AXIS Capital : Q1 2024 Financial Supplement

AXIS CAPITAL HOLDINGS LIMITED

INVESTOR FINANCIAL SUPPLEMENT

FIRST QUARTER 2024

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Cliff Gallant

Investor Contact

1. [e-mail]

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	2-4
a. Consolidated Statement of Operations
b. Consolidated Segment Data	5
c. Gross Premiums Written by Segment by Line of Business	6
d. Consolidated Data	7
e. Segment Data	8-9
g. Net Investment Income	10
III. Balance Sheets
a. Consolidated Balance Sheets	11
b. Cash and Invested Assets:
• Cash and Invested Assets Portfolio	12
• Cash and Invested Assets Composition	13
• Mortgage-Backedand Asset-BackedSecurities Composition	14
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis	15
b. Paid to Incurred Analysis by Segment	16
V. Share Analysis
a. Earnings Per Common Share Information	17
b. Book Value Per Diluted Common Share and Tangible Book Value Per Diluted Common Share - Treasury Stock Method	18
VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity	19
b. Rationale for the Use of Non-GAAP Financial Measures	20-22

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, 2023 and consolidated statements of operations for the years ended December 31, 2023 and December 31, 2022.
• Amounts may not reconcile due to rounding differences.
• Unless otherwise noted, all data is in thousands, except for ratio information.
• NM - Not meaningful is defined as a variance greater than +/- 100%; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

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

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

Insurance Risk

• the cyclical nature of 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, including the potential increase of our exposure to natural catastrophe losses due to climate change and the potential for inherently unpredictable losses from man-made catastrophes, such as cyber-attacks;
• the effects of emerging claims, systemic risks, and coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions;
• actual claims exceeding reserves for losses and loss expenses;
• losses related to the Israel-Hamas conflict and the associated conflict in the Red Sea, the Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses;
• the adverse impact of social and economic inflation;
• the failure of any of the loss limitation methods we employ;
• the failure of our cedants to adequately evaluate risks;

Strategic Risk

• increased competition and consolidation in the insurance and reinsurance industry;
• changes in the political environment of certain countries in which we operate or underwrite business;
• the loss of business provided to us by major brokers;
• a decline in our ratings with rating agencies;
• the loss of one or more of our key executives;
• increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters;
• the adverse impact of contagious diseases (including COVID-19) on our business, results of operations, financial condition, and liquidity;

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AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

Credit and Market Risk

• the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;
• the failure of our policyholders or intermediaries to pay premiums;
• general economic, capital and credit market conditions, including banking and commercial real estate sector instability, financial market illiquidity and fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency exchange rates;
• breaches by third parties in our program business of their obligations to us;

Liquidity Risk

• the inability to access sufficient cash to meet our obligations when they are due;

Operational Risk

• changes in accounting policies or practices;
• the use of industry models and changes to these models;
• difficulties with technology and/or data security;
• the failure of the processes, people or systems that we rely on to maintain our operations and manage the operational risks inherent to our business, including those outsourced to third parties;

Regulatory Risk

• changes in governmental regulations and potential government intervention in our industry;
• inadvertent failure to comply with certain laws and regulations relating to sanctions, foreign corrupt practices, data protection and privacy; and

Risks Related to Taxation

• changes in tax laws.

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

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

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AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

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

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

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

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

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

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

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

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

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AXIS CAPITAL HOLDINGS LIMITED

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

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

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

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

Professional Lines: provides protection for directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, 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.

Credit and Surety: Credit reinsurance 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 provided to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.

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

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

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

Run-off lines

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

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

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

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AXIS CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS

			Three months ended March 31,
			2024			2023			Change
HIGHLIGHTS	Gross premiums written	$	2,654,427	$	2,381,976			11.4%	pts
	Gross premiums written - Insurance		59.3%			59.4%			(0.1)
	Gross premiums written - Reinsurance		40.7%			40.6%			0.1	pts
	Net premiums written	$	1,722,073	$	1,608,356			7.1%
	Net premiums earned	$	1,258,041	$	1,230,199			2.3%
	Net premiums earned - Insurance		73.0%			66.4%			6.6	pts
	Net premiums earned - Reinsurance		27.0%			33.6%			(6.6)	pts
	Net income available to common shareholders	$	387,896	$	172,534			nm
	Operating income [a]	$	220,162	$	200,054			10.1%
	Annualized return on average common equity [b]		32.1%			16.2%			15.9	pts
	Annualized operating return on average common equity [c]		18.2%			18.8%			(0.6)	pts
	Total shareholders' equity	$	5,505,155	$	4,960,229			11.0%
PER COMMON SHARE AND	Earnings per diluted common share		$4.53			$2.01			nm
COMMON SHARE DATA	Operating income per diluted common share [d]		$2.57			$2.33			10.3%
	Weighted average diluted common shares outstanding		85,693			85,853			(0.2%)
	Book value per common share		$58.51			$51.77			13.0%
	Book value per diluted common share (treasury stock method)		$57.13			$50.31			13.6%
	Tangible book value per diluted common share (treasury stock method) [a]		$54.42			$47.53			14.5%
FINANCIAL RATIOS	Current accident year loss ratio, excluding catastrophe and weather-related losses		56.4%			55.8%			0.6	pts
	Catastrophe and weather-related losses ratio		1.5%			3.1%			(1.6)	pts
	Current accident year loss ratio		57.9%			58.9%			(1.0)	pts
	Prior year reserve development ratio		-%			(0.3%)			0.3	pts
	Net losses and loss expenses ratio		57.9%			58.6%			(0.7)	pts
	Acquisition cost ratio		20.2%			18.7%			1.5	pts
	General and administrative expense ratio [e]		13.0%			13.6%			(0.6)	pts
	Combined ratio		91.1%			90.9%			0.2	pts
INVESTMENT DATA	Total assets	$	31,758,690	$	28,564,977			11.2%
	Total cash and invested assets [f]	$	16,808,240	$	15,983,741			5.2%
	Net investment income	$	167,383	$	133,771			25.1%
	Net investment gains (losses)	$	(9,207)	$	(20,190)			(54.4%)
	Book yield of fixed maturities		4.3%			3.7%			0.6	pts

1. 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.
2. 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.
3. 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.
4. Operating income (loss) per diluted common share is calculated by dividing operating income (loss) for the period by weighted average diluted common shares outstanding.
5. Underwriting-relatedgeneral and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
6. 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).

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

		Three months ended March 31,
		2024			2023
Revenues
Net premiums earned	$	1,258,041	$	1,230,199
Net investment income		167,383			133,771
Net investment gains (losses)		(9,207)			(20,190)
Other insurance related income		8,340			577
Total revenues		1,424,557			1,344,357
Expenses
Net losses and loss expenses		728,671			720,642
Acquisition costs		254,254			230,373
General and administrative expenses		163,373			166,811
Foreign exchange losses (gains)		(23,552)			8,710
Interest expense and financing costs		17,147			16,894
Reorganization expenses		12,299			-
Amortization of intangible assets		2,729			2,729
Total expenses		1,154,921			1,146,159
Income before income taxes and interest in income (loss) of equity method investments		269,636			198,198
Income tax (expense) benefit		124,654			(15,896)
Interest in income (loss) of equity method investments		1,169			(2,205)
Net income		395,459			180,097
Preferred share dividends		7,563			7,563
Net income available to common shareholders	$	387,896	$	172,534

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

																				Year ended
																			December 31,
		Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q1 2022			2023
UNDERWRITING REVENUES
Gross premiums written	$	2,654,427	$	1,784,293	$	1,905,878	$	2,284,378	$	2,381,976	$	2,634,608	$	8,356,525
Ceded premiums written		(932,354)			(712,038)			(930,521)			(838,021)			(773,620)			(821,736)			(3,254,200)
Net premiums written		1,722,073			1,072,255			975,357			1,446,357			1,608,356			1,812,872			5,102,325
Gross premiums earned		2,044,647			2,035,926			2,046,222			1,969,662			1,921,768			1,902,508			7,973,577
Ceded premiums earned		(786,606)			(770,653)			(723,658)			(703,917)			(691,569)			(644,262)			(2,889,796)
Net premiums earned		1,258,041			1,265,273			1,322,564			1,265,745			1,230,199			1,258,246			5,083,781
Other insurance related income		8,340			6,050			10,344			5,524			577			6,693			22,495
Total underwriting revenues		1,266,381			1,271,323			1,332,908			1,271,269			1,230,776			1,264,939			5,106,276
UNDERWRITING EXPENSES
Net losses and loss expenses		728,671			1,152,262			783,940			736,257			720,642			732,699			3,393,102
Acquisition costs		254,254			253,918			263,389			253,265			230,373			248,352			1,000,945
Underwriting-related general and administrative expenses [a]		137,793			139,216			138,601			133,255			140,395			145,096			551,467
Total underwriting expenses		1,120,718			1,545,396			1,185,930			1,122,777			1,091,410			1,126,147			4,945,514
UNDERWRITING INCOME (LOSS) [b]		145,663			(274,073)			146,978			148,492			139,366			138,792			160,762
OTHER (EXPENSES) REVENUES
Net investment income		167,383			186,937			154,201			136,829			133,771			91,355			611,742
Net investment gains (losses)		(9,207)			23,041			(53,114)			(24,370)			(20,190)			(94,508)			(74,630)
Corporate expenses [a]		(25,580)			(30,633)			(40,682)			(35,248)			(26,416)			(23,945)			(132,979)
Foreign exchange (losses) gains		23,552			(69,871)			50,570			(30,104)			(8,710)			44,273			(58,115)
Interest expense and financing costs		(17,147)			(18,344)			(16,445)			(16,738)			(16,894)			(15,564)			(68,421)
Reorganization expenses		(12,299)			-			(28,997)			-			-			-			(28,997)
Amortization of intangible assets		(2,729)			(2,729)			(2,729)			(2,729)			(2,729)			(2,729)			(10,917)
Total other (expenses) revenues		123,973			88,401			62,804			27,640			58,832			(1,118)			237,683
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME		269,636			(185,672)			209,782			176,132			198,198			137,674			398,445
(LOSS) OF EQUITY METHOD INVESTMENTS
Income tax (expense) benefit		124,654			41,762			(24,624)			(27,558)			(15,896)			(24)			(26,316)
Interest in income (loss) of equity method investments		1,169			1,328			2,940			2,100			(2,205)			11,550			4,163
NET INCOME (LOSS)		395,459			(142,582)			188,098			150,674			180,097			149,200			376,292
Preferred share dividends		(7,563)			(7,563)			(7,563)			(7,563)			(7,563)			(7,563)			(30,250)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON	$	387,896	$	(150,145)	$	180,535	$	143,111	$	172,534	$	141,637	$	346,042
SHAREHOLDERS

1. Underwriting-relatedgeneral 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.
2. 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.

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