AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2017

	AXIS Capital Holdings Limited
	92 Pitts Bay Road
	Pembroke HM 08 Bermuda
	Contact Information:
	Linda Ventresca
	Investor Relations
	441 405 2727
	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 we file 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 - iii
I. Financial Highlights	1
II. Income Statements
a. Consolidated Statements of Income - Quarterly	2
b. Consolidated Statements of Income - Year to Date	3
c. Consolidated Segment Data	4
d. Gross Premiums Written by Segment by Line of Business	5
e. Segment Data - Quarterly	6-7
f. Strategic Capital Partners - Reinsurance segment	8
g. Net Investment Income - Quarterly and Year to Date	9
III. Balance Sheets
a. Consolidated Balance Sheets	10
b. Cash and Invested Assets:
•    Cash and Invested Assets Portfolio	11
•    Cash and Invested Assets Composition - Quarterly	12
•    Geographic Distribution of Fixed Maturities and Equities	13
•    Corporate Debt Composition	14
•    Ten Largest Corporate Debt Holdings	15
•    Mortgage-Backed and Asset-Backed Securities Composition	16
c. Reinsurance Recoverable Analysis	17-18
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis	19
b. Paid to Incurred Analysis by Segment	20
c. Paid to Incurred Analysis by Segment - Quarterly	21-22
d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures	23
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, GAAP	24
b. Earnings Per Common Share Information and Common Share Rollforward - Quarterly	25
c. Diluted Book Value Per Common Share Analysis	26
VI. Non-GAAP Financial Measures
a. Non-GAAP operating income	27
b. Diluted Tangible Book Value Per Common Share	28
c. Use of Non-GAAP Financial Measures	29

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information.

• All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2016 and December 31,2015 and consolidated statements of income for the years then ended.

• Amounts may not reconcile exactly due to rounding differences.

• NM - Not meaningful; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States 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. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. Forward-looking statements contained in this presentation may include, but are not limited to, information regarding our estimates of losses related to catastrophes and other large losses, measurements of potential losses in the fair market value of our investment portfolio, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, equity securities' prices, credit spreads and foreign currency rates.

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

• the cyclical nature of the re(insurance) business leading to periods with excess underwriting capacity and unfavorable premium rates,

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

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

• actual claims exceeding our loss reserves,

• general economic, capital and credit market conditions,

• 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,

• our inability to purchase reinsurance or collect amounts due to us,

• the breach by third parties in our program business of their obligations to us,

• difficulties with technology and/or data security,

• the failure of our policyholders and intermediaries to pay premiums,

• the failure of our cedants to adequately evaluate risks,

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

• the loss of one or more key executives,

• a decline in our ratings with rating agencies,

• loss of business provided to us by our major brokers and credit risk due to our reliance on brokers,

• changes in accounting policies or practices,

• the use of industry catastrophe models and changes to these models,

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

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

• increased competition,

• changes in the political environment of certain countries in which we operate or underwrite business including the United Kingdom's expected withdrawal from the European Union,

• fluctuations in interest rates, credit spreads, equity securities' prices and/or currency values,

• with respect to the offer to acquire Novae Group plc, (i) the effect of the announcement of the offer on our business relationships, operating results, share price or business generally, (ii) the occurrence of any event or other circumstances that could give rise to the termination or lapsing of the offer, (iii) the outcome of any legal proceedings that may be instituted against us relating to the offer and/or the acquisition, (iv) the failure to satisfy any of the conditions to completion of the acquisition, including the receipt of all required regulatory approvals and antitrust consents and (v) the failure to realize the expected synergies resulting from the acquisition, and

• the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission.

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

i

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 coverage for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine: provides coverage for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, hull and war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases.

Terrorism: provides coverage for physical damage and business interruption of an insured following an act of terrorism.

Aviation: provides hull and liability and specific war coverage 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 and corporations. Coverage 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. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. For the credit insurance contracts, it is necessary for the buyer of the insurance (most often a bank) to hold an insured asset (most often an underlying loan) in order to claim compensation under the insurance contract.

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

Liability: primarily targets primary and low/mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets. 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, as well as accident and health reinsurance for catastrophic or per life events on a quota share and/or excess of loss basis, with aggregate and/or per person deductibles.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides non-life 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 exposure in the underlying policies is principally property exposure but also covers other exposures including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. We underwrite catastrophe reinsurance principally on an excess of loss basis.

Property: provides coverage for property damage and related losses resulting from natural and man-made perils contained in underlying personal and commercial policies. While our predominant exposure is to property damage, other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. While our most significant exposures typically relate to losses from windstorms, tornadoes and earthquakes, we are also exposed to other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events. We assume business on both a proportional and excess of loss basis.

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

Credit and Surety: consists of reinsurance of trade credit insurance products and includes both 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. The Company provides credit insurance coverage to mortgage guaranty insurers and government sponsored entities. Also included in this line of business is coverage 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.

Motor: provides coverage 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. We offer traditional proportional and non-proportional reinsurance as well as structured solutions.

Liability: provides coverage to insurers of standard casualty business, excess and surplus casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, although workers' compensation and auto liability are also written.

Agriculture: provides coverage 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. We provide both proportional and aggregate stop loss reinsurance.

Engineering: provides coverage 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 coverage for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption.

Marine and Other: includes marine, aviation and personal accident reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Quarter ended June 30,									Six months ended June 30,
		2017			2016			Change			2017			2016			Change
HIGHLIGHTS	Gross premiums written	$	1,362,327		$	1,320,434		3.2	%		$	3,274,199		$	3,279,595		(0.2	%)
	Gross premiums written - Insurance	58.4		%	59.4		%	(1.0	)	pts	45.5		%	43.8		%	1.7		pts
	Gross premiums written - Reinsurance	41.6		%	40.6		%	1.0		pts	54.5		%	56.2		%	(1.7	)	pts
	Net premiums written	$	956,017		$	1,007,350		(5.1	%)		$	2,464,976		$	2,693,156		(8.5	%)
	Net premiums earned	$	981,431		$	946,990		3.6	%		$	1,920,133		$	1,849,331		3.8	%
	Net premiums earned - Insurance	50.3		%	46.4		%	3.9		pts	49.6		%	47.5		%	2.1		pts
	Net premiums earned - Reinsurance	49.7		%	53.6		%	(3.9	)	pts	50.4		%	52.5		%	(2.1	)	pts
	Net income available to common shareholders	$	85,030		$	119,491		(28.8	%)		$	90,045		$	157,908		(43.0	%)
	Non-GAAP Operating income [a]	110,493			47,483			132.7	%		161,460			148,759			8.5	%
	Reserve for losses and loss expenses	9,878,662			9,782,304			1.0	%		9,878,662			9,782,304			1.0	%
	Total shareholders’ equity	$	5,892,695		$	5,964,183		(1.2	%)		$	5,892,695		$	5,964,183		(1.2	%)
PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share		$1.01			$1.30		(22.3	%)			$1.06			$1.70		(37.6	%)
	Diluted earnings per common share	1.01			1.29			(21.7	%)		1.05			1.69			(37.9	%)
	Non-GAAP operating income per common share - diluted [b]		$1.31			$0.51		156.9	%			$1.89			$1.59		18.9	%
	Weighted average common shares outstanding	84,141			91,926			(8.5	%)		85,076			92,980			(8.5	%)
	Diluted weighted average common shares outstanding	84,511			92,558			(8.7	%)		85,647			93,705			(8.6	%)
	Book value per common share		$61.51			$58.90		4.4	%			$61.51			$58.90		4.4	%
	Diluted book value per common share (treasury stock method)	60.45			57.62			4.9	%		60.45			57.62			4.9	%
	Diluted tangible book value per common share (treasury stock method) [a]	59.44			56.69			4.9	%		59.44			56.69			4.9	%
	Accumulated dividends declared per common share		$12.39			$10.90		13.7	%			$12.39			$10.90		13.7	%
FINANCIAL RATIOS	ROACE [c]	6.7		%	9.0		%	(2.3	)	pts	3.5		%	6.0		%	(2.5	)	pts
	Non-GAAP operating ROACE [d]	8.6		%	3.6		%	5.0		pts	6.3		%	5.6		%	0.7		pts
	Net loss and loss expense ratio	61.7		%	66.8		%	(5.1	)	pts	63.1		%	61.2		%	1.9		pts
	Acquisition cost ratio	20.8		%	20.0		%	0.8		pts	20.5		%	20.0		%	0.5		pts
	General and administrative expense ratio	15.1		%	15.4		%	(0.3	)	pts	16.2		%	16.0		%	0.2		pts
	Combined ratio	97.6		%	102.2		%	(4.6	)	pts	99.8		%	97.2		%	2.6		pts
INVESTMENT DATA	Total assets	$	21,499,638		$	21,249,440		1.2	%		$	21,499,638		$	21,249,440		1.2	%
	Total cash and invested assets [e]	14,456,506			14,461,894			—	%		14,456,506			14,461,894			—	%
	Net investment income	106,063			91,730			15.6	%		204,728			140,896			45.3	%
	Net realized investment gains (losses)	$	(4,392	)	$	21,010		(120.9	%)		$	(29,443	)	$	(45,500	)	(35.3	%)
	Total return on cash and investments (inclusive of investment related foreign exchange movements) [f]	1.2		%	1.2		%	—		pts	2.4		%	2.5		%	(0.1	)	pts
	Total return on cash and investments (exclusive of investment related foreign exchange movements) [f]	1.0		%	1.4		%	(0.4	)	pts	2.1		%	2.7		%	(0.6	)	pts
	Return on other investments [g]	3.0		%	1.7		%	1.3		pts	5.4		%	(1.5		%)	6.9		pts
	Book yield of fixed maturities	2.6		%	2.6		%	—		pts	2.6		%	2.6		%	—		pts

[a] Non-GAAPOperating income and diluted tangible book value per common share are “non-GAAP financial measures” as defined by Regulation G. See page 27 for reconciliation of non-GAAP operating income to net income available to common shareholders and page 28 for diluted tangible book value per common share to diluted book value per common share.

[b] Non-GAAPOperating income per common share - diluted, is calculated by dividing non-GAAP operating income for the period by diluted weighted average common shares and share equivalents.

[c] Return on average common equity (“ROACE”) is calculated by dividing net income available to common shareholders for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Net income for the quarter-periods is annualized.

[d] Non-GAAP Operating ROACE, also a “non-GAAP financial measure”, is calculated by dividing non-GAAP operating income for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Non-GAAP Operating income for the quarter-periods is annualized.

[e] Total cash and invested assets represents the total cash, available for sale investments, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

[f] In calculating total return, we include net investment income, net realized investment gains (losses), interest in income (loss) of equity method investments and the change in unrealized gains (losses) generated by our average cash and investment balances.

[g] Return on other investments is calculated by dividing other investment income by the average month-end other investment balances for the period.

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
UNDERWRITING REVENUES
Gross premiums written	$	1,362,327		$	1,911,871		$	730,650		$	959,962		$	1,320,434		$	1,188,413
Premiums ceded	(406,310		)	(402,912		)	(266,263		)	(364,531		)	(313,084		)	(241,869		)
Net premiums written	956,017			1,508,959			464,387			595,431			1,007,350			946,544
Gross premiums earned	1,300,648			1,245,669			1,213,623			1,214,826			1,197,722			1,158,755
Ceded premiums expensed	(319,217		)	(306,966		)	(291,744		)	(280,411		)	(250,732		)	(217,544		)
Net premiums earned	981,431			938,703			921,879			934,415			946,990			941,211
Other insurance related income (loss)	2,560			(3,783		)	2,372			5,944			(892		)	3,486
Total underwriting revenues	983,991			934,920			924,251			940,359			946,098			944,697
UNDERWRITING EXPENSES
Net losses and loss expenses	605,332			606,942			540,612			532,328			632,294			580,153
Acquisition costs	204,361			189,792			187,305			189,810			189,125			183,263
Underwriting-related general and administrative expenses [a]	117,286			121,801			130,069			114,223			114,819			124,433
Total underwriting expenses	926,979			918,535			857,986			836,361			936,238			887,849
UNDERWRITING INCOME [b]	57,012			16,385			66,265			103,998			9,860			56,848
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	106,063			98,664			95,517			116,923			91,730			88,544
Net realized investment gains (losses)	(4,392		)	(25,050		)	(20,229		)	5,205			21,010			(11,110		)
Interest expense and financing costs	(12,751		)	(12,791		)	(12,774		)	(12,839		)	(12,914		)	(12,939		)
Total other operating revenues	88,920			60,823			62,514			109,289			99,826			64,495
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(36,118		)	(21,465		)	51,514			13,795			56,602			(22,108		)
Corporate expenses [a]	(30,530		)	(39,459		)	(33,095		)	(28,683		)	(31,927		)	(24,049		)
Bargain purchase gain	15,044			—			—			—			—			—
Total other (expenses) revenues	(51,604		)	(60,924		)	18,419			(14,888		)	24,675			(46,157		)
INCOME BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	94,328			16,284			147,198			198,399			134,361			75,186
Income tax (expense) benefit	3,333			9,337			1,373			(9,352		)	(4,901		)	(1,815		)
Interest in income (loss) of equity method investments	(1,975		)	(5,766		)	340			(2,434		)	—			—
NET INCOME	95,686			19,855			148,911			186,613			129,460			73,371
Preferred share dividends	(10,656		)	(14,841		)	(16,690		)	(9,969		)	(9,969		)	(10,022		)
Loss on repurchase of preferred shares	—			—			(1,309		)	—			—			—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	85,030		$	5,014		$	130,912		$	176,644		$	119,491		$	63,349
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	61.7		%	64.7		%	58.6		%	57.0		%	66.8		%	61.6		%
Acquisition cost ratio	20.8		%	20.2		%	20.3		%	20.3		%	20.0		%	19.5		%
General and administrative expense ratio [a]	15.1		%	17.2		%	17.8		%	15.3		%	15.4		%	15.8		%
Combined ratio	97.6		%	102.1		%	96.7		%	92.6		%	102.2		%	96.9		%
Weighted average basic shares outstanding	84,141			86,022			87,552			89,621			91,926			100,274
Weighted average diluted shares outstanding	84,511			86,793			88,474			90,351			92,558			101,160
Basic earnings per common share		$1.01			$0.06			$1.50			$1.97			$1.30			$0.63
Diluted earnings per common share		$1.01			$0.06			$1.48			$1.96			$1.29			$0.63
ROACE (annualized)	6.7		%	0.4		%	9.9		%	13.2		%	9.0		%	4.7		%
Non-GAAP operating ROACE (annualized)	8.6		%	4.0		%	7.6		%	12.0		%	3.6		%	7.0		%

[a] Underwriting-related general and administrative expenses is a "non-GAAP financial measure" as defined in SEC Regulation G. Our total general and administrative expenses also include corporate expenses. Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Group (or consolidated) underwriting income is also a "non-GAAP financial measure". Reconciliations of consolidated underwriting income to the nearest GAAP financial measure (income (loss) before income taxes and interest in income (loss) of equity method investments) are presented above and on the following page.

2

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR TO DATE

	Six months ended June 30,									Year ended December 31,
	2017			2016			2015			2016			2015
UNDERWRITING REVENUES
Gross premiums written	$	3,274,199		$	3,279,595		$	2,867,345		$	4,970,208		$	4,603,730
Premiums ceded	(809,223		)	(586,439		)	(465,255		)	(1,217,234		)	(929,064		)
Net premiums written	2,464,976			2,693,156			2,402,090			3,752,974			3,674,666
Gross premiums earned	2,546,318			2,333,944			2,273,066			4,762,394			4,567,953
Ceded premiums expensed	(626,185		)	(484,613		)	(427,802		)	(1,056,769		)	(881,536		)
Net premiums earned	1,920,133			1,849,331			1,845,264			3,705,625			3,686,417
Other insurance related income (loss)	(1,222		)	(1,094		)	11,162			7,222			(2,953		)
Total underwriting revenues	1,918,911			1,848,237			1,856,426			3,712,847			3,683,464
UNDERWRITING EXPENSES
Net losses and loss expenses	1,212,273			1,131,256			1,092,481			2,204,197			2,176,199
Acquisition costs	394,153			369,761			354,805			746,876			718,112
Underwriting-related general and administrative expenses [a]	239,086			238,409			251,502			482,701			486,911
Total underwriting expenses	1,845,512			1,739,426			1,698,788			3,433,774			3,381,222
UNDERWRITING INCOME	73,399			108,811			157,638			279,073			302,242
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	204,728			140,896			180,651			353,335			305,336
Net realized investment gains (losses)	(29,443		)	(45,500		)	(53,662		)	(60,525		)	(138,491		)
Interest expense and financing costs	(25,543		)	(25,747		)	(25,196		)	(51,360		)	(50,963		)
Total other operating revenues	149,742			69,649			101,793			241,450			115,882
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(57,583		)	55,986			41,112			121,295			102,312
Termination fee received	—			—						—			280,000
Corporate expenses [a]	(69,989		)	(58,239		)	(60,221		)	(120,016		)	(109,910		)
Reorganization and related expenses	—			—						—			(45,867		)
Bargain purchase gain	15,044			—						—			—
Total other expenses	(112,528		)	(2,253		)	(19,109		)	1,279			226,535
INCOME BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	110,613			176,207			240,322			521,802			644,659
Income tax (expense) benefit	12,670			1,639			(1,125		)	(6,340		)	(3,028		)
Interest in loss of equity method investments	(7,741		)	—			—			(2,094		)	—
NET INCOME	115,542			177,846			239,197			513,368			641,631
Preferred share dividends	(25,497		)	(19,938		)	(20,044		)	(46,597		)	(40,069		)
Loss on repurchase of preferred shares	—			—			—			(1,309		)	—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	90,045		$	157,908		$	219,153		$	465,462		$	601,562
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	63.1		%	61.2		%	59.2		%	59.5		%	59.0		%
Acquisition cost ratio	20.5		%	20.0		%	19.2		%	20.2		%	19.5		%
General and administrative expense ratio [a]	16.2		%	16.0		%	16.9		%	16.2		%	16.2		%
Combined ratio	99.8		%	97.2		%	95.3		%	95.9		%	94.7		%
Weighted average basic shares outstanding	85,076			92,980			100,093			90,772			98,609
Weighted average diluted shares outstanding	85,647			93,705			101,151			91,547			99,629
Basic earnings per common share		$1.06			$1.70			$2.19			$5.13			$6.10
Diluted earnings per common share		$1.05			$1.69			$2.17			$5.08			$6.04
ROACE [b]	3.5		%	6.0		%	8.3		%	9.0		%	11.5		%
Operating ROACE [b]	6.3		%	5.6		%	8.7		%	7.9		%	7.7		%

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

[b] Annualized for the six-month periods.

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Quarter ended June 30, 2017									Six months ended June 30, 2017
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	796,023		$	566,304		$	1,362,327		$	1,490,030		$	1,784,169		$	3,274,199
Net premiums written	527,678			428,339			956,017			1,033,008			1,431,968			2,464,976
Gross premiums earned	716,176			584,472			1,300,648			1,395,282			1,151,036			2,546,318
Ceded premiums expensed	(222,340		)	(96,877		)	(319,217		)	(443,017		)	(183,168		)	(626,185		)
Net premiums earned	493,836			487,595			981,431			952,265			967,868			1,920,133
Other insurance related income (loss)	508			2,052			2,560			551			(1,773		)	(1,222		)
Total underwriting revenues	494,344			489,647			983,991			952,816			966,095			1,918,911
UNDERWRITING EXPENSES
Net losses and loss expenses	325,728			279,604			605,332			612,630			599,643			1,212,273
Acquisition costs	81,276			123,085			204,361			149,433			244,720			394,153
Underwriting-related general and administrative expenses	87,822			29,464			117,286			178,270			60,816			239,086
Total underwriting expenses	494,826			432,153			926,979			940,333			905,179			1,845,512
UNDERWRITING INCOME (LOSS)	$	(482	)	$	57,494		$	57,012		$	12,483		$	60,916		$	73,399
KEY RATIOS
Current accident year loss ratio	69.9		%	67.9		%	68.9		%	67.3		%	68.9		%	68.1		%
Prior period reserve development	(3.9		%)	(10.6		%)	(7.2		%)	(3.0		%)	(6.9		%)	(5.0		%)
Net loss and loss expense ratio	66.0		%	57.3		%	61.7		%	64.3		%	62.0		%	63.1		%
Acquisition cost ratio	16.5		%	25.2		%	20.8		%	15.7		%	25.3		%	20.5		%
Underwriting-related general and administrative expense ratio	17.7		%	6.1		%	12.0		%	18.7		%	6.2		%	12.6		%
Corporate expense ratio							3.1		%							3.6		%
Combined ratio	100.2		%	88.6		%	97.6		%	98.7		%	93.5		%	99.8		%

4

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS

															Six months ended June 30,
	Q2 2017		Q1 2017		Q4 2016			Q3 2016		Q2 2016			Q2 2015		2017		2016
INSURANCE SEGMENT
Property	$	198,681	$	144,564	$	150,511		$	164,605	$	211,183		$	196,817	$	343,245	$	357,775
Marine	73,921		65,601		34,311			33,677		84,089			85,483		139,522		157,621
Terrorism	10,509		11,814		10,056			9,394		11,650			6,610		22,323		18,696
Aviation	21,037		14,583		16,062			9,684		8,326			9,519		35,620		27,427
Credit and Political Risk	15,139		16,172		15,631			5,423		19,960			12,981		31,311		28,877
Professional Lines	244,119		155,469		254,942			204,926		240,040			251,730		399,588		385,491
Liability	136,725		90,603		94,233			108,447		118,464			112,870		227,328		202,350
Accident and Health	95,892		195,200		31,700			139,274		90,305			85,116		291,093		259,128
TOTAL INSURANCE SEGMENT	796,023		694,006		607,446			675,430		784,017			761,126		1,490,030		1,437,365
REINSURANCE SEGMENT
Catastrophe	135,560		185,935		8,193			46,338		123,507			95,653		321,494		270,354
Property	56,723		194,541		(1,020		)	61,957		45,424			58,258		251,264		221,598
Professional Lines	120,584		77,012		33,309			19,479		126,840			94,152		197,596		215,614
Credit and Surety	25,143		119,925		3,975			36,174		20,816			16,210		145,067		278,928
Motor	42,093		291,423		7,683			13,344		3,638			14,196		333,516		325,060
Liability	118,095		111,821		57,109			91,387		124,003			57,730		229,916		273,993
Agriculture	58,094		149,191		6,963			1,286		87,372			72,709		207,285		150,030
Engineering	7,347		40,533		12,173			13,588		8,342			15,707		47,880		43,131
Marine and Other	2,665		47,484		(5,181		)	979		(3,525		)	2,672		50,151		63,522
TOTAL REINSURANCE SEGMENT	566,304		1,217,865		123,204			284,532		536,417			427,287		1,784,169		1,842,230
CONSOLIDATED TOTAL	$	1,362,327	$	1,911,871	$	730,650		$	959,962	$	1,320,434		$	1,188,413	$	3,274,199	$	3,279,595

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
UNDERWRITING REVENUES
Gross premiums written	$	796,023		$	694,006		$	607,446		$	675,430		$	784,017		$	761,126
Net premiums written	527,678			505,329			374,068			433,131			526,764			534,263
Gross premiums earned	716,176			679,105			680,000			668,820			656,107			649,053
Ceded premiums expensed	(222,340		)	(220,675		)	(225,328		)	(224,129		)	(216,828		)	(196,731		)
Net premiums earned	493,836			458,430			454,672			444,691			439,279			452,322
Other insurance related income (loss)	508			42			146			39			(234		)	269
Total underwriting revenues	494,344			458,472			454,818			444,730			439,045			452,591
UNDERWRITING EXPENSES
Net losses and loss expenses	325,728			286,903			288,161			273,226			306,141			297,534
Acquisition costs	81,276			68,157			66,138			61,755			61,829			66,920
General and administrative expenses	87,822			90,448			94,205			84,588			82,487			88,420
Total underwriting expenses	494,826			445,508			448,504			419,569			450,457			452,874
UNDERWRITING INCOME (LOSS)	$	(482	)	$	12,964		$	6,314		$	25,161		$	(11,412	)	$	(283	)
KEY RATIOS
Current accident year loss ratio	69.9		%	64.5		%	66.2		%	66.1		%	74.3		%	69.2		%
Prior period reserve development	(3.9		%)	(1.9		%)	(2.8		%)	(4.7		%)	(4.6		%)	(3.4		%)
Net loss and loss expense ratio	66.0		%	62.6		%	63.4		%	61.4		%	69.7		%	65.8		%
Acquisition cost ratio	16.5		%	14.9		%	14.5		%	13.9		%	14.1		%	14.8		%
General and administrative expense ratio	17.7		%	19.7		%	20.7		%	19.1		%	18.7		%	19.5		%
Combined ratio	100.2		%	97.2		%	98.6		%	94.4		%	102.5		%	100.1		%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
UNDERWRITING REVENUES
Gross premiums written	$	566,304		$	1,217,865		$	123,204		$	284,532		$	536,417		$	427,287
Net premiums written	428,339			1,003,630			90,319			162,300			480,586			412,281
Gross premiums earned	584,472			566,564			533,623			546,006			541,615			509,702
Ceded premiums expensed	(96,877		)	(86,291		)	(66,416		)	(56,282		)	(33,904		)	(20,813		)
Net premiums earned	487,595			480,273			467,207			489,724			507,711			488,889
Other insurance related income (loss)	2,052			(3,825		)	2,226			5,905			(658		)	3,217
Total underwriting revenues	489,647			476,448			469,433			495,629			507,053			492,106
UNDERWRITING EXPENSES
Net losses and loss expenses	279,604			320,039			252,451			259,102			326,153			282,619
Acquisition costs	123,085			121,635			121,167			128,055			127,296			116,343
General and administrative expenses	29,464			31,353			35,864			29,635			32,332			36,013
Total underwriting expenses	432,153			473,027			409,482			416,792			485,781			434,975
UNDERWRITING INCOME	$	57,494		$	3,421		$	59,951		$	78,837		$	21,272		$	57,131
KEY RATIOS
Current accident year loss ratio	67.9		%	70.0		%	65.9		%	64.2		%	75.6		%	67.9		%
Prior period reserve development	(10.6		%)	(3.4		%)	(11.9		%)	(11.3		%)	(11.4		%)	(10.1		%)
Net loss and loss expense ratio	57.3		%	66.6		%	54.0		%	52.9		%	64.2		%	57.8		%
Acquisition cost ratio	25.2		%	25.3		%	25.9		%	26.1		%	25.1		%	23.8		%
General and administrative expense ratio	6.1		%	6.6		%	7.7		%	6.1		%	6.4		%	7.4		%
Combined ratio	88.6		%	98.5		%	87.6		%	85.1		%	95.7		%	89.0		%

7

AXIS Capital Holdings Limited

REINSURANCE SEGMENT - STRATEGIC CAPITAL PARTNERS

	Quarter ended June 30,				Six months ended June 30,
TOTAL MANAGED PREMIUMS [a]	2017		2016		2017		2016
Total Managed Premiums	$	566,304	$	536,417	$	1,784,169	$	1,842,230
Premiums ceded to Harrington Re	62,241		—		122,675		—
Premiums ceded to Other Strategic Capital Partners	75,724		55,831		229,526		149,000
Net premiums written	$	428,339	$	480,586	$	1,431,968	$	1,693,230
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income	$	11,604	$	985	$	22,745	$	6,915

[a] Total managed premiums represented gross premiums written by the AXIS Reinsurance segment of $566,304 and $536,417 for the three months ended June 30, 2017 and 2016, respectively, and $1,784,169 and $1,842,230 for the six months ended June 30, 2017 and 2016, respectively, including premiums written on behalf of our strategic capital partners.

[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses due to the AXIS Reinsurance segment from its strategic capital partners. Fee income from strategic capital partners consisted of $4,855 and $9,225 included in other insurance related income for the three and six months ended June 30, 2017, respectively, and included $6,749 and $13,520 as an offset to general and administrative expenses for the three and six months ended June 30, 2017, respectively. Fee income from strategic capital partners for prior periods is included in acquisition costs.

8

AXIS Capital Holdings Limited

NET INVESTMENT INCOME

																			Six months ended June 30,
	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015			2017			2016
Fixed maturities	$	78,218		$	77,407		$	76,036		$	75,827		$	77,621		$	77,998		$	155,625		$	153,596
Other investments	23,639			18,962			16,744			38,248			14,401			14,102			42,601			(12,477		)
Equity securities	4,347			3,478			3,462			4,633			3,065			2,674			7,825			8,210
Mortgage loans	2,597			2,477			2,313			2,191			1,807			281			5,074			3,492
Cash and cash equivalents	3,433			3,095			2,138			3,768			1,868			1,678			6,529			3,303
Short-term investments	660			438			1,353			337			165			125			1,098			371
Gross investment income	112,894			105,857			102,046			125,004			98,927			96,858			218,752			156,495
Investment expenses	(6,831		)	(7,193		)	(6,529		)	(8,081		)	(7,197		)	(8,314		)	(14,024		)	(15,599		)
Net investment income	$	106,063		$	98,664		$	95,517		$	116,923		$	91,730		$	88,544		$	204,728		$	140,896

9

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2017			2017			2016			2016			2016			2015
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,424,295		$	11,191,529		$	11,397,114		$	11,566,860		$	11,563,216		$	12,005,736
Equity securities, available for sale, at fair value	738,489			653,419			638,744			644,344			626,371			659,181
Mortgage loans, held for investment, at amortized cost and fair value	349,916			339,855			349,969			332,753			327,315			79,606
Other investments, at fair value	813,617			780,395			830,219			847,262			865,406			853,101
Equity method investments	109,258			111,233			116,000			111,295			113,729			9,888
Short-term investments, at amortized cost and fair value	10,146			13,338			127,461			39,877			41,086			30,618
Total investments	13,445,721			13,089,769			13,459,507			13,542,391			13,537,123			13,638,611
Cash and cash equivalents	1,015,270			1,451,570			1,241,507			1,077,263			993,472			1,180,059
Accrued interest receivable	72,626			69,649			74,971			71,096			71,770			78,409
Insurance and reinsurance premium balances receivable	3,050,222			2,891,811			2,313,512			2,694,976			2,885,606			2,394,037
Reinsurance recoverable on paid and unpaid losses	2,184,934			2,070,341			2,334,922			2,336,741			2,270,776			2,063,087
Deferred acquisition costs	591,397			609,773			438,636			545,618			624,638			594,863
Prepaid reinsurance premiums	733,836			645,663			556,344			582,551			498,299			387,639
Receivable for investments sold	18,754			40,448			14,123			2,285			3,569			1,304
Goodwill and intangible assets	86,220			84,613			85,049			85,501			85,954			101,053
Other assets	300,658			293,330			295,120			283,969			278,233			265,813
TOTAL ASSETS	$	21,499,638		$	21,246,967		$	20,813,691		$	21,222,391		$	21,249,440		$	20,704,875
LIABILITIES
Reserve for losses and loss expenses	$	9,878,662		$	9,541,963		$	9,697,827		$	9,874,807		$	9,782,304		$	9,693,440
Unearned premiums	3,704,003			3,629,354			2,969,498			3,453,655			3,708,603			3,324,578
Insurance and reinsurance balances payable	677,204			514,356			493,183			461,519			416,017			296,794
Senior notes	993,511			993,229			992,950			992,633			992,361			991,302
Payable for investments purchased	95,865			83,783			62,550			141,245			144,040			213,142
Other liabilities	257,698			253,917			325,313			272,874			241,932			237,061
TOTAL LIABILITIES	15,606,943			15,016,602			14,541,321			15,196,733			15,285,257			14,756,317
SHAREHOLDERS’ EQUITY
Preferred shares	775,000			1,126,074			1,126,074			625,000			625,000			627,843
Common shares	2,206			2,206			2,206			2,206			2,206			2,201
Additional paid-in capital	2,283,523			2,276,671			2,299,857			2,307,866			2,302,557			2,285,772
Accumulated other comprehensive income (loss)	84,306			699			(121,841		)	98,505			63,089			(78,067		)
Retained earnings	6,551,801			6,499,262			6,527,627			6,430,573			6,285,803			5,875,147
Treasury shares, at cost	(3,804,141		)	(3,674,547		)	(3,561,553		)	(3,438,492		)	(3,314,472		)	(2,764,338		)
TOTAL SHAREHOLDERS' EQUITY	5,892,695			6,230,365			6,272,370			6,025,658			5,964,183			5,948,558
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	21,499,638		$	21,246,967		$	20,813,691		$	21,222,391		$	21,249,440		$	20,704,875
Basic common shares outstanding	83,203			85,170			86,441			88,439			90,654			100,284
Diluted common shares outstanding	84,655			86,670			88,317			90,363			92,667			102,690
Book value per common share		$61.51			$59.93			$59.54			$61.07			$58.90			$53.06
Diluted book value per common share	60.45			58.89			58.27			59.77			57.62			51.81
Diluted tangible book value per common share		$59.44			$57.92			$57.31			$58.82			$56.69			$50.83
Debt to total capital [a]	14.4		%	13.7		%	13.7		%	14.1		%	14.3		%	14.3		%
Debt and preferred equity to total capital	25.7		%	29.3		%	29.2		%	23.0		%	23.2		%	23.3		%

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

10

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At June 30, 2017

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value			Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,644,697	$	2,822	$	(15,507	)	$	1,632,012		11.3	%
Non-U.S. government	545,812		9,988		(18,279		)	537,521			3.7	%
Corporate debt	4,707,988		60,389		(32,210		)	4,736,167			32.8	%
Agency RMBS	2,314,585		11,654		(23,983		)	2,302,256			15.9	%
CMBS	649,645		6,312		(2,150		)	653,807			4.5	%
Non-Agency RMBS	46,658		1,831		(1,071		)	47,418			0.3	%
ABS	1,370,118		3,772		(1,000		)	1,372,890			9.5	%
Municipals	141,307		1,471		(554		)	142,224			1.0	%
Total fixed maturities	11,420,810		98,239		(94,754		)	11,424,295			79.0	%
Equity securities, available for sale
Common stocks	13,533		779		(565		)	13,747			0.1	%
Exchange traded funds	457,562		84,472		—			542,034			3.7	%
Bond mutual funds	180,561		3,325		(1,178		)	182,708			1.3	%
Total equity securities	651,656		88,576		(1,743		)	738,489			5.1	%
Total available for sale investments	$	12,072,466	$	186,815	$	(96,497	)	12,162,784			84.1	%
Mortgage loans, held for investment								349,916			2.4	%
Other investments (see below)								813,617			5.6	%
Equity method investments								109,258			0.8	%
Short-term investments								10,146			0.1	%
Total investments								13,445,721			93.0	%
Cash and cash equivalents [a]								1,015,270			7.0	%
Accrued interest receivable								72,626			0.5	%
Net receivable/(payable) for investments sold (purchased)								(77,111		)	(0.5	%)
Total cash and invested assets								$	14,456,506		100.0	%
								Fair Value			Percentage
Other Investments:
Long/short equity funds								$	61,372		7.5	%
Multi-strategy funds								284,028			34.9	%
Event-driven funds								49,763			6.1	%
Direct lending funds								209,316			25.7	%
Real estate funds								44,384			5.5	%
Private equity funds								74,740			9.2	%
Other privately held investments								42,938			5.3	%
Collateralized loan obligations - equity tranches								47,076			5.8	%
Total								$	813,617		100.0	%

[a] Includes $287 million of restricted cash and cash equivalents.

11

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

	Q2 2017		Q1 2017		Q4 2016		Q3 2016		Q2 2016		Q2 2015
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency	11.3	%	11.5	%	11.4	%	10.8	%	10.5	%	11.5	%
Non-U.S. government	3.7	%	3.8	%	3.8	%	4.0	%	4.4	%	6.1	%
Corporate debt	32.8	%	30.5	%	31.2	%	31.4	%	30.4	%	30.0	%
MBS:
Agency RMBS	15.9	%	15.6	%	16.7	%	17.3	%	16.5	%	14.5	%
CMBS	4.5	%	4.7	%	4.5	%	6.1	%	7.5	%	7.5	%
Non-agency RMBS	0.3	%	0.4	%	0.4	%	0.5	%	0.6	%	0.7	%
ABS	9.5	%	9.4	%	8.3	%	8.5	%	9.0	%	9.7	%
Municipals	1.0	%	0.9	%	1.1	%	0.9	%	1.1	%	1.7	%
Total Fixed Maturities	79.0	%	76.8	%	77.4	%	79.5	%	80.0	%	81.7	%
Equity securities	5.1	%	4.5	%	4.3	%	4.4	%	4.3	%	4.5	%
Mortgage loans	2.4	%	2.3	%	2.4	%	2.3	%	2.3	%	0.5	%
Other investments	5.6	%	5.4	%	5.6	%	5.8	%	6.0	%	5.8	%
Equity method investments	0.8	%	0.8	%	0.8	%	0.8	%	0.8	%	—	%
Short-term investments	0.1	%	0.1	%	0.9	%	0.3	%	0.2	%	0.4	%
Total Investments	93.0	%	89.9	%	91.4	%	93.1	%	93.6	%	92.9	%
Cash and cash equivalents	7.0	%	10.0	%	8.4	%	7.4	%	6.9	%	8.0	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%
Net receivable/(payable) for investments sold or purchased	(0.5	%)	(0.4	%)	(0.3	%)	(1.0	%)	(1.0	%)	(1.4	%)
Total Cash and Invested Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
CREDIT QUALITY OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
U.S. government and agency	14.3	%	15.2	%	14.5	%	13.5	%	13.1	%	14.0	%
AAA	38.1	%	37.8	%	36.5	%	37.7	%	37.9	%	35.8	%
AA	8.1	%	8.7	%	9.9	%	10.1	%	10.5	%	10.5	%
A	15.8	%	14.7	%	15.3	%	15.3	%	16.0	%	18.4	%
BBB	14.7	%	14.1	%	13.7	%	13.9	%	13.2	%	12.3	%
Below BBB	9.0	%	9.5	%	10.1	%	9.5	%	9.3	%	9.0	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
MATURITY PROFILE OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
Within one year	3.5	%	2.9	%	2.7	%	3.0	%	2.8	%	4.5	%
From one to five years	36.2	%	35.8	%	33.8	%	32.9	%	32.6	%	36.4	%
From five to ten years	20.0	%	19.7	%	22.0	%	20.2	%	19.8	%	16.7	%
Above ten years	2.0	%	2.6	%	2.8	%	3.1	%	2.9	%	2.7	%
Asset-backed and mortgage-backed securities	38.3	%	39.0	%	38.7	%	40.8	%	41.9	%	39.7	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.6	%	2.7	%	2.6	%	2.6	%	2.6	%	2.5	%
Yield to maturity of fixed maturities	2.6	%	2.7	%	2.8	%	2.3	%	2.3	%	2.5	%
Average duration of fixed maturities (inclusive of duration hedges)	3.1 yrs		3.3 yrs		3.5 yrs		3.2 yrs		3.1 yrs		3.2 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

12

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At June 30, 2017

				Corporate Debt
	Governments and Agencies			Financials		Non-Financials		Government Guaranteed		Total		Agency RMBS		Non-Agency RMBS/CMBS		ABS		Total Fixed Maturities		Equities			Total Fixed Maturities and Equities
Composition by country
Eurozone countries:
Netherlands	$	27,242		$	27,799	$	88,789	$	—	$	116,588	$	—	$	—	$	—	$	143,830	$	1,324		$	145,154
Germany	56,779			5,927		22,263		6,327		34,517		—		—		—		91,296		1,533			92,829
Luxembourg	—			225		41,137		—		41,362		—		—		—		41,362		—			41,362
Belgium	30,900			588		19,871		—		20,459		—		—		—		51,359		463			51,822
France	—			11,934		33,819		—		45,753		—		—		—		45,753		4,020			49,773
Ireland	—			18,112		16,211		—		34,323		—		—		4,236		38,559		80			38,639
Italy	6,992			2,570		5,152		—		7,722		—		—		—		14,714		745			15,459
Spain	2,784			8,460		3,250		—		11,710		—		—		—		14,494		398			14,892
Supranational [a]	11,878			—		—		—		—		—		—		—		11,878		—			11,878
Austria	—			992		2,336		—		3,328		—		—		—		3,328		217			3,545
Portugal	—			—		891		—		891		—		—		—		891		—			891
Finland	—			—		—		—		—		—		—		—		—		233			233
Other [b]	—			—		—		—		—		—		—		—		—		98,278			98,278
Total eurozone	136,575			76,607		233,719		6,327		316,653		—		—		4,236		457,464		107,291			564,755
Other concentrations:
Canada	97,174			96,292		88,153		67,296		251,741		—		—		5,906		354,821		—			354,821
United Kingdom	132,218			57,313		113,264		20,328		190,905		—		12,623		—		335,746		14,369			350,115
Japan	—			97,233		3,634		6,840		107,707		—		—		7,601		115,308		26,634			141,942
Australia	—			63,457		15,684		—		79,141		—		—		—		79,141		—			79,141
Mexico	41,047			—		1,463		—		1,463		—		—		—		42,510		—			42,510
Other	130,507			18,355		77,145		11,540		107,040		—		—		—		237,547		32,338		[c]	269,885
Total other concentrations	400,946			332,650		299,343		106,004		737,997		—		12,623		13,507		1,165,073		73,341			1,238,414
Total Non-U.S. concentrations	537,521			409,257		533,062		112,331		1,054,650		—		12,623		17,743		1,622,537		180,632			1,803,169
United States	1,565,515		[d]	1,457,853		2,223,664		—		3,681,517		2,302,256		688,602		1,355,147		9,593,037		557,857		[e]	10,150,894
United States agencies	66,497			—		—		—		—		—		—		—		66,497		—			66,497
United States local governments	142,224			—		—		—		—		—		—		—		142,224		—			142,224
Total U.S. concentrations	1,774,236			1,457,853		2,223,664		—		3,681,517		2,302,256		688,602		1,355,147		9,801,758		557,857			10,359,615
Totals	$	2,311,757		$	1,867,110	$	2,756,726	$	112,331	$	4,736,167	$	2,302,256	$	701,225	$	1,372,890	$	11,424,295	$	738,489		$	12,162,784

[a] Represents holdings of the European Investment Bank.

[b] Represents holdings in exchange-traded funds ("ETFs"). The primary countries of risk for these underlying securities are countries within the eurozone.

[c] Represents exchange-traded funds ("ETFs") designed to track indexes with primary underlying exposures to countries other than the United States and those within the eurozone.

[d] Represents United States Treasuries.

[e] Represents ETFs designed to track the S&P 500 and a U.S. bond mutual fund.

13

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At June 30, 2017

	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking	$	1,042,187	22.0	%	7.2	%
Foreign banking [a]	303,627		6.4	%	2.1	%
Corporate/commercial finance	223,364		4.7	%	1.5	%
Insurance	133,630		2.8	%	0.9	%
Investment brokerage	11,632		0.2	%	0.1	%
Total financial institutions	1,714,440		36.1	%	11.8	%
Consumer non-cyclicals	526,723		11.1	%	3.6	%
Consumer cyclical	349,225		7.4	%	2.4	%
Communications	271,166		5.7	%	1.9	%
Technology	249,621		5.3	%	1.7	%
Energy	201,215		4.2	%	1.4	%
Non-U.S. government guaranteed [b]	112,331		2.4	%	0.8	%
Transportation	110,292		2.3	%	0.8	%
Industrials	114,584		2.4	%	0.8	%
Utilities	98,227		2.1	%	0.7	%
Total investment grade	3,747,824		79.0	%	25.9	%
Total non-investment grade	988,343		21.0	%	6.9	%
Total corporate debt	$	4,736,167	100.0	%	32.8	%

[a] Located in Japan, Canada, Australia, United Kingdom, Switzerland, Chile, Norway, Germany, France, Netherlands and Italy.

[b] Includes $6 million from Germany. No other corporate debt guaranteed by a eurozone country.

14

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At June 30, 2017

	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value		% of Total Fixed  Maturities
ISSUER [a]
MORGAN STANLEY	$	145,200	$	141		$	145,341	1.3	%
JP MORGAN CHASE & CO	131,442		605			132,047		1.2	%
GOLDMAN SACHS GROUP	128,459		(8		)	128,451		1.1	%
WELLS FARGO & COMPANY	123,687		295			123,982		1.1	%
BANK OF AMERICA CORP	87,273		145			87,418		0.8	%
FORD MOTOR COMPANY	61,563		(756		)	60,807		0.5	%
VERIZON COMMUNICATIONS INC	56,228		(417		)	55,811		0.5	%
ANHEUSER-BUSCH INBEV	53,208		182			53,390		0.5	%
AMERICAN EXPRESS COMPANY	48,438		253			48,691		0.4	%
GENERAL MOTORS COMPANY	47,321		705			48,026		0.4	%

[a] The 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.

15

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At June 30, 2017

	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total
Residential MBS	$	2,302,256		$	18,758		$	920		$	2,281		$	7,508		$	17,951		$	2,349,674
Commercial MBS	109,796			431,642			74,861			32,572			4,936			—			653,807
ABS	—			1,103,480			201,145			40,262			21,591			6,412			1,372,890
Total mortgage-backed and asset-backed securities	$	2,412,052		$	1,553,880		$	276,926		$	75,115		$	34,035		$	24,363		$	4,376,371
Percentage of total	55.1		%	35.5		%	6.3		%	1.7		%	0.8		%	0.6		%	100.0		%

16

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	59,391		$	26,009		$	40,413		$	32,853		$	32,499		$	38,639
Reinsurance	14,674			15,301			18,400			27,096			16,257			2,389
Total	$	74,065		$	41,310		$	58,813		$	59,949		$	48,756		$	41,028
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	563,510		$	576,914		$	723,265		$	712,987		$	712,844		$	668,053
Reinsurance	45,525			39,069			36,326			31,789			31,324			9,143
Total	$	609,035		$	615,983		$	759,591		$	744,776		$	744,168		$	677,196
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,406,141		$	1,366,078		$	1,489,953		$	1,523,537		$	1,480,265		$	1,327,163
Reinsurance	113,483			67,121			46,955			28,700			17,880			34,889
Total	$	1,519,624		$	1,433,199		$	1,536,908		$	1,552,237		$	1,498,145		$	1,362,052
Provision against reinsurance recoverables:
Insurance	$	(17,629	)	$	(20,017	)	$	(19,889	)	$	(20,087	)	$	(20,233	)	$	(17,189	)
Reinsurance	(161		)	(134		)	(501		)	(134		)	(60		)	—
Total	$	(17,790	)	$	(20,151	)	$	(20,390	)	$	(20,221	)	$	(20,293	)	$	(17,189	)
Net reinsurance recoverables:
Insurance	$	2,011,413		$	1,948,984		$	2,233,742		$	2,249,290		$	2,205,375		$	2,016,666
Reinsurance	173,521			121,357			101,180			87,451			65,401			46,421
Total	$	2,184,934		$	2,070,341		$	2,334,922		$	2,336,741		$	2,270,776		$	2,063,087

17

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At June 30, 2017

Categories	Gross Recoverable		Collateral			Gross Recoverable Net of Collateral		% of  Total Gross Recoverable Net  of Collateral	% of  Total Shareholders’ Equity	Provision Against Reinsurance Recoverable			Provision Against  Reinsurance Recoverable as % of Gross Recoverable	Net Recoverable
Top 10 reinsurers based on gross recoverables	$	1,393,838	$	(58,685	)	$	1,335,153	67.5%	22.7%	$	(11,974	)	0.9%	$	1,381,864
Other reinsurers balances > $20 million	531,003		(94,976		)	436,027		22.0%	7.4%	(3,131		)	0.6%	527,872
Other reinsurers balances < $20 million	277,882		(69,722		)	208,160		10.5%	3.5%	(2,684		)	1.0%	275,198
Total	$	2,202,723	$	(223,383	)	$	1,979,340	100.0%	33.6%	$	(17,789	)	0.8%	$	2,184,934

At June 30, 2017, 95.1% (December 31, 2016: 96.7%) of our gross recoverables were collectible from reinsurers rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral)	% of  Total Gross Recoverable Net  of Collateral	% of  Total Shareholders’ Equity
Swiss Reinsurance America Corporation	17.8%	6.0%
Transatlantic Reinsurance Company	9.9%	3.3%
Partner Reinsurance Company of the US	9.7%	3.3%
Lloyds of London	8.1%	2.7%
Berkley Insurance Company	4.9%	1.7%
Hannover Ruck SE	4.3%	1.5%
Everest Reinsurance Company	3.9%	1.3%
Liberty Mutual Insurance Company	3.7%	1.2%
Munich Reinsurance America, Inc	3.7%	1.2%
Ace Property & Casualty Insurance Company	3.1%	1.0%
	69.1%	23.2%

18

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Quarter ended June 30, 2017									Six months ended June 30, 2017
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for unpaid losses and loss expenses
Beginning of period	$	9,541,963		$	(2,029,031	)	$	7,512,932		$	9,697,827		$	(2,276,109	)	$	7,421,718
Incurred	797,326			(191,994		)	605,332			1,572,524			(360,251		)	1,212,273
Paid	(678,813		)	122,168			(556,645		)	(1,440,462		)	331,291			(1,109,171		)
Foreign exchange and other	218,186			(12,012		)	206,174			48,773			194,200			242,973
End of period [a]	$	9,878,662		$	(2,110,869	)	$	7,767,793		$	9,878,662		$	(2,110,869	)	$	7,767,793

[a] At June 30, 2017, the gross reserve for losses and loss expenses included IBNR of $6,482 million, or 66%, of total gross reserves for loss and loss expenses. At December 31, 2016, the comparable amount was $6,339 million, or 65%.

19

AXIS Capital Holdings Limited

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

	Quarter ended June 30, 2017									Six months ended June 30, 2017
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross losses paid	$	424,631		$	254,182		$	678,813		$	942,339		$	498,123		$	1,440,462
Reinsurance recoveries	(118,232		)	(3,936		)	(122,168		)	(321,997		)	(9,294		)	(331,291		)
Net losses paid	306,399			250,246			556,645			620,342			488,829			1,109,171
Change in:
Reported case reserves	(57,989		)	90,172			32,183			(129,814		)	89,008			(40,806		)
IBNR	95,220			(8,890		)	86,330			76,268			96,600			172,868
Reinsurance recoveries on unpaid loss and loss expense reserves	(17,902		)	(51,924		)	(69,826		)	45,834			(74,794		)	(28,960		)
Total net incurred losses and loss expenses	$	325,728		$	279,604		$	605,332		$	612,630		$	599,643		$	1,212,273
Gross reserve for losses and loss expenses	$	5,200,224		$	4,678,438		$	9,878,662		$	5,200,224		$	4,678,438		$	9,878,662
Net favorable prior year reserve development	$	19,517		$	51,416		$	70,933		$	28,137		$	67,590		$	95,727
Key Ratios
Net paid to net incurred percentage	94.1		%	89.5		%	92.0		%	101.3		%	81.5		%	91.5		%
Net paid losses / Net premiums earned	62.0		%	51.3		%	56.7		%	65.1		%	50.5		%	57.8		%
Change in net loss and loss expense reserves / Net premiums earned	4.0		%	6.0		%	5.0		%	(0.8		%)	11.5		%	5.3		%
Net loss and loss expense ratio	66.0		%	57.3		%	61.7		%	64.3		%	62.0		%	63.1		%

20

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
Gross losses paid	$	424,631		$	517,708		$	456,485		$	365,160		$	348,028		$	365,887
Reinsurance recoveries	(118,232		)	(203,766		)	(121,990		)	(102,625		)	(102,793		)	(112,071		)
Net losses paid	306,399			313,942			334,495			262,535			245,235			253,816
Change in:
Reported case reserves	(57,989		)	(71,825		)	37,738			(5,561		)	80,645			110,735
IBNR	95,220			(18,949		)	(88,366		)	55,505			(22,023		)	17,744
Reinsurance recoveries on unpaid loss and loss expense reserves	(17,902		)	63,735			4,294			(39,253		)	2,284			(84,761		)
Total net incurred losses and loss expenses	$	325,728		$	286,903		$	288,161		$	273,226		$	306,141		$	297,534
Gross reserve for losses and loss expenses	$	5,200,224		$	5,055,410		$	5,345,655		$	5,430,238		$	5,384,944		$	5,262,956
Net favorable prior year reserve development	$	19,517		$	8,619		$	12,725		$	20,688		$	20,066		$	15,421
Key Ratios
Net paid to net incurred percentage	94.1		%	109.4		%	116.1		%	96.1		%	80.1		%	85.3		%
Net paid losses/Net premiums earned	62.0		%	68.5		%	73.6		%	59.0		%	55.8		%	56.1		%
Change in net loss and loss expense reserves / Net premiums earned	4.0		%	(5.9		%)	(10.2		%)	2.4		%	13.9		%	9.7		%
Net loss and loss expense ratio	66.0		%	62.6		%	63.4		%	61.4		%	69.7		%	65.8		%

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AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
Gross losses paid	$	254,182		$	243,941		$	297,741		$	231,506		$	286,391		$	256,376
Reinsurance recoveries	(3,936		)	(5,358		)	(8,284		)	(5,463		)	(8,579		)	(5,798		)
Net losses paid	250,246			238,583			289,457			226,043			277,812			250,578
Change in:
Reported case reserves	90,172			(1,164		)	37,735			20,139			11,968			(10,675		)
IBNR	(8,890		)	105,490			(50,686		)	23,473			46,615			52,179
Reinsurance recoveries on unpaid loss and loss expense reserves	(51,924		)	(22,870		)	(24,055		)	(10,553		)	(10,242		)	(9,463		)
Total net incurred losses and loss expenses	$	279,604		$	320,039		$	252,451		$	259,102		$	326,153		$	282,619
Gross reserve for losses and loss expenses	$	4,678,438		$	4,486,553		$	4,352,172		$	4,444,569		$	4,397,360		$	4,430,484
Net favorable prior year reserve development	$	51,416		$	16,174		$	55,522		$	55,331		$	57,653		$	49,192
Key Ratios
Net paid to net incurred percentage	89.5		%	74.5		%	114.7		%	87.2		%	85.2		%	88.7		%
Net paid losses / Net premiums earned	51.3		%	49.7		%	62.0		%	46.2		%	54.7		%	51.3		%
Change in net loss and loss expense reserves / Net premiums earned	6.0		%	16.9		%	(8.0		%)	6.7		%	9.5		%	6.5		%
Net loss and loss expense ratio	57.3		%	66.6		%	54.0		%	52.9		%	64.2		%	57.8		%

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AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF JULY 1, 2017

		Estimated Net Exposures (millions of U.S. dollars)
Territory	Peril	50 Year Return Period		100 Year Return Period		250 Year Return Period
Single zone, single event
Southeast	U.S. Hurricane	$	473	$	531	$	680
Northeast	U.S. Hurricane	39		118		281
Mid-Atlantic	U.S. Hurricane	107		304		541
Gulf of Mexico	U.S. Hurricane	316		388		462
California	Earthquake	318		439		518
Europe	Windstorm	169		231		310
Japan	Earthquake	150		188		303
Japan	Windstorm	48		81		116

The above table 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 July 1, 2017. 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 $0.5 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.5 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.5 billion.

We have developed our PML estimates using multiple commercially available catastrophe vendor models, including AIR and RMS. We weight the use of these vendor models based upon our own judgment and experience, and include in our estimates non-modeled perils and other factors which we believe provide us with a more complete view of catastrophe risk.

A supplementary disclosure entitled “Overview of AXIS Natural Peril Catastrophe Risk Measurement and Management” dated August 3, 2011 is available in the Investor Information section of our website. This disclosure provides an overview of our PML methodology, including our approach to zonal aggregation, as well as information about zonal definitions commonly used by other external parties.

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, foremost by ensuring that management’s judgment supplements the model outputs. We also perform ongoing model validation both within our business units and through our catastrophe model validation unit. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.

Our 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 our own modeling, changes in our underwriting portfolios, changes to our reinsurance purchasing strategy and changes in foreign exchange rates.

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AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Quarter ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Net income available to common shareholders	$	85,030	$	119,491	$	90,045	$	157,908
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic	84,141		91,926		85,076		92,980
Dilutive share equivalents:
Stock compensation plans	370		632		571		725
Weighted average shares outstanding - diluted	84,511		92,558		85,647		93,705
EARNINGS PER COMMON SHARE
Basic		$1.01		$1.30		$1.06		$1.70
Diluted		$1.01		$1.29		$1.05		$1.69

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AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q2 2015
Net income available to common shareholders	$	85,030		$	5,014		$	130,912		$	176,644		$	119,491		$	63,349
COMMON SHARES OUTSTANDING
Common shares - at beginning of period	85,170			86,441			88,439			90,654			92,903			100,219
Shares issued, including those sourced from treasury	37			958			11			37			88			125
Shares repurchased for treasury	(2,004		)	(2,229		)	(2,009		)	(2,252		)	(2,337		)	(60		)
Common shares - at end of period	83,203			85,170			86,441			88,439			90,654			100,284
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic	84,141			86,022			87,552			89,621			91,926			100,274
Dilutive share equivalents:
Stock compensation plans	370			771			922			730			632			886
Weighted average shares outstanding - diluted	84,511			86,793			88,474			90,351			92,558			101,160
EARNINGS PER COMMON SHARE
Basic		$1.01			$0.06			$1.50			$1.97			$1.30			$0.63
Diluted		$1.01			$0.06			$1.48			$1.96			$1.29			$0.63

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AXIS Capital Holdings Limited

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

	At June 30, 2017
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$64.66
Book value per common share		$	5,117,695	83,203		$61.51
Dilutive securities: [b]
Restricted units				1,452	(1.06		)
Diluted book value per common share		$	5,117,695	84,655		$60.45
	At December 31, 2016
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$65.27
Book value per common share		$	5,146,296	86,441		$59.54
Dilutive securities: [b]
Restricted units				1,876	(1.27		)
Diluted book value per common share		$	5,146,296	88,317		$58.27

[a] Under this method unvested restricted stock units are added to determine the diluted common shares outstanding.

[b] Excludes cash-settled restricted stock unit awards.

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AXIS Capital Holdings Limited

NON-GAAP OPERATING INCOME [a]

NON-GAAP OPERATING INCOME	Quarter ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Net income available to common shareholders	$	85,030		$	119,491		$	90,045		$	157,908
Adjustment for:
Net realized investment (gains) losses	4,392			(21,010		)	29,443			45,500
Associated tax impact	58			4,591			(764		)	(107		)
Foreign exchange losses (gains)	36,118			(56,602		)	57,583			(55,986		)
Associated tax impact	(61		)	1,013			197			1,444
Bargain purchase gain	(15,044		)	—			(15,044		)	—
Associated tax impact	—			—			—			—
Non-GAAP operating income	$	110,493		$	47,483		$	161,460		$	148,759
Net earnings per share - diluted	$	1.01		$	1.29		$	1.05		$	1.69
Adjustment for:
Net realized investment (gains) losses	0.05			(0.23		)	0.34			0.49
Associated tax impact	—			0.05			—			(0.01		)
Foreign exchange losses (gains)	0.43			(0.61		)	0.67			(0.60		)
Associated tax impact	—			0.01			0.01			0.02
Bargain purchase gain	(0.18		)	—			(0.18		)	—
Associated tax impact	$	—		$	—		$	—		$	—
Non-GAAP operating income per share - diluted	$	1.31		$	0.51		$	1.89		$	1.59
Weighted average common shares and common share equivalents - diluted	84,511			92,558			85,647			93,705
Average common shareholders' equity	$	5,110,993		$	5,332,221		$	5,131,996		$	5,289,111
Annualized return on average common equity	6.7		%	9.0		%	3.5		%	6.0		%
Annualized non-GAAP operating return on average common equity	8.6		%	3.6		%	6.3		%	5.6		%

[a] Non-GAAP operating income is a “non-GAAP financial measure” as defined by Regulation G. Reconciliation of non-GAAP operating income to net income available to common shareholders is presented above.

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AXIS Capital Holdings Limited

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [a]
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2017			2017			2016			2016			2016			2015
Common shareholders' equity	$	5,117,695		$	5,104,291		$	5,146,296		$	5,400,658		$	5,339,183		$	5,320,715
Less: goodwill and intangible assets	(86,220		)	(84,613		)	(85,049		)	(85,501		)	(85,954		)	(101,053		)
Tangible common shareholders' equity	$	5,031,475		$	5,019,678		$	5,061,247		$	5,315,157		$	5,253,229		$	5,219,662
Outstanding diluted common shares, net of treasury shares	84,655			86,670			88,317			90,363			92,667			102,690
Diluted book value per common share	$	60.45		$	58.89		$	58.27		$	59.77		$	57.62		$	51.81
Diluted tangible book value per common share	$	59.44		$	57.92		$	57.31		$	58.82		$	56.69		$	50.83

[a] This method assumes that proceeds received upon exercise of options will be used to repurchase our common shares at the closing market price. Unvested restricted stocks and units and unrestricted phantom stock units are also added to determine the diluted common

shares outstanding. Cash-settled restricted stock unit awards are excluded.

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AXIS Capital Holdings Limited

USE OF NON-GAAP FINANCIAL MEASURES

In this document, we present non-GAAP operating income, consolidated underwriting income, underwriting-related general and administrative expenses and diluted tangible book value per common share, which are “non-GAAP financial measures” as defined in Regulation G.

Non-GAAP operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses), foreign exchange (losses) gains and bargain purchase gain. We also present diluted non-GAAP operating earnings per share and non-GAAP operating return on average common equity ("non-GAAP operating ROACE"), which are derived from the non-GAAP operating income measure. Reconciliations of non-GAAP operating income, diluted non-GAAP operating earnings per share and non-GAAP operating ROACE to the nearest GAAP financial measures (based on net income available to common shareholders) are included on the 'Non-GAAP Operating Income" section of this document.

Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative costs as expenses. Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our individual underwriting operations. While these measures are presented in the Segment Information footnote to our Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. A reconciliation of consolidated underwriting income to income before income taxes and interest in income (loss) of equity method investments (the nearest GAAP financial measure) is included in the 'Consolidated Statements of Income - Quarterly' and 'Consolidated Statements of Income - Year to Date' sections of this document. Our total general and administrative expenses (the nearest GAAP financial measure to underwriting-related general and administrative expenses) also includes corporate expenses; the two components are separately presented in the 'Consolidated Statements of Income - Quarterly' and 'Consolidated Statements of Income - Year to Date' sections of this document.

Tangible book value is defined as common shareholders' equity excluding goodwill and intangible assets. Diluted tangible book value per common share uses this measure as the numerator, with the denominator being outstanding diluted common shares calculated under the treasury stock method. A reconciliation of diluted tangible book value per common share to diluted book value per common share (the nearest GAAP financial measure) is included in the 'Diluted Tangible Book Value per Common Share' section of this document.

We present our results of operations in the way we believe will be most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. This includes the presentation of “non-GAAP operating income” (in total and on a per share basis), “non-GAAP annualized operating ROACE” (which is based on the “non-GAAP operating income” measure), "consolidated underwriting income" (which incorporates "underwriting-related general and administrative expenses") and diluted tangible book value per common share.

Non-GAAP Operating Income

Although the investment of premiums to generate income and realized investment gains (or losses) is an integral part of our operations, the determination to realize investment gains (or 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 (or losses) is somewhat opportunistic for many companies.

Foreign exchange (losses) gains in our Consolidated Statements of Operations are primarily driven by the impact of foreign exchange rate movements on net insurance-related liabilities. However, this movement is only one element of the overall impact of foreign exchange rate fluctuations on our financial position. In addition, we recognize unrealized foreign exchange (losses) gains on our available-for-sale investments in other comprehensive income and foreign exchange (losses) gains realized upon the sale of these investments in net realized investment (losses) gains. These unrealized and realized foreign exchange movements generally offset a large portion of the foreign exchange (losses) gains reported separately in earnings, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As such, the Consolidated Statements of Operations foreign exchange (losses) gains in isolation are not a fair representation of the performance of our business.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeds the fair value of consideration transferred and is not indicative of future revenues of the company.

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In this regard, certain users of our financial statements evaluate earnings excluding after-tax net realized investment gains (losses), foreign exchange (losses) gains and bargain purchase gain to understand the profitability of recurring sources of income. We believe that showing net income available to common shareholders exclusive of net realized gains (losses), foreign exchange (losses) gains and bargain purchase gain 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 analysis for the same reasons.

Consolidated Underwriting Income/Underwriting-Related General and Administrative Expenses

Corporate expenses include holding company costs necessary to support our worldwide (re)insurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our individual underwriting operations, we exclude them from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income. Interest expense and financing costs primarily relate to interest payable on our senior notes and are excluded from consolidated underwriting income for the same reason.

We evaluate our underwriting results separately from the performance of our investment portfolio. As such, we believe it appropriate to exclude net investment income and net realized investment gains (losses) from our underwriting profitability measure.

As noted above, foreign exchange (losses) gains in our Consolidated Statements of Operations primarily relate to our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange rate gains (losses) 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 and, therefore, exclude them from consolidated underwriting income.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeds the fair value of consideration transferred and should be excluded from consolidated underwriting income since it is not related to underwriting operations.

We believe that presentation of underwriting-related general and administrative expenses and consolidated underwriting income provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities.

Diluted Tangible Book Value per Common Share

Diluted tangible book value per common share removes certain effects of purchase accounting. We believe that this measure, in combination with diluted book value per common share, is useful in assessing value generated for our common shareholders.

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