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SCHEDULE II
 12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II
AXIS CAPITAL HOLDINGS LIMITED
CONDENSED BALANCE SHEETS – PARENT COMPANY
DECEMBER 31, 2016 AND 2015
 
 
2016
 
2015
 
(in thousands)
Assets
 
 
 
Investments in subsidiaries on equity basis
$
6,033,564

 
$
5,943,182

Promissory note receivable from subsidiary

368,252

 
—

Cash and cash equivalents
99

 
8,098

Other assets
9,913

 
9,381

Total assets
$
6,411,828

 
$
5,960,661

 
 
 
 
Liabilities
 
 
 
Intercompany payable
$
66,123

 
$
32,837

Dividends payable
58,791

 
52,237

Other liabilities
14,544

 
8,705

Total liabilities
139,458

 
93,779

 
 
 
 
Shareholders’ equity
 
 
 
Preferred shares
1,126,074

 
627,843

Common shares (2016: 176,580; 2015: 176,240 shares issued
and 2016: 86,441; 2015: 96,066 shares outstanding)
2,206

 
2,202

Additional paid-in capital
2,299,857

 
2,241,388

Accumulated other comprehensive loss
(121,841
)
 
(188,465
)
Retained earnings
6,527,627

 
6,194,353

Treasury shares, at cost (2016: 90,139; 2015: 80,174 shares)

(3,561,553
)
 
(3,010,439
)
Total shareholders’ equity
6,272,370

 
5,866,882

Total liabilities and shareholders’ equity
$
6,411,828

 
$
5,960,661


(1)
AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary, related to the issuance of $500 million aggregate principal amount of 5.875% senior unsecured notes. AXIS Capital’s obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital.

(2)
AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary, related to the issuance of $250 million aggregate principal amount of 2.65% and $250 million aggregate principal amount of 5.15% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital.

(3)
AXIS Capital has fully and unconditionally guaranteed the obligations of AXIS Specialty Finance LLC, AXIS Specialty Holdings Bermuda Limited, AXIS Specialty Finance PLC, and operating subsidiaries i.e. the borrowing entities related to the $250 million credit facility issued by a syndication of lenders. At December 31, 2016 and 2015, debt outstanding under the credit facility was $nil.

(4)
AXIS Capital has fully and unconditionally guaranteed the derivative instrument obligations of certain of its 100% owned operating subsidiaries. At December 31, 2016, the notional value of guaranteed obligations utilized aggregated to $64 million (2015: $70 million).

(5)
On November 7, 2016, AXIS Capital advanced an amount of $368 million to AXIS Specialty Limited, bearing interest at an annual rate of 1.132% and a maturity date of April 15, 2017. Interest income on the promissory note is recorded in net investment income.

SCHEDULE II
AXIS CAPITAL HOLDINGS LIMITED
CONDENSED STATEMENTS OF OPERATIONS – PARENT COMPANY
YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014
 
 
2016
 
2015
 
2014
 
(in thousands)
Revenues
 
 
 
 
 
Net investment income
$
656

 
$
1

 
$
3

Termination fee received
—

 
280,000

 
—

Total revenues
656

 
280,001

 
3

 
 
 
 
 
 
Expenses
 
 
 
 
 
General and administrative expenses
39,909

 
8,012

 
57,998

Interest expense and financing costs
—

 
—

 
26,749

Total expenses
39,909

 
8,012

 
84,747

 
 
 
 
 
 
Income (loss) before equity in net earnings of subsidiaries
(39,253
)
 
271,989

 
(84,744
)
Equity in net earnings of subsidiaries
552,621

 
369,642

 
895,489

Net income
513,368

 
641,631

 
810,745

Preferred share dividends
46,597

 
40,069

 
40,088

Loss on repurchase of preferred shares
1,309

 
—

 
—

Net income available to common shareholders
$
465,462

 
$
601,562

 
$
770,657

 
 
 
 
 
 
Comprehensive income
$
579,992

 
$
498,740

 
$
641,165

SCHEDULE II
AXIS CAPITAL HOLDINGS LIMITED
CONDENSED STATEMENTS OF CASH FLOWS – PARENT COMPANY
YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014
 
 
2016
 
2015
 
2014
 
(in thousands)
Cash flows from operating activities:
 
 
 
 
 
Net income
$
513,368

 
$
641,631

 
$
810,745

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Equity in net earnings of subsidiaries
(552,621
)
 
(369,642
)
 
(895,489
)
Change in intercompany payable
33,286

 
(180,312
)
 
8,272

Dividends received from subsidiaries
550,000

 
420,000

 
724,000

Other items
17,807

 
(23,614
)
 
53,865

Net cash provided by operating activities
561,840

 
488,063

 
701,393

 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
Promissory note receivable from subsidiary
(368,252
)
 
—

 
—

Capital repaid from subsidiary
—

 
—

 
496,593

Net cash provided by (used in) investing activities
(368,252
)
 
—

 
496,593

 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
Net proceeds from issuance of preferred shares
531,945

 
—

 
—

Repurchase of common shares
(509,755
)
 
(332,252
)
 
(543,202
)
Dividends paid - common shares
(132,323
)
 
(118,652
)
 
(117,619
)
Repurchase of preferred shares
(51,769
)
 
—

 
—

Dividends paid - preferred shares
(39,909
)
 
(40,088
)
 
(40,088
)
Proceeds from issuance of common shares
224

 
3,986

 
5,550

Redemption of senior notes
—

 
—

 
(500,000
)
Net cash used in financing activities
(201,587
)
 
(487,006
)
 
(1,195,359
)
 
 
 
 
 
 
Increase (decrease) in cash and cash equivalents
(7,999
)
 
1,057

 
2,627

Cash and cash equivalents - beginning of year
8,098

 
7,041

 
4,414

Cash and cash equivalents - end of year
$
99

 
$
8,098

 
$
7,041

 
 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
 
Interest paid
$
—

 
$
—

 
$
28,750