AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2018

	AXIS Capital Holdings Limited
	92 Pitts Bay Road
	Pembroke HM 08 Bermuda
	Contact Information:
	Matthew Rohrmann
	Investor Contact
	(212) 940-3339
	investorrelations@axiscapital.com
	Website Information:
	www.axiscapital.com
This report is for informational purposes only. It should be read in conjunction with the documents that 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 - iv
I. Financial Highlights	1
II. Income Statements
a. GAAP Income Statement	2
b. Consolidated Statements of Operations - Quarterly	3-4
c. Consolidated Statements of Operations - Year to Date	5-6
d. Consolidated Segment Data	7
e. Gross Premiums Written by Segment by Line of Business	8
f. Segment Data - Quarterly	9-10
g. Strategic Capital Partners - Reinsurance Segment	11
h. Net Investment Income - Quarterly	12
III. Balance Sheets
a. Consolidated Balance Sheets	13
b. Cash and Invested Assets:
•    Cash and Invested Assets Portfolio	14
•    Cash and Invested Assets Composition - Quarterly	15
•    Geographic Distribution of Fixed Maturities and Equities	16
•    Corporate Debt Composition	17
•    Ten Largest Corporate Debt Holdings	18
•    Mortgage-Backed and Asset-Backed Securities Composition	19
c. Reinsurance Recoverable Analysis	20-21
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis	22
b. Paid to Incurred Analysis by Segment	23
c. Paid to Incurred Analysis by Segment - Quarterly	24-25
d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures	26
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, GAAP	27
b. Earnings Per Common Share Information and Common Shares Rollforward - Quarterly	28
c. Diluted Book Value Per Common Share Analysis - Treasury Stock Method	29
VI. Non-GAAP Financial Measures
a. Operating Income and Operating Return on Average Common Equity	30
b. Ex-PGAAP Operating Income and Ex-PGAAP Operating Return on Average Common Equity	31
c. Value of Business Acquired	32
d. Diluted Tangible Book Value Per Common Share	33
e. Use of Non-GAAP Financial Measures	34

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.

During the three months ended March 31, 2018, the Company realigned its accident and health business by integrating this business and its operations into the Company's insurance and reinsurance segments. Financial results relating to this business were previously included in the results of the insurance segment of the Company. As a result of the realignment, effective January 1, 2018, accident and health results are included in the results of both the insurance and reinsurance segments of the Company. The results are inclusive of underwriting-related general and administrative expenses attributable to the Company’s accident and health business. In addition, to facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity.

DEFINITIONS AND PRESENTATION

• All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2017 and December 31,2016 and consolidated statements of operations for the years then ended.

• Amounts may not reconcile exactly due to rounding differences.

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

• NM - Not meaningful; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This document contains "forward-looking statements" within the meaning of the federal securities laws. 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”. 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 document 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,

i

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

• the failure to realize the expected benefits or synergies relating to the Company's transformation initiative,

• changes in tax laws, and

• the other factors including but not limited to those set forth under Item 1A, ‘Risk Factors’ and Item 7, ‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’ included in our Annual Report on Form 10-K for the year ended December 31, 2017 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.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

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

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

Marine: provides cover 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 cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap & ransom and crisis management insurance.

Aviation: provides hull and liability as well as specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.

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

Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy insurance, medical malpractice and other financial insurance related covers for commercial enterprises, financial institutions 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 in addition to primary and excess of loss employers, public and products liability predominately in the UK. Target industry sectors include construction, manufacturing, transportation and trucking and other services.

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

Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. Discontinued insurance lines include Financial Institutions, Professional Indemnity, International Liability, and International Direct Property.

iii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The following are the lines of business in our reinsurance segment:

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The exposure in the underlying policies is principally property-related but other exposures including workers compensation and personal accident are also covered. The principal perils 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 principally written on an excess of loss basis.

Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in underlying personal and commercial policies 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 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 both a proportional and excess of loss basis.

Professional Lines: providescover for 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. This business is written on both a proportional and excess of loss basis.

Credit and Surety: provides 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. Credit insurance cover is provided to mortgage guaranty insurers and government sponsored entities. Cover 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 is also offered.

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

Liability: provides cover 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 covers are also written.

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 provided on both a proportional and aggregate stop loss reinsurance basis.

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.

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

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

Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued lines include Motor Reinsurance, General Liability Reinsurance, and International Facultative Property.

iv

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Quarter ended September 30,									Nine months ended September 30,
		2018			2017			Change			2018			2017			Change
HIGHLIGHTS	Gross premiums written	$	1,423,707		$	1,185,574		20.1	%		$	5,737,327		$	4,459,772		28.6	%
	Gross premiums written - Insurance	68.1		%	54.9		%	13.2		pts	50.1		%	44.0		%	6.1		pts
	Gross premiums written - Reinsurance	31.9		%	45.1		%	(13.2	)	pts	49.9		%	56.0		%	(6.1	)	pts
	Net premiums written	$	919,938		$	832,743		10.5	%		$	3,906,264		$	3,297,718		18.5	%
	Net premiums earned	$	1,224,075		$	1,017,131		20.3	%		$	3,577,026		$	2,937,265		21.8	%
	Net premiums earned - Insurance	50.2		%	41.4		%	8.8		pts	49.5		%	41.9		%	7.6		pts
	Net premiums earned - Reinsurance	49.8		%	58.6		%	(8.8	)	pts	50.5		%	58.1		%	(7.6	)	pts
	Net income (loss) available (attributable) to common shareholders	$	43,439		$	(467,740	)	nm			$	198,843		$	(377,695	)	nm
	Operating income (loss) [a]	80,790			(445,895		)	nm			309,734			(284,436		)	nm
	ROACE [b]	3.9		%	nm			nm		pts	5.9		%	(10.3		)%	16.2		pts
	Operating ROACE [c]	7.2		%	nm			nm		pts	9.1		%	(7.7		)%	16.8		pts
	Total shareholders’ equity	$	5,272,272		$	5,454,699		(3.3	%)		$	5,272,272		$	5,454,699		(3.3	%)
PER COMMON SHARE AND COMMON SHARE DATA	Earnings (loss) per diluted common share		$0.52			($5.61	)	nm				$2.37		$	(4.47	)	nm
	Operating income (loss) per diluted common share [d]		$0.96			($5.35	)	nm				$3.69			($3.37	)	nm
	Weighted average common shares outstanding - diluted	84,107			83,305			1.0	%		83,939			84,479			(0.6	%)
	Book value per common share		$53.82			$56.28		(4.4	%)			$53.82			$56.28		(4.4	%)
	Diluted book value per common share (treasury stock method)		$52.70			$55.33		(4.8	%)			$52.70		$	55.33		(4.8	%)
	Diluted tangible book value per common share (treasury stock method) [a]		$49.14			$54.30		(9.5	%)			$49.14		$	54.30		(9.5	%)
FINANCIAL RATIOS	Current accident year loss ratio excluding catastrophe and weather-related losses	61.2		%	64.8		%	(3.6	)	pts	60.4		%	64.1		%	(3.7	)	pts
	Catastrophe and weather-related losses ratio	7.5		%	61.4		%	(53.9	)	pts	4.5		%	24.1		%	(19.6	)	pts
	Current accident year loss ratio	68.7		%	126.2		%	(57.5	)	pts	64.9		%	88.2		%	(23.3	)	pts
	Prior year reserve development	(3.8		%)	(4.7		%)	0.9		pts	(4.4		%)	(4.9		%)	0.5		pts
	Net loss and loss expense ratio	64.9		%	121.5		%	(56.6	)	pts	60.5		%	83.3		%	(22.8	)	pts
	Acquisition cost ratio	20.3		%	19.1		%	1.2		pts	19.8		%	20.0		%	(0.2	)	pts
	General and administrative expense ratio	12.7		%	12.3		%	0.4		pts	13.7		%	14.8		%	(1.1	)	pts
	Combined ratio	97.9		%	152.9		%	(55.0	)	pts	94.0		%	118.1		%	(24.1	)	pts
INVESTMENT DATA	Total assets	$	24,843,026		$	21,818,150		13.9	%		$	24,843,026		$	21,818,150		13.9	%
	Total cash and invested assets [e]	15,246,193			14,647,092			4.1	%		15,246,193			14,647,092			4.1	%
	Net investment income	114,421			95,169			20.2	%		325,380			299,899			8.5	%
	Net investment gains (losses)	$	(17,628	)	$	14,632		nm			$	(77,551	)	$	(14,811	)	nm
	Book yield of fixed maturities	2.9		%	2.6		%	0.3		pts	2.9		%	2.6		%	0.3		pts

[a] Operating income (loss), operating income (loss) per diluted common share, diluted tangible book value per common share and operating return on average common equity ("operating ROACE") are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations of non-GAAP measures to the most comparable GAAP financial measures (net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, diluted book value per common share and return on average common equity ("ROACE"), respectively) are provided in this document, as is a discussion of the rationale for the presentation of these items.

[b] ROACE is calculated by dividing net income (loss) available (attributable) 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 (loss) available (attributable) to common shareholders for the quarter-periods is annualized.

[c] Operating ROACE is calculated by dividing operating income (loss) 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. Operating income (loss) for the quarter-periods is annualized.

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

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

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDEDSEPTEMBER 30,2018 AND 2017

		Three months ended September 30,						Nine months ended September 30,
		2018			2017			2018			2017
Revenues
	Net premiums earned	$	1,224,075		$	1,017,131		$	3,577,026		$	2,937,265
	Net investment income	114,421			95,169			325,380			299,899
	Net investment gains (losses)	(17,628		)	14,632			(77,551		)	(14,811		)
	Other insurance related income (losses)	8,475			(3,197		)	18,811			(4,420		)
	Bargain purchase gain	—			—			—			15,044
	Total revenues	1,329,343			1,123,735			3,843,666			3,232,977
Expenses
	Net losses and loss expenses	794,959			1,235,367			2,162,945			2,447,640
	Acquisition costs	248,314			194,724			709,527			588,879
	General and administrative expenses	154,894			124,629			489,944			433,704
	Foreign exchange losses	8,305			32,510			2,066			90,093
	Interest expense and financing costs	16,897			12,835			50,758			38,377
	Transaction and reorganization expenses	16,300			5,970			48,125			5,970
	Amortization of value of business acquired	39,018			—			149,535			—
	Amortization of intangible assets	1,753			—			8,564			—
	Total expenses	1,280,440			1,606,035			3,621,464			3,604,663
Income (loss) before income taxes and interest in income (loss) of equity method investments		48,903			(482,300		)	222,202			(371,686		)
	Income tax benefit	3,525			25,877			3,565			38,547
	Interest in income (loss) of equity method investments	1,667			(661		)	5,045			(8,402		)
Net income (loss)		54,095			(457,084		)	230,812			(341,541		)
	Preferred share dividends	10,656			10,656			31,969			36,154
Net income (loss) available (attributable) to common shareholders		$	43,439		$	(467,740	)	$	198,843		$	(377,695	)

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AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
UNDERWRITING REVENUES
Gross premiums written	$	1,423,707		$	1,650,825		$	2,662,795		$	1,096,501		$	1,185,574		$	959,962
Premiums ceded	(503,769		)	(650,370		)	(676,924		)	(367,077		)	(352,831		)	(364,531		)
Net premiums written	919,938			1,000,455			1,985,871			729,424			832,743			595,431
Gross premiums earned	1,776,379			1,688,953			1,639,833			1,699,882			1,370,035			1,214,826
Ceded premiums earned	(552,304		)	(503,405		)	(472,431		)	(488,387		)	(352,904		)	(280,411		)
Net premiums earned	1,224,075			1,185,548			1,167,402			1,211,495			1,017,131			934,415
Other insurance related income (losses)	8,475			3,730			6,606			3,180			(3,197		)	5,944
Total underwriting revenues	1,232,550			1,189,278			1,174,008			1,214,675			1,013,934			940,359
UNDERWRITING EXPENSES
Net losses and loss expenses	794,959			706,641			661,345			840,132			1,235,367			532,328
Acquisition costs	248,314			231,952			229,260			234,713			194,724			189,810
Underwriting-related general and administrative expenses [a]	130,251			134,959			139,666			113,700			96,696			114,223
Total underwriting expenses	1,173,524			1,073,552			1,030,271			1,188,545			1,526,787			836,361
UNDERWRITING INCOME (LOSS) [b]	59,026			115,726			143,737			26,130			(512,853		)	103,998
OTHER (EXPENSES) REVENUES
Net investment income	114,421			109,960			100,999			100,908			95,169			116,923
Net investment gains (losses)	(17,628		)	(45,093		)	(14,830		)	43,038			14,632			5,205
Corporate expenses [a]	(24,643		)	(30,254		)	(30,171		)	(32,023		)	(27,933		)	(28,683		)
Foreign exchange (losses) gains	(8,305		)	44,099			(37,860		)	(44,644		)	(32,510		)	13,795
Interest expense and financing costs	(16,897		)	(17,098		)	(16,763		)	(16,434		)	(12,835		)	(12,839		)
Transaction and reorganization expenses	(16,300		)	(18,772		)	(13,054		)	(20,748		)	(5,970		)	—
Amortization of value of business acquired	(39,018		)	(53,407		)	(57,110		)	(50,104		)	—			—
Amortization of intangible assets	(1,753		)	(4,029		)	(2,782		)	(2,543		)	—			—
Total other (expenses) revenues	(10,123		)	(14,594		)	(71,571		)	(22,550		)	30,553			94,401
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	48,903			101,132			72,166			3,580			(482,300		)	198,399
Income tax (expense) benefit	3,525			(996		)	1,036			(31,005		)	25,877			(9,352		)
Interest in income (loss) of equity method investments	1,667			3,378			—			—			(661		)	(2,434		)
NET INCOME (LOSS)	54,095			103,514			73,202			(27,425		)	(457,084		)	186,613
Preferred share dividends	(10,656		)	(10,656		)	(10,656		)	(10,656		)	(10,656		)	(9,969		)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	43,439		$	92,858		$	62,546		$	(38,081	)	$	(467,740	)	$	176,644

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

also included corporate expenses presented above.

[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP measure, is presented above and on page 5 (Consolidated Statements of Income - Year to Date).

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AXIS Capital Holdings Limited

CONSOLIDATED KEY RATIOS - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses	61.2		%	61.5		%	58.3		%	62.8		%	64.8		%	62.8		%
Catastrophe and weather-related losses ratio	7.5		%	3.2		%	3.0		%	11.2		%	61.4		%	2.3		%
Current accident year loss ratio	68.7		%	64.7		%	61.3		%	74.0		%	126.2		%	65.1		%
Prior year reserve development	(3.8		%)	(5.1		%)	(4.6		%)	(4.7		%)	(4.7		%)	(8.1		%)
Net loss and loss expense ratio	64.9		%	59.6		%	56.7		%	69.3		%	121.5		%	57.0		%
Acquisition cost ratio	20.3		%	19.6		%	19.6		%	19.4		%	19.1		%	20.3		%
General and administrative expense ratio [a]	12.7		%	13.9		%	14.5		%	12.0		%	12.3		%	15.3		%
Combined ratio	97.9		%	93.1		%	90.8		%	100.7		%	152.9		%	92.6		%
Weighted average common shares outstanding - basic	83,558			83,539			83,322			83,160			83,305			89,621
Weighted average common shares outstanding - diluted	84,107			83,984			83,721			83,160			83,305			90,351
Basic earnings (loss) per common share		$0.52			$1.11			$0.75			($0.46	)		($5.61	)		$1.97
Earnings (loss) per diluted common share		$0.52			$1.11			$0.75			($0.46	)		($5.61	)		$1.96
ROACE (annualized)	3.9		%	8.3		%	5.5		%	(3.3		%)	nm			13.2		%
Operating ROACE (annualized)	7.2		%	9.5		%	10.8		%	1.7		%	nm			12.0		%

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

4

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF OPERATIONS - YEAR TO DATE

	Nine months ended September 30,									Year ended December 31,
	2018			2017			2016			2017			2016
UNDERWRITING REVENUES
Gross premiums written	$	5,737,327		$	4,459,772		$	4,239,558		$	5,556,273		$	4,970,208
Premiums ceded	(1,831,063		)	(1,162,054		)	(950,971		)	(1,529,130		)	(1,217,234		)
Net premiums written	3,906,264			3,297,718			3,288,587			4,027,143			3,752,974
Gross premiums earned	5,105,165			3,916,352			3,548,771			5,616,234			4,762,394
Ceded premiums earned	(1,528,139		)	(979,087		)	(765,025		)	(1,467,474		)	(1,056,769		)
Net premiums earned	3,577,026			2,937,265			2,783,746			4,148,760			3,705,625
Other insurance related income (losses)	18,811			(4,420		)	4,850			(1,240		)	7,222
Total underwriting revenues	3,595,837			2,932,845			2,788,596			4,147,520			3,712,847
UNDERWRITING EXPENSES
Net losses and loss expenses	2,162,945			2,447,640			1,663,584			3,287,772			2,204,197
Acquisition costs	709,527			588,879			559,570			823,591			746,876
Underwriting-related general and administrative expenses [a]	404,875			335,782			352,632			449,483			482,701
Total underwriting expenses	3,277,347			3,372,301			2,575,786			4,560,846			3,433,774
UNDERWRITING INCOME (LOSS)	318,490			(439,456		)	212,810			(413,326		)	279,073
OTHER (EXPENSES) REVENUES
Net investment income	325,380			299,899			257,818			400,805			353,335
Net investment gains (losses)	(77,551		)	(14,811		)	(40,295		)	28,226			(60,525		)
Bargain purchase gain	—			15,044			—			15,044			—
Corporate expenses [a]	(85,069		)	(97,922		)	(86,922		)	(129,945		)	(120,016		)
Foreign exchange (losses) gains	(2,066		)	(90,093		)	69,781			(134,737		)	121,295
Interest expense and financing costs	(50,758		)	(38,377		)	(38,586		)	(54,811		)	(51,360		)
Transaction and reorganization expenses	(48,125		)	(5,970		)	—			(26,718		)	—
Amortization of value of business acquired	(149,535		)	—			—			(50,104		)	—
Amortization of intangible assets	(8,564		)	—			—			(2,543		)	—
Total other (expenses) revenues	(96,288		)	67,770			161,796			45,217			242,729
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	222,202			(371,686		)	374,606			(368,109		)	521,802
Income tax (expense) benefit	3,565			38,547			(7,712		)	7,542			(6,340		)
Interest in income (loss) of equity method investments	5,045			(8,402		)	(2,434		)	(8,402		)	(2,094		)
NET INCOME (LOSS)	230,812			(341,541		)	364,460			(368,969		)	513,368
Preferred share dividends	(31,969		)	(36,154		)	(29,906		)	(46,810		)	(46,597		)
Loss on repurchase of preferred shares	—			—			—			—			(1,309		)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS	$	198,843		$	(377,695	)	$	334,554		$	(415,779	)	$	465,462

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

5

AXIS Capital Holdings Limited

CONSOLIDATED KEY RATIOS - YEAR TO DATE

	Nine months ended September 30,									Year ended December 31,
	2018			2017			2016			2017			2016
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses	60.4		%	64.1		%	62.5		%	63.7		%	61.8		%
Catastrophe and weather-related losses ratio	4.5		%	24.1		%	5.3		%	20.4		%	5.6		%
Current accident year loss ratio	64.9		%	88.2		%	67.8		%	84.1		%	67.4		%
Prior year reserve development	(4.4		%)	(4.9		%)	(8.0		%)	(4.9		%)	(7.9		%)
Net loss and loss expense ratio	60.5		%	83.3		%	59.8		%	79.2		%	59.5		%
Acquisition cost ratio	19.8		%	20.0		%	20.1		%	19.9		%	20.2		%
General and administrative expense ratio [a]	13.7		%	14.8		%	15.8		%	14.0		%	16.2		%
Combined ratio	94.0		%	118.1		%	95.7		%	113.1		%	95.9		%
Weighted average common shares outstanding - basic	83,474			84,479			91,852			84,108			90,772
Weighted average common shares outstanding - diluted	83,939			84,479			92,579			84,108			91,547
Basic earnings (loss) per common share		$2.38			($4.47	)		$3.64			($4.94	)		$5.13
Earnings (loss) per diluted common share		$2.37			($4.47	)		$3.61			($4.94	)		$5.08
ROACE  [b]	5.9		%	(10.3		%)	8.4		%	(8.6		%)	9.0		%
Operating ROACE  [b]	9.1		%	(7.7		%)	7.8		%	(5.4		%)	7.9		%

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

[b] Annualized for the nine-month periods.

6

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Quarter ended September 30, 2018									Nine months ended September 30, 2018
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	969,364		$	454,343		$	1,423,707		$	2,876,856		$	2,860,471		$	5,737,327
Net premiums written	602,070			317,868			919,938			1,748,142			2,158,122			3,906,264
Gross premiums earned	990,529			785,850			1,776,379			2,819,653			2,285,512			5,105,165
Ceded premiums earned	(375,734		)	(176,570		)	(552,304		)	(1,047,527		)	(480,612		)	(1,528,139		)
Net premiums earned	614,795			609,280			1,224,075			1,772,126			1,804,900			3,577,026
Other insurance related income	1,526			6,949			8,475			3,359			15,452			18,811
Total underwriting revenues	616,321			616,229			1,232,550			1,775,485			1,820,352			3,595,837
UNDERWRITING EXPENSES
Net losses and loss expenses	415,488			379,471			794,959			1,065,799			1,097,146			2,162,945
Acquisition costs	111,888			136,426			248,314			290,082			419,445			709,527
Underwriting-related general and administrative expenses	100,656			29,595			130,251			305,394			99,481			404,875
Total underwriting expenses	628,032			545,492			1,173,524			1,661,275			1,616,072			3,277,347
UNDERWRITING INCOME (LOSS)	$	(11,711	)	$	70,737		$	59,026		$	114,210		$	204,280		$	318,490
Catastrophe and weather-related losses, net of reinstatement premiums	$	61,814		$	30,232		$	92,046		$	111,734		$	49,813		$	161,547
Prior period reserve development	13,478			32,182			45,660			60,547			99,536			160,083
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	59.7		%	62.6		%	61.2		%	57.3		%	63.5		%	60.4		%
Catastrophe and weather-related losses ratio	10.1		%	5.0		%	7.5		%	6.3		%	2.8		%	4.5		%
Current accident year loss ratio	69.8		%	67.6		%	68.7		%	63.6		%	66.3		%	64.9		%
Prior period reserve development ratio	(2.2		%)	(5.3		%)	(3.8		%)	(3.5		%)	(5.5		%)	(4.4		%)
Net loss and loss expense ratio	67.6		%	62.3		%	64.9		%	60.1		%	60.8		%	60.5		%
Acquisition cost ratio	18.2		%	22.4		%	20.3		%	16.4		%	23.2		%	19.8		%
Underwriting-related general and administrative expense ratio	16.4		%	4.8		%	10.7		%	17.2		%	5.5		%	11.3		%
Corporate expense ratio							2.0		%							2.4		%
Combined ratio	102.2		%	89.5		%	97.9		%	93.7		%	89.5		%	94.0		%

7

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS

																Nine months ended September 30,
	Q3 2018			Q2 2018		Q1 2018			Q4 2017			Q3 2017		Q3 2016		2018			2017
INSURANCE SEGMENT
Property	$	307,014		$	344,737	$	295,206		$	240,246		$	154,882	$	164,605	$	946,956		$	498,127
Marine	88,412			95,690		126,743			59,387			42,483		33,677		310,844			182,005
Terrorism	16,032			15,812		16,900			13,044			12,147		9,394		48,743			34,470
Aviation	24,116			21,048		21,013			24,472			23,814		9,684		66,178			59,434
Credit and Political Risk	44,761			30,736		44,731			40,212			19,793		5,423		120,227			51,105
Professional Lines	281,928			297,243		207,965			309,905			213,009		204,926		787,136			612,597
Liability	153,356			150,167		105,661			114,631			131,975		108,447		409,184			359,304
Accident and Health	42,883			69,860		60,674			37,594			53,040		36,231		173,421			163,566
Discontinued Lines	10,862			1,351		1,955			14,820			—		—		14,167			—
TOTAL INSURANCE SEGMENT	969,364			1,026,644		880,848			854,311			651,144		572,387		2,876,856			1,960,608
REINSURANCE SEGMENT
Catastrophe	64,919			148,304		281,883			25,703			89,510		46,338		495,106			411,004
Property	85,135			60,293		200,707			11,344			90,001		61,957		346,135			341,265
Professional Lines	26,418			116,273		106,178			34,500			20,175		19,479		248,870			217,772
Credit and Surety	51,683			52,685		196,316			22,069			38,216		36,174		300,683			183,284
Motor	22,450			43,279		412,077			18,022			40,385		13,344		477,805			373,901
Liability	137,625			91,343		159,009			51,702			139,083		91,387		387,977			368,999
Agriculture	12,765			53,953		145,397			17,763			11,152		1,286		212,114			218,437
Engineering	3,149			6,604		26,506			19,134			10,120		13,588		36,259			58,000
Marine and Other	1,107			13,631		26,647			3,209			2,566		979		41,388			52,715
Accident and Health	49,114			37,808		227,689			39,131			93,221		103,043		314,610			273,787
Discontinued Lines	(22		)	8		(462		)	(387		)	—		—		(476		)	—
TOTAL REINSURANCE SEGMENT	454,343			624,181		1,781,947			242,190			534,429		387,575		2,860,471			2,499,164
CONSOLIDATED TOTAL	$	1,423,707		$	1,650,825	$	2,662,795		$	1,096,501		$	1,185,574	$	959,962	$	5,737,327		$	4,459,772

8

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
UNDERWRITING REVENUES
Gross premiums written	$	969,364		$	1,026,644		$	880,848		$	854,311		$	651,144		$	572,387
Net premiums written	602,070			598,179			547,893			515,826			407,054			330,089
Gross premiums earned	990,529			924,704			904,421			929,346			648,148			602,390
Ceded premiums earned	(375,734		)	(347,433		)	(324,362		)	(343,186		)	(227,373		)	(224,112		)
Net premiums earned	614,795			577,271			580,059			586,159			420,775			378,278
Other insurance related income	1,526			1,214			620			2,091			302			39
Total underwriting revenues	616,321			578,485			580,679			588,250			421,077			378,317
UNDERWRITING EXPENSES
Net losses and loss expenses	415,488			328,773			321,538			372,190			576,688			228,393
Acquisition costs	111,888			90,864			87,329			92,293			61,541			49,536
General and administrative expenses	100,656			102,369			102,370			85,979			71,008			80,005
Total underwriting expenses	628,032			522,006			511,237			550,462			709,238			357,934
UNDERWRITING INCOME (LOSS)	$	(11,711	)	$	56,479		$	69,442		$	37,788		$	(288,160	)	$	20,383
Catastrophe and weather-related losses, net of reinstatement premiums	$	61,814		$	22,922		$	28,247		$	33,613		$	317,475		$	14,552
Prior period reserve development	13,478			24,294			22,775			24,880			7,926			17,831
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	59.7		%	57.2		%	54.5		%	62.0		%	63.5		%	61.2		%
Catastrophe and weather-related losses ratio	10.1		%	4.0		%	4.9		%	5.7		%	75.4		%	3.9		%
Current accident year loss ratio	69.8		%	61.2		%	59.4		%	67.7		%	138.9		%	65.1		%
Prior period reserve development ratio	(2.2		%)	(4.2		%)	(4.0		%)	(4.2		%)	(1.8		%)	(4.7		%)
Net loss and loss expense ratio	67.6		%	57.0		%	55.4		%	63.5		%	137.1		%	60.4		%
Acquisition cost ratio	18.2		%	15.7		%	15.1		%	15.7		%	14.6		%	13.1		%
General and administrative expense ratio	16.4		%	17.7		%	17.6		%	14.7		%	16.9		%	21.1		%
Combined ratio	102.2		%	90.4		%	88.1		%	93.9		%	168.6		%	94.6		%

9

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
UNDERWRITING REVENUES
Gross premiums written	$	454,343		$	624,181		$	1,781,947		$	242,190		$	534,429		$	387,575
Net premiums written	317,868			402,276			1,437,978			213,598			425,689			265,342
Gross premiums earned	785,850			764,249			735,412			770,537			721,886			612,436
Ceded premiums earned	(176,570		)	(155,972		)	(148,069		)	(145,201		)	(125,530		)	(56,299		)
Net premiums earned	609,280			608,277			587,343			625,336			596,356			556,137
Other insurance related income (losses)	6,949			2,516			5,986			1,089			(3,500		)	5,905
Total underwriting revenues	616,229			610,793			593,329			626,425			592,857			562,042
UNDERWRITING EXPENSES
Net losses and loss expenses	379,471			377,868			339,807			467,941			658,679			303,935
Acquisition costs	136,426			141,088			141,931			142,420			133,183			140,274
General and administrative expenses	29,595			32,590			37,296			27,722			25,689			34,218
Total underwriting expenses	545,492			551,546			519,034			638,083			817,550			478,427
UNDERWRITING INCOME (LOSS)	$	70,737		$	59,247		$	74,295		$	(11,658	)	$	(224,694	)	$	83,615
Catastrophe and weather-related losses, net of reinstatement premiums	$	30,232		$	15,288		$	6,892		$	99,160		$	299,313		$	7,207
Prior period reserve development	32,182			35,822			31,532			31,679			39,842			58,187
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses	62.6		%	65.5		%	62.1		%	63.6		%	65.8		%	63.8		%
Catastrophe and weather-related losses ratio	5.0		%	2.5		%	1.1		%	16.3		%	51.3		%	1.3		%
Current accident year loss ratio	67.6		%	68.0		%	63.2		%	79.9		%	117.1		%	65.1		%
Prior period reserve development ratio	(5.3		%)	(5.9		%)	(5.3		%)	(5.1		%)	(6.6		%)	(10.4		%)
Net loss and loss expense ratio	62.3		%	62.1		%	57.9		%	74.8		%	110.5		%	54.7		%
Acquisition cost ratio	22.4		%	23.2		%	24.2		%	22.8		%	22.3		%	25.2		%
General and administrative expense ratio	4.8		%	5.4		%	6.3		%	4.4		%	4.3		%	6.1		%
Combined ratio	89.5		%	90.7		%	88.4		%	102.0		%	137.1		%	86.0		%

10

AXIS Capital Holdings Limited

REINSURANCE SEGMENT - STRATEGIC CAPITAL PARTNERS

	Quarter ended September 30,				Nine months ended September 30,
TOTAL MANAGED PREMIUMS [a]	2018		2017		2018		2017
Total Managed Premiums	$	454,343	$	534,429	$	2,860,471	$	2,499,164
Premiums ceded to Harrington Re	49,063		55,900		162,825		178,574
Premiums ceded to Other Strategic Capital Partners	87,412		52,840		539,524		282,871
Net premiums written	$	317,868	$	425,689	$	2,158,122	$	2,037,719
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income	$	18,303	$	5,516	$	42,746	$	28,261

[a] Total managed premiums represents gross premiums written by the AXIS Reinsurance segment of $454,343 and $534,429 for the three months endedSeptember 30, 2018 and 2017, respectively, and $2,860,471 and $2,499,164 for the nine months endedSeptember 30, 2018 and 2017, 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 included $5,932 and $12,452 included in other insurance related income (expense) for the three and nine months endedSeptember 30, 2018, respectively and $(4,301) and $4,924 for the three and nine months endedSeptember 30, 2017. It also included $12,371 and $30,294 as an offset to general and administrative expenses for the three and nine months endedSeptember 30, 2018, respectively and $9,816 and $23,337 for the three and nine months endedSeptember 30, 2017.

11

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY

																			Nine months ended September 30,
	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016			2018			2017
Fixed maturities	$	89,887		$	88,320		$	83,958		$	82,060		$	74,978		$	75,827		$	262,165		$	230,603
Other investments	15,933			14,541			13,704			16,885			17,373			38,248			44,179			59,973
Equity securities	2,099			3,158			1,758			3,871			3,223			4,633			7,015			11,048
Mortgage loans	3,322			3,357			3,125			2,810			2,895			2,191			9,805			7,970
Cash and cash equivalents	6,992			5,627			4,153			417			3,111			3,768			16,770			9,640
Short-term investments	3,413			1,645			875			921			698			337			5,933			1,797
Gross investment income	121,646			116,648			107,573			106,964			102,278			125,004			345,867			321,031
Investment expenses	(7,225		)	(6,688		)	(6,574		)	(6,056		)	(7,109		)	(8,081		)	(20,487		)	(21,132		)
Net investment income	$	114,421		$	109,960		$	100,999		$	100,908		$	95,169		$	116,923		$	325,380		$	299,899

12

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2018			2018			2018			2017			2017			2016
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,767,697		$	11,739,305		$	11,801,396		$	12,622,006		$	11,086,386		$	11,566,860
Equity securities, at fair value	433,311			417,212			435,742			635,511			659,751			644,344
Mortgage loans, held for investment, at amortized cost and fair value	333,018			344,721			364,769			325,062			360,381			332,753
Other investments, at fair value	833,563			916,191			1,009,587			1,009,373			830,253			847,262
Equity method investments	112,155			110,488			108,597			108,597			108,597			111,295
Short-term investments, at amortized cost and fair value	156,090			168,944			56,246			83,661			15,282			39,877
Total investments	13,635,834			13,696,861			13,776,337			14,784,210			13,060,650			13,542,391
Cash and cash equivalents	1,752,402			1,526,693			1,644,580			1,363,786			1,631,127			1,077,263
Accrued interest receivable	76,000			79,109			73,928			81,223			68,023			71,096
Insurance and reinsurance premium balances receivable	3,463,360			3,810,316			3,892,957			3,012,419			2,968,096			2,694,976
Reinsurance recoverable on unpaid and paid losses	3,439,080			3,289,236			3,129,303			3,338,840			2,360,821			2,336,741
Deferred acquisition costs	682,785			708,679			721,820			474,061			562,774			545,618
Prepaid reinsurance premiums	1,114,039			1,157,228			1,015,163			809,274			734,129			582,551
Receivable for investments sold	2,140			16,430			19,433			11,621			9,357			2,285
Goodwill	102,003			102,003			102,004			102,003			48,969			47,148
Intangible assets	247,927			250,541			253,808			257,987			38,237			38,353
Value of business acquired	58,511			97,529			150,936			206,838			—			—
Other assets	268,945			283,861			307,040			317,915			335,967			283,969
TOTAL ASSETS	$	24,843,026		$	25,018,486		$	25,087,309		$	24,760,177		$	21,818,150		$	21,222,391
LIABILITIES
Reserve for losses and loss expenses	$	12,025,947		$	11,952,734		$	12,034,643		$	12,997,553		$	10,787,575		$	9,874,807
Unearned premiums	4,242,108			4,594,150			4,659,858			3,641,399			3,521,063			3,453,655
Insurance and reinsurance balances payable	1,301,580			1,282,585			1,251,629			899,064			670,292			461,519
Senior notes and notes payable	1,377,582			1,377,206			1,376,835			1,376,529			993,797			992,633
Payable for investments purchased	220,183			186,180			144,315			100,589			122,065			141,245
Other liabilities	403,354			372,626			355,634			403,779			268,659			272,874
TOTAL LIABILITIES	19,570,754			19,765,481			19,822,914			19,418,913			16,363,451			15,196,733
SHAREHOLDERS’ EQUITY
Preferred shares	775,000			775,000			775,000			775,000			775,000			625,000
Common shares	2,206			2,206			2,206			2,206			2,206			2,206
Additional paid-in capital	2,304,107			2,295,633			2,289,497			2,299,166			2,291,516			2,307,866
Accumulated other comprehensive income (loss)	(162,312		)	(163,168		)	(85,216		)	92,382			141,613			98,505
Retained earnings	6,145,482			6,135,625			6,076,294			5,979,666			6,051,659			6,430,573
Treasury shares, at cost	(3,792,211		)	(3,792,291		)	(3,793,386		)	(3,807,156		)	(3,807,295		)	(3,438,492		)
TOTAL SHAREHOLDERS' EQUITY	5,272,272			5,253,005			5,264,395			5,341,264			5,454,699			6,025,658
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	24,843,026		$	25,018,486		$	25,087,309		$	24,760,177		$	21,818,150		$	21,222,391
Common shares outstanding - basic	83,557			83,556			83,518			83,161			83,157			88,439
Common shares outstanding - diluted	85,335			85,346			85,392			84,745			84,575			90,363
Book value per common share		$53.82			$53.59			$53.75			$54.91			$56.28			$61.07
Diluted book value per common share		$52.70			$52.47			$52.57			$53.88			$55.33			$59.77
Diluted tangible book value per common share		$49.14			$48.87			$48.94			$50.18			$54.30			$58.82
Debt to total capital [a]	20.7		%	20.8		%	20.7		%	20.5		%	15.4		%	14.1		%
Debt and preferred equity to total capital	32.4		%	32.5		%	32.4		%	32.0		%	27.4		%	23.0		%

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

13

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At September 30, 2018

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value			Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,625,114	$	414	$	(20,063	)	$	1,605,465		10.5	%
Non-U.S. government	558,862		3,013		(13,750		)	548,125			3.6	%
Corporate debt	5,144,747		23,714		(87,376		)	5,081,085			33.3	%
Agency RMBS	1,688,977		2,140		(51,886		)	1,639,231			10.8	%
CMBS	1,099,728		729		(23,502		)	1,076,955			7.1	%
Non-Agency RMBS	41,273		1,475		(962		)	41,786			0.3	%
ABS	1,651,271		1,520		(6,980		)	1,645,811			10.8	%
Municipals	131,583		557		(2,901		)	129,239			0.8	%
Total fixed maturities	11,941,555		33,562		(207,420		)	11,767,697			77.2	%
Equity securities
Common stocks	13,392		1,345		(1,232		)	13,505			0.1	%
Exchange traded funds	211,940		63,543		(2,035		)	273,448			1.8	%
Bond mutual funds	150,675		—		(4,317		)	146,358			0.9	%
Total equity securities	376,007		64,888		(7,584		)	433,311			2.8	%
Total fixed maturities and equity securities	$	12,317,562	$	98,450	$	(215,004	)	12,201,008			80.0	%
Mortgage loans, held for investment								333,018			2.2	%
Other investments (see below)								833,563			5.5	%
Equity method investments								112,155			0.7	%
Short-term investments								156,090			1.0	%
Total investments								13,635,834			89.4	%
Cash and cash equivalents [a]								1,752,402			11.5	%
Accrued interest receivable								76,000			0.5	%
Net receivable/(payable) for investments sold (purchased)								(218,043		)	(1.4	%)
Total cash and invested assets								$	15,246,193		100.0	%
								Fair Value			Percentage
Other Investments:
Long/short equity funds								$	28,593		3.4	%
Multi-strategy funds								185,255			22.2	%
Event-driven funds								38,084			4.6	%
Direct lending funds								268,210			32.2	%
Real estate funds								63,764			7.6	%
Private equity funds								67,840			8.1	%
Other privately held investments								47,389			5.7	%
Collateralized loan obligations - equity tranches								24,264			3.0	%
Overseas deposits								$	110,164		13.2	%
Total								$	833,563		100.0	%

[a] Includes $699 million of restricted cash and cash equivalents.

14

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

	Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Q3 2016
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency	10.5	%	11.0	%	11.6	%	10.7	%	10.7	%	10.8	%
Non-U.S. government	3.6	%	3.9	%	4.3	%	5.0	%	3.9	%	4.0	%
Corporate debt	33.3	%	32.2	%	30.2	%	32.8	%	30.7	%	31.4	%
MBS:
Agency RMBS	10.8	%	11.2	%	12.5	%	14.8	%	15.7	%	17.3	%
CMBS	7.1	%	7.4	%	6.7	%	4.8	%	4.6	%	6.1	%
Non-agency RMBS	0.3	%	0.3	%	0.3	%	0.3	%	0.3	%	0.5	%
ABS	10.8	%	10.7	%	10.2	%	8.9	%	8.8	%	8.5	%
Municipals	0.8	%	0.9	%	1.0	%	0.9	%	1.0	%	0.9	%
Total Fixed Maturities	77.2	%	77.6	%	76.8	%	78.2	%	75.7	%	79.5	%
Equity securities	2.8	%	2.8	%	2.8	%	3.9	%	4.5	%	4.4	%
Mortgage loans	2.2	%	2.3	%	2.4	%	2.0	%	2.5	%	2.3	%
Other investments	5.5	%	6.1	%	6.6	%	6.3	%	5.7	%	5.8	%
Equity method investments	0.7	%	0.7	%	0.7	%	0.7	%	0.7	%	0.8	%
Short-term investments	1.0	%	1.0	%	0.3	%	0.5	%	0.1	%	0.3	%
Total Investments	89.4	%	90.5	%	89.6	%	91.6	%	89.2	%	93.1	%
Cash and cash equivalents	11.5	%	10.1	%	10.7	%	8.4	%	11.1	%	7.4	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%
Net receivable/(payable) for investments sold or purchased	(1.4	%)	(1.1	%)	(0.8	%)	(0.5	%)	(0.8	%)	(1.0	%)
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	13.6	%	14.2	%	15.2	%	13.6	%	14.0	%	13.5	%
AAA	39.3	%	39.7	%	40.2	%	39.5	%	39.5	%	37.7	%
AA	7.7	%	7.2	%	7.5	%	8.3	%	7.9	%	10.1	%
A	16.3	%	16.4	%	14.9	%	16.6	%	15.0	%	15.3	%
BBB	14.1	%	13.9	%	13.9	%	13.9	%	14.5	%	13.9	%
Below BBB	9.0	%	8.6	%	8.3	%	8.1	%	9.1	%	9.5	%
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	4.2	%	4.0	%	4.3	%	3.9	%	3.9	%	3.0	%
From one to five years	41.5	%	41.1	%	39.2	%	38.9	%	34.7	%	32.9	%
From five to ten years	15.1	%	15.1	%	16.2	%	18.6	%	20.5	%	20.2	%
Above ten years	1.8	%	1.7	%	1.7	%	1.7	%	2.0	%	3.1	%
Asset-backed and mortgage-backed securities	37.4	%	38.1	%	38.6	%	36.9	%	38.9	%	40.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities	2.9	%	2.8	%	2.7	%	2.5	%	2.6	%	2.6	%
Yield to maturity of fixed maturities	3.5	%	3.4	%	3.2	%	2.7	%	2.6	%	2.3	%
Average duration of fixed maturities (inclusive of duration hedges)	2.9 yrs		3.0 yrs		3.1 yrs		3.2 yrs		3.2 yrs		3.2 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

15

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At September 30, 2018

				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	$	10,333		$	13,267	$	67,258	$	—	$	80,525	$	—	$	—	$	—	$	90,858	$	1,307		$	92,165
France	6,766			18,034		34,278		8,692		61,004		—		—		—		67,770		4,527			72,297
Ireland	—			29,472		28,364		—		57,836		—		—		—		57,836		613			58,449
Germany	—			242		19,738		33,935		53,915		—		—		—		53,915		3,035			56,950
Belgium	23,438			2,981		15,426		—		18,407		—		—		—		41,845		993			42,838
Luxembourg	—			—		31,286		—		31,286		—		—		911		32,197		—			32,197
Spain	2,868			7,854		3,864		—		11,718		—		—		—		14,586		686			15,272
Supranational [a]	8,016			—		—		—		—		—		—		—		8,016		—			8,016
Austria	2,323			785		1,181		—		1,966		—		—		—		4,289		46			4,335
Finland	—			2,968		1,039		—		4,007		—		—		—		4,007		123			4,130
Portugal	1,656			—		1,429		—		1,429		—		—		—		3,085		—			3,085
Italy	—			—		479		—		479		—		—		—		479		681			1,160
Other [b]	—			—		—		—		—		—		—		—		—		34,854			34,854
Total eurozone	55,400			75,603		204,342		42,627		322,572		—		—		911		378,883		46,865			425,748
Other concentrations:
United Kingdom	231,019			85,361		116,869		10,858		213,088		—		10,632		3,021		457,760		52,992			510,752
Canada	96,207			116,944		112,384		125,603		354,931		—		—		15,829		466,967		—			466,967
Japan	—			115,231		6,357		5,817		127,405		—		—		5,934		133,339		14,019			147,358
Australia	—			78,951		14,961		—		93,912		—		5,684		—		99,596		—			99,596
Mexico	30,251			—		485		—		485		—		—		—		30,736		—			30,736
Other	135,248			55,188		96,362		32,011		183,561		—		—		1,743		320,552		15,241		[c]	335,793
Total other concentrations	492,725			451,675		347,418		174,289		973,382		—		16,316		26,527		1,508,950		82,252			1,591,202
Total Non-U.S. concentrations	548,125			527,278		551,760		216,916		1,295,954		—		16,316		27,438		1,887,833		129,117			2,016,950
United States	1,579,758		[d]	1,525,135		2,256,039		3,957		3,785,131		1,639,231		1,102,425		1,618,373		9,724,918		304,194		[e]	10,029,112
United States agencies	25,707			—		—		—		—		—		—		—		25,707		—			25,707
United States local governments	129,239			—		—		—		—		—		—		—		129,239		—			129,239
Total U.S. concentrations	1,734,704			1,525,135		2,256,039		3,957		3,785,131		1,639,231		1,102,425		1,618,373		9,879,864		304,194			10,184,058
Totals	$	2,282,829		$	2,052,413	$	2,807,799	$	220,873	$	5,081,085	$	1,639,231	$	1,118,741	$	1,645,811	$	11,767,697	$	433,311		$	12,201,008

[a] Represents holdings of the European Investment Bank.

[b] Represents holdings in exchange-traded funds ("ETFs"). The primary countries of risk of the 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.

16

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At September 30, 2018

	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks	$	1,099,321	21.6	%	7.2	%
Non-U.S. banks	431,425		8.5	%	2.8	%
Corporate/commercial finance	217,724		4.3	%	1.4	%
Insurance	134,830		2.7	%	0.9	%
Investment brokerage	26,446		0.5	%	0.2	%
Total financial institutions	1,909,746		37.6	%	12.5	%
Consumer non-cyclicals	521,310		10.3	%	3.4	%
Consumer cyclical	330,013		6.5	%	2.2	%
Communications	270,380		5.3	%	1.8	%
Technology	224,816		4.4	%	1.5	%
Non-U.S. government guaranteed	218,785		4.3	%	1.4	%
Energy	215,537		4.2	%	1.4	%
Utilities	141,266		2.8	%	0.9	%
Transportation	132,165		2.6	%	0.9	%
Industrials	106,407		2.1	%	0.7	%
Total investment grade	4,070,425		80.1	%	26.7	%
Total non-investment grade	1,010,660		19.9	%	6.6	%
Total corporate debt	$	5,081,085	100.0	%	33.3	%

17

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At September 30, 2018

	Amortized Cost	Net Unrealized Gain (Loss)		Fair Value	% of Total Fixed  Maturities
ISSUER [a]
BANK OF AMERICA CORP	153,315	(2,015	)	151,300	1.3	%
GOLDMAN SACHS GROUP	136,671	(2,961	)	133,710	1.1	%
MORGAN STANLEY	133,367	(3,331	)	130,036	1.1	%
WELLS FARGO & COMPANY	132,127	(3,041	)	129,086	1.1	%
JP MORGAN CHASE & CO	125,027	(3,345	)	121,682	1.0	%
AT&T INC	66,629	(822	)	65,807	0.6	%
CITIGROUP INC	65,227	(1,706	)	63,521	0.5	%
FORD MOTOR COMPANY	59,904	(2,036	)	57,868	0.5	%
GENERAL MOTORS COMPANY	58,375	(593	)	57,782	0.5	%
CVS HEALTH CORP	45,813	(251	)	45,562	0.4	%

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

18

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At September 30, 2018

	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total
Residential MBS	$	1,639,231		$	23,484		$	403		$	1,299		$	5,368		$	11,232		$	1,681,017
Commercial MBS	191,518			823,873			50,682			10,136			746			—			1,076,955
ABS	—			1,528,709			51,248			26,596			9,512			29,746			1,645,811
Total mortgage-backed and asset-backed securities	$	1,830,749		$	2,376,066		$	102,333		$	38,031		$	15,626		$	40,978		$	4,403,783
Percentage of total	41.6		%	54.0		%	2.3		%	0.9		%	0.4		%	0.8		%	100.0		%

19

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	119,275		$	85,583		$	58,621		$	86,272		$	38,654		$	32,853
Reinsurance	102,234			51,108			84,534			93,054			24,145			27,096
Total	$	221,509		$	136,691		$	143,155		$	179,326		$	62,799		$	59,949
Reinsurance recoverable on unpaid losses and loss expenses: Case Reserves :
Insurance	$	789,143		$	772,718		$	778,498		$	930,132		$	587,060		$	712,987
Reinsurance	250,812			239,986			175,363			151,062			99,303			31,789
Total	$	1,039,955		$	1,012,704		$	953,861		$	1,081,194		$	686,363		$	744,776
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,809,504		$	1,787,763		$	1,757,091		$	1,807,607		$	1,406,025		$	1,523,537
Reinsurance	387,508			370,161			291,979			287,551			221,873			28,700
Total	$	2,197,012		$	2,157,924		$	2,049,070		$	2,095,158		$	1,627,898		$	1,552,237
Provision against reinsurance recoverable on paid and unpaid losses and loss expenses:
Insurance	$	(17,613	)	$	(17,210	)	$	(16,248	)	$	(16,420	)	$	(15,972	)	$	(20,087	)
Reinsurance	(1,783		)	(873		)	(535		)	(418		)	(267		)	(134		)
Total	$	(19,396	)	$	(18,083	)	$	(16,783	)	$	(16,838	)	$	(16,239	)	$	(20,221	)
Net reinsurance recoverables:
Insurance	$	2,700,309		$	2,628,854		$	2,577,962		$	2,807,591		$	2,015,767		$	2,249,290
Reinsurance	738,771			660,382			551,341			531,249			345,054			87,451
Total	$	3,439,080		$	3,289,236		$	3,129,303		$	3,338,840		$	2,360,821		$	2,336,741

20

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At September 30, 2018

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	Reinsurance recoverable on unpaid and paid losses
Top 10 reinsurers based on gross recoverables	$	2,031,623	$	(205,501	)	$	1,826,122	61.1%	34.6%	$	(9,139	)	0.4%	$	2,022,484
Other reinsurers balances > $20 million	936,770		(150,892		)	785,878		26.3%	14.9%	(5,980		)	0.6%	930,790
Other reinsurers balances < $20 million	490,083		(112,312		)	377,771		12.6%	7.2%	(4,277		)	0.9%	485,806
Total	$	3,458,476	$	(468,705	)	$	2,989,771	100.0%	56.7%	$	(19,396	)	0.6%	$	3,439,080

At September 30, 2018, 91.3% (December 31, 2017: 88.8%) of 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	13.9%	7.9%
Lloyds of London	12.9%	7.2%
Harrington Re Ltd.	7.4%	4.2%
Transatlantic Reinsurance Company	6.7%	3.8%
Partner Reinsurance Co of US	5.9%	3.3%
Hannover Ruck SE	4.5%	2.5%
Everest Reinsurance Company	4.2%	2.4%
Munich Reinsurance America, Inc	3.2%	1.8%
AXA Corporate Solutions Assurance	2.7%	1.5%
Liberty Mutual Insurance Company	2.4%	1.3%
	63.8%	35.9%

21

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Quarter ended September 30, 2018									Nine months ended September 30, 2018
	Reserve for unpaid losses and loss expenses			Reinsurance recoverable on unpaid losses			Net			Gross			Reinsurance recoverable on unpaid losses			Net
Reserve for unpaid losses and loss expenses
Beginning of period	$	11,952,734		$	(3,152,706	)	$	8,800,028		$	12,997,553		$	(3,159,514	)	$	9,838,039
Incurred	1,144,424			(349,465		)	794,959			3,150,005			(987,060		)	2,162,945
Paid	(1,009,552		)	278,097			(731,455		)	(2,850,424		)	698,599			(2,151,825		)
Foreign exchange and other	(61,659		)	6,287			(55,372		)	(1,271,187		)	230,188			(1,040,999		)
End of period [a]	$	12,025,947		$	(3,217,787	)	$	8,808,160		$	12,025,947		$	(3,217,787	)	$	8,808,160

[a] At September 30, 2018, gross reserve for losses and loss expenses included IBNR of $7,528 million, or 63%, of total gross reserves for loss and loss expenses. At December 31, 2017, the comparable amount was $7,860 million, or 60%.

22

AXIS Capital Holdings Limited

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

	Quarter ended September 30, 2018									Nine months ended September 30, 2018
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross losses paid	$	586,874		$	422,678		$	1,009,552		$	1,554,276		$	1,296,148		$	2,850,424
Reinsurance recoverables on paid losses	(198,332		)	(79,765		)	(278,097		)	(504,260		)	(194,339		)	(698,599		)
Net losses paid	388,542			342,913			731,455			1,050,016			1,101,809			2,151,825
Change in:
Case reserves	13,241			76,880			90,121			85,465			263,949			349,414
IBNR	55,737			(10,986		)	44,751			99,445			(149,278		)	(49,833		)
Reinsurance recoverable on unpaid loss and loss expense reserves	(42,032		)	(29,336		)	(71,368		)	(169,127		)	(119,334		)	(288,461		)
Total net incurred losses and loss expenses	$	415,488		$	379,471		$	794,959		$	1,065,799		$	1,097,146		$	2,162,945
Gross reserve for losses and loss expenses	$	6,379,962		$	5,645,985		$	12,025,947		$	6,379,962		$	5,645,985		$	12,025,947
Net favorable prior year reserve development	$	13,478		$	32,182		$	45,660		$	60,547		$	99,536		$	160,083
Key Ratios
Net paid to net incurred percentage	93.5		%	90.4		%	92.0		%	98.5		%	100.4		%	99.5		%
Net paid losses / Net premiums earned	63.2		%	56.3		%	59.8		%	59.3		%	61.0		%	60.2		%
Change in net loss and loss expense reserves / Net premiums earned	4.4		%	6.0		%	5.1		%	0.8		%	(0.2		%)	0.3		%
Net loss and loss expense ratio	67.6		%	62.3		%	64.9		%	60.1		%	60.8		%	60.5		%

23

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
Gross losses paid	$	586,874		$	478,912		$	488,490		$	579,122		$	407,751		$	365,160
Reinsurance recoverables on paid losses	(198,332		)	(162,291		)	(143,637		)	(158,719		)	(113,348		)	(102,625		)
Net losses paid	388,542			316,621			344,853			420,403			294,403			262,535
Change in:
Reported case reserves	13,241			43,986			28,239			220,300			32,639			(5,561		)
IBNR	55,737			10,784			32,923			(170,581		)	268,021			55,505
Reinsurance recoverable on unpaid loss and loss expense reserves	(42,032		)	(42,618		)	(84,477		)	(97,931		)	(18,375		)	(39,253		)
Total net incurred losses and loss expenses	$	415,488		$	328,773		$	321,538		$	372,191		$	576,688		$	273,226
Gross reserve for losses and loss expenses	$	6,379,962		$	6,301,363		$	6,295,947		$	7,011,805		$	5,369,358		$	5,430,238
Net favorable prior year reserve development	$	13,478		$	24,294		$	22,775		$	24,879		$	7,926		$	20,688
Key Ratios
Net paid to net incurred percentage	93.5		%	96.3		%	107.3		%	113.0		%	51.1		%	96.1		%
Net paid losses/Net premiums earned	63.2		%	54.8		%	59.5		%	71.7		%	70.0		%	59.0		%
Change in net loss and loss expense reserves / Net premiums earned	4.4		%	2.2		%	(4.1		%)	(8.2		%)	67.1		%	2.4		%
Net loss and loss expense ratio	67.6		%	57.0		%	55.4		%	63.5		%	137.1		%	61.4		%

24

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
Gross losses paid	$	422,678		$	426,314		$	447,156		$	542,160		$	333,573		$	231,506
Reinsurance recoverables on paid losses	(79,765		)	(46,772		)	(67,802		)	(91,146		)	(23,886		)	(5,463		)
Net losses paid	342,913			379,542			379,354			451,014			309,687			226,043
Change in:
Reported case reserves	76,880			47,664			139,405			94,597			159,834			20,139
IBNR	(10,986		)	(5,905		)	(132,388		)	(90,690		)	348,403			23,473
Reinsurance recoverable on unpaid loss and loss expense reserves	(29,336		)	(43,433		)	(46,564		)	13,020			(159,245		)	(10,553		)
Total net incurred losses and loss expenses	$	379,471		$	377,868		$	339,807		$	467,941		$	658,679		$	259,102
Gross reserve for losses and loss expenses	$	5,645,985		$	5,651,371		$	5,738,696		$	5,985,747		$	5,418,217		$	4,444,569
Net favorable prior year reserve development	$	32,182		$	35,822		$	31,532		$	31,680		$	39,842		$	55,331
Key Ratios
Net paid to net incurred percentage	90.4		%	100.4		%	111.6		%	96.4		%	47.0		%	87.2		%
Net paid losses / Net premiums earned	56.3		%	62.4		%	64.6		%	72.1		%	51.9		%	46.2		%
Change in net loss and loss expense reserves / Net premiums earned	6.0		%	(0.3		%)	(6.7		%)	2.7		%	58.6		%	6.7		%
Net loss and loss expense ratio	62.3		%	62.1		%	57.9		%	74.8		%	110.5		%	52.9		%

25

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AT OCTOBER 1, 2018

		Estimated Net Exposures (millions of U.S. dollars)
Territory	Peril	50 Year Return Period		% of Common Shareholders' Equity		100 Year Return Period		% of Common Shareholders' Equity		250 Year Return Period		% of Common Shareholders' Equity
Single zone, single event
Southeast	U.S. Hurricane	$	464	10.3	%	$	527	11.7	%	$	701	15.6	%
Northeast	U.S. Hurricane	53		1.2	%	159		3.5	%	304		6.8	%
Mid-Atlantic	U.S. Hurricane	128		2.8	%	295		6.6	%	494		11.0	%
Gulf of Mexico	U.S. Hurricane	273		6.1	%	341		7.6	%	392		8.7	%
California	Earthquake	276		6.1	%	398		8.8	%	499		11.1	%
Europe	Windstorm	238		5.3	%	320		7.1	%	396		8.8	%
Japan	Earthquake	156		3.5	%	244		5.4	%	381		8.5	%
Japan	Windstorm	55		1.2	%	94		2.1	%	132		2.9	%

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 October 1, 2018. 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, 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.

26

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Quarter ended September 30,					Nine months ended September 30,
	2018		2017			2018		2017
Net income (loss) available (attributable) to common shareholders	$	43,439	$	(467,740	)	$	198,843	$	(377,695	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding - basic	83,558		83,305			83,474		84,479
Dilutive share equivalents:
Share-based compensation plans	549		—			465		—
Weighted average common shares outstanding - diluted	84,107		83,305			83,939		84,479
EARNINGS (LOSS) PER COMMON SHARE
Basic		$0.52		($5.61	)		$2.38		($4.47	)
Diluted		$0.52		($5.61	)		$2.37		($4.47	)

27

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY

	Q3 2018		Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q3 2016
Net income (loss) available (attributable) to common shareholders	$	43,439	$	92,858		$	62,546		$	(38,081	)	$	(467,740	)	$	176,644
COMMON SHARES OUTSTANDING
Common shares - at beginning of period	83,556		83,518			83,161			83,157			83,203			90,654
Shares issued and treasury share reissued	1		64			506			8			5			37
Shares repurchased for treasury	—		(26		)	(149		)	(4		)	(51		)	(2,252		)
Common shares - at end of period	83,557		83,556			83,518			83,161			83,157			88,439
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding - basic	83,558		83,539			83,322			83,160			83,305			89,621
Dilutive share equivalents:
Stock compensation plans [a]	549		445			399			—			—			730
Weighted average common shares outstanding - diluted	84,107		83,984			83,721			83,160			83,305			90,351
EARNINGS (LOSS) PER COMMON SHARE
Basic		$0.52		$1.11			$0.75			($0.46	)		($5.61	)		$1.97
Diluted		$0.52		$1.11			$0.75			($0.46	)		($5.61	)		$1.96

[a] Due to the net loss incurred in the three months ended December 31, 2017 and September 30, 2017, all the share equivalents were anti-dilutive.

28

AXIS Capital Holdings Limited

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

	At September 30, 2018
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$57.71
Book value per common share		$	4,497,272	83,557		$53.82
Dilutive securities: [b]
Restricted stock units				1,778	(1.12		)
Diluted book value per common share		$	4,497,272	85,335		$52.70
	At December 31, 2017
		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$50.26
Book value per common share		$	4,566,264	83,161		$54.91
Dilutive securities: [b]
Restricted stock units				1,584	(1.03		)
Diluted book value per common share		$	4,566,264	84,745		$53.88

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

[b] Cash-settled restricted stock unit awards are excluded.

29

AXIS Capital Holdings Limited

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY

	Quarter ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Net income (loss) available (attributable) to common shareholders	$	43,439		$	(467,740	)	$	198,843		$	(377,695	)
Adjustment for:
Net investment (gains) losses	17,628			(14,632		)	77,551			14,811
Associated tax impact	(623		)	2,657			(4,011		)	1,892
Foreign exchange losses	8,305			32,510			2,066			90,093
Associated tax impact	(1,870		)	(4,439		)	(5,424		)	(4,242		)
Transaction and reorganization expenses	16,300			5,970			48,125			5,970
Associated tax impact	(2,389		)	(221		)	(7,416		)	(221		)
Bargain purchase gain	—			—			—			(15,044		)
Associated tax impact	—			—			—			—
Operating income (loss)	$	80,790		$	(445,895	)	$	309,734		$	(284,436	)
Earnings (loss) per diluted common share	$	0.52		$	(5.61	)	$	2.37		$	(4.47	)
Adjustment for:
Net investment (gains) losses	0.21			(0.18		)	0.94			0.16
Associated tax impact	(0.01		)	0.03			(0.06		)	0.03
Foreign exchange losses	0.10			0.39			0.02			1.07
Associated tax impact	(0.02		)	(0.05		)	(0.06		)	(0.05		)
Transaction and reorganization expenses	0.19			0.07			0.57			0.07
Associated tax impact	(0.03		)	—			(0.09		)	—
Bargain purchase gain	—			—			—			(0.18		)
Associated tax impact	—			—			—			—
Operating income (loss) per diluted common share	$	0.96		$	(5.35	)	$	3.69		$	(3.37	)
Weighted average common shares outstanding - diluted	84,107			83,305			83,939			84,479
Average common shareholders' equity	$	4,487,639		$	4,898,698		$	4,531,768		$	4,912,998
Annualized return on average common equity	3.9		%	nm			5.9		%	(10.3		)%
Annualized operating return on average common equity	7.2		%	nm			9.1		%	(7.7		)%

30

AXIS Capital Holdings Limited

EX-PGAAP OPERATING INCOME AND EX-PGAAP OPERATING RETURN ON AVERAGE COMMON EQUITY

	Quarter ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Net income (loss) available (attributable) to common shareholders	$	43,439		$	(467,740	)	$	198,843		$	(377,695	)
Adjustment for:
Net investment (gains) losses	17,628			(14,632		)	77,551			14,811
Associated tax impact	(623		)	2,657			(4,011		)	1,892
Foreign exchange losses	8,305			32,510			2,066			90,093
Associated tax impact	(1,870		)	(4,439		)	(5,424		)	(4,242		)
Transaction and reorganization expenses	16,300			5,970			48,125			5,970
Associated tax impact	(2,389		)	(221		)	(7,416		)	(221		)
Bargain purchase gain	—			—			—			(15,044		)
Associated tax impact	—			—			—			—
Operating income (loss)	$	80,790		$	(445,895	)	$	309,734		$	(284,436	)
Adjustment for:
Amortization of value of business acquired and intangible assets	40,664			$	—		156,884			$	—
Associated tax impact	(7,726		)	—			(29,808		)	—
Amortization of acquisition cost	(29,344		)	—			(109,435		)	—
Associated tax impact	5,575			—			20,793			—
Ex-PGAAP operating income (loss) [a]	$	89,959		$	(445,895	)	$	348,167		$	(284,436	)
Earnings (loss) per diluted common share	$	0.52		$	(5.61	)	$	2.37		$	(4.47	)
Adjustment for:
Net investment (gains) losses	0.21			(0.18		)	0.94			0.16
Associated tax impact	(0.01		)	0.03			(0.06		)	0.03
Foreign exchange losses	0.10			0.39			0.02			1.07
Associated tax impact	(0.02		)	(0.05		)	(0.06		)	(0.05		)
Transaction and reorganization expenses	0.19			0.07			0.57			0.07
Associated tax impact	(0.03		)	—			(0.09		)	—
Bargain purchase gain	—			—			—			(0.18		)
Associated tax impact	—			—			—			—
Operating income (loss) per diluted common share	$	0.96		$	(5.35	)	$	3.69		$	(3.37	)
Adjustment for:
Amortization of value of business acquired and intangible assets	$	0.48		$	—		$	1.87		$	—
Associated tax impact	(0.09		)	—			(0.35		)	—
Amortization of acquisition cost	(0.35		)	—			(1.31		)	—
Associated tax impact	0.07			—			0.25			—
Ex-PGAAP operating income (loss) per diluted common share [a]	$	1.07		$	(5.35	)	$	4.15		$	(3.37	)
Weighted average common shares outstanding - diluted	84,107			83,305			83,939			84,479
Average common shareholders' equity	$	4,487,639		$	4,898,698		$	4,531,768		$	4,912,998
Annualized return on average common equity	3.9		%	nm			5.9		%	(10.3		)%
Annualized operating return on average common equity	7.2		%	nm			9.1		%	(7.7		)%
Annualized ex-PGAAP operating return on average common equity [a]	8.0		%	nm			10.2		%	nm

[a] Ex-PGAAP operating income (loss), ex-PGAAP operating income (loss) per diluted common share and ex-PGAAP operating return on average common equity are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations of non-GAAP measures to the most comparable GAAP financial measures (net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively) are provided in the table above, and a discussion of the rationale for the presentation of these items is also provided in this document.

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AXIS Capital Holdings Limited

VALUE OF BUSINESS ACQUIRED

Acquisition of Novae Group plc ("Novae")

On October 2, 2017 (the "closing date" or the "acquisition date"), AXIS Specialty UK Holdings Limited, a wholly owned subsidiary of the Company, acquired all of the issued and to be issued share capital of Novae for an aggregate purchase price of $617 million. The results of Novae are included in the results of the Company's insurance and reinsurance segments from that date. The acquisition of Novae was undertaken to accelerate the growth strategy of the Company's international insurance business, and to significantly scale up its capabilities to enable the Company to even better serve its clients and brokers.

At the acquisition date, the Company identified Value of Business Acquired ("VOBA") which represents the present value of the expected underwriting profit within policies that were in-force at the closing date of the transaction, of $257 million, pre-tax.

Amortization of Value of Business Acquired ("VOBA")

VOBA is amortized over its economic useful life and the expense is included in amortization of VOBA in the Consolidated Statement of Operations. The amortization of VOBA affects the Company’s operating income, a non-GAAP financial measure but this expense is not included in the results of the Company's insurance and reinsurance segments.

The estimated amortization expense for VOBA with a finite life is as follows:

VOBA Amortization expense
	Q4 2017	$	50,104
	2018	171,124
	2019	26,722
	2020	5,139
	2021	3,853
	2022	—
	2023 and thereafter	—
	VOBA	256,942
	Associated tax impact	(48,992		)
	VOBA, net of tax [a]	$	207,950

[a] VOBA, net of tax is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to VOBA, the most comparable GAAP financial measure, is provided in the table above and a discussion of the rationale for the presentation of this item is also provided in this document.

The purchase price was allocated to the assets acquired and liabilities assumed of Novae based on estimated fair values at the closing date. This resulted in the write-off of the deferred acquisition cost asset on Novae's balance at the acquisition date as the value of policies in-force on that date are considered within VOBA. Consequently, the expense associated with VOBA is estimated to include all acquisition costs previously paid as well as future profits associated with the policies in-force at acquisition.

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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]
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2018			2018			2018			2017			2017			2016
Common shareholders' equity	$	4,497,272		$	4,478,005		$	4,489,395		$	4,566,264		$	4,679,699		$	5,400,658
Less: goodwill	(102,003		)	(102,003		)	(102,004		)	(102,003		)	(48,969		)	(47,148		)
Less: intangible assets	(247,927		)	(250,541		)	(253,808		)	(257,987		)	(38,237		)	(38,353		)
Associated tax impact	46,196			45,123			45,524			46,377			14,386			12,705
Tangible common shareholders' equity	$	4,193,538		$	4,170,584		$	4,179,107		$	4,252,651		$	4,606,879		$	5,327,862
Outstanding diluted common shares, net of treasury shares	85,335			85,346			85,392			84,745			84,575			90,363
Diluted book value per common share	$	52.70		$	52.47		$	52.57		$	53.88		$	55.33		$	59.77
Diluted tangible book value per common share	$	49.14		$	48.87		$	48.94		$	50.18		$	54.47		$	58.96

[a] Under this method unvested restricted stock awards and units are 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

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. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), diluted tangible book value per common share, ex-PGAAP operating income (loss) (in total and on a per share basis) and ex-PGAAP operating ROACE, which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Underwriting-Related General and Administrative Expenses

Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our individual underwriting operations. While this measure is presented in the Segment Information note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these expenses 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 (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is included in the ''Consolidated Statements of Operations - Quarterly'' and ''Consolidated Statements of Operations - Year to date'' sections of this document.

Consolidated Underwriting Income (Loss)

Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (losses) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative costs as expenses. While this measure is presented in the Segment Information note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

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

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Foreign exchange (losses) gains in our Consolidated Statement of Operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange (losses) gains on our investment portfolio generally offset a large portion of the foreign exchange (losses) gains arising from our underwriting portfolio. As a result, we believe that foreign exchange (losses) gains are not a meaningful contributor to our underwriting performance, therefore, foreign exchange (losses) gains are excluded from consolidated underwriting income (loss).

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

Bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the excess of the fair value of the net identifiable assets acquired over the fair value of consideration transferred and is not indicative of future revenues of the company, therefore, this revenue is excluded from consolidated underwriting income (loss).

Transaction and reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

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

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

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of after-tax net investment gains (losses), foreign exchange (losses) gains, transaction and reorganization expenses and bargain purchase gain.

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

Foreign exchange (losses) gains in our Consolidated Statements of Operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. 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 (loss) and foreign exchange (losses) gains realized upon the sale of these investments in net investment

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gains (losses). These unrealized and realized foreign exchange (losses) gains generally offset a large portion of the foreign exchange (losses) gains reported separately in net income (loss) available (attributable) to common shareholders, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result, the foreign exchange (losses) gains in our Consolidated Statement of Operations in isolation are not a fair representation of the performance of our business.

Transaction and reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from operating income (loss).

Bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the excess of the fair value of the net identifiable assets acquired over the fair value of consideration transferred and is not indicative of future revenues of the company, therefore, these expenses are excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange (losses) gains, transaction and reorganization expenses and bargain purchase gain to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange (losses) gains, transaction and reorganization expenses 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 analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the "Operating Income" section in this document.

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

Diluted Tangible Book Value per Common Share

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

Diluted tangible book value per common share excludes the impacts of certain purchase accounting adjustments. 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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Ex-PGAAP Operating Income (Loss)

Ex-PGAAP operating income (loss) represents operating income (loss) exclusive of amortization of VOBA and intangible assets, net of tax and amortization of acquisition costs, net of tax both associated with Novae's balance sheet at October 2, 2017. We also present ex-PGAAP operating income per diluted common share and annualized ex-PGAAP operating ROACE in this document, which are derived from the ex-PGAAPoperating income (loss) measure. The reconciliation of ex-PGAAP operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure is provided in the "Non-GAAP Financial Measures Reconciliation" section of this document.

The reconciliation of ex-PGAAP operating income per diluted common share and ex-PGAAP operating ROACE to the most comparable GAAP financial measures, earnings per diluted common share and ROACE, respectively, are also provided in the "Non-GAAP Financial Measures Reconciliation" section of this document.

We believe the presentation of ex-PGAAP operating income (loss), ex-PGAAP operating income (loss) per diluted common share and ex-PGAAP operating ROACE enables investors and other users of our financial information to better analyze the performance of our business.

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