27
b. Earnings Per Common Share Information and Common Shares Rollforward - Quarter						28
c. Book Value Per Diluted Common Share Analysis - Treasury Stock Method						29
VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity						30
b. Tangible Book Value Per Diluted Common Share						31
c. Rationale for the Use of Non-GAAP Financial Measures						32

AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

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

DEFINITIONS AND PRESENTATION

•All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2020 and and consolidated statements of operations for the years ended December 31, 2020 and December 31, 2019.

•Amounts may not reconcile due to rounding differences.

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

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

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

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

•the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition and liquidity;

•the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;

•the occurrence and magnitude of natural and man-made disasters;

•the impact of global climate change on our business, including the possibility that we do not adequately assess or reserve for the increased frequency and severity of natural catastrophes;

•losses from war, terrorism and political unrest or other unanticipated losses;

•actual claims exceeding loss reserves;

•general economic, capital and credit market conditions, including fluctuations in interest rates, credit spreads, equity securities' prices and/or foreign currency rates;

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

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

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

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

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

•difficulties with technology and/or data security;

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

•the failure of our cedants to adequately evaluate risks;

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

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

•a decline in our ratings with rating agencies;

•changes in accounting policies or practices;

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

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

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

•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, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events.

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

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

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

Discontinued Lines - Novae: includes those lines of business that Novae Group plc ("Novae") exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued insurance lines include financial institutions, professional indemnity, international liability, and international direct and facultative property.

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 excess of loss basis.

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

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

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

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

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

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

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

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

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

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

AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS


		Three months ended June 30,									Six months ended June 30,
		2021			2020			Change			2021			2020			Change

HIGHLIGHTS	Gross premiums written	$	1,941,186		$	1,716,183		13.1	%		$	4,476,667		$	4,147,341		7.9	%
	Gross premiums written - Insurance	65.3		%	60.5		%	4.8		pts	53.0		%	47.7		%	5.3		pts
	Gross premiums written - Reinsurance	34.7		%	39.5		%	(4.8)		pts	47.0		%	52.3		%	(5.3)		pts
	Net premiums written	$	1,203,858		$	1,055,934		14.0	%		$	2,982,744		$	2,734,978		9.1	%
	Net premiums earned	$	1,156,941		$	1,104,003		4.8	%		$	2,260,663		$	2,192,628		3.1	%
	Net premiums earned - Insurance	54.6		%	52.3		%	2.3		pts	55.2		%	52.0		%	3.2		pts
	Net premiums earned - Reinsurance	45.4		%	47.7		%	(2.3)		pts	44.8		%	48.0		%	(3.2)		pts
	Net income (loss) available (attributable) to common shareholders	$	227,910		$	112,477		nm			$	343,645		$	(72,908)		nm
	Operating income (loss) [a]	170,508			71,503			nm			253,247			(92,908)			nm

	Annualized return on average common equity [b]	19.3		%	10.0		%	9.3		pts	14.3		%	(3.1)		%	17.4		pts
	Annualized operating return on average common equity [c]	14.4		%	6.3		%	8.1		pts	10.6		%	(3.9)		%	14.5		pts
	Total shareholders’ equity	$	5,389,760		$	5,297,820		1.7	%		$	5,389,760		$	5,297,820		1.7	%



PER COMMON SHARE AND COMMON SHARE DATA	Earnings (loss) per diluted common share	$2.67			$1.33			nm			$4.04			($0.87)			nm
	Operating income (loss) per diluted common share [d]	$2.00			$0.84			nm			$2.98			($1.11)			nm

	Weighted average diluted common shares outstanding	85,267			84,600			0.8	%		85,117			84,198			1.1	%
	Book value per common share	$57.09			$56.32			1.4	%		$57.09			$56.32			1.4	%
	Book value per diluted common share (treasury stock method)	$55.50			$55.09			0.7	%		$55.50			$55.09			0.7	%
	Tangible book value per diluted common share (treasury stock method) [a]	$52.50			$51.79			1.4	%		$52.50			$51.79			1.4	%





FINANCIAL RATIOS	Current accident year loss ratio excluding catastrophe and weather-related losses	55.7		%	58.0		%	(2.3)		pts	55.4		%	57.5		%	(2.1)		pts
	Catastrophe and weather-related losses ratio	2.5		%	3.5		%	(1.0)		pts	6.2		%	15.2		%	(9.0)		pts
	Current accident year loss ratio	58.2		%	61.5		%	(3.3)		pts	61.6		%	72.7		%	(11.1)		pts
	Prior year reserve development ratio	(0.6		%)	(0.2		%)	(0.4)		pts	(0.5		%)	(0.4		%)	(0.1)		pts
	Net losses and loss expenses ratio	57.6		%	61.3		%	(3.7)		pts	61.1		%	72.3		%	(11.2)		pts
	Acquisition cost ratio	18.9		%	20.7		%	(1.8)		pts	19.4		%	21.3		%	(1.9)		pts
	General and administrative expense ratio [e]	14.1		%	12.7		%	1.4		pts	14.2		%	13.5		%	0.7		pts
	Combined ratio	90.6		%	94.7		%	(4.1)		pts	94.7		%	107.1		%	(12.4)		pts


INVESTMENT DATA	Total assets	$	27,581,730		$	26,359,173		4.6	%		$	27,581,730		$	26,359,173		4.6	%
	Total cash and invested assets [f]	16,107,625			15,224,701			5.8	%		16,107,625			15,224,701			5.8	%
	Net investment income	104,672			45,040			nm			218,836			138,140			58.4	%
	Net investment gains (losses)	73,293			53,043			38.2	%		$	102,936		$	(9,831)		nm



	Book yield of fixed maturities	2.0		%	2.5		%	(0.5)		pts	2.0		%	2.5		%	(0.5)		pts

[a] Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE") and tangible book value per diluted common share are non-GAAP financial measures as defined by Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, annualized return on average common equity ("ROACE") and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this document. Loss per diluted common share and operating loss per diluted common share for the six months ended June 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in the period.

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

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

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

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

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

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020


				Three months ended June 30,						Six months ended June 30,
				2021			2020			2021			2020

Revenues
	Net premiums earned	$	1,156,941		$	1,104,003		$	2,260,663		$	2,192,628
	Net investment income	104,672			45,040			218,836			138,140
	Net investment gains (losses)	73,293			53,043			102,936			(9,831)
	Other insurance related income (loss)	5,817			1,996			8,598			(6,710)

	Total revenues			1,340,723			1,204,082			2,591,033			2,314,227

Expenses
	Net losses and loss expenses	666,473			676,261			1,381,190			1,584,335
	Acquisition costs	219,070			228,502			437,941			467,152
	General and administrative expenses	162,452			140,652			320,860			297,712
	Foreign exchange losses (gains)	19,602			9,709			23,716			(51,974)
	Interest expense and financing costs	15,235			20,595			30,806			44,067
	Reorganization expenses	—			392			—			(591)
	Amortization of value of business acquired	1,028			1,285			2,056			3,083
	Amortization of intangible assets	3,324			2,855			6,013			5,725
	Total expenses			1,087,184			1,080,251			2,202,582			2,349,509

Income (loss) before income taxes and interest in income (loss) of equity method investments		253,539			123,831			388,451			(35,282)
	Income tax expense	(27,865)			(10,893)			(48,641)			(6,026)
	Interest in income (loss) of equity method investments	9,799			7,102			18,960			(16,475)
Net income (loss)		235,473			120,040			358,770			(57,783)


	Preferred share dividends	7,563			7,563			15,125			15,125

Net income (loss) available (attributable) to common shareholders		$	227,910		$	112,477		$	343,645		$	(72,908)

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER


	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019
UNDERWRITING REVENUES
Gross premiums written	$	1,941,186	$	2,535,481	$	1,348,419	$	1,331,178	$	1,716,183	$	1,647,760
Ceded premiums written	(737,328)		(756,595)		(562,970)		(515,196)		(660,249)		(577,439)
Net premiums written	1,203,858		1,778,886		785,449		815,982		1,055,934		1,070,321

Gross premiums earned	1,794,769		1,671,139		1,735,932		1,680,529		1,694,861		1,680,663
Ceded premiums earned	(637,828)		(567,417)		(648,564)		(589,217)		(590,858)		(557,056)
Net premiums earned	1,156,941		1,103,722		1,087,368		1,091,312		1,104,003		1,123,607
Other insurance related income (loss)	5,817		2,781		(2,819)		1,440		1,996		2,925
Total underwriting revenues	1,162,758		1,106,503		1,084,549		1,092,752		1,105,999		1,126,532

UNDERWRITING EXPENSES
Net losses and loss expenses	666,473		714,718		817,239		879,677		676,261		672,463
Acquisition costs	219,070		218,871		231,800		230,564		228,502		242,363
Underwriting-related general and administrative expenses [a]	128,961		132,668		116,345		117,835		113,824		133,047
Total underwriting expenses	1,014,504		1,066,257		1,165,384		1,228,076		1,018,587		1,047,873

UNDERWRITING INCOME (LOSS) [b]	148,254		40,246		(80,835)		(135,324)		87,412		78,659

OTHER (EXPENSES) REVENUES
Net investment income	104,672		114,165		109,503		101,956		45,040		137,949
Net investment gains	73,293		29,645		83,356		55,609		53,043		21,225


Corporate expenses [a]	(33,491)		(25,740)		(26,907)		(20,988)		(26,828)		(32,348)
Foreign exchange (losses) gains	(19,602)		(4,113)		(72,309)		(60,734)		(9,709)		12,381
Interest expense and financing costs	(15,235)		(15,571)		(15,408)		(15,574)		(20,595)		(15,607)
Reorganization expenses	—		—		(7,059)		(1,413)		(392)		(3,276)
Amortization of value of business acquired	(1,028)		(1,028)		(1,028)		(1,028)		(1,285)		(7,194)
Amortization of intangible assets	(3,324)		(2,690)		(2,827)		(2,838)		(2,855)		(2,912)
Total other (expenses) revenues	105,285		94,668		67,321		54,990		36,419		110,218

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	253,539		134,914		(13,514)		(80,334)		123,831		188,877
Income tax (expense) benefit	(27,865)		(20,776)		6,291		12,056		(10,893)		(14,469)
Interest in income of equity method investments	9,799		9,162		9,967		2,896		7,102		2,635

NET INCOME (LOSS)	235,473		123,300		2,744		(65,382)		120,040		177,043





Preferred share dividends	(7,563)		(7,563)		(7,563)		(7,563)		(7,563)		(10,656)


NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	227,910	$	115,737	$	(4,819)	$	(72,945)	$	112,477	$	166,387

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

[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above and in the 'Consolidated Statements of Operations - Year' section of this document.

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS - QUARTER


	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses	55.7	%	55.1	%	57.4	%	58.5	%	58.0	%	59.7	%
Catastrophe and weather-related losses ratio	2.5	%	10.1	%	18.4	%	22.2	%	3.5	%	2.3	%
Current accident year loss ratio	58.2	%	65.2	%	75.8	%	80.7	%	61.5	%	62.0	%
Prior year reserve development ratio	(0.6	%)	(0.4	%)	(0.6	%)	(0.1	%)	(0.2	%)	(2.2	%)
Net losses and loss expenses ratio	57.6	%	64.8	%	75.2	%	80.6	%	61.3	%	59.8	%
Acquisition cost ratio	18.9	%	19.8	%	21.3	%	21.1	%	20.7	%	21.6	%
General and administrative expense ratio [a]	14.1	%	14.3	%	13.1	%	12.8	%	12.7	%	14.7	%
Combined ratio	90.6	%	98.9	%	109.6	%	114.5	%	94.7	%	96.1	%

Weighted average common shares outstanding	84,764		84,514		84,341		84,308		84,303		83,941
Weighted average diluted common shares outstanding	85,267		84,965		84,341		84,308		84,600		84,401
Earnings (loss) per common share	$2.69		$1.37		($0.06)		($0.87)		$1.33		$1.98
Earnings (loss) per diluted common share	$2.67		$1.36		($0.06)		($0.87)		$1.33		$1.97
Annualized ROACE	19.3	%	9.9	%	(0.4	%)	(6.2	%)	10.0	%	14.3	%
Annualized operating ROACE	14.4	%	7.1	%	(1.4	%)	(5.5	%)	6.3	%	11.8	%

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS - YEAR


	Six months ended June 30,						Year ended December 31,
	2021		2020		2019		2020		2019
UNDERWRITING REVENUES
Gross premiums written	$	4,476,667	$	4,147,341	$	4,230,986	$	6,826,938	$	6,898,858
Ceded premiums written	(1,493,923)		(1,412,363)		(1,383,605)		(2,490,529)		(2,409,243)
Net premiums written	2,982,744		2,734,978		2,847,381		4,336,409		4,489,615

Gross premiums earned	3,465,908		3,352,273		3,365,477		6,768,733		6,910,677
Ceded premiums earned	(1,205,245)		(1,159,645)		(1,107,658)		(2,397,424)		(2,323,499)
Net premiums earned	2,260,663		2,192,628		2,257,819		4,371,309		4,587,178
Other insurance related income (loss)	8,598		(6,710)		9,852		(8,089)		16,444
Total underwriting revenues	2,269,261		2,185,918		2,267,671		4,363,220		4,603,622

UNDERWRITING EXPENSES
Net losses and loss expenses	1,381,190		1,584,335		1,336,491		3,281,252		3,044,798
Acquisition costs	437,941		467,152		502,781		929,517		1,024,582
Underwriting-related general and administrative expenses [a]	261,629		243,786		271,920		477,968		505,735
Total underwriting expenses	2,080,760		2,295,273		2,111,192		4,688,737		4,575,115

UNDERWRITING INCOME (LOSS)	188,501		(109,355)		156,479		(325,517)		28,507

OTHER (EXPENSES) REVENUES
Net investment income	218,836		138,140		245,254		349,601		478,572
Net investment gains (losses)	102,936		(9,831)		33,996		129,133		91,233

Corporate expenses [a]	(59,231)		(53,926)		(68,566)		(101,822)		(129,096)
Foreign exchange (losses) gains	(23,716)		51,974		5,325		(81,069)		12,041
Interest expense and financing costs	(30,806)		(44,067)		(31,502)		(75,049)		(68,107)
Reorganization expenses	—		591		(18,096)		(7,881)		(37,384)
Amortization of value of business acquired	(2,056)		(3,083)		(20,298)		(5,139)		(26,722)
Amortization of intangible assets	(6,013)		(5,725)		(5,914)		(11,390)		(11,597)
Total other (expenses) revenues	199,950		74,073		140,199		196,384		308,940

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	388,451		(35,282)		296,678		(129,133)		337,447
Income tax (expense) benefit	(48,641)		(6,026)		(15,703)		12,321		(23,692)
Interest in income (loss) of equity method investments	18,960		(16,475)		4,853		(3,612)		9,718

NET INCOME (LOSS)	358,770		(57,783)		285,828		(120,424)		323,473





Preferred share dividends	(15,125)		(15,125)		(21,313)		(30,250)		(41,112)


NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	343,645	$	(72,908)	$	264,515	$	(150,674)	$	282,361

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS - YEAR


	Six months ended June 30,						Year ended December 31,
	2021		2020		2019		2020		2019
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses	55.4	%	57.5	%	59.3	%	57.7	%	60.6	%
Catastrophe and weather-related losses ratio	6.2	%	15.2	%	1.6	%	17.7	%	7.5	%
Current accident year loss ratio	61.6	%	72.7	%	60.9	%	75.4	%	68.1	%
Prior year reserve development ratio	(0.5	%)	(0.4	%)	(1.7	%)	(0.3	%)	(1.7	%)
Net losses and loss expenses ratio	61.1	%	72.3	%	59.2	%	75.1	%	66.4	%
Acquisition cost ratio	19.4	%	21.3	%	22.3	%	21.3	%	22.3	%
General and administrative expense ratio [a]	14.2	%	13.5	%	15.0	%	13.2	%	13.9	%
Combined ratio	94.7	%	107.1	%	96.5	%	109.6	%	102.6	%

Weighted average common shares outstanding	84,640		84,198		83,834		84,262		83,894
Weighted average diluted common shares outstanding	85,117		84,198		84,338		84,262		84,473
Earnings (loss) per common share	$4.06		($0.87)		$3.16		($1.79)		$3.37
Earnings (loss) per diluted common share	$4.04		($0.87)		$3.14		($1.79)		$3.34
Annualized ROACE	14.3	%	(3.1	%)	11.7	%	(3.2	%)	6.3	%
Annualized operating ROACE	10.6	%	(3.9	%)	10.7	%	(3.7	%)	4.7	%

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENT DATA


	Three months ended June 30, 2021									Six months ended June 30, 2021
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	1,268,472		$	672,714		$	1,941,186			$	2,371,670		$	2,104,997		$	4,476,667
Ceded premiums written	(555,587)			(181,741)			(737,328)				(950,971)			(542,952)			(1,493,923)
Net premiums written	712,885			490,973			1,203,858				1,420,699			1,562,045			2,982,744

Gross premiums earned	1,076,900			717,869			1,794,769				2,089,841			1,376,067			3,465,908
Ceded premiums earned	(445,225)			(192,603)			(637,828)				(841,879)			(363,366)			(1,205,245)
Net premiums earned	631,675			525,266			1,156,941				1,247,962			1,012,701			2,260,663
Other insurance related income	552			5,265			5,817				967			7,631			8,598
Total underwriting revenues	632,227			530,531			1,162,758				1,248,929			1,020,332			2,269,261

UNDERWRITING EXPENSES
Net losses and loss expenses	332,175			334,298			666,473				689,072			692,118			1,381,190
Acquisition costs	106,963			112,107			219,070				224,642			213,299			437,941
Underwriting-related general and administrative expenses	99,569			29,392			128,961				202,872			58,757			261,629
Total underwriting expenses	538,707			475,797			1,014,504				1,116,586			964,174			2,080,760

UNDERWRITING INCOME	$	93,520		$	54,734		$	148,254			$	132,343		$	56,158		$	188,501

Catastrophe and weather-related losses, net of reinstatement premiums	$	11,088		$	17,474		$	28,562			$	47,114		$	91,698		$	138,812
Net favorable prior year reserve development	$	6,427		$	381		$	6,808			$	7,932		$	4,194		$	12,126

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	51.8		%	60.4		%	55.7		%		52.1		%	59.5		%	55.4		%
Catastrophe and weather-related losses ratio	1.8		%	3.3		%	2.5		%		3.8		%	9.3		%	6.2		%
Current accident year loss ratio	53.6		%	63.7		%	58.2		%		55.9		%	68.8		%	61.6		%
Prior year reserve development ratio	(1.0		%)	(0.1		%)	(0.6		%)		(0.7		%)	(0.5		%)	(0.5		%)
Net losses and loss expenses ratio	52.6		%	63.6		%	57.6		%		55.2		%	68.3		%	61.1		%
Acquisition cost ratio	16.9		%	21.3		%	18.9		%		18.0		%	21.1		%	19.4		%
Underwriting-related general and administrative expense ratio	15.8		%	5.7		%	11.2		%		16.3		%	5.8		%	11.6		%
Corporate expense ratio							2.9		%								2.6		%
Combined ratio	85.3		%	90.6		%	90.6		%		89.5		%	95.2		%	94.7		%

AXIS CAPITAL HOLDINGS LIMITED

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS


													Six months ended June 30,				Year ended December 31,
	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019		2021		2020		2020

INSURANCE SEGMENT
Property	$	320,393	$	261,786	$	255,606	$	238,599	$	278,841	$	259,295	$	582,179	$	502,444	$	996,650
Marine	114,061		187,948		63,901		82,810		116,398		99,389		302,009		272,694		419,405
Terrorism	12,339		19,744		13,486		14,767		11,008		15,157		32,083		27,528		55,781
Aviation	29,742		20,402		23,946		22,702		23,794		18,539		50,143		41,024		87,671
Credit and Political Risk	43,140		37,451		56,264		24,473		28,002		36,076		80,592		75,677		156,414
Professional Lines	463,796		337,765		434,868		338,907		346,338		321,284		801,561		604,729		1,378,503
Liability	241,630		193,151		215,131		172,747		204,398		190,030		434,781		375,276		763,155
Accident and Health	43,481		44,847		40,843		39,262		27,419		28,126		88,328		78,480		158,585
Discontinued Lines - Novae	(110)		104		254		1,550		1,370		429		(6)		431		2,235
TOTAL INSURANCE SEGMENT	$	1,268,472	$	1,103,198	$	1,104,299	$	935,817	$	1,037,568	$	968,325	$	2,371,670	$	1,978,283	$	4,018,399

REINSURANCE SEGMENT
Catastrophe	$	133,089	$	250,956	$	24,497	$	74,656	$	189,706	$	245,203	$	384,045	$	451,990	$	551,143
Property	44,325		126,455		(1,115)		58,907		54,763		43,135		170,780		187,952		245,744
Credit and Surety	37,413		83,221		43,519		38,110		50,332		38,465		120,634		151,070		232,699
Professional Lines	148,398		131,255		45,888		31,752		111,725		92,915		279,653		235,295		312,935
Motor	39,781		223,524		(15,427)		(2,235)		42,970		6,846		263,304		322,102		304,439
Liability	182,106		269,201		113,591		136,791		149,635		125,990		451,308		368,531		618,913
Engineering	(2,502)		(2,428)		5,552		1,408		3,006		7,600		(4,930)		18,926		25,886
Agriculture	46,874		16,441		901		7,455		43,896		70,077		63,314		62,144		70,500
Marine and Aviation	25,613		32,340		10,900		6,341		25,867		22,042		57,954		55,861		73,103
Accident and Health	16,934		301,318		15,706		41,820		6,625		27,723		318,252		314,303		371,828
Discontinued Lines - Novae	683		—		108		356		90		(561)		683		884		1,349
TOTAL REINSURANCE SEGMENT	$	672,714	$	1,432,283	$	244,120	$	395,361	$	678,615	$	679,435	$	2,104,997	$	2,169,058	$	2,808,539

CONSOLIDATED TOTAL	$	1,941,186	$	2,535,481	$	1,348,419	$	1,331,178	$	1,716,183	$	1,647,760	$	4,476,667	$	4,147,341	$	6,826,938

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q2 2019			2020
UNDERWRITING REVENUES
Gross premiums written	$	1,941,186		$	2,535,481		$	1,348,419		$	1,331,178		$	1,716,183		$	1,647,760		$	6,826,938
Ceded premiums written	(737,328)			(756,595)			(562,970)			(515,196)			(660,249)			(577,439)			(2,490,529)
Net premiums written	1,203,858			1,778,886			785,449			815,982			1,055,934			1,070,321			4,336,409

Gross premiums earned	1,794,769			1,671,139			1,735,932			1,680,529			1,694,861			1,680,663			6,768,733
Ceded premiums earned	(637,828)			(567,417)			(648,564)			(589,217)			(590,858)			(557,056)			(2,397,424)
Net premiums earned	1,156,941			1,103,722			1,087,368			1,091,312			1,104,003			1,123,607			4,371,309
Other insurance related income (loss)	5,817			2,781			(2,819)			1,440			1,996			2,925			(8,089)
Total underwriting revenues	1,162,758			1,106,503			1,084,549			1,092,752			1,105,999			1,126,532			4,363,220

UNDERWRITING EXPENSES
Net losses and loss expenses	666,473			714,718			817,239			879,677			676,261			672,463			3,281,252
Acquisition costs	219,070			218,871			231,800			230,564			228,502			242,363			929,517
Underwriting-related general and administrative expenses	128,961			132,668			116,345			117,835			113,824			133,047			477,968
Total underwriting expenses	1,014,504			1,066,257			1,165,384			1,228,076			1,018,587			1,047,873			4,688,737

UNDERWRITING INCOME (LOSS)	$	148,254		$	40,246		$	(80,835)		$	(135,324)		$	87,412		$	78,659		$	(325,517)

Catastrophe and weather-related losses, net of reinstatement premiums	$	28,562		$	110,250		$	198,028		$	240,025		$	36,047		$	25,564		$	773,919
Net favorable prior year reserve development	$	6,808		$	5,317		$	6,559		$	584		$	2,655		$	23,621		$	15,909

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	55.7		%	55.1		%	57.4		%	58.5		%	58.0		%	59.7		%	57.7		%
Catastrophe and weather-related losses ratio	2.5		%	10.1		%	18.4		%	22.2		%	3.5		%	2.3		%	17.7		%
Current accident year loss ratio	58.2		%	65.2		%	75.8		%	80.7		%	61.5		%	62.0		%	75.4		%
Prior year reserve development ratio	(0.6		%)	(0.4		%)	(0.6		%)	(0.1		%)	(0.2		%)	(2.2		%)	(0.3		%)
Net losses and loss expenses ratio	57.6		%	64.8		%	75.2		%	80.6		%	61.3		%	59.8		%	75.1		%
Acquisition cost ratio	18.9		%	19.8		%	21.3		%	21.1		%	20.7		%	21.6		%	21.3		%
Underwriting-related general and administrative expenses ratio	14.1		%	14.3		%	13.1		%	12.8		%	12.7		%	14.7		%	13.2		%
Combined ratio	90.6		%	98.9		%	109.6		%	114.5		%	94.7		%	96.1		%	109.6		%

AXIS CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q2 2019			2020
UNDERWRITING REVENUES
Gross premiums written	$	1,268,472		$	1,103,198		$	1,104,299		$	935,817		$	1,037,568		$	968,325		$	4,018,399
Ceded premiums written	(555,587)			(395,384)			(476,066)			(390,960)			(434,807)			(376,416)			(1,660,898)
Net premiums written	712,885			707,814			628,233			544,857			602,761			591,909			2,357,501

Gross premiums earned	1,076,900			1,012,941			1,006,930			948,478			952,241			884,480			3,839,727
Ceded premiums earned	(445,225)			(396,655)			(417,160)			(378,294)			(375,222)			(347,220)			(1,540,689)
Net premiums earned	631,675			616,286			589,770			570,184			577,019			537,260			2,299,038
Other insurance related income (loss)	552			415			556			688			755			(695)			2,647
Total underwriting revenues	632,227			616,701			590,326			570,872			577,774			536,565			2,301,685

UNDERWRITING EXPENSES
Net losses and loss expenses	332,175			356,898			444,444			443,389			337,367			308,703			1,697,014
Acquisition costs	106,963			117,679			117,954			114,569			116,259			111,655			461,533
Underwriting-related general and administrative expenses	99,569			103,303			93,930			94,379			89,751			104,898			378,839
Total underwriting expenses	538,707			577,880			656,328			652,337			543,377			525,256			2,537,386

UNDERWRITING INCOME (LOSS)	$	93,520		$	38,821		$	(66,002)		$	(81,465)		$	34,397		$	11,309		$	(235,701)

Catastrophe and weather-related losses, net of reinstatement premiums	$	11,088		$	36,026		$	118,185		$	131,853		$	15,786		$	14,483		$	443,440
Net favorable prior year reserve development	$	6,427		$	1,505		$	4,417		$	270		$	420		$	21,326		$	8,937

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	51.8		%	52.3		%	56.1		%	54.7		%	55.6		%	58.7		%	55.1		%
Catastrophe and weather-related losses ratio	1.8		%	5.9		%	20.0		%	23.1		%	2.9		%	2.7		%	19.1		%
Current accident year loss ratio	53.6		%	58.2		%	76.1		%	77.8		%	58.5		%	61.4		%	74.2		%
Prior year reserve development ratio	(1.0		%)	(0.3		%)	(0.7		%)	—		%	—		%	(3.9		%)	(0.4		%)
Net losses and loss expenses ratio	52.6		%	57.9		%	75.4		%	77.8		%	58.5		%	57.5		%	73.8		%
Acquisition cost ratio	16.9		%	19.1		%	20.0		%	20.1		%	20.1		%	20.8		%	20.1		%
Underwriting-related general and administrative expenses ratio	15.8		%	16.8		%	15.9		%	16.5		%	15.6		%	19.5		%	16.5		%
Combined ratio	85.3		%	93.8		%	111.3		%	114.4		%	94.2		%	97.8		%	110.4		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR


																			Year ended December 31,
	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q2 2019			2020
UNDERWRITING REVENUES
Gross premiums written	$	672,714		$	1,432,283		$	244,120		$	395,361		$	678,615		$	679,435		$	2,808,539
Ceded premiums written	(181,741)			(361,211)			(86,904)			(124,236)			(225,442)			(201,023)			(829,631)
Net premiums written	490,973			1,071,072			157,216			271,125			453,173			478,412			1,978,908

Gross premiums earned	717,869			658,198			729,002			732,051			742,620			796,183			2,929,006
Ceded premiums earned	(192,603)			(170,762)			(231,404)			(210,923)			(215,636)			(209,836)			(856,735)
Net premiums earned	525,266			487,436			497,598			521,128			526,984			586,347			2,072,271
Other insurance related income (loss)	5,265			2,366			(3,375)			752			1,241			3,620			(10,736)
Total underwriting revenues	530,531			489,802			494,223			521,880			528,225			589,967			2,061,535

UNDERWRITING EXPENSES
Net losses and loss expenses	334,298			357,820			372,795			436,288			338,894			363,760			1,584,238
Acquisition costs	112,107			101,192			113,846			115,995			112,243			130,708			467,984
Underwriting-related general and administrative expenses	29,392			29,365			22,415			23,456			24,073			28,149			99,129
Total underwriting expenses	475,797			488,377			509,056			575,739			475,210			522,617			2,151,351

UNDERWRITING INCOME (LOSS)	$	54,734		$	1,425		$	(14,833)		$	(53,859)		$	53,015		$	67,350		$	(89,816)

Catastrophe and weather-related losses, net of reinstatement premiums	$	17,474		$	74,224		$	79,843		$	108,172		$	20,261		$	11,081		$	330,479
Net favorable prior year reserve development	$	381		$	3,812		$	2,142		$	314		$	2,235		$	2,295		$	6,972

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	60.4		%	58.6		%	59.0		%	62.7		%	60.6		%	60.5		%	60.6		%
Catastrophe and weather-related losses ratio	3.3		%	15.6		%	16.3		%	21.1		%	4.1		%	1.9		%	16.2		%
Current accident year loss ratio	63.7		%	74.2		%	75.3		%	83.8		%	64.7		%	62.4		%	76.8		%
Prior year reserve development ratio	(0.1		%)	(0.8		%)	(0.4		%)	(0.1		%)	(0.4		%)	(0.4		%)	(0.4		%)
Net losses and loss expenses ratio	63.6		%	73.4		%	74.9		%	83.7		%	64.3		%	62.0		%	76.4		%
Acquisition cost ratio	21.3		%	20.8		%	22.9		%	22.3		%	21.3		%	22.3		%	22.6		%
Underwriting-related general and administrative expense ratio	5.7		%	6.0		%	4.5		%	4.5		%	4.6		%	4.8		%	4.8		%
Combined ratio	90.6		%	100.2		%	102.3		%	110.5		%	90.2		%	89.1		%	103.8		%

AXIS CAPITAL HOLDINGS LIMITED

STRATEGIC CAPITAL PARTNERS


	Three months ended June 30,												Six months ended June 30,
	2021						2020						2021						2020
TOTAL MANAGED PREMIUMS [a]	Insurance		Reinsurance		Total		Insurance		Reinsurance		Total		Insurance		Reinsurance		Total		Insurance		Reinsurance		Total
Total Managed Premiums	$	1,268,472	$	672,714	$	1,941,186	$	1,037,568	$	678,615	$	1,716,183	$	2,371,670	$	2,104,997	$	4,476,667	$	1,978,283	$	2,169,058	$	4,147,341
Premiums ceded to Harrington Re	2,316		67,915		70,231		4,081		59,583		63,664		4,045		185,477		189,522		5,200		173,134		178,334
Premiums ceded to Other Strategic Capital Partners	—		113,826		113,826		17,266		165,859		183,125		—		357,475		357,475		35,800		445,357		481,157
Premiums ceded to Other Reinsurers	553,271		—		553,271		413,460		—		413,460		946,926		—		946,926		752,872		—		752,872
Net premiums written	$	712,885	$	490,973	$	1,203,858	$	602,761	$	453,173	$	1,055,934	$	1,420,699	$	1,562,045	$	2,982,744	$	1,184,411	$	1,550,567	$	2,734,978

FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income	$	—	$	15,467	$	15,467	$	2,713	$	13,600	$	16,313	$	—	$	27,695	$	27,695	$	5,419	$	26,569	$	31,988

[a] Total managed premiums represents gross premiums written of $1.9 billion and $1.7 billion for the three months ended June 30, 2021 and 2020, respectively, and $4.5 billion and $4.1 billion for the six months ended June 30, 2021 and 2020, respectively and includes premiums written by the insurance and reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.

[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners. Fee income from strategic capital partners included $5.0 million and $0.8 million in other insurance related income (loss) for the three months ended June 30, 2021 and 2020, respectively and $6.6 million and $1.6 million for the six months ended June 30, 2021 and 2020, respectively. It also included $10.5 million and $15.5 million as an offset to general and administrative expenses for the three months ended June 30, 2021 and 2020, respectively and $21.1 million and $30.4 million for the six months ended June 30, 2021 and 2020, respectively.

AXIS CAPITAL HOLDINGS LIMITED

NET INVESTMENT INCOME - QUARTER AND YEAR


													Six months ended June 30,
	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019		2021		2020

Fixed maturities	$	61,244	$	69,470	$	72,727	$	73,992	$	80,459	$	97,370	$	130,714	$	170,402
Other investments	41,414		41,833		30,634		25,125		(37,580)		31,232		83,248		(39,700)
Equity securities	3,100		2,498		3,069		1,871		2,263		3,197		5,598		4,387
Mortgage loans	4,355		4,187		4,110		3,609		3,660		3,689		8,541		7,713
Cash and cash equivalents	617		2,336		3,768		2,491		2,392		8,138		2,953		7,323
Short-term investments	66		133		446		440		366		1,108		199		1,863

Gross investment income	110,796		120,457		114,754		107,528		51,560		144,734		231,253		151,988
Investment expenses	(6,124)		(6,292)		(5,251)		(5,572)		(6,520)		(6,785)		(12,417)		(13,848)

Net investment income	$	104,672	$	114,165	$	109,503	$	101,956	$	45,040	$	137,949	$	218,836	$	138,140

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS


	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2021			2021			2020			2020			2020			2019
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,898,300		$	11,728,611		$	12,041,799		$	12,609,241		$	12,046,415		$	12,522,955
Fixed maturities, held to maturity, at amortized cost	403,370			404,690			—			—			—			—
Equity securities, at fair value	588,196			547,676			518,445			417,886			378,860			433,407
Mortgage loans, held for investment, at fair value	656,056			629,576			593,290			544,095			524,757			394,179
Other investments, at fair value	865,238			790,530			829,156			760,206			768,635			802,064
Equity method investments	133,169			123,370			114,209			104,242			101,346			112,956
Short-term investments, at fair value	112,862			185,699			161,897			69,996			34,337			32,421
Total investments	14,657,191			14,410,152			14,258,796			14,505,666			13,854,350			14,297,982
Cash and cash equivalents	1,589,443			1,560,279			1,503,232			1,440,816			1,648,833			1,094,714
Accrued interest receivable	63,215			61,222			65,020			70,013			68,880			82,567
Insurance and reinsurance premium balances receivable	3,393,777			3,367,142			2,738,342			3,131,791			3,527,147			3,732,529
Reinsurance recoverable on unpaid losses and loss expenses	4,626,454			4,533,232			4,496,641			4,337,683			4,160,521			3,564,812
Reinsurance recoverable on paid losses and loss expenses	467,180			459,411			434,201			373,431			395,990			364,536
Deferred acquisition costs	574,658			577,509			431,439			520,706			583,484			657,275
Prepaid reinsurance premiums	1,479,328			1,379,450			1,194,455			1,278,672			1,352,090			1,291,979
Receivable for investments sold	3,671			1,450			2,150			17,513			2,985			25,850
Goodwill	100,801			100,801			100,801			102,003			102,003			102,003
Intangible assets	214,286			216,904			219,633			222,362			225,092			236,009
Value of business acquired	1,798			2,826			3,854			4,881			5,909			15,416
Operating lease right-of-use assets	112,444			116,693			123,579			131,776			136,815			132,940
Other assets	297,484			298,756			305,544			315,683			295,074			271,562
TOTAL ASSETS	$	27,581,730		$	27,085,827		$	25,877,687		$	26,452,996		$	26,359,173		$	25,870,174

LIABILITIES
Reserve for losses and loss expenses	$	14,157,353		$	14,025,274		$	13,926,766		$	13,653,488		$	13,179,166		$	12,254,711
Unearned premiums	4,698,944			4,551,424			3,685,886			4,070,649			4,418,728			4,503,132
Insurance and reinsurance balances payable	1,409,772			1,231,403			1,092,042			1,244,846			1,365,799			1,484,285
Debt	1,310,328			1,310,009			1,309,695			1,309,384			1,309,076			1,387,748
Payable for investments purchased	205,895			389,925			104,777			458,111			350,347			181,274
Operating lease liabilities	130,174			134,002			140,263			140,058			141,621			133,257
Other liabilities	279,504			267,400			322,564			310,565			296,616			359,290
TOTAL LIABILITIES	22,191,970			21,909,437			20,581,993			21,187,101			21,061,353			20,303,697

SHAREHOLDERS’ EQUITY
Preferred shares	550,000			550,000			550,000			550,000			550,000			775,000
Common shares	2,206			2,206			2,206			2,206			2,206			2,206
Additional paid-in capital	2,326,288			2,316,147			2,330,054			2,325,196			2,317,354			2,303,592
Accumulated other comprehensive income	226,317			214,861			414,395			350,111			281,599			156,145
Retained earnings	6,034,151			5,842,850			5,763,607			5,804,637			5,913,029			6,108,577
Treasury shares, at cost	(3,749,202)			(3,749,674)			(3,764,568)			(3,766,255)			(3,766,368)			(3,779,043)


TOTAL SHAREHOLDERS' EQUITY	5,389,760			5,176,390			5,295,694			5,265,895			5,297,820			5,566,477

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	27,581,730		$	27,085,827		$	25,877,687		$	26,452,996		$	26,359,173		$	25,870,174

Common shares outstanding	84,767			84,753			84,353			84,309			84,306			83,947
Diluted common shares outstanding [a]	87,197			87,235			86,143			86,132			86,178			85,579
Book value per common share	$57.09			$54.59			$56.26			$55.94			$56.32			$57.08
Book value per diluted common share	$55.50			$53.03			$55.09			$54.75			$55.09			$55.99
Tangible book value per diluted common share	$52.50			$49.91			$51.90			$51.52			$51.79			$52.54
Debt to total capital [b]	19.6		%	20.2		%	19.8		%	19.9		%	19.8		%	20.0		%
Debt and preferred equity to total capital	27.8		%	28.7		%	28.2		%	28.3		%	28.1		%	31.1		%

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

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

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS PORTFOLIO

At June 30, 2021


	Cost or Amortized Cost		Allowance for Expected Credit Losses		Unrealized Gains		Unrealized Losses		Fair Value or Net Carrying Value		Percentage
Fixed Maturities, available for sale, at fair value
U.S. government and agency	$	2,542,892	$	—	$	18,830	$	(9,782)	$	2,551,940	15.9	%
Non-U.S. government	658,176		—		25,177		(2,781)		680,572		4.2	%
Corporate debt	4,358,107		(42)		154,343		(13,014)		4,499,394		27.9	%
Agency RMBS	1,022,259		—		25,789		(3,492)		1,044,556		6.5	%
CMBS	1,097,457		—		48,538		(1,403)		1,144,592		7.1	%
Non-Agency RMBS	204,437		(42)		4,016		(922)		207,489		1.3	%
ABS	1,493,549		—		8,488		(2,398)		1,499,639		9.3	%
Municipals	261,482		—		8,776		(140)		270,118		1.7	%
Total fixed maturities, available for sale, at fair value	11,638,359		(84)		293,957		(33,932)		11,898,300		73.9	%

Fixed maturities, held to maturity, at amortized cost	403,370		—		—		—		403,370		2.5	%

Equity securities, at fair value
Common stocks	943		—		424		(415)		952		—	%
Preferred Stocks	115		—		136		—		251		—	%
Exchange traded funds	203,336		—		107,019		(370)		309,985		1.9	%
Bond mutual funds	267,820		—		9,188		—		277,008		1.8	%
Total equity securities, at fair value	472,214		—		116,767		(785)		588,196		3.7	%

Total fixed maturities and equity securities	$	12,513,943	$	(84)	$	410,724	$	(34,717)	12,889,866		80.1	%

Mortgage loans, held for investment									656,056		4.1	%

Other investments (see below)									865,238		5.4	%

Equity method investments									133,169		0.8	%

Short-term investments									112,862		0.6	%

Total investments									14,657,191		91.0	%

Cash and cash equivalents [a]									1,589,443		9.9	%

Accrued interest receivable									63,215		0.4	%

Net receivable/(payable) for investments sold (purchased)									(202,224)		(1.3	%)

Total cash and invested assets									$	16,107,625	100.0	%

									Fair Value		Percentage
Other Investments:
Long/short equity funds									$	3,774	0.4	%
Multi-strategy funds									108,974		12.6	%

Direct lending funds									288,404		33.3	%
Real estate funds									201,833		23.3	%
Private equity funds									190,465		22.0	%
Other privately held investments									64,786		7.5	%
Collateralized loan obligations - equity tranches									7,002		0.9	%
Total									$	865,238	100.0	%

[a] Includes $590 million of restricted cash and cash equivalents.

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS COMPOSITION - QUARTER


	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities, available for sale:
U.S. government and agency	15.9	%	14.0	%	12.2	%	12.8	%	13.2	%	15.1	%
Non-U.S. government	4.2	%	4.6	%	4.3	%	4.3	%	4.0	%	3.5	%
Corporate debt	27.9	%	28.7	%	29.6	%	30.8	%	30.6	%	32.3	%
MBS:
Agency RMBS	6.5	%	7.7	%	8.2	%	10.8	%	10.1	%	11.0	%
CMBS	7.1	%	8.1	%	8.6	%	8.9	%	9.0	%	7.7	%
Non-agency RMBS	1.3	%	1.1	%	0.9	%	0.9	%	0.8	%	0.4	%
ABS	9.3	%	9.0	%	10.9	%	10.7	%	10.1	%	10.4	%
Municipals	1.7	%	1.8	%	1.9	%	1.8	%	1.3	%	1.3	%

Total Fixed Maturities, available for sale	73.9	%	75.0	%	76.6	%	81.0	%	79.1	%	81.7	%
Fixed Maturities, held to maturity	2.5	%	2.6	%	—	%	—	%	—	%	—	%
Equity securities	3.7	%	3.5	%	3.3	%	2.7	%	2.5	%	2.8	%
Mortgage loans	4.1	%	4.0	%	3.8	%	3.5	%	3.4	%	2.6	%
Other investments	5.4	%	5.1	%	5.3	%	4.9	%	5.0	%	5.2	%
Equity method investments	0.8	%	0.8	%	0.7	%	0.7	%	0.7	%	0.7	%
Short-term investments	0.6	%	1.1	%	1.0	%	0.3	%	0.3	%	0.3	%

Total Investments	91.0	%	92.1	%	90.7	%	93.1	%	91.0	%	93.3	%
Cash and cash equivalents	9.9	%	10.0	%	9.6	%	9.3	%	10.8	%	7.1	%
Accrued interest receivable	0.4	%	0.4	%	0.4	%	0.4	%	0.5	%	0.5	%
Net receivable/(payable) for investments sold (purchased)	(1.3	%)	(2.5	%)	(0.7	%)	(2.8	%)	(2.3	%)	(0.9	%)
Total Cash and Invested Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency	20.7	%	18.0	%	15.9	%	15.8	%	16.7	%	18.5	%
AAA	35.2	%	37.0	%	37.8	%	39.8	%	38.9	%	35.8	%
AA	7.4	%	7.8	%	7.6	%	7.4	%	6.8	%	8.6	%
A	14.6	%	15.2	%	15.7	%	15.7	%	16.4	%	14.1	%
BBB	13.2	%	13.4	%	14.4	%	13.4	%	13.2	%	13.6	%
Below BBB	8.9	%	8.6	%	8.6	%	7.9	%	8.0	%	9.4	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

MATURITY PROFILE OF FIXED MATURITIES
Within one year	4.3	%	5.0	%	3.6	%	2.9	%	3.3	%	3.1	%
From one to five years	38.7	%	36.9	%	36.0	%	35.3	%	36.3	%	41.8	%
From five to ten years	20.3	%	19.5	%	20.7	%	21.1	%	20.7	%	15.7	%
Above ten years	1.7	%	1.9	%	2.3	%	2.1	%	1.8	%	3.2	%
Asset-backed and mortgage-backed securities	35.0	%	36.7	%	37.4	%	38.6	%	37.9	%	36.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.0	%	2.1	%	2.3	%	2.3	%	2.5	%	3.0	%
Yield to maturity of fixed maturities	1.4	%	1.5	%	1.3	%	1.4	%	1.6	%	2.7	%
Average duration of fixed maturities	3.1 yrs		3.3 yrs		3.3 yrs		3.4 yrs		3.4 yrs		3.0 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

AXIS CAPITAL HOLDINGS LIMITED

CORPORATE DEBT INVESTED ASSETS COMPOSITION

At June 30, 2021


	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks	$	802,396	17.8	%	5.0	%
Non-U.S. banks	350,022		7.8	%	2.2	%
Corporate/commercial finance	219,516		4.9	%	1.4	%
Insurance	155,260		3.5	%	1.0	%
Investment brokerage	60,434		1.3	%	0.4	%
Total financial institutions	1,587,628		35.3	%	10.0	%
Consumer non-cyclicals	461,113		10.2	%	2.9	%
Communications	270,391		6.0	%	1.7	%
Consumer cyclical	225,595		5.0	%	1.4	%
Technology	208,966		4.6	%	1.3	%
Utilities	188,078		4.2	%	1.2	%
Energy	170,181		3.8	%	1.1	%
Non-U.S. government guaranteed	147,176		3.3	%	0.9	%
Industrials	123,334		2.7	%	0.8	%
Transportation	99,998		2.2	%	0.6	%
Total investment grade	3,482,460		77.3	%	21.9	%

Total non-investment grade	1,016,934		22.7	%	6.0	%

Total corporate debt	$	4,499,394	100.0	%	27.9	%

AXIS CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At June 30, 2021


	Amortized Cost		Net Unrealized Gain (Loss)		Fair Value		% of Total Fixed Maturities
ISSUER [a]
BANK OF AMERICA CORP	$	122,578	$	5,573	$	128,151	1.1	%
MORGAN STANLEY	115,061		5,722		120,783		1.0	%
JP MORGAN CHASE & CO	99,731		2,677		102,408		0.9	%
GOLDMAN SACHS GROUP	93,578		3,743		97,321		0.8	%
WELLS FARGO & COMPANY	88,954		4,216		93,170		0.8	%
CITIGROUP INC	74,063		4,458		78,521		0.7	%
AT&T INC	46,542		1,424		47,966		0.4	%
MITSUBISHI UFJ FINANCIAL GROUP INC	40,613		1,101		41,714		0.4	%
COMCAST CORPORATION	36,834		2,179		39,013		0.3	%
VERIZON COMMUNICATIONS INC	34,597		1,930		36,527		0.3	%

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

AXIS CAPITAL HOLDINGS LIMITED

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At June 30, 2021


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

Residential MBS	$	1,044,556		$	180,702		$	4,294		$	13,223		$	866		$	8,404		$	1,252,045
Commercial MBS	89,541			973,052			68,272			5,612			—			8,115			1,144,592
ABS	—			1,234,994			100,217			84,567			44,948			34,913			1,499,639

Total mortgage-backed and asset-backed securities, available for sale, at fair value	$	1,134,097		$	2,388,748		$	172,783		$	103,402		$	45,814		$	51,432		$	3,896,276

Percentage of total	29.1		%	61.3		%	4.4		%	2.7		%	1.2		%	1.3		%	100.0		%


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

ABS	—			274,106			129,264			—			—			—			403,370

Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost	$	—		$	274,106		$	129,264		$	—		$	—		$	—		$	403,370

Percentage of total	—		%	68.0		%	32.0		%	—		%	—		%	—		%	100.0		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS


	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	318,421	$	329,210	$	265,494	$	234,072	$	205,112	$	159,259
Reinsurance	148,759		130,201		168,707		139,359		190,878		205,558
Total	$	467,180	$	459,411	$	434,201	$	373,431	$	395,990	$	364,817

Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance	$	870,602	$	870,816	$	878,107	$	874,612	$	898,849	$	871,493
Reinsurance	518,973		491,517		505,437		452,201		406,723		351,230
Total	$	1,389,575	$	1,362,333	$	1,383,544	$	1,326,813	$	1,305,572	$	1,222,723

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	2,395,835	$	2,329,090	$	2,339,557	$	2,258,508	$	2,151,986	$	1,889,003
Reinsurance	867,253		866,927		797,251		775,187		723,950		470,322
Total	$	3,263,088	$	3,196,017	$	3,136,808	$	3,033,695	$	2,875,936	$	2,359,325

Allowance for expected credit losses:
Insurance	$	(22,749)	$	(22,037)	$	(21,298)	$	(20,369)	$	(19,025)	$	(16,722)
Reinsurance	(3,460)		(3,081)		(2,413)		(2,456)		(1,962)		(795)
Total	$	(26,209)	$	(25,118)	$	(23,711)	$	(22,825)	$	(20,987)	$	(17,517)

Reinsurance recoverable on unpaid and paid losses and loss expenses:
Insurance	$	3,562,109	$	3,507,079	$	3,461,860	$	3,346,823	$	3,236,922	$	2,903,033
Reinsurance	1,531,525		1,485,564		1,468,982		1,364,291		1,319,589		1,026,315
Total	$	5,093,634	$	4,992,643	$	4,930,842	$	4,711,114	$	4,556,511	$	3,929,348

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS

At June 30, 2021


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	$	2,687,243	$	(626,577)	$	2,060,666	52.8%	38.2%	$	(11,016)	0.4%	$	2,676,227
Other reinsurers balances > $20 million	1,939,266		(446,082)		1,493,184		38.2%	27.7%	(11,032)		0.6%	1,928,234
Other reinsurers balances < $20 million	493,334		(143,145)		350,189		9.0%	6.5%	(4,161)		0.8%	489,173
Total	$	5,119,843	$	(1,215,804)	$	3,904,039	100.0%	72.4%	$	(26,209)	0.5%	$	5,093,634

At June 30, 2021, reinsurance recoverable balances, gross of collateral, of 87.7% (December 31, 2020: 87.6%) were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.


Top 10 Reinsurers, Net of Collateral		% of Total Reinsurance Recoverable, Net of Collateral	% of Total Shareholders’ Equity
1	Swiss Reinsurance America Corporation	13.5%	9.8%
2	Harrington Re Ltd.	8.9%	6.4%
3	Lloyds of London	7.0%	5.1%
4	Transatlantic Reinsurance Co	5.8%	4.2%
5	Hannover Ruck SE	5.0%	3.6%
6	Partner Reinsurance Co of the US	4.3%	3.1%
7	SCOR Reinsurance Company	3.5%	2.5%
8	Everest Reinsurance Company	3.3%	2.4%
9	Munich Reinsurance America, Inc	3.1%	2.3%
10	Swiss Reinsurance Company Ltd	2.0%	1.5%
		56.4%	40.9%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES


	Three months ended June 30, 2021						Six months ended June 30, 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	$	14,025,274	$	(4,533,232)	$	9,492,042	$	13,926,766	$	(4,496,641)	$	9,430,125
Incurred losses and loss expenses	1,024,491		(358,018)		666,473		2,116,720		(735,530)		1,381,190
Paid losses and loss expenses	(910,653)		254,440		(656,213)		(1,892,199)		542,903		(1,349,296)
Foreign exchange and other	18,241		10,356		28,597		6,066		62,814		68,880

End of period [a]	$	14,157,353	$	(4,626,454)	$	9,530,899	$	14,157,353	$	(4,626,454)	$	9,530,899

[a] At June 30, 2021, reserve for losses and loss expenses included IBNR of $8.8 billion, or 62% (December 31, 2020: $8.6 billion, or 62%).

AXIS CAPITAL HOLDINGS LIMITED

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


	Three months ended June 30, 2021									Six months ended June 30, 2021
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total

Gross paid losses and loss expenses	$	493,803		$	416,850		$	910,653			$	1,067,013		$	825,186		$	1,892,199
Reinsurance recoverable on paid losses and loss expenses	(174,727)			(79,713)			(254,440)				(412,467)			(130,436)			(542,903)
Net paid losses and loss expenses	319,076			337,137			656,213				654,546			694,750			1,349,296

Gross case reserves	(1,372)			58,448			57,076				(20,662)			63,064			42,402
Gross IBNR	83,955			(27,193)			56,762				132,248			49,871			182,119
Reinsurance recoverable on unpaid losses and loss expenses	(69,484)			(34,094)			(103,578)				(77,060)			(115,567)			(192,627)
Net unpaid losses and loss expenses	13,099			(2,839)			10,260				34,526			(2,632)			31,894

Total net incurred losses and loss expenses	$	332,175		$	334,298		$	666,473			$	689,072		$	692,118		$	1,381,190

Gross reserve for losses and loss expenses	$	7,456,368		$	6,700,985		$	14,157,353			$	7,456,368		$	6,700,985		$	14,157,353

Net favorable prior year reserve development	$	6,427		$	381		$	6,808			$	7,932		$	4,194		$	12,126

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	96.1		%	100.8		%	98.5		%		95.0		%	100.4		%	97.7		%

Net paid losses and loss expenses / Net premiums earned	50.5		%	64.2		%	56.7		%		52.4		%	68.6		%	59.7		%
Net unpaid losses and loss expenses / Net premiums earned	2.1		%	(0.6		%)	0.9		%		2.8		%	(0.3		%)	1.4		%
Net losses and loss expenses ratio	52.6		%	63.6		%	57.6		%		55.2		%	68.3		%	61.1		%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTER


	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q2 2019

Gross paid losses and loss expenses	$	493,803		$	573,209		$	683,379		$	502,517		$	543,599		$	537,634
Reinsurance recoverable on paid losses and loss expenses	(174,727)			(237,739)			(273,686)			(203,805)			(218,928)			(175,788)
Net paid losses and loss expenses	319,076			335,470			409,693			298,712			324,671			361,846

Gross case reserves	(1,372)			(19,290)			(34,344)			(68,443)			72,563			(8,250)
Gross IBNR	83,955			48,294			132,082			277,499			(35,502)			(57,015)
Reinsurance recoverable on unpaid losses and loss expenses	(69,484)			(7,576)			(62,987)			(64,379)			(24,365)			12,122
Net unpaid losses and loss expenses	13,099			21,428			34,751			144,677			12,696			(53,143)

Total net incurred losses and loss expenses	$	332,175		$	356,898		$	444,444		$	443,389		$	337,367		$	308,703

Gross reserve for losses and loss expenses	$	7,456,368		$	7,368,569		$	7,310,498		$	7,135,537		$	6,865,343		$	6,395,448

Net favorable prior year reserve development	$	6,427		$	1,505		$	4,417		$	270		$	420		$	21,326

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	96.1		%	94.0		%	92.2		%	67.4		%	96.2		%	117.2		%

Net paid losses and loss expenses / Net premiums earned	50.5		%	54.4		%	69.5		%	52.4		%	56.3		%	67.4		%
Net unpaid losses and loss expenses / Net premiums earned	2.1		%	3.5		%	5.9		%	25.4		%	2.2		%	(9.9		%)
Net losses and loss expenses ratio	52.6		%	57.9		%	75.4		%	77.8		%	58.5		%	57.5		%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTER


	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q2 2019

Gross paid losses and loss expenses	$	416,850		$	408,336		$	594,863		$	467,319		$	466,692		$	428,428
Reinsurance recoverable on paid losses and loss expenses	(79,713)			(50,723)			(125,680)			(69,218)			(100,748)			(82,907)
Net paid losses and loss expenses	337,137			357,613			469,183			398,101			365,944			345,521

Gross case reserves	58,448			4,616			104,547			65,919			97,573			25,790
Gross IBNR	(27,193)			77,064			(137,925)			59,996			(92,099)			20,656
Reinsurance recoverable on unpaid losses and loss expenses	(34,094)			(81,473)			(63,010)			(87,728)			(32,524)			(28,207)
Net unpaid losses and loss expenses	(2,839)			207			(96,388)			38,187			(27,050)			18,239

Total net incurred losses and loss expenses	$	334,298		$	357,820		$	372,795		$	436,288		$	338,894		$	363,760

Gross reserve for losses and loss expenses	$	6,700,985		$	6,656,705		$	6,616,268		$	6,517,951		$	6,313,823		$	5,859,263

Net favorable prior year reserve development	$	381		$	3,812		$	2,142		$	314		$	2,235		$	2,295

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	100.8		%	99.9		%	125.9		%	91.2		%	108.0		%	95.0		%

Net paid losses and loss expenses / Net premiums earned	64.2		%	73.4		%	94.3		%	76.4		%	69.4		%	58.9		%
Net unpaid losses and loss expenses / Net premiums earned	(0.6		%)	—		%	(19.4		%)	7.3		%	(5.1		%)	3.1		%
Net losses and loss expenses ratio	63.6		%	73.4		%	74.9		%	83.7		%	64.3		%	62.0		%

AXIS CAPITAL HOLDINGS LIMITED

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AT JULY 1, 2021


		Estimated Net Exposures (millions of U.S. dollars)
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	$	194	4.0	%	$	249	5.1	%	$	306	6.3	%
Northeast	U.S. Hurricane	42		0.9	%	123		2.5	%	257		5.3	%
Mid-Atlantic	U.S. Hurricane	93		1.9	%	226		4.7	%	366		7.6	%
Gulf of Mexico	U.S. Hurricane	160		3.3	%	216		4.5	%	286		5.9	%
California	Earthquake	178		3.7	%	297		6.1	%	392		8.1	%
Europe	Windstorm	142		2.9	%	188		3.9	%	251		5.2	%
Japan	Earthquake	76		1.6	%	140		2.9	%	258		5.3	%
Japan	Windstorm	64		1.3	%	122		2.5	%	140		2.9	%

The table above shows our net Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at July 1, 2021. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.

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

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

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

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

AXIS CAPITAL HOLDINGS LIMITED

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


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020

Net income (loss) available (attributable) to common shareholders	$	227,910	$	112,477	$	343,645	$	(72,908)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding	84,764		84,303		84,640		84,198
Dilutive share equivalents:
Share-based compensation plans [a]	503		297		477		—
Weighted average diluted common shares outstanding	85,267		84,600		85,117		84,198

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$2.69		$1.33		$4.06		($0.87)
Earnings (loss) per diluted common share	$2.67		$1.33		$4.04		($0.87)

[a] Due to the net loss attributable to common shareholders recognized for the six months ended June 30, 2020, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

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


	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q2 2019

Net income (loss) available (attributable) to common shareholders	$	227,910	$	115,737	$	(4,819)	$	(72,945)	$	112,477	$	166,387

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	84,753		84,353		84,309		84,306		84,298		83,934
Shares issued and treasury shares reissued	22		589		83		5		11		20
Shares repurchased for treasury	(8)		(189)		(39)		(2)		(3)		(7)
Common shares - at end of period	84,767		84,753		84,353		84,309		84,306		83,947

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding	84,764		84,514		84,341		84,308		84,303		83,941
Dilutive share equivalents:

Share-based compensation plans [a]	503		451		—		—		297		460
Weighted average diluted common shares outstanding	85,267		84,965		84,341		84,308		84,600		84,401

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$2.69		$1.37		($0.06)		($0.87)		$1.33		$1.98
Earnings (loss) per diluted common share	$2.67		$1.36		($0.06)		($0.87)		$1.33		$1.97

[a] Due to the net loss attributable to common shareholders recognized for the three months ended December 31, 2020 and September 30, 2020, the share equivalents were anti-dilutive.

AXIS CAPITAL HOLDINGS LIMITED

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


	At June 30, 2021

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

Closing stock price					$49.01

Book value per common share		$	4,839,760	84,767	$57.09

Dilutive securities: [b]

Restricted stock units				2,430	(1.59)
Book value per diluted common share		$	4,839,760	87,197	$55.50

	At December 31, 2020

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

Closing stock price					$50.39

Book value per common share		$	4,745,694	84,353	$56.26



Dilutive securities: [b]


Restricted stock units				1,790	(1.17)
Book value per diluted common share		$	4,745,694	86,143	$55.09

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

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

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY



	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
Net income (loss) available (attributable) to common shareholders	$	227,910		$	112,477		$	343,645		$	(72,908)

Net investment (gains) losses [a]	(73,293)			(53,043)			(102,936)			9,831

Foreign exchange losses (gains) [b]	19,602			9,709			23,716			(51,974)







Reorganization expenses [c]	—			392			—			(591)

Interest in (income) loss of equity method investments [d]	(9,799)			(7,102)			(18,960)			16,475



Income tax expense	6,088			9,070			7,782			6,259
Operating income (loss)	$	170,508		$	71,503		$	253,247		$	(92,908)

Earnings (loss) per diluted common share	$	2.67		$	1.33		$	4.04		$	(0.87)

Net investment (gains) losses	(0.86)			(0.63)			(1.21)			0.12

Foreign exchange losses (gains)	0.23			0.11			0.28			(0.62)





Reorganization expenses	—			—			—			(0.01)





Interest in (income) loss of equity method investments	(0.11)			(0.08)			(0.22)			0.20
Income tax expense	0.07			0.11			0.09			0.07


Operating income (loss) per diluted common share	$	2.00		$	0.84		$	2.98		$	(1.11)

Weighted average diluted common shares outstanding	85,267			84,600			85,117			84,198

Average common shareholders' equity	$	4,733,075		$	4,518,699		$	4,792,727		$	4,758,414

Annualized return on average common equity	19.3		%	10.0		%	14.3		%	(3.1		%)

Annualized operating return on average common equity	14.4		%	6.3		%	10.6		%	(3.9		%)

[a] Tax expense (benefit) of $7,491 and $8,114 for the three months ended June 30, 2021 and 2020, respectively, and $8,975 and $2,437 for the six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.

[b] Tax expense (benefit) of ($1,403) and $1,084 for the three months ended June 30, 2021 and 2020, respectively, and ($1,193) and $3,611 for the six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.

[c] Tax expense (benefit) of $(128) for the three months ended June 30, 2020 and $211 for the six months ended June 30, 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

[d] Tax expense (benefit) of $nil for the three and six months ended June 30, 2021 and 2020 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

AXIS CAPITAL HOLDINGS LIMITED

TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE


TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE - TREASURY STOCK METHOD [a]
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,
	2021		2021		2020		2020		2020		2019
Common shareholders' equity	$	4,839,760	$	4,626,390	$	4,745,694	$	4,715,895	$	4,747,820	$	4,791,477
Less: goodwill	(100,801)		(100,801)		(100,801)		(102,003)		(102,003)		(102,003)
Less: intangible assets	(214,286)		(216,904)		(219,633)		(222,362)		(225,092)		(236,009)
Associated tax impact	53,241		45,565		45,991		46,333		42,515		43,205
Tangible common shareholders' equity	$	4,577,914	$	4,354,250	$	4,471,251	$	4,437,863	$	4,463,240	$	4,496,670

Diluted common shares outstanding, net of treasury shares	87,197		87,235		86,143		86,132		86,178		85,579

Book value per diluted common share	$	55.50	$	53.03	$	55.09	$	54.75	$	55.09	$	55.99

Tangible book value per diluted common share	$	52.50	$	49.91	$	51.90	$	51.52	$	51.79	$	52.54

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

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

Interest expense and financing costs primarily relate to interest payable on our debt. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss).

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae Group plc ("Novae"), which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

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

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

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments.

Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. In addition, we recognize unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities in net investment gains (losses). We also recognize unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss). These unrealized foreign exchange losses (gains) generally offset a large portion of the foreign exchange losses (gains) reported in net income (loss), thereby minimizing

the impact of foreign exchange rate movements on total shareholders’ equity. As a result, foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business.

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from operating income (loss).

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

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

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

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

Tangible Book Value per Diluted Common Share

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