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Published: 2021-04-28 00:00:00 ET

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EX-99.2 3 q12021financialsupplement.htm FIRST QUARTER 2021 FINANCIAL SUPPLEMENT Document

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

FIRST 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 - As Reported, U.S.GAAP						2
b. Consolidated Statements of Operations - Quarter						3-4
c. Consolidated Segment Data						5
d. Gross Premiums Written by Segment by Line of Business						6
e. Consolidated Data - Quarter						7
f. Segment Data - Quarter						8-9
g. Strategic Capital Partners						10
h. Net Investment Income - Quarter						11
III. Balance Sheets
a. Consolidated Balance Sheets						12
b. Cash and Invested Assets:
• Cash and Invested Assets Portfolio						13
• Cash and Invested Assets Composition - Quarter						14

• Corporate Debt Composition						15
• Ten Largest Corporate Debt Holdings						16
• Mortgage-Backed and Asset-Backed Securities Composition						17
c. Reinsurance Recoverable Analysis						18-19
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis						20
b. Paid to Incurred Analysis by Segment						21
c. Paid to Incurred Analysis by Segment - Quarter						22-23

d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures						24
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, U.S. GAAP						25
b. Earnings Per Common Share Information and Common Shares Rollforward - Quarter						26
c. Book Value Per Diluted Common Share Analysis - Treasury Stock Method						27
VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity						28
b. Tangible Book Value Per Diluted Common Share						29
c. Rationale for the Use of Non-GAAP Financial Measures						30

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.

•Amounts may not reconcile due to rounding differences.

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

•NM - Not meaningful 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 values;

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

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

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

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

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

•difficulties with technology and/or data security;

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

•the failure of our cedants to adequately evaluate risks;

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

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

•a decline in our ratings with rating agencies;

•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 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 events 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 March 31,
		2021			2020			Change

HIGHLIGHTS	Gross premiums written	$	2,535,481		$	2,431,158		4.3	%
	Gross premiums written - Insurance	43.5		%	38.7		%	4.8		pts
	Gross premiums written - Reinsurance	56.5		%	61.3		%	(4.8)		pts
	Net premiums written	$	1,778,886		$	1,679,044		5.9	%
	Net premiums earned	$	1,103,722		$	1,088,625		1.4	%
	Net premiums earned - Insurance	55.8		%	51.6		%	4.2		pts
	Net premiums earned - Reinsurance	44.2		%	48.4		%	(4.2)		pts
	Net income (loss) available (attributable) to common shareholders	$	115,737		$	(185,390)		nm
	Operating income (loss) [a]	82,737			(164,412)			nm

	Annualized return on average common equity [b]	9.9		%	nm			nm
	Annualized operating return on average common equity [c]	7.1		%	nm			nm
	Total shareholders’ equity	$	5,176,390		$	4,839,578		7.0	%



PER COMMON SHARE AND COMMON SHARE DATA	Earnings (loss) per diluted common share	$1.36			($2.20)			nm
	Operating income (loss) per diluted common share [d]	$0.97			($1.94)			nm

	Weighted average diluted common shares outstanding	84,965			84,094			1.0	%
	Book value per common share	$54.59			$50.89			7.3	%
	Book value per diluted common share (treasury stock method)	$53.03			$49.78			6.5	%
	Tangible book value per diluted common share (treasury stock method) [a]	$49.91			$46.45			7.4	%





FINANCIAL RATIOS	Current accident year loss ratio excluding catastrophe and weather-related losses	55.1		%	57.1		%	(2.0)		pts
	Catastrophe and weather-related losses ratio	10.1		%	26.9		%	(16.8)		pts
	Current accident year loss ratio	65.2		%	84.0		%	(18.8)		pts
	Prior year reserve development ratio	(0.4		%)	(0.6		%)	0.2		pts
	Net losses and loss expenses ratio	64.8		%	83.4		%	(18.6)		pts
	Acquisition cost ratio	19.8		%	21.9		%	(2.1)		pts
	General and administrative expense ratio [e]	14.3		%	14.5		%	(0.2)		pts
	Combined ratio	98.9		%	119.8		%	(20.9)		pts


INVESTMENT DATA	Total assets	$	27,085,827		$	25,948,768		4.4	%
	Total cash and invested assets [f]	15,643,178			15,195,556			2.9	%
	Net investment income	114,165			93,101			22.6	%
	Net investment gains (losses)	29,645			(62,877)			nm



	Book yield of fixed maturities	2.1		%	2.7		%	(0.6)		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 three months ended March 31, 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 - AS REPORTED, U.S. GAAP

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020


				Three months ended March 31,
				2021			2020

Revenues
	Net premiums earned	$	1,103,722		$	1,088,625
	Net investment income	114,165			93,101
	Net investment gains (losses)	29,645			(62,877)
	Other insurance related income (loss)	2,781			(8,707)

	Total revenues			1,250,313			1,110,142

Expenses
	Net losses and loss expenses	714,718			908,073
	Acquisition costs	218,871			238,650
	General and administrative expenses	158,408			157,060
	Foreign exchange losses (gains)	4,113			(61,683)
	Interest expense and financing costs	15,571			23,472
	Reorganization expenses	—			(982)
	Amortization of value of business acquired	1,028			1,799
	Amortization of intangible assets	2,690			2,870
	Total expenses			1,115,399			1,269,259

Income (loss) before income taxes and interest in income (loss) of equity method investments		134,914			(159,117)
	Income tax (expense) benefit	(20,776)			4,867
	Interest in income (loss) of equity method investments	9,162			(23,577)
Net income (loss)		123,300			(177,827)


	Preferred share dividends	7,563			7,563

Net income (loss) available (attributable) to common shareholders		$	115,737		$	(185,390)

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER


	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q1 2019
UNDERWRITING REVENUES
Gross premiums written	$	2,535,481	$	1,348,419	$	1,331,178	$	1,716,183	$	2,431,158	$	2,583,226
Ceded premiums written	(756,595)		(562,970)		(515,196)		(660,249)		(752,114)		(806,167)
Net premiums written	1,778,886		785,449		815,982		1,055,934		1,679,044		1,777,059

Gross premiums earned	1,671,139		1,735,932		1,680,529		1,694,861		1,657,412		1,684,814
Ceded premiums earned	(567,417)		(648,564)		(589,217)		(590,858)		(568,787)		(550,602)
Net premiums earned	1,103,722		1,087,368		1,091,312		1,104,003		1,088,625		1,134,212
Other insurance related income (loss)	2,781		(2,819)		1,440		1,996		(8,707)		6,929
Total underwriting revenues	1,106,503		1,084,549		1,092,752		1,105,999		1,079,918		1,141,141

UNDERWRITING EXPENSES
Net losses and loss expenses	714,718		817,239		879,677		676,261		908,073		664,028
Acquisition costs	218,871		231,800		230,564		228,502		238,650		260,418
Underwriting-related general and administrative expenses [a]	132,668		116,345		117,835		113,824		129,962		138,873
Total underwriting expenses	1,066,257		1,165,384		1,228,076		1,018,587		1,276,685		1,063,319

UNDERWRITING INCOME (LOSS) [b]	40,246		(80,835)		(135,324)		87,412		(196,767)		77,822

OTHER (EXPENSES) REVENUES
Net investment income	114,165		109,503		101,956		45,040		93,101		107,303
Net investment gains (losses)	29,645		83,356		55,609		53,043		(62,877)		12,767


Corporate expenses [a]	(25,740)		(26,907)		(20,988)		(26,828)		(27,098)		(36,218)
Foreign exchange (losses) gains	(4,113)		(72,309)		(60,734)		(9,709)		61,683		(7,056)
Interest expense and financing costs	(15,571)		(15,408)		(15,574)		(20,595)		(23,472)		(15,895)
Reorganization expenses	—		(7,059)		(1,413)		(392)		982		(14,820)
Amortization of value of business acquired	(1,028)		(1,028)		(1,028)		(1,285)		(1,799)		(13,104)
Amortization of intangible assets	(2,690)		(2,827)		(2,838)		(2,855)		(2,870)		(3,003)
Total other (expenses) revenues	94,668		67,321		54,990		36,419		37,650		29,974

INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	134,914		(13,514)		(80,334)		123,831		(159,117)		107,796
Income tax (expense) benefit	(20,776)		6,291		12,056		(10,893)		4,867		(1,234)
Interest in income (loss) of equity method investments	9,162		9,967		2,896		7,102		(23,577)		2,219

NET INCOME (LOSS)	123,300		2,744		(65,382)		120,040		(177,827)		108,781





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


NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	115,737	$	(4,819)	$	(72,945)	$	112,477	$	(185,390)	$	98,125

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

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

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED KEY RATIOS - QUARTER


	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q1 2019
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses	55.1	%	57.4	%	58.5	%	58.0	%	57.1	%	58.9	%
Catastrophe and weather-related losses ratio	10.1	%	18.4	%	22.2	%	3.5	%	26.9	%	0.9	%
Current accident year loss ratio	65.2	%	75.8	%	80.7	%	61.5	%	84.0	%	59.8	%
Prior year reserve development ratio	(0.4	%)	(0.6	%)	(0.1	%)	(0.2	%)	(0.6	%)	(1.3	%)
Net losses and loss expenses ratio	64.8	%	75.2	%	80.6	%	61.3	%	83.4	%	58.5	%
Acquisition cost ratio	19.8	%	21.3	%	21.1	%	20.7	%	21.9	%	23.0	%
General and administrative expense ratio [a]	14.3	%	13.1	%	12.8	%	12.7	%	14.5	%	15.4	%
Combined ratio	98.9	%	109.6	%	114.5	%	94.7	%	119.8	%	96.9	%

Weighted average common shares outstanding	84,514		84,341		84,308		84,303		84,094		83,725
Weighted average diluted common shares outstanding	84,965		84,341		84,308		84,600		84,094		84,272
Earnings (loss) per common share	$1.37		($0.06)		($0.87)		$1.33		($2.20)		$1.17
Earnings (loss) per diluted common share	$1.36		($0.06)		($0.87)		$1.33		($2.20)		$1.16
Annualized ROACE	9.9	%	(0.4	%)	(6.2	%)	10.0	%	nm		8.9	%
Annualized operating ROACE	7.1	%	(1.4	%)	(5.5	%)	6.3	%	nm		9.5	%

[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 March 31, 2021									Three months ended March 31, 2020
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	1,103,198		$	1,432,283		$	2,535,481			$	940,715		$	1,490,443		$	2,431,158
Ceded premiums written	(395,384)			(361,211)			(756,595)				(359,065)			(393,049)			(752,114)
Net premiums written	707,814			1,071,072			1,778,886				581,650			1,097,394			1,679,044

Gross premiums earned	1,012,941			658,198			1,671,139				932,078			725,334			1,657,412
Ceded premiums earned	(396,655)			(170,762)			(567,417)				(370,014)			(198,773)			(568,787)
Net premiums earned	616,286			487,436			1,103,722				562,064			526,561			1,088,625
Other insurance related income (loss)	415			2,366			2,781				647			(9,354)			(8,707)
Total underwriting revenues	616,701			489,802			1,106,503				562,711			517,207			1,079,918

UNDERWRITING EXPENSES
Net losses and loss expenses	356,898			357,820			714,718				471,812			436,261			908,073
Acquisition costs	117,679			101,192			218,871				112,751			125,899			238,650
Underwriting-related general and administrative expenses	103,303			29,365			132,668				100,778			29,184			129,962
Total underwriting expenses	577,880			488,377			1,066,257				685,341			591,344			1,276,685

UNDERWRITING INCOME (LOSS)	$	38,821		$	1,425		$	40,246			$	(122,630)		$	(74,137)		$	(196,767)

Catastrophe and weather-related losses, net of reinstatement premiums	$	36,026		$	74,224		$	110,250			$	177,583		$	122,112		$	299,695
Net favorable prior year reserve development	$	1,505		$	3,812		$	5,317			$	3,832		$	2,281		$	6,113

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	52.3		%	58.6		%	55.1		%		54.2		%	60.2		%	57.1		%
Catastrophe and weather-related losses ratio	5.9		%	15.6		%	10.1		%		30.4		%	23.1		%	26.9		%
Current accident year loss ratio	58.2		%	74.2		%	65.2		%		84.6		%	83.3		%	84.0		%
Prior year reserve development ratio	(0.3		%)	(0.8		%)	(0.4		%)		(0.7		%)	(0.4		%)	(0.6		%)
Net losses and loss expenses ratio	57.9		%	73.4		%	64.8		%		83.9		%	82.9		%	83.4		%
Acquisition cost ratio	19.1		%	20.8		%	19.8		%		20.1		%	23.9		%	21.9		%
Underwriting-related general and administrative expense ratio	16.8		%	6.0		%	12.0		%		17.9		%	5.5		%	12.0		%
Corporate expense ratio							2.3		%								2.5		%
Combined ratio	93.8		%	100.2		%	98.9		%		121.9		%	112.3		%	119.8		%

AXIS CAPITAL HOLDINGS LIMITED

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS



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

INSURANCE SEGMENT
Property	$	261,786	$	255,606	$	238,599	$	278,841	$	223,603	$	200,502
Marine	187,948		63,901		82,810		116,398		156,296		146,979
Terrorism	19,744		13,486		14,767		11,008		16,520		14,362
Aviation	20,402		23,946		22,702		23,794		17,230		17,670
Credit and Political Risk	37,451		56,264		24,473		28,002		47,675		45,907
Professional Lines	337,765		434,868		338,907		346,338		258,391		227,308
Liability	193,151		215,131		172,747		204,398		170,878		142,642
Accident and Health	44,847		40,843		39,262		27,419		51,062		51,048
Discontinued Lines - Novae	104		254		1,550		1,370		(940)		4,678
TOTAL INSURANCE SEGMENT	$	1,103,198	$	1,104,299	$	935,817	$	1,037,568	$	940,715	$	851,096

REINSURANCE SEGMENT
Catastrophe	$	250,956	$	24,497	$	74,656	$	189,706	$	262,283	$	358,133
Property	126,455		(1,115)		58,907		54,763		133,189		172,742
Credit and Surety	83,221		43,519		38,110		50,332		100,739		151,904
Professional Lines	131,255		45,888		31,752		111,725		123,570		109,828
Motor	223,524		(15,427)		(2,235)		42,970		279,132		281,401
Liability	269,201		113,591		136,791		149,635		218,896		185,320
Engineering	(2,428)		5,552		1,408		3,006		15,920		22,766
Agriculture	16,441		901		7,455		43,896		18,248		126,440
Marine and Aviation	32,340		10,900		6,341		25,867		29,993		36,336
Accident and Health	301,318		15,706		41,820		6,625		307,678		287,592
Discontinued Lines - Novae	—		108		356		90		795		(332)
TOTAL REINSURANCE SEGMENT	$	1,432,283	$	244,120	$	395,361	$	678,615	$	1,490,443	$	1,732,130

CONSOLIDATED TOTAL	$	2,535,481	$	1,348,419	$	1,331,178	$	1,716,183	$	2,431,158	$	2,583,226

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED DATA - QUARTER



	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020			Q1 2019
UNDERWRITING REVENUES
Gross premiums written	$	2,535,481		$	1,348,419		$	1,331,178		$	1,716,183		$	2,431,158		$	2,583,226
Ceded premiums written	(756,595)			(562,970)			(515,196)			(660,249)			(752,114)			(806,167)
Net premiums written	1,778,886			785,449			815,982			1,055,934			1,679,044			1,777,059

Gross premiums earned	1,671,139			1,735,932			1,680,529			1,694,861			1,657,412			1,684,814
Ceded premiums earned	(567,417)			(648,564)			(589,217)			(590,858)			(568,787)			(550,602)
Net premiums earned	1,103,722			1,087,368			1,091,312			1,104,003			1,088,625			1,134,212
Other insurance related income (loss)	2,781			(2,819)			1,440			1,996			(8,707)			6,929
Total underwriting revenues	1,106,503			1,084,549			1,092,752			1,105,999			1,079,918			1,141,141

UNDERWRITING EXPENSES
Net losses and loss expenses	714,718			817,239			879,677			676,261			908,073			664,028
Acquisition costs	218,871			231,800			230,564			228,502			238,650			260,418
Underwriting-related general and administrative expenses	132,668			116,345			117,835			113,824			129,962			138,873
Total underwriting expenses	1,066,257			1,165,384			1,228,076			1,018,587			1,276,685			1,063,319

UNDERWRITING INCOME (LOSS)	$	40,246		$	(80,835)		$	(135,324)		$	87,412		$	(196,767)		$	77,822

Catastrophe and weather-related losses, net of reinstatement premiums	$	110,250		$	198,028		$	240,025		$	36,047		$	299,695		$	10,684
Net favorable prior year reserve development	$	5,317		$	6,559		$	584		$	2,655		$	6,113		$	14,672

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	55.1		%	57.4		%	58.5		%	58.0		%	57.1		%	58.9		%
Catastrophe and weather-related losses ratio	10.1		%	18.4		%	22.2		%	3.5		%	26.9		%	0.9		%
Current accident year loss ratio	65.2		%	75.8		%	80.7		%	61.5		%	84.0		%	59.8		%
Prior year reserve development ratio	(0.4		%)	(0.6		%)	(0.1		%)	(0.2		%)	(0.6		%)	(1.3		%)
Net losses and loss expenses ratio	64.8		%	75.2		%	80.6		%	61.3		%	83.4		%	58.5		%
Acquisition cost ratio	19.8		%	21.3		%	21.1		%	20.7		%	21.9		%	23.0		%
Underwriting-related general and administrative expenses ratio	14.3		%	13.1		%	12.8		%	12.7		%	14.5		%	15.4		%
Combined ratio	98.9		%	109.6		%	114.5		%	94.7		%	119.8		%	96.9		%

AXIS CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA - QUARTER



	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020			Q1 2019
UNDERWRITING REVENUES
Gross premiums written	$	1,103,198		$	1,104,299		$	935,817		$	1,037,568		$	940,715		$	851,096
Ceded premiums written	(395,384)			(476,066)			(390,960)			(434,807)			(359,065)			(321,857)
Net premiums written	707,814			628,233			544,857			602,761			581,650			529,239

Gross premiums earned	1,012,941			1,006,930			948,478			952,241			932,078			909,951
Ceded premiums earned	(396,655)			(417,160)			(378,294)			(375,222)			(370,014)			(353,189)
Net premiums earned	616,286			589,770			570,184			577,019			562,064			556,762
Other insurance related income	415			556			688			755			647			1,742
Total underwriting revenues	616,701			590,326			570,872			577,774			562,711			558,504

UNDERWRITING EXPENSES
Net losses and loss expenses	356,898			444,444			443,389			337,367			471,812			313,776
Acquisition costs	117,679			117,954			114,569			116,259			112,751			117,775
Underwriting-related general and administrative expenses	103,303			93,930			94,379			89,751			100,778			106,034
Total underwriting expenses	577,880			656,328			652,337			543,377			685,341			537,585

UNDERWRITING INCOME (LOSS)	$	38,821		$	(66,002)		$	(81,465)		$	34,397		$	(122,630)		$	20,919

Catastrophe and weather-related losses, net of reinstatement premiums	$	36,026		$	118,185		$	131,853		$	15,786		$	177,583		$	8,004
Net favorable prior year reserve development	$	1,505		$	4,417		$	270		$	420		$	3,832		$	6,913

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	52.3		%	56.1		%	54.7		%	55.6		%	54.2		%	56.2		%
Catastrophe and weather-related losses ratio	5.9		%	20.0		%	23.1		%	2.9		%	30.4		%	1.4		%
Current accident year loss ratio	58.2		%	76.1		%	77.8		%	58.5		%	84.6		%	57.6		%
Prior year reserve development ratio	(0.3		%)	(0.7		%)	—		%	—		%	(0.7		%)	(1.2		%)
Net losses and loss expenses ratio	57.9		%	75.4		%	77.8		%	58.5		%	83.9		%	56.4		%
Acquisition cost ratio	19.1		%	20.0		%	20.1		%	20.1		%	20.1		%	21.2		%
Underwriting-related general and administrative expenses ratio	16.8		%	15.9		%	16.5		%	15.6		%	17.9		%	19.0		%
Combined ratio	93.8		%	111.3		%	114.4		%	94.2		%	121.9		%	96.6		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA - QUARTER



	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020			Q1 2019
UNDERWRITING REVENUES
Gross premiums written	$	1,432,283		$	244,120		$	395,361		$	678,615		$	1,490,443		$	1,732,130
Ceded premiums written	(361,211)			(86,904)			(124,236)			(225,442)			(393,049)			(484,310)
Net premiums written	1,071,072			157,216			271,125			453,173			1,097,394			1,247,820

Gross premiums earned	658,198			729,002			732,051			742,620			725,334			774,863
Ceded premiums earned	(170,762)			(231,404)			(210,923)			(215,636)			(198,773)			(197,413)
Net premiums earned	487,436			497,598			521,128			526,984			526,561			577,450
Other insurance related income (loss)	2,366			(3,375)			752			1,241			(9,354)			5,187
Total underwriting revenues	489,802			494,223			521,880			528,225			517,207			582,637

UNDERWRITING EXPENSES
Net losses and loss expenses	357,820			372,795			436,288			338,894			436,261			350,252
Acquisition costs	101,192			113,846			115,995			112,243			125,899			142,643
Underwriting-related general and administrative expenses	29,365			22,415			23,456			24,073			29,184			32,839
Total underwriting expenses	488,377			509,056			575,739			475,210			591,344			525,734

UNDERWRITING INCOME (LOSS)	$	1,425		$	(14,833)		$	(53,859)		$	53,015		$	(74,137)		$	56,903

Catastrophe and weather-related losses, net of reinstatement premiums	$	74,224		$	79,843		$	108,172		$	20,261		$	122,112		$	2,680
Net favorable prior year reserve development	$	3,812		$	2,142		$	314		$	2,235		$	2,281		$	7,759

KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	58.6		%	59.0		%	62.7		%	60.6		%	60.2		%	61.5		%
Catastrophe and weather-related losses ratio	15.6		%	16.3		%	21.1		%	4.1		%	23.1		%	0.5		%
Current accident year loss ratio	74.2		%	75.3		%	83.8		%	64.7		%	83.3		%	62.0		%
Prior year reserve development ratio	(0.8		%)	(0.4		%)	(0.1		%)	(0.4		%)	(0.4		%)	(1.3		%)
Net losses and loss expenses ratio	73.4		%	74.9		%	83.7		%	64.3		%	82.9		%	60.7		%
Acquisition cost ratio	20.8		%	22.9		%	22.3		%	21.3		%	23.9		%	24.7		%
Underwriting-related general and administrative expense ratio	6.0		%	4.5		%	4.5		%	4.6		%	5.5		%	5.6		%
Combined ratio	100.2		%	102.3		%	110.5		%	90.2		%	112.3		%	91.0		%

AXIS CAPITAL HOLDINGS LIMITED

STRATEGIC CAPITAL PARTNERS


	Three months ended March 31,
	2021						2020
TOTAL MANAGED PREMIUMS [a]	Insurance		Reinsurance		Total		Insurance		Reinsurance		Total
Total Managed Premiums	$	1,103,198	$	1,432,283	$	2,535,481	$	940,715	$	1,490,443	$	2,431,158
Premiums ceded to Harrington Re	1,729		117,562		119,291		1,119		113,551		114,670
Premiums ceded to Other Strategic Capital Partners	—		243,649		243,649		18,534		279,498		298,032
Premiums ceded to Other Reinsurers	393,655		—		393,655		339,412		—		339,412
Net premiums written	$	707,814	$	1,071,072	$	1,778,886	$	581,650	$	1,097,394	$	1,679,044

FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income	$	—	$	12,228	$	12,228	$	2,706	$	12,969	$	15,675

[a] Total managed premiums represents gross premiums written of $2.5 billion and $2.4 billion for the three months ended March 31, 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 $2 million and $1 million in other insurance related income (loss) for the three months ended March 31, 2021 and 2020, respectively. It also included $10 million and $15 million as an offset to general and administrative expenses for the three months ended March 31, 2021 and 2020.

AXIS CAPITAL HOLDINGS LIMITED

NET INVESTMENT INCOME - QUARTER



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

Fixed maturities	$	69,470	$	72,727	$	73,992	$	80,459	$	89,943	$	91,382
Other investments	41,833		30,634		25,125		(37,580)		(2,120)		6,895
Equity securities	2,498		3,069		1,871		2,263		2,125		2,328
Mortgage loans	4,187		4,110		3,609		3,660		4,053		3,063
Cash and cash equivalents	2,336		3,768		2,491		2,392		4,930		5,801
Short-term investments	133		446		440		366		1,498		3,894

Gross investment income	120,457		114,754		107,528		51,560		100,429		113,363
Investment expenses	(6,292)		(5,251)		(5,572)		(6,520)		(7,328)		(6,060)

Net investment income	$	114,165	$	109,503	$	101,956	$	45,040	$	93,101	$	107,303

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS


	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,
	2021			2020			2020			2020			2020			2019
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,728,611		$	12,041,799		$	12,609,241		$	12,046,415		$	12,076,186		$	11,874,518
Fixed maturities, held to maturity, at amortized cost	404,690			—			—			—			—			—
Equity securities, at fair value	547,676			518,445			417,886			378,860			404,945			418,863
Mortgage loans, held for investment, at fair value	629,576			593,290			544,095			524,757			517,181			313,421
Other investments, at fair value	790,530			829,156			760,206			768,635			797,808			795,331
Equity method investments	123,370			114,209			104,242			101,346			94,244			110,322
Short-term investments, at fair value	185,699			161,897			69,996			34,337			77,101			41,853
Total investments	14,410,152			14,258,796			14,505,666			13,854,350			13,967,465			13,554,308
Cash and cash equivalents	1,560,279			1,503,232			1,440,816			1,648,833			1,241,063			1,606,258
Accrued interest receivable	61,222			65,020			70,013			68,880			76,569			78,594
Insurance and reinsurance premium balances receivable	3,367,142			2,738,342			3,131,791			3,527,147			3,485,043			3,667,923
Reinsurance recoverable on unpaid losses and loss expenses	4,533,232			4,496,641			4,337,683			4,160,521			4,101,579			3,555,341
Reinsurance recoverable on paid losses and loss expenses	459,411			434,201			373,431			395,990			357,185			321,798
Deferred acquisition costs	577,509			431,439			520,706			583,484			611,229			703,028
Prepaid reinsurance premiums	1,379,450			1,194,455			1,278,672			1,352,090			1,281,808			1,271,303
Receivable for investments sold	1,450			2,150			17,513			2,985			34,137			10,888
Goodwill	100,801			100,801			102,003			102,003			102,003			102,003
Intangible assets	216,904			219,633			222,362			225,092			227,821			238,763
Value of business acquired	2,826			3,854			4,881			5,909			7,194			22,610
Operating lease right-of-use assets	116,693			123,579			131,776			136,815			140,149			143,887
Other assets	298,756			305,544			315,683			295,074			315,523			280,878
TOTAL ASSETS	$	27,085,827		$	25,877,687		$	26,452,996		$	26,359,173		$	25,948,768		$	25,557,582

LIABILITIES
Reserve for losses and loss expenses	$	14,025,274		$	13,926,766		$	13,653,488		$	13,179,166		$	13,082,273		$	12,275,771
Unearned premiums	4,551,424			3,685,886			4,070,649			4,418,728			4,395,240			4,535,163
Insurance and reinsurance balances payable	1,231,403			1,092,042			1,244,846			1,365,799			1,263,389			1,440,942
Debt	1,310,009			1,309,695			1,309,384			1,309,076			1,808,645			1,342,345
Payable for investments purchased	389,925			104,777			458,111			350,347			123,678			159,544
Operating lease liabilities	134,002			140,263			140,058			141,621			143,071			144,298
Other liabilities	267,400			322,564			310,565			296,616			292,894			359,363
TOTAL LIABILITIES	21,909,437			20,581,993			21,187,101			21,061,353			21,109,190			20,257,426

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	2,316,147			2,330,054			2,325,196			2,317,354			2,307,998			2,296,639
Accumulated other comprehensive income (loss)	214,861			414,395			350,111			281,599			(89,919)			29,096
Retained earnings	5,842,850			5,763,607			5,804,637			5,913,029			5,836,007			5,976,603
Treasury shares, at cost	(3,749,674)			(3,764,568)			(3,766,255)			(3,766,368)			(3,766,714)			(3,779,388)


TOTAL SHAREHOLDERS' EQUITY	5,176,390			5,295,694			5,265,895			5,297,820			4,839,578			5,300,156

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	27,085,827		$	25,877,687		$	26,452,996		$	26,359,173		$	25,948,768		$	25,557,582

Common shares outstanding	84,753			84,353			84,309			84,306			84,298			83,934
Diluted common shares outstanding [a]	87,235			86,143			86,132			86,178			86,170			85,632
Book value per common share	$54.59			$56.26			$55.94			$56.32			$50.89			$53.91
Book value per diluted common share	$53.03			$55.09			$54.75			$55.09			$49.78			$52.84
Tangible book value per diluted common share	$49.91			$51.90			$51.52			$51.79			$46.45			$49.37
Debt to total capital [b]	20.2		%	19.8		%	19.9		%	19.8		%	27.2		%	20.2		%
Debt and preferred equity to total capital	28.7		%	28.2		%	28.3		%	28.1		%	35.5		%	31.9		%

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

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

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS PORTFOLIO

At March 31, 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	$	2,181,808	$	—	$	20,184	$	(14,899)	$	2,187,093	14.0	%
Non-U.S. government	689,358		—		28,789		(3,426)		714,721		4.6	%
Corporate debt	4,364,800		(164)		157,099		(26,457)		4,495,278		28.7	%
Agency RMBS	1,186,277		—		29,602		(7,385)		1,208,494		7.7	%
CMBS	1,227,004		—		50,586		(3,541)		1,274,049		8.1	%
Non-Agency RMBS	163,617		(70)		4,505		(883)		167,169		1.1	%
ABS	1,396,130		—		9,693		(2,862)		1,402,961		9.0	%
Municipals	271,513		—		8,872		(1,539)		278,846		1.8	%
Total fixed maturities. available for sale, at fair value	11,480,507		(234)		309,330		(60,992)		11,728,611		75.0	%

Fixed maturities, held to maturity, at amortized cost	404,690		—		—		—		404,690		2.6	%

Equity securities, at fair value
Common stocks	8,470		—		1,682		(435)		9,717		0.1	%
Preferred Stocks	5,519		—		1,430		—		6,949		—	%
Exchange traded funds	182,544		—		87,184		(342)		269,386		1.7	%
Bond mutual funds	257,918		—		3,706		—		261,624		1.7	%
Total equity securities, at fair value	454,451		—		94,002		(777)		547,676		3.5	%

Total fixed maturities and equity securities	$	12,339,648	$	(234)	$	403,332	$	(61,769)	12,680,977		81.1	%

Mortgage loans, held for investment									629,576		4.0	%

Other investments (see below)									790,530		5.1	%

Equity method investments									123,370		0.8	%

Short-term investments									185,699		1.1	%

Total investments									14,410,152		92.1	%

Cash and cash equivalents [a]									1,560,279		10.0	%

Accrued interest receivable									61,222		0.4	%

Net receivable/(payable) for investments sold (purchased)									(388,475)		(2.5	%)

Total cash and invested assets									$	15,643,178	100.0	%

									Fair Value		Percentage
Other Investments:
Long/short equity funds									$	19,033	2.4	%
Multi-strategy funds									106,971		13.5	%

Direct lending funds									279,324		35.3	%
Real estate funds									163,635		20.7	%
Private equity funds									153,515		19.4	%
Other privately held investments									61,783		7.8	%
Collateralized loan obligations - equity tranches									6,269		0.9	%
Total									$	790,530	100.0	%

[a] Includes $664 million of restricted cash and cash equivalents.

AXIS CAPITAL HOLDINGS LIMITED

CASH AND INVESTED ASSETS COMPOSITION - QUARTER


	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q1 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	14.0	%	12.2	%	12.8	%	13.2	%	12.4	%	13.1	%
Non-U.S. government	4.6	%	4.3	%	4.3	%	4.0	%	3.9	%	3.2	%
Corporate debt	28.7	%	29.6	%	30.8	%	30.6	%	31.5	%	32.1	%
MBS:
Agency RMBS	7.7	%	8.2	%	10.8	%	10.1	%	10.6	%	11.3	%
CMBS	8.1	%	8.6	%	8.9	%	9.0	%	9.4	%	7.0	%
Non-agency RMBS	1.1	%	0.9	%	0.9	%	0.8	%	0.8	%	0.3	%
ABS	9.0	%	10.9	%	10.7	%	10.1	%	9.5	%	10.7	%
Municipals	1.8	%	1.9	%	1.8	%	1.3	%	1.4	%	1.0	%

Total Fixed Maturities, available for sale	75.0	%	76.6	%	81.0	%	79.1	%	79.5	%	78.7	%
Fixed Maturities, held to maturity	2.6	%	—	%	—	%	—	%	—	%	—	%
Equity securities	3.5	%	3.3	%	2.7	%	2.5	%	2.7	%	2.8	%
Mortgage loans	4.0	%	3.8	%	3.5	%	3.4	%	3.4	%	2.1	%
Other investments	5.1	%	5.3	%	4.9	%	5.0	%	5.3	%	5.3	%
Equity method investments	0.8	%	0.7	%	0.7	%	0.7	%	0.6	%	0.7	%
Short-term investments	1.1	%	1.0	%	0.3	%	0.3	%	0.4	%	0.2	%

Total Investments	92.1	%	90.7	%	93.1	%	91.0	%	91.9	%	89.8	%
Cash and cash equivalents	10.0	%	9.6	%	9.3	%	10.8	%	8.2	%	10.6	%
Accrued interest receivable	0.4	%	0.4	%	0.4	%	0.5	%	0.5	%	0.5	%
Net receivable/(payable) for investments sold or purchased	(2.5	%)	(0.7	%)	(2.8	%)	(2.3	%)	(0.6	%)	(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	18.0	%	15.9	%	15.8	%	16.7	%	15.5	%	16.6	%
AAA	37.0	%	37.8	%	39.8	%	38.9	%	39.8	%	38.7	%
AA	7.8	%	7.6	%	7.4	%	6.8	%	7.0	%	7.1	%
A	15.2	%	15.7	%	15.7	%	16.4	%	15.9	%	15.0	%
BBB	13.4	%	14.4	%	13.4	%	13.2	%	13.0	%	13.3	%
Below BBB	8.6	%	8.6	%	7.9	%	8.0	%	8.8	%	9.3	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

MATURITY PROFILE OF FIXED MATURITIES
Within one year	5.0	%	3.6	%	2.9	%	3.3	%	3.5	%	3.5	%
From one to five years	36.9	%	36.0	%	35.3	%	36.3	%	36.5	%	41.9	%
From five to ten years	19.5	%	20.7	%	21.1	%	20.7	%	19.1	%	14.5	%
Above ten years	1.9	%	2.3	%	2.1	%	1.8	%	2.7	%	2.9	%
Asset-backed and mortgage-backed securities	36.7	%	37.4	%	38.6	%	37.9	%	38.2	%	37.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.1	%	2.3	%	2.3	%	2.5	%	2.7	%	3.1	%
Yield to maturity of fixed maturities	1.5	%	1.3	%	1.4	%	1.6	%	2.9	%	3.1	%
Average duration of fixed maturities (inclusive of duration hedges)	3.3 yrs		3.3 yrs		3.4 yrs		3.4 yrs		3.3 yrs		2.9 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

AXIS CAPITAL HOLDINGS LIMITED

CORPORATE DEBT INVESTED ASSETS COMPOSITION

At March 31, 2021


	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks	$	818,189	18.2	%	5.2	%
Non-U.S. banks	303,256		6.7	%	1.9	%
Corporate/commercial finance	214,340		4.8	%	1.4	%
Insurance	129,482		2.9	%	0.8	%
Investment brokerage	63,375		1.4	%	0.4	%
Total financial institutions	1,528,642		34.0	%	9.7	%
Consumer non-cyclicals	501,207		11.1	%	3.2	%
Communications	279,863		6.2	%	1.8	%
Consumer cyclical	241,629		5.4	%	1.5	%
Technology	208,586		4.6	%	1.3	%
Utilities	184,957		4.1	%	1.2	%
Non-U.S. government guaranteed	180,268		4.0	%	1.2	%
Energy	179,327		4.0	%	1.1	%
Industrials	145,907		3.2	%	0.9	%
Transportation	100,738		2.2	%	0.6	%
Total investment grade	3,551,124		78.8	%	22.5	%

Total non-investment grade	944,154		21.2	%	6.2	%

Total corporate debt	$	4,495,278	100.0	%	28.7	%

AXIS CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At March 31, 2021


	Amortized Cost		Net Unrealized Gain (Loss)		Fair Value		% of Total Fixed Maturities
ISSUER [a]
BANK OF AMERICA CORP	$	121,126	$	4,701	$	125,827	1.1	%
MORGAN STANLEY	115,351		5,068		120,419		1.0	%
JP MORGAN CHASE & CO	102,766		2,051		104,817		0.9	%
GOLDMAN SACHS GROUP	91,439		4,077		95,516		0.8	%
WELLS FARGO & COMPANY	89,347		3,510		92,857		0.8	%
CITIGROUP INC	70,999		3,885		74,884		0.6	%
AT&T INC	46,855		462		47,317		0.4	%
COMCAST CORPORATION	43,282		2,238		45,520		0.4	%
MITSUBISHI UFJ FINANCIAL GROUP INC	43,360		977		44,337		0.4	%
DEUTSCHE TELEKOM AG	36,939		1,296		38,235		0.3	%

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

AXIS CAPITAL HOLDINGS LIMITED

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At March 31, 2021


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

Residential MBS	$	1,208,494		$	147,680		$	756		$	6,238		$	932		$	11,563		$	1,375,663
Commercial MBS	246,568			957,363			63,740			5,571			—			807			1,274,049
ABS	—			1,151,810			94,426			70,977			50,454			35,294			1,402,961

Total mortgage-backed and asset-backed securities, available for sale, at fair value	$	1,455,062		$	2,256,853		$	158,922		$	82,786		$	51,386		$	47,664		$	4,052,673

Percentage of total	35.9		%	55.7		%	3.9		%	2.0		%	1.3		%	1.2		%	100.0		%


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

ABS	—			316,658			88,032			—			—			—			404,690

Total mortgage-backed and asset-backed securities, held to maturity, at amortized cost	$	—		$	316,658		$	88,032		$	—		$	—		$	—		$	404,690

Percentage of total	—		%	78.2		%	21.8		%	—		%	—		%	—		%	100.0		%

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS


	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q1 2019
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	329,210	$	265,494	$	234,072	$	205,112	$	200,990	$	136,923
Reinsurance	130,201		168,707		139,359		190,878		156,195		185,156
Total	$	459,411	$	434,201	$	373,431	$	395,990	$	357,185	$	322,079

Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance	$	870,816	$	878,107	$	874,612	$	898,849	$	892,354	$	859,971
Reinsurance	491,517		505,437		452,201		406,723		482,347		351,413
Total	$	1,362,333	$	1,383,544	$	1,326,813	$	1,305,572	$	1,374,701	$	1,211,384

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	2,329,090	$	2,339,557	$	2,258,508	$	2,151,986	$	2,127,989	$	1,916,176
Reinsurance	866,927		797,251		775,187		723,950		617,843		446,571
Total	$	3,196,017	$	3,136,808	$	3,033,695	$	2,875,936	$	2,745,832	$	2,362,747

Allowance for expected credit losses:
Insurance	$	(22,037)	$	(21,298)	$	(20,369)	$	(19,025)	$	(17,203)	$	(17,583)
Reinsurance	(3,081)		(2,413)		(2,456)		(1,962)		(1,751)		(1,488)
Total	$	(25,118)	$	(23,711)	$	(22,825)	$	(20,987)	$	(18,954)	$	(19,071)

Reinsurance recoverable on unpaid and paid losses and loss expenses:
Insurance	$	3,507,079	$	3,461,860	$	3,346,823	$	3,236,922	$	3,204,130	$	2,895,487
Reinsurance	1,485,564		1,468,982		1,364,291		1,319,589		1,254,634		981,652
Total	$	4,992,643	$	4,930,842	$	4,711,114	$	4,556,511	$	4,458,764	$	3,877,139

AXIS CAPITAL HOLDINGS LIMITED

REINSURANCE RECOVERABLE ANALYSIS

At March 31, 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	$	2,682,606	$	(681,493)	$	2,001,113	52.8%	38.7%	$	(11,190)	0.4%	$	2,671,416
Other reinsurers balances > $20 million	1,806,372		(376,188)		1,430,184		37.8%	27.6%	(10,326)		0.6%	1,796,046
Other reinsurers balances < $20 million	528,783		(171,721)		357,062		9.4%	6.8%	(3,602)		0.7%	525,181
Total	$	5,017,761	$	(1,229,402)	$	3,788,359	100.0%	73.1%	$	(25,118)	0.5%	$	4,992,643

At March 31, 2021, 87.9% (December 31, 2020: 87.6%) of the reinsurance recoverable balances, gross of collateral, 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	13.3%	9.7%
2	Harrington Re Ltd.	8.5%	6.2%
3	Lloyds of London	8.3%	6.1%
4	Transatlantic Reinsurance Co	5.8%	4.2%
5	Hannover Ruck SE	4.9%	3.6%
6	Partner Reinsurance Co of the US	4.3%	3.1%
7	Everest Reinsurance Company	3.4%	2.5%
8	SCOR Reinsurance Company	3.4%	2.5%
9	Munich Reinsurance America, Inc	3.2%	2.3%
10	Swiss Reinsurance Company Ltd	2.6%	2.0%
		57.7%	42.2%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES


	Three months ended March 31, 2021						Three months ended March 31, 2020
	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	$	13,926,766	$	(4,496,641)	$	9,430,125	$	12,752,081	$	(3,877,756)	$	8,874,325
Incurred losses and loss expenses	1,092,229		(377,511)		714,718		1,495,475		(587,402)		908,073
Paid losses and loss expenses	(981,545)		288,462		(693,083)		(977,393)		306,298		(671,095)
Foreign exchange and other	(12,176)		52,458		40,282		(187,890)		57,281		(130,609)

End of period [a]	$	14,025,274	$	(4,533,232)	$	9,492,042	$	13,082,273	$	(4,101,579)	$	8,980,694

[a] At March 31, 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 March 31, 2021									Three months ended March 31, 2020
	Insurance			Reinsurance			Total				Insurance			Reinsurance			Total

Gross paid losses and loss expenses	$	573,209		$	408,336		$	981,545			$	509,378		$	468,015		$	977,393
Reinsurance recoverable on paid losses and loss expenses	(237,739)			(50,723)			(288,462)				(204,348)			(101,950)			(306,298)

Net paid losses and loss expenses	335,470			357,613			693,083				305,030			366,065			671,095

Change in:
Gross case reserves	(19,290)			4,616			(14,674)				18,286			80,024			98,310
Gross IBNR	48,294			77,064			125,358				380,280			39,492			419,772
Reinsurance recoverable on unpaid losses and loss expenses	(7,576)			(81,473)			(89,049)				(231,784)			(49,320)			(281,104)

Total net incurred losses and loss expenses	$	356,898		$	357,820		$	714,718			$	471,812		$	436,261		$	908,073

Gross reserve for losses and loss expenses	$	7,368,569		$	6,656,705		$	14,025,274			$	6,814,171		$	6,268,102		$	13,082,273

Net favorable prior year reserve development	$	1,505		$	3,812		$	5,317			$	3,832		$	2,281		$	6,113

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	94.0		%	99.9		%	97.0		%		64.7		%	83.9		%	73.9		%

Net paid losses and loss expenses / Net premiums earned	54.4		%	73.4		%	62.8		%		54.3		%	69.5		%	61.6		%
Change in net losses and loss expenses / Net premiums earned	3.5		%	—		%	2.0		%		29.6		%	13.4		%	21.8		%
Net losses and loss expenses ratio	57.9		%	73.4		%	64.8		%		83.9		%	82.9		%	83.4		%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTER


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

Gross paid losses and loss expenses	$	573,209		$	683,379		$	502,517		$	543,599		$	509,378		$	560,181
Reinsurance recoverable on paid losses and loss expenses	(237,739)			(273,686)			(203,805)			(218,928)			(204,348)			(218,163)

Net paid losses and loss expenses	335,470			409,693			298,712			324,671			305,030			342,018

Change in:
Gross case reserves	(19,290)			(34,344)			(68,443)			72,563			18,286			116,753
Gross IBNR	48,294			132,082			277,499			(35,502)			380,280			(86,204)
Reinsurance recoverable on unpaid losses and loss expenses	(7,576)			(62,987)			(64,379)			(24,365)			(231,784)			(58,791)

Total net incurred losses and loss expenses	$	356,898		$	444,444		$	443,389		$	337,367		$	471,812		$	313,776

Gross reserve for losses and loss expenses	$	7,368,569		$	7,310,498		$	7,135,537		$	6,865,343		$	6,814,171		$	6,465,347

Net favorable prior year reserve development	$	1,505		$	4,417		$	270		$	420		$	3,832		$	6,913

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	94.0		%	92.2		%	67.4		%	96.2		%	64.7		%	109.0		%

Net paid losses and loss expenses / Net premiums earned	54.4		%	69.5		%	52.4		%	56.3		%	54.3		%	61.4		%
Change in net losses and loss expenses / Net premiums earned	3.5		%	5.9		%	25.4		%	2.2		%	29.6		%	(5.0		%)
Net losses and loss expenses ratio	57.9		%	75.4		%	77.8		%	58.5		%	83.9		%	56.4		%

AXIS CAPITAL HOLDINGS LIMITED

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTER


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

Gross paid losses and loss expenses	$	408,336		$	594,863		$	467,319		$	466,692		$	468,015		$	520,508
Reinsurance recoverable on paid losses and loss expenses	(50,723)			(125,680)			(69,218)			(100,748)			(101,950)			(133,368)

Net paid losses and loss expenses	357,613			469,183			398,101			365,944			366,065			387,140

Change in:
Gross case reserves	4,616			104,547			65,919			97,573			80,024			34,485
Gross IBNR	77,064			(137,925)			59,996			(92,099)			39,492			(88,443)
Reinsurance recoverable on unpaid losses and loss expenses	(81,473)			(63,010)			(87,728)			(32,524)			(49,320)			17,070

Total net incurred losses and loss expenses	$	357,820		$	372,795		$	436,288		$	338,894		$	436,261		$	350,252

Gross reserve for losses and loss expenses	$	6,656,705		$	6,616,268		$	6,517,951		$	6,313,823		$	6,268,102		$	5,810,424

Net favorable prior year reserve development	$	3,812		$	2,142		$	314		$	2,235		$	2,281		$	7,759

Key Ratios

Net paid losses and loss expenses / Net incurred losses and loss expenses	99.9		%	125.9		%	91.2		%	108.0		%	83.9		%	110.5		%

Net paid losses and loss expenses / Net premiums earned	73.4		%	94.3		%	76.4		%	69.4		%	69.5		%	67.0		%
Change in net losses and loss expenses / Net premiums earned	—		%	(19.4		%)	7.3		%	(5.1		%)	13.4		%	(6.3		%)
Net losses and loss expenses ratio	73.4		%	74.9		%	83.7		%	64.3		%	82.9		%	60.7		%

AXIS CAPITAL HOLDINGS LIMITED

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF APRIL 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	$	258	5.6	%	$	354	7.7	%	$	534	11.5	%
Northeast	U.S. Hurricane	42		0.9	%	120		2.6	%	272		5.9	%
Mid-Atlantic	U.S. Hurricane	87		1.9	%	240		5.2	%	451		9.7	%
Gulf of Mexico	U.S. Hurricane	167		3.6	%	248		5.4	%	357		7.7	%
California	Earthquake	161		3.5	%	343		7.4	%	452		9.8	%
Europe	Windstorm	139		3.0	%	183		4.0	%	238		5.1	%
Japan	Earthquake	84		1.8	%	158		3.4	%	278		6.0	%
Japan	Windstorm	83		1.8	%	150		3.2	%	178		3.8	%

The table above shows our Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at April 1, 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 hurricane, net of reinsurance, is approximately $0.4 billion. According to our modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast hurricane event could be in excess of $0.4 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.4 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, changes in underwriting portfolios, changes to reinsurance purchasing strategy and changes in foreign exchange rates.

AXIS CAPITAL HOLDINGS LIMITED

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


	Three months ended March 31,
	2021		2020

Net income (loss) available (attributable) to common shareholders	$	115,737	$	(185,390)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding	84,514		84,094
Dilutive share equivalents:
Share-based compensation plans [a]	451		—
Weighted average diluted common shares outstanding	84,965		84,094

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$1.37		($2.20)
Earnings (loss) per diluted common share	$1.36		($2.20)

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

AXIS CAPITAL HOLDINGS LIMITED

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


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

Net income (loss) available (attributable) to common shareholders	$	115,737	$	(4,819)	$	(72,945)	$	112,477	$	(185,390)	$	98,125

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	84,353		84,309		84,306		84,298		83,959		83,586
Shares issued and treasury shares reissued	589		83		5		11		489		505
Shares repurchased for treasury	(189)		(39)		(2)		(3)		(150)		(157)
Common shares - at end of period	84,753		84,353		84,309		84,306		84,298		83,934

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding	84,514		84,341		84,308		84,303		84,094		83,725
Dilutive share equivalents:

Share-based compensation plans [a]	451		—		—		297		—		547
Weighted average diluted common shares outstanding	84,965		84,341		84,308		84,600		84,094		84,272

EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share	$1.37		($0.06)		($0.87)		$1.33		($2.20)		$1.17
Earnings (loss) per diluted common share	$1.36		($0.06)		($0.87)		$1.33		($2.20)		$1.16

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

AXIS CAPITAL HOLDINGS LIMITED

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


	At March 31, 2021

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

Closing stock price					$49.57

Book value per common share		$	4,626,390	84,753	$54.59

Dilutive securities: [b]

Restricted stock units				2,482	(1.56)
Book value per diluted common share		$	4,626,390	87,235	$53.03

	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] Excludes cash-settled restricted stock units.

AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY



	Three months ended March 31,
	2021			2020
Net income (loss) available (attributable) to common shareholders	$	115,737		$	(185,390)

Net investment (gains) losses [a]	(29,645)			62,877

Foreign exchange losses (gains) [b]	4,113			(61,683)







Reorganization expenses [c]	—			(982)

Interest in (income) loss of equity method investments [d]	(9,162)			23,577



Income tax expense (benefit)	1,694			(2,811)
Operating income (loss)	$	82,737		$	(164,412)

Earnings (loss) per diluted common share	$	1.36		$	(2.20)

Net investment (gains) losses	(0.35)			0.75

Foreign exchange losses (gains)	0.05			(0.73)





Reorganization expenses	—			(0.01)





Interest in (income) loss of equity method investments	(0.11)			0.28
Income tax expense (benefit)	0.02			(0.03)


Operating income (loss) per diluted common share	$	0.97		$	(1.94)

Weighted average diluted common shares outstanding	84,965			84,094

Average common shareholders' equity	$	4,686,042		$	4,529,293

Annualized return on average common equity	9.9		%	nm

Annualized operating return on average common equity	7.1		%	nm

[a] Tax cost (benefit) of $1,484 and ($5,677) for the three months ended March 31, 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 cost (benefit) of $210 and $2,527 for the three months ended March 31, 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 cost of $339 for the three months ended March 31, 2020. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

[d] Tax cost (benefit) of $nil for the three months ended March 31, 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]
	March 31,		December 31,		September 30,		June 30,		March 31,		March 31,
	2021		2020		2020		2020		2020		2019
Common shareholders' equity	$	4,626,390	$	4,745,694	$	4,715,895	$	4,747,820	$	4,289,578	$	4,525,156
Less: goodwill	(100,801)		(100,801)		(102,003)		(102,003)		(102,003)		(102,003)
Less: intangible assets	(216,904)		(219,633)		(222,362)		(225,092)		(227,821)		(238,763)
Associated tax impact	45,565		45,991		46,333		42,515		42,857		43,522
Tangible common shareholders' equity	$	4,354,250	$	4,471,251	$	4,437,863	$	4,463,240	$	4,002,611	$	4,227,912

Diluted common shares outstanding, net of treasury shares	87,235		86,143		86,132		86,178		86,170		85,632

Book value per diluted common share	$	53.03	$	55.09	$	54.75	$	55.09	$	49.78	$	52.84

Tangible book value per diluted common share	$	49.91	$	51.90	$	51.52	$	51.79	$	46.45	$	49.37

[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' section 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, 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' section 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.

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 goodwill and intangible assets, net of tax. We present tangible book value per diluted common share calculated under the treasury stock method. A reconciliation of tangible book value per diluted common share to book value per diluted common share, the most comparable GAAP financial measure, is included in the 'Tangible Book Value per Diluted Common Share' section of this document.

Tangible book value per diluted common share excludes the impacts of certain purchase accounting adjustments. We believe that this measure, in combination with book value per diluted common share, is useful in assessing value generated for our common shareholders.