EX-99.2 3 q42020financialsupplement.htm EX-99.2 Document








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AXIS CAPITAL HOLDINGS LIMITED









INVESTOR FINANCIAL SUPPLEMENT

FOURTH QUARTER 2020



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AXIS CAPITAL HOLDINGS LIMITED
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Matt Rohrmann
Investor Contact
(212) 940-3339
investorrelations@axiscapital.com
Website Information:
www.axiscapital.com
This report is for informational purposes only. It should be read in conjunction with the documents that the Company files with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.



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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
   Page(s)
  
i - iv
  
II. Income Statements  
  
  
  
  
  
  
III. Balance Sheets  
  
b. Cash and Invested Assets:  
  
  
  
  
  
  
IV. Loss Reserve Analysis  
  
  
  
  
V. Share Analysis  
  
  
  
VI. Non-GAAP Financial Measures  
  


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AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION

AXIS Capital Holdings Limited's ("AXIS Capital" or the "Company") underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.

DEFINITIONS AND PRESENTATION
•All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2019 and consolidated statements of operations for the years then ended December 31, 2019 and December 31, 2018.
•Amounts may not reconcile due to rounding differences.
•Unless otherwise noted, all data is in thousands, except for ratio information.
•NM - Not meaningful - defined as a variance greater than +/-100%; NA - Not applicable
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This document contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for catastrophes and other weather-related losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding estimated synergies and the success of the integration of acquired entities, our expectations regarding the estimated benefits and synergies related to our transformation program, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices and foreign currency rates.

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

•the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition and liquidity;
•the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;
•the occurrence and magnitude of natural and man-made disasters;
•the impact of global climate change on our business, including the possibility that we do not adequately assess or reserve for the increased frequency and severity of natural catastrophes;
•losses from war, terrorism and political unrest or other unanticipated losses;
•actual claims exceeding loss reserves;
•general economic, capital and credit market conditions;
•the failure of any of the loss limitation methods we employ;
•the effects of emerging claims, coverage and regulatory issues, including uncertainty related to coverage definitions, limits, terms and conditions;
•the inability to purchase reinsurance or collect amounts due to us;
•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 of our key executives;
•a decline in our ratings with rating agencies;
•the loss of business provided to us by 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;


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•inadvertent 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 withdrawal from the European Union;
•fluctuations in interest rates, credit spreads, equity securities' prices and/or foreign currency values;
•the failure to successfully integrate acquired businesses or to realize the expected synergies resulting from such acquisitions;
•the failure to realize the expected benefits or synergies relating to our transformation initiative;
•changes in tax laws; and
•other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K and Part II, Item 1A 'Risk Factors' in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC which are accessible on the SEC's website at www.sec.gov. Readers are urged to carefully consider all such factors as the COVID-19 pandemic may have the effect of heightening many of the other risks and uncertainties described.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:
Property: provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects
and onshore renewable energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed.

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

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

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

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

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

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

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

Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued insurance lines include
financial institutions, professional indemnity, international liability, and international direct and facultative property.

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AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
 
BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

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

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and 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 lines insurance policies written by our cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis.
Professional Lines: provides protection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis.
Credit and Surety: 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. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Mortgage reinsurance is also provided to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.
Motor: provides protection to insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. Traditional proportional and non-proportional reinsurance as well as structured solutions are offered.
Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, and excess casualty.
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. The business is written on 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. The Company decided to exit this line of business in 2020.
Marine and Aviation: includes specialty marine classes such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability.This business is written on a non-proportional and proportional basis. Aviation provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis.

Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on both a proportional 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 reinsurance lines include motor reinsurance, general liability reinsurance, and international facultative property.

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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
  Quarters ended December 31,Years ended December 31,
  20202019Change20202019Change
HIGHLIGHTSGross premiums written$1,348,419 $1,261,366 6.9 %$6,826,938 $6,898,858 (1.0 %)
Gross premiums written - Insurance81.9 %76.2 %5.7 pts58.9 %53.3 %5.6 pts
Gross premiums written - Reinsurance18.1 %23.8 %(5.7)pts41.1 %46.7 %(5.6)pts
Net premiums written$785,449 $786,154 (0.1 %)$4,336,409 $4,489,615 (3.4 %)
Net premiums earned$1,087,368 $1,172,051 (7.2 %)$4,371,309 $4,587,178 (4.7 %)
Net premiums earned - Insurance54.2 %47.7 %6.5 pts52.6 %47.7 %4.9 pts
Net premiums earned - Reinsurance45.8 %52.3 %(6.5)pts47.4 %52.3 %(4.9)pts
Net income (loss) available (attributable) to common shareholders$(4,819)$(9,897)(51.3 %)$(150,674)$282,361 nm
Operating income (loss) [a]
(16,245)4,350 nm(174,222)213,409 nm
Annualized return on average common equity [b]
(0.4 %)(0.8 %)0.4 pts(3.2 %)6.3 %(9.5)pts
Annualized operating return on average common equity [c]
(1.4 %)0.4 %(1.8)pts(3.7 %)4.7 %(8.4)pts
Total shareholders’ equity$5,295,694 $5,544,008 (4.5 %)$5,295,694 $5,544,008 (4.5 %)
PER COMMON SHARE AND COMMON SHARE DATAEarnings (loss) per diluted common share($0.06)($0.12)(50.0 %)($1.79)$3.34 nm
Operating income (loss) per diluted common share [d]
($0.20)$0.05 nm($2.08)$2.52 nm
Weighted average diluted common shares outstanding84,341 83,957 0.5 %84,262 84,473 (0.2 %)
Book value per common share$56.26 $56.80 (1.0 %)$56.26 $56.80 (1.0 %)
Book value per diluted common share (treasury stock method)$55.09 $55.79 (1.3 %)$55.09 $55.79 (1.3 %)
Tangible book value per diluted common share (treasury stock method) [a]
$51.90 $52.40 (1.0 %)$51.90 $52.40 (1.0 %)
FINANCIAL RATIOSCurrent accident year loss ratio excluding catastrophe and weather-related losses57.4 %62.2 %(4.8)pts57.7 %60.6 %(2.9)pts
Catastrophe and weather-related losses ratio18.4 %12.1 %6.3 pts17.7 %7.5 %10.2 pts
Current accident year loss ratio75.8 %74.3 %1.5 pts75.4 %68.1 %7.3 pts
Prior year reserve development ratio(0.6 %)(1.1 %)0.5 pts(0.3 %)(1.7 %)1.4 pts
Net losses and loss expenses ratio75.2 %73.2 %2.0 pts75.1 %66.4 %8.7 pts
Acquisition cost ratio21.3 %22.3 %(1.0)pts21.3 %22.3 %(1.0)pts
General and administrative expense ratio [e]
13.1 %11.8 %1.3 pts13.2 %13.9 %(0.7)pts
Combined ratio109.6 %107.3 %2.3 pts109.6 %102.6 %7.0 pts
INVESTMENT DATATotal assets$25,877,687 $25,604,054 1.1 %$25,877,687 $25,604,054 1.1 %
Total cash and invested assets [f]
15,724,421 15,959,591 (1.5 %)15,724,421 15,959,591 (1.5 %)
Net investment income109,503 117,557 (6.9 %)349,601 478,572 (26.9 %)
Net investment gains83,356 42,712 95.2 %129,133 91,233 41.5 %
Book yield of fixed maturities2.3 %2.8 %(0.5)pts2.3 %2.8 %(0.5)pts
[a]    Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE") and tangible book value per diluted common share are non-GAAP financial measures as defined by Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, annualized return on average common equity ("ROACE") and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this document. Loss per diluted common share and operating loss per diluted common share for the quarter and year ended December 31, 2020 and loss per diluted common share for the quarter ended December 31, 2019, were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders or operating loss recognized in these periods.
[b]    Annualized ROACE is calculated by dividing net income (loss) available (attributable) to common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
[c]    Annualized operating ROACE is calculated by dividing operating income (loss) for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
[d]    Operating income (loss) per diluted common share is calculated by dividing operating income (loss) for the period by weighted average diluted common shares outstanding.
[e]    Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[f]    Total cash and invested assets represents the total cash and cash equivalents, fixed maturities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).









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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - AS REPORTED, U.S. GAAP
FOR THE QUARTERS AND YEARS ENDED DECEMBER 31, 2020 AND 2019
Quarters ended December 31,Years ended December 31,
2020201920202019
Revenues
Net premiums earned$1,087,368 $1,172,051 $4,371,309 $4,587,178 
Net investment income109,503 117,557 349,601 478,572 
Net investment gains83,356 42,712 129,133 91,233 
Other insurance related income (loss)(2,819)5,059 (8,089)16,444 
Total revenues1,277,408 1,337,379 4,841,954 5,173,427 
Expenses
Net losses and loss expenses817,239 857,394 3,281,252 3,044,798 
Acquisition costs231,800 261,775 929,517 1,024,582 
General and administrative expenses143,252 138,823 579,790 634,831 
Foreign exchange losses (gains)72,309 52,827 81,069 (12,041)
Interest expense and financing costs15,408 18,562 75,049 68,107 
Reorganization expenses7,059 8,074 7,881 37,384 
Amortization of value of business acquired1,028 2,056 5,139 26,722 
Amortization of intangible assets2,827 2,853 11,390 11,597 
Total expenses1,290,922 1,342,364 4,971,087 4,835,980 
Income (loss) before income taxes and interest in income (loss) of equity method investments(13,514)(4,985)(129,133)337,447 
Income tax (expense) benefit6,291 159 12,321 (23,692)
Interest in income (loss) of equity method investments9,967 4,073 (3,612)9,718 
Net income (loss)2,744 (753)(120,424)323,473 
Preferred share dividends7,563 9,144 30,250 41,112 
Net income (loss) available (attributable) to common shareholders$(4,819)$(9,897)$(150,674)$282,361 










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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
UNDERWRITING REVENUES
Gross premiums written$1,348,419 $1,331,178 $1,716,183 $2,431,158 $1,261,366 $1,172,738 
Ceded premiums written(562,970)(515,196)(660,249)(752,114)(475,212)(420,040)
Net premiums written785,449 815,982 1,055,934 1,679,044 786,154 752,698 
Gross premiums earned1,735,932 1,680,529 1,694,861 1,657,412 1,789,084 1,777,052 
Ceded premiums earned(648,564)(589,217)(590,858)(568,787)(617,033)(562,583)
Net premiums earned1,087,368 1,091,312 1,104,003 1,088,625 1,172,051 1,214,469 
Other insurance related income (loss)(2,819)1,440 1,996 (8,707)5,059 (8,189)
Total underwriting revenues1,084,549 1,092,752 1,105,999 1,079,918 1,177,110 1,206,280 
UNDERWRITING EXPENSES
Net losses and loss expenses817,239 879,677 676,261 908,073 857,394 1,027,343 
Acquisition costs231,800 230,564 228,502 238,650 261,775 259,308 
Underwriting-related general and administrative expenses [a]
116,345 117,835 113,824 129,962 107,195 114,293 
Total underwriting expenses1,165,384 1,228,076 1,018,587 1,276,685 1,226,364 1,400,944 
UNDERWRITING INCOME (LOSS) [b](80,835)(135,324)87,412 (196,767)(49,254)(194,664)
OTHER (EXPENSES) REVENUES
Net investment income109,503 101,956 45,040 93,101 117,557 113,128 
Net investment gains (losses)83,356 55,609 53,043 (62,877)42,712 (72,667)
Corporate expenses [a]
(26,907)(20,988)(26,828)(27,098)(31,628)(23,152)
Foreign exchange (losses) gains(72,309)(60,734)(9,709)61,683 (52,827)31,232 
Interest expense and financing costs(15,408)(15,574)(20,595)(23,472)(18,562)(16,675)
Reorganization expenses(7,059)(1,413)(392)982 (8,074)(18,815)
Amortization of value of business acquired(1,028)(1,028)(1,285)(1,799)(2,056)(22,797)
Amortization of intangible assets(2,827)(2,838)(2,855)(2,870)(2,853)(5,251)
Total other (expenses) revenues67,321 54,990 36,419 37,650 44,269 (14,997)
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS(13,514)(80,334)123,831 (159,117)(4,985)(209,661)
Income tax (expense) benefit6,291 12,056 (10,893)4,867 159 25,921 
Interest in income (loss) of equity method investments9,967 2,896 7,102 (23,577)4,073 (4,052)
NET INCOME (LOSS)2,744 (65,382)120,040 (177,827)(753)(187,792)
Preferred share dividends(7,563)(7,563)(7,563)(7,563)(9,144)(10,656)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$(4,819)$(72,945)$112,477 $(185,390)$(9,897)$(198,448)
[a]    Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.
[b]    Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented above and in the 'Consolidated Statements of Operations - Year' section of this document.









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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - QUARTER
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses57.4 %58.5 %58.0 %57.1 %62.2 %65.4 %
Catastrophe and weather-related losses ratio18.4 %22.2 %3.5 %26.9 %12.1 %22.5 %
Current accident year loss ratio75.8 %80.7 %61.5 %84.0 %74.3 %87.9 %
Prior year reserve development ratio(0.6 %)(0.1 %)(0.2 %)(0.6 %)(1.1 %)(3.3 %)
Net losses and loss expenses ratio75.2 %80.6 %61.3 %83.4 %73.2 %84.6 %
Acquisition cost ratio21.3 %21.1 %20.7 %21.9 %22.3 %21.4 %
General and administrative expense ratio [a]
13.1 %12.8 %12.7 %14.5 %11.8 %11.3 %
Combined ratio109.6 %114.5 %94.7 %119.8 %107.3 %117.3 %
Weighted average common shares outstanding84,341 84,308 84,303 84,094 83,957 83,582 
Weighted average diluted common shares outstanding84,341 84,308 84,600 84,094 83,957 83,582 
Earnings (loss) per common share($0.06)($0.87)$1.33 ($2.20)($0.12)($2.37)
Earnings (loss) per diluted common share($0.06)($0.87)$1.33 ($2.20)($0.12)($2.37)
Annualized ROACE(0.4 %)(6.2 %)10.0 %nm(0.8 %)(18.1 %)
Annualized operating ROACE(1.4 %)(5.5 %)6.3 %nm0.4 %(13.2 %)
[a]    Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.









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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - YEAR
 Years ended December 31,
 202020192018
UNDERWRITING REVENUES
Gross premiums written$6,826,938 $6,898,858 $6,910,065 
Ceded premiums written(2,490,529)(2,409,243)(2,251,103)
Net premiums written4,336,409 4,489,615 4,658,962 
Gross premiums earned6,768,733 6,910,677 6,882,217 
Ceded premiums earned(2,397,424)(2,323,499)(2,090,722)
Net premiums earned4,371,309 4,587,178 4,791,495 
Other insurance related income (loss)(8,089)16,444 10,622 
Total underwriting revenues4,363,220 4,603,622 4,802,117 
UNDERWRITING EXPENSES
Net losses and loss expenses3,281,252 3,044,798 3,190,287 
Acquisition costs929,517 1,024,582 968,835 
Underwriting-related general and administrative expenses [a]
477,968 505,735 519,168 
Total underwriting expenses4,688,737 4,575,115 4,678,290 
UNDERWRITING INCOME (LOSS)(325,517)28,507 123,827 
OTHER (EXPENSES) REVENUES
Net investment income349,601 478,572 438,507 
Net investment gains (losses)129,133 91,233 (150,218)
Corporate expenses [a]
(101,822)(129,096)(108,221)
Foreign exchange (losses) gains(81,069)12,041 29,165 
Interest expense and financing costs(75,049)(68,107)(67,432)
Reorganization expenses(7,881)(37,384)(66,940)
Amortization of value of business acquired(5,139)(26,722)(172,332)
Amortization of intangible assets(11,390)(11,597)(13,814)
Total other (expenses) revenues196,384 308,940 (111,285)
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS(129,133)337,447 12,542 
Income tax (expense) benefit12,321 (23,692)29,486 
Interest in income (loss) of equity method investments(3,612)9,718 993 
NET INCOME (LOSS)(120,424)323,473 43,021 
Preferred share dividends(30,250)(41,112)(42,625)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$(150,674)$282,361 $396 
[a]    Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.









5
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - YEAR
Years ended December 31,
202020192018
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses57.7 %60.6 %61.7 %
Catastrophe and weather-related losses ratio17.7 %7.5 %9.0 %
Current accident year loss ratio75.4 %68.1 %70.7 %
Prior year reserve development ratio(0.3 %)(1.7 %)(4.1 %)
Net losses and loss expenses ratio75.1 %66.4 %66.6 %
Acquisition cost ratio21.3 %22.3 %20.2 %
General and administrative expense ratio [a]
13.2 %13.9 %13.1 %
Combined ratio109.6 %102.6 %99.9 %
Weighted average common shares outstanding84,262 83,894 83,501 
Weighted average diluted common shares outstanding84,262 84,473 84,007 
Earnings (loss) per common share($1.79)$3.37 $— 
Earnings (loss) per diluted common share($1.79)$3.34 $— 
ROACE(3.2 %)6.3 %— %
Operating ROACE(3.7 %)4.7 %3.6 %
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.









6
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA
 Quarter ended December 31, 2020Year ended December 31, 2020
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
UNDERWRITING REVENUES
Gross premiums written$1,104,299 $244,120 $1,348,419 $4,018,399 $2,808,539 $6,826,938 
Ceded premium written(476,066)(86,904)(562,970)(1,660,898)(829,631)(2,490,529)
Net premiums written628,233 157,216 785,449 2,357,501 1,978,908 4,336,409 
Gross premiums earned1,006,930 729,002 1,735,932 3,839,727 2,929,006 6,768,733 
Ceded premiums earned(417,160)(231,404)(648,564)(1,540,689)(856,735)(2,397,424)
Net premiums earned589,770 497,598 1,087,368 2,299,038 2,072,271 4,371,309 
Other insurance related income (loss)556 (3,375)(2,819)2,647 (10,736)(8,089)
Total underwriting revenues590,326 494,223 1,084,549 2,301,685 2,061,535 4,363,220 
UNDERWRITING EXPENSES
Net losses and loss expenses444,444 372,795 817,239 1,697,014 1,584,238 3,281,252 
Acquisition costs117,954 113,846 231,800 461,533 467,984 929,517 
Underwriting-related general and administrative expenses93,930 22,415 116,345 378,839 99,129 477,968 
Total underwriting expenses656,328 509,056 1,165,384 2,537,386 2,151,351 4,688,737 
UNDERWRITING LOSS$(66,002)(14,833)(80,835)(235,701)(89,816)(325,517)
Catastrophe and weather-related losses, net of reinstatement premiums$118,185 $79,843 $198,028 $443,440 $330,479 $773,919 
Net favorable prior year reserve development$4,417 $2,142 $6,559 $8,937 $6,972 $15,909 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses56.1 %59.0 %57.4 %55.1 %60.6 %57.7 %
Catastrophe and weather-related losses ratio20.0 %16.3 %18.4 %19.1 %16.2 %17.7 %
Current accident year loss ratio76.1 %75.3 %75.8 %74.2 %76.8 %75.4 %
Prior year reserve development ratio(0.7 %)(0.4 %)(0.6 %)(0.4 %)(0.4 %)(0.3 %)
Net losses and loss expenses ratio75.4 %74.9 %75.2 %73.8 %76.4 %75.1 %
Acquisition cost ratio20.0 %22.9 %21.3 %20.1 %22.6 %21.3 %
Underwriting-related general and administrative expense ratio15.9 %4.5 %10.6 %16.5 %4.8 %10.9 %
Corporate expense ratio2.5 %2.3 %
Combined ratio111.3 %102.3 %109.6 %110.4 %103.8 %109.6 %













7
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AXIS CAPITAL HOLDINGS LIMITED
GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS
       Years ended December 31,
 Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 201820202019
INSURANCE SEGMENT
Property$255,606 $238,599 $278,841 $223,603 $242,446 $245,851 $996,650 $943,760 
Marine63,901 82,810 116,398 156,296 73,780 56,202 419,405 411,309 
Terrorism13,486 14,767 11,008 16,520 13,317 12,920 55,781 60,120 
Aviation23,946 22,702 23,794 17,230 20,838 23,496 87,671 74,670 
Credit and Political Risk56,264 24,473 28,002 47,675 40,487 70,206 156,414 154,999 
Professional Lines434,868 338,907 346,338 258,391 356,321 328,078 1,378,503 1,177,274 
Liability215,131 172,747 204,398 170,878 180,951 144,277 763,155 699,876 
Accident and Health40,843 39,262 27,419 51,062 30,876 37,080 158,585 144,103 
Discontinued Lines - Novae254 1,550 1,370 (940)2,592 2,626 2,235 9,820 
TOTAL INSURANCE SEGMENT$1,104,299 $935,817 $1,037,568 $940,715 $961,608 $920,736 $4,018,399 $3,675,931 
REINSURANCE SEGMENT
Catastrophe$24,497 $74,656 $189,706 $262,283 $20,346 $41,137 $551,143 $718,514 
Property(1,115)58,907 54,763 133,189 20,318 (3,345)245,744 304,166 
Credit and Surety43,519 38,110 50,332 100,739 28,375 28,442 232,699 269,733 
Professional Lines45,888 31,752 111,725 123,570 34,789 19,312 312,935 261,072 
Motor(15,427)(2,235)42,970 279,132 21,273 21,921 304,439 334,887 
Liability113,591 136,791 149,635 218,896 88,479 50,790 618,913 546,479 
Engineering5,552 1,408 3,006 15,920 17,821 24,099 25,886 57,028 
Agriculture901 7,455 43,896 18,248 23,369 14,131 70,500 224,961 
Marine and Aviation10,900 6,341 25,867 29,993 6,675 3,354 73,103 74,781 
Accident and Health15,706 41,820 6,625 307,678 38,881 51,050 371,828 432,670 
Discontinued Lines - Novae108 356 90 795 (568)1,111 1,349 (1,364)
TOTAL REINSURANCE SEGMENT$244,120 $395,361 $678,615 $1,490,443 $299,758 $252,002 $2,808,539 $3,222,927 
CONSOLIDATED TOTAL$1,348,419 $1,331,178 $1,716,183 $2,431,158 $1,261,366 $1,172,738 $6,826,938 $6,898,858 










8
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 20182019
UNDERWRITING REVENUES
Gross premiums written$1,348,419 $1,331,178 $1,716,183 $2,431,158 $1,261,366 $1,172,738 $6,898,858 
Ceded premiums written
(562,970)(515,196)(660,249)(752,114)(475,212)(420,040)(2,409,243)
Net premiums written785,449 815,982 1,055,934 1,679,044 786,154 752,698 4,489,615 
Gross premiums earned1,735,932 1,680,529 1,694,861 1,657,412 1,789,084 1,777,052 6,910,677 
Ceded premiums earned(648,564)(589,217)(590,858)(568,787)(617,033)(562,583)(2,323,499)
Net premiums earned1,087,368 1,091,312 1,104,003 1,088,625 1,172,051 1,214,469 4,587,178 
Other insurance related income (loss)(2,819)1,440 1,996 (8,707)5,059 (8,189)16,444 
Total underwriting revenues1,084,549 1,092,752 1,105,999 1,079,918 1,177,110 1,206,280 4,603,622 
UNDERWRITING EXPENSES
Net losses and loss expenses817,239 879,677 676,261 908,073 857,394 1,027,343 3,044,798 
Acquisition costs 231,800 230,564 228,502 238,650 261,775 259,308 1,024,582 
Underwriting-related general and administrative expenses116,345 117,835 113,824 129,962 107,195 114,293 505,735 
  Total underwriting expenses1,165,384 1,228,076 1,018,587 1,276,685 1,226,364 1,400,944 4,575,115 
UNDERWRITING INCOME (LOSS)$(80,835)$(135,324)$87,412 $(196,767)$(49,254)$(194,664)$28,507 
Catastrophe and weather-related losses, net of reinstatement premiums$198,028 $240,025 $36,047 $299,695 $140,000 $269,130 $336,117 
Net favorable prior year reserve development$6,559 $584 $2,655 $6,113 $13,881 $39,578 $78,900 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses57.4 %58.5 %58.0 %57.1 %62.2 %65.4 %60.6 %
Catastrophe and weather-related losses ratio18.4 %22.2 %3.5 %26.9 %12.1 %22.5 %7.5 %
Current accident year loss ratio75.8 %80.7 %61.5 %84.0 %74.3 %87.9 %68.1 %
Prior year reserve development ratio(0.6 %)(0.1 %)(0.2 %)(0.6 %)(1.1 %)(3.3 %)(1.7 %)
Net losses and loss expenses ratio75.2 %80.6 %61.3 %83.4 %73.2 %84.6 %66.4 %
Acquisition cost ratio21.3 %21.1 %20.7 %21.9 %22.3 %21.4 %22.3 %
Underwriting-related general and administrative expense ratio13.1 %12.8 %12.7 %14.5 %11.8 %11.3 %13.9 %
Combined ratio109.6 %114.5 %94.7 %119.8 %107.3 %117.3 %102.6 %










9
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AXIS CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 20182019
UNDERWRITING REVENUES
Gross premiums written$1,104,299 $935,817 $1,037,568 $940,715 $961,608 $920,736 $3,675,931 
Ceded premiums written
(476,066)(390,960)(434,807)(359,065)(390,651)(344,130)(1,466,776)
Net premiums written628,233 544,857 602,761 581,650 570,957 576,606 2,209,155 
Gross premiums earned1,006,930 948,478 952,241 932,078 927,599 937,784 3,623,180 
Ceded premiums earned(417,160)(378,294)(375,222)(370,014)(367,989)(347,305)(1,433,096)
Net premiums earned589,770 570,184 577,019 562,064 559,610 590,479 2,190,084 
Other insurance related income556 688 755 647 1,079 101 2,858 
Total underwriting revenues590,326 570,872 577,774 562,711 560,689 590,580 2,192,942 
UNDERWRITING EXPENSES
Net losses and loss expenses444,444 443,389 337,367 471,812 317,234 428,525 1,278,679 
Acquisition costs117,954 114,569 116,259 112,751 123,300 109,111 468,281 
Underwriting-related general and administrative expenses93,930 94,379 89,751 100,778 90,472 89,858 401,963 
Total underwriting expenses656,328 652,337 543,377 685,341 531,006 627,494 2,148,923 
UNDERWRITING INCOME (LOSS)$(66,002)$(81,465)$34,397 $(122,630)$29,683 $(36,914)$44,019 
Catastrophe and weather-related losses, net of reinstatement premiums$118,185 $131,853 $15,786 $177,583 $19,900 $92,128 $83,700 
Net favorable prior year reserve development$4,417 $270 $420 $3,832 $10,455 $32,257 $53,302 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses56.1 %54.7 %55.6 %54.2 %55.0 %62.4 %57.0 %
Catastrophe and weather-related losses ratio20.0 %23.1 %2.9 %30.4 %3.6 %15.6 %3.8 %
Current accident year loss ratio76.1 %77.8 %58.5 %84.6 %58.6 %78.0 %60.8 %
Prior year reserve development ratio(0.7 %)— %— %(0.7 %)(1.9 %)(5.4 %)(2.4 %)
Net losses and loss expenses ratio75.4 %77.8 %58.5 %83.9 %56.7 %72.6 %58.4 %
Acquisition cost ratio20.0 %20.1 %20.1 %20.1 %22.0 %18.5 %21.4 %
Underwriting-related general and administrative expense ratio15.9 %16.5 %15.6 %17.9 %16.2 %15.2 %18.3 %
Combined ratio111.3 %114.4 %94.2 %121.9 %94.9 %106.3 %98.1 %












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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 20182019
UNDERWRITING REVENUES
Gross premiums written$244,120 $395,361 $678,615 $1,490,443 $299,758 $252,002 $3,222,927 
Ceded premiums written(86,904)(124,236)(225,442)(393,049)(84,561)(75,910)(942,467)
Net premiums written157,216 271,125 453,173 1,097,394 215,197 176,092 2,280,460 
Gross premiums earned729,002 732,051 742,620 725,334 861,485 839,268 3,287,497 
Ceded premiums earned(231,404)(210,923)(215,636)(198,773)(249,044)(215,278)(890,403)
Net premiums earned497,598 521,128 526,984 526,561 612,441 623,990 2,397,094 
Other insurance related income (loss)(3,375)752 1,241 (9,354)3,980 (8,290)13,586 
Total underwriting revenues494,223 521,880 528,225 517,207 616,421 615,700 2,410,680 
UNDERWRITING EXPENSES
Net losses and loss expenses372,795 436,288 338,894 436,261 540,160 598,818 1,766,119 
Acquisition costs113,846 115,995 112,243 125,899 138,475 150,197 556,301 
Underwriting-related general and administrative expenses22,415 23,456 24,073 29,184 16,723 24,435 103,772 
Total underwriting expenses509,056 575,739 475,210 591,344 695,358 773,450 2,426,192 
UNDERWRITING INCOME (LOSS)$(14,833)$(53,859)$53,015 $(74,137)$(78,937)$(157,750)$(15,512)
Catastrophe and weather-related losses, net of reinstatement premiums$79,843 $108,172 $20,261 $122,112 $120,100 $177,002 $252,417 
Net favorable prior year reserve development$2,142 $314 $2,235 $2,281 $3,426 $7,321 $25,598 
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses59.0 %62.7 %60.6 %60.2 %68.9 %68.3 %64.0 %
Catastrophe and weather-related losses ratio16.3 %21.1 %4.1 %23.1 %19.9 %28.8 %10.7 %
Current accident year loss ratio75.3 %83.8 %64.7 %83.3 %88.8 %97.1 %74.7 %
Prior year reserve development ratio(0.4 %)(0.1 %)(0.4 %)(0.4 %)(0.6 %)(1.1 %)(1.0 %)
Net losses and loss expenses ratio74.9 %83.7 %64.3 %82.9 %88.2 %96.0 %73.7 %
Acquisition cost ratio22.9 %22.3 %21.3 %23.9 %22.6 %24.1 %23.2 %
Underwriting-related general and administrative expenses ratio4.5 %4.5 %4.6 %5.5 %2.7 %3.9 %4.3 %
Combined ratio102.3 %110.5 %90.2 %112.3 %113.5 %124.0 %101.2 %










11
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AXIS CAPITAL HOLDINGS LIMITED
STRATEGIC CAPITAL PARTNERS
Quarters ended December 31,Years ended December 31,
2020201920202019
TOTAL MANAGED PREMIUMS [a]InsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotal
Total Managed Premiums$1,104,299 $244,120 $1,348,419 $961,608 $299,758 $1,261,366 $4,018,399 $2,808,539 $6,826,938 $3,675,931 $3,222,927 $6,898,858 
Premiums ceded to Harrington Re
3,431 37,435 40,866 1,965 38,220 40,185 11,317 246,984 258,301 5,775 241,347 247,122 
Premiums ceded to Other Strategic Capital Partners
18,885 49,469 68,354 13,651 46,341 59,992 71,050 582,647 653,697 54,644 701,120 755,764 
Premiums ceded to Other Reinsurers
453,750 — 453,750 375,035 — 375,035 1,578,531 — 1,578,531 1,406,357 — 1,406,357 
Net premiums written$628,233 $157,216 $785,449 $570,957 $215,197 $786,154 $2,357,501 $1,978,908 $4,336,409 $2,209,155 $2,280,460 $4,489,615 
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income$2,674 $10,229 $12,903 $2,036 $21,081 $23,117 $10,645 $49,820 $60,465 $7,428 $72,820 $80,248 
[a]    Total managed premiums represents gross premiums written of $1.3 billion for the quarters ended December 31, 2020 and 2019, respectively, and $6.8 billion and $6.9 billion for the years ended December 31, 2020 and 2019, respectively, and includes premiums written by the Insurance and Reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.
[b]    Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners. Fee income from strategic capital partners included $(4) million and $3 million in other insurance related income (loss) for the quarters ended December 31, 2020 and 2019, respectively and $(2) million and $12 million for the years ended December 31, 2020, and 2019, respectively. It also included $17 million and $20 million as an offset to general and administrative expenses for the quarters ended December 31, 2020 and 2019, respectively and $62 million and $68 million for the years ended December 31, 2020 and 2019, respectively.









12
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AXIS CAPITAL HOLDINGS LIMITED
NET INVESTMENT INCOME - QUARTER AND YEAR
       Years ended December 31,
 Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 201820202019
Fixed maturities$72,727 $73,992 $80,459 $89,943 $98,990 $94,108 $317,121 $384,053 
Other investments30,634 25,125 (37,580)(2,120)10,767 4,780 16,059 60,038 
Equity securities3,069 1,871 2,263 2,125 2,678 3,062 9,328 10,434 
Mortgage loans4,110 3,609 3,660 4,053 3,977 3,762 15,432 14,712 
Cash and cash equivalents3,768 2,491 2,392 4,930 5,908 10,796 13,582 26,882 
Short-term investments446 440 366 1,498 1,077 3,432 2,749 7,053 
Gross investment income114,754 107,528 51,560 100,429 123,397 119,940 374,271 503,172 
Investment expense(5,251)(5,572)(6,520)(7,328)(5,840)(6,812)(24,670)(24,600)
Net investment income$109,503 $101,956 $45,040 $93,101 $117,557 $113,128 $349,601 $478,572 











13
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
December 31,September 30,June 30,March 31,December 31,December 31,
202020202020202020192018
ASSETS
Investments:
Fixed maturities, available for sale, at fair value$12,041,799 $12,609,241 $12,046,415 $12,076,186 $12,468,205 $11,435,347 
Equity securities, at fair value518,445 417,886 378,860 404,945 474,207 381,633 
Mortgage loans, held for investment, at fair value593,290 544,095 524,757 517,181 432,748 298,650 
Other investments, at fair value829,156 760,206 768,635 797,808 770,923 787,787 
Equity method investments114,209 104,242 101,346 94,244 117,821 108,103 
Short-term investments, at fair value161,897 69,996 34,337 77,101 38,471 144,040 
Total investments14,258,796 14,505,666 13,854,350 13,967,465 14,302,375 13,155,560 
Cash and cash equivalents1,503,232 1,440,816 1,648,833 1,241,063 1,576,457 1,830,020 
Accrued interest receivable65,020 70,013 68,880 76,569 78,085 80,335 
Insurance and reinsurance premium balances receivable2,738,342 3,131,791 3,527,147 3,485,043 3,071,390 3,007,296 
Reinsurance recoverable on unpaid losses and loss expenses4,496,641 4,337,683 4,160,521 4,101,579 3,877,756 3,501,669 
Reinsurance recoverable on paid losses and loss expenses434,201 373,431 395,990 357,185 327,795 280,233 
Deferred acquisition costs431,439 520,706 583,484 611,229 492,119 566,622 
Prepaid reinsurance premiums1,194,455 1,278,672 1,352,090 1,281,808 1,101,889 1,013,573 
Receivable for investments sold2,150 17,513 2,985 34,137 35,659 32,627 
Goodwill 100,801 102,003 102,003 102,003 102,003 102,003 
Intangible assets219,633 222,362 225,092 227,821 230,550 241,568 
Value of business acquired3,854 4,881 5,909 7,194 8,992 35,714 
Operating lease right-of-use assets123,579 131,776 136,815 140,149 111,092 — 
Other assets305,544 315,683 295,074 315,523 287,892 285,346 
TOTAL ASSETS$25,877,687 $26,452,996 $26,359,173 $25,948,768 $25,604,054 $24,132,566 
LIABILITIES
Reserve for losses and loss expenses$13,926,766 $13,653,488 $13,179,166 $13,082,273 $12,752,081 $12,280,769 
Unearned premiums3,685,886 4,070,649 4,418,728 4,395,240 3,626,246 3,635,758 
Insurance and reinsurance balances payable1,092,042 1,244,846 1,365,799 1,263,389 1,349,082 1,338,991 
Debt1,309,695 1,309,384 1,309,076 1,808,645 1,808,157 1,341,961 
Payable for investments purchased104,777 458,111 350,347 123,678 32,985 111,838 
Operating lease liabilities140,263 140,058 141,621 143,071 115,584 — 
Other liabilities322,564 310,565 296,616 292,894 375,911 393,178 
TOTAL LIABILITIES20,581,993 21,187,101 21,061,353 21,109,190 20,060,046 19,102,495 
SHAREHOLDERS’ EQUITY
Preferred shares 550,000 550,000 550,000 550,000 775,000 775,000 
Common shares2,206 2,206 2,206 2,206 2,206 2,206 
Additional paid-in capital2,330,054 2,325,196 2,317,354 2,307,998 2,317,212 2,308,583 
Accumulated other comprehensive income (loss)414,395 350,111 281,599 (89,919)171,710 (177,110)
Retained earnings5,763,607 5,804,637 5,913,029 5,836,007 6,056,686 5,912,812 
Treasury shares, at cost(3,764,568)(3,766,255)(3,766,368)(3,766,714)(3,778,806)(3,791,420)
TOTAL SHAREHOLDERS' EQUITY5,295,694 5,265,895 5,297,820 4,839,578 5,544,008 5,030,071 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$25,877,687 $26,452,996 $26,359,173 $25,948,768 $25,604,054 $24,132,566 
Common shares outstanding84,353 84,309 84,306 84,298 83,959 83,586 
Diluted common shares outstanding [a]
86,143 86,132 86,178 86,170 85,489 85,229 
Book value per common share
$56.26 $55.94 $56.32 $50.89 $56.80 $50.91 
Book value per diluted common share$55.09 $54.75 $55.09 $49.78 $55.79 $49.93 
Tangible book value per diluted common share$51.90 $51.52 $51.79 $46.45 $52.40 $46.41 
Debt to total capital [b]
19.8 %19.9 %19.8 %27.2 %24.6 %21.1 %
Debt and preferred equity to total capital28.2 %28.3 %28.1 %35.5 %35.1 %33.2 %
[a]    Treasury stock method was applied. Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]    The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt.









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AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS PORTFOLIO
At December 31, 2020
Cost or
Amortized Cost		Allowance for Expected Credit LossesUnrealized
Gains		Unrealized
Losses		Fair ValuePercentage
Fixed Maturities, available for sale
U.S. government and agency$1,881,489 $— $38,969 $(1,759)$1,918,699 12.2 %
Non-U.S. government632,875 — 38,826 (428)671,273 4.3 %
Corporate debt4,408,351 (303)254,261 (6,358)4,655,951 29.6 %
Agency RMBS1,244,727 — 42,170 (688)1,286,209 8.2 %
CMBS1,268,273 — 87,598 (2,284)1,353,587 8.6 %
Non-Agency RMBS136,198 (20)4,604 (678)140,104 0.9 %
ABS1,712,236 — 14,527 (6,685)1,720,078 10.9 %
Municipals282,781 — 13,148 (31)295,898 1.9 %
Total fixed maturities11,566,930 (323)494,103 (18,911)12,041,799 76.6 %
Equity securities
Common stocks10,810 — 689 (557)10,942 0.1 %
Preferred stocks6,301 — 1,767 — 8,068 0.1 %
Exchange-traded funds147,794 — 74,314 (390)221,718 1.4 %
Bond mutual funds256,839 — 20,878 — 277,717 1.7 %
Total equity securities421,744 — 97,648 (947)518,445 3.3 %
Total fixed maturities and equity securities$11,988,674 $(323)$591,751 $(19,858)12,560,244 79.9 %
Mortgage loans, held for investment593,290 3.8 %
Other investments (see below)829,156 5.3 %
Equity method investments114,209 0.7 %
Short-term investments161,897 1.0 %
Total investments14,258,796 90.7 %
Cash and cash equivalents [a]1,503,232 9.6 %
Accrued interest receivable65,020 0.4 %
Net receivable/(payable) for investments sold (purchased)(102,627)(0.7 %)
Total cash and invested assets$15,724,421 100.0 %
    
Fair ValuePercentage
Other Investments:
Long/short equity funds$25,300 3.1 %
Multi-strategy funds121,420 14.6 %
Direct lending funds272,131 32.8 %
Real estate funds164,250 19.8 %
Private equity funds124,706 15.0 %
Other privately held investments70,011 8.4 %
Collateralized loan obligations - equity tranches6,173 0.9 %
Overseas deposits45,165 5.4 %
Total$829,156 100.0 %
[a]    Includes $600 million of restricted cash and cash equivalents.









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AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS COMPOSITION - QUARTER
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
 Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency12.2 %12.8 %13.2 %12.4 %13.2 %10.1 %
Non-U.S. government4.3 %4.3 %4.0 %3.9 %3.6 %3.3 %
Corporate debt29.6 %30.8 %30.6 %31.5 %30.9 %32.5 %
MBS:
Agency RMBS8.2 %10.8 %10.1 %10.6 %10.0 %11.0 %
CMBS8.6 %8.9 %9.0 %9.4 %8.6 %7.3 %
Non-agency RMBS0.9 %0.9 %0.8 %0.8 %0.5 %0.3 %
ABS10.9 %10.7 %10.1 %9.5 %10.0 %10.9 %
Municipals1.9 %1.8 %1.3 %1.4 %1.3 %0.9 %
Total Fixed Maturities76.6 %81.0 %79.1 %79.5 %78.1 %76.3 %
Equity securities3.3 %2.7 %2.5 %2.7 %3.0 %2.5 %
Mortgage loans3.8 %3.5 %3.4 %3.4 %2.7 %2.0 %
Other investments5.3 %4.9 %5.0 %5.3 %4.8 %5.3 %
Equity method investments0.7 %0.7 %0.7 %0.6 %0.7 %0.7 %
Short-term investments1.0 %0.3 %0.3 %0.4 %0.3 %1.0 %
Total investments90.7 %93.1 %91.0 %91.9 %89.6 %87.8 %
Cash and cash equivalents9.6 %9.3 %10.8 %8.2 %9.9 %12.2 %
Accrued interest receivable0.4 %0.4 %0.5 %0.5 %0.5 %0.5 %
Net receivable/(payable) for investments sold (purchased)(0.7 %)(2.8 %)(2.3 %)(0.6 %)— %(0.5 %)
Total Cash and Invested Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency15.9 %15.8 %16.7 %15.5 %16.9 %13.3 %
AAA37.8 %39.8 %38.9 %39.8 %39.3 %40.0 %
AA7.6 %7.4 %6.8 %7.0 %6.9 %7.7 %
A15.7 %15.7 %16.4 %15.9 %14.8 %15.5 %
BBB14.4 %13.4 %13.2 %13.0 %13.5 %14.7 %
Below BBB8.6 %7.9 %8.0 %8.8 %8.6 %8.8 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
MATURITY PROFILE OF FIXED MATURITIES
Within one year3.6 %2.9 %3.3 %3.5 %3.6 %3.7 %
From one to five years36.0 %35.3 %36.3 %36.5 %39.2 %41.0 %
From five to ten years20.7 %21.1 %20.7 %19.1 %17.3 %14.8 %
Above ten years2.3 %2.1 %1.8 %2.7 %2.7 %1.8 %
Asset-backed and mortgage-backed securities37.4 %38.6 %37.9 %38.2 %37.2 %38.7 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities2.3 %2.3 %2.5 %2.7 %2.8 %3.1 %
Yield to maturity of fixed maturities1.3 %1.4 %1.6 %2.9 %2.4 %3.6 %
Average duration of fixed maturities (inclusive of duration hedges)3.3  yrs3.4 yrs3.4 yrs3.3 yrs3.2 yrs2.8  yrs
Average credit qualityAA-AA-AA-AA-AA-AA-










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AXIS CAPITAL HOLDINGS LIMITED
CORPORATE DEBT INVESTED ASSETS COMPOSITION
At December 31, 2020
Fair Value% of Total
Corporate Debt		% of Total
Cash and
Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks$900,164 19.3 %5.7 %
Non-U.S. banks274,462 5.9 %1.7 %
Corporate/commercial finance206,413 4.4 %1.3 %
Insurance123,628 2.7 %0.8 %
Investment brokerage52,359 1.1 %0.3 %
Total financial institutions1,557,026 33.4 %9.8 %
Consumer non-cyclicals550,387 11.8 %3.5 %
Communications308,531 6.6 %2.0 %
Consumer cyclicals249,853 5.4 %1.6 %
Technology225,004 4.8 %1.4 %
Non-U.S. government guaranteed184,174 4.0 %1.2 %
Industrials181,982 3.9 %1.2 %
Energy176,375 3.8 %1.1 %
Utilities168,970 3.6 %1.1 %
Transportation118,256 2.5 %0.8 %
Total investment grade3,720,558 79.8 %23.7 %
Total non-investment grade935,393 20.2 %5.9 %
Total corporate debt$4,655,951 100.0 %29.6 %










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AXIS CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO
TEN LARGEST CORPORATE DEBT HOLDINGS
At December 31, 2020  
Amortized
Cost		Net Unrealized
Gain (Loss)		Fair Value% of Total
Fixed  Maturities
ISSUER [a]
BANK OF AMERICA CORP$124,140 $9,720 $133,860 1.1 %
MORGAN STANLEY113,922 8,477 122,399 1.0 %
WELLS FARGO & COMPANY105,118 7,020 112,138 0.9 %
JP MORGAN CHASE & CO103,679 8,195 111,874 0.9 %
GOLDMAN SACHS GROUP95,907 6,739 102,646 0.9 %
CITIGROUP INC76,410 6,890 83,300 0.7 %
AT&T INC45,312 3,126 48,438 0.4 %
COMCAST CORPORATION42,303 4,116 46,419 0.4 %
MITSUBISHI UFJ FINANCIAL GROUP INC42,120 1,667 43,787 0.4 %
DEUTSCHE TELEKOM AG38,453 2,403 40,856 0.3 %
[a]    The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.









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AXIS CAPITAL HOLDINGS LIMITED
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION
At December 31, 2020
AgenciesAAAAAABBBNon-Investment
Grade		Total
Residential MBS$1,286,209 $109,903 $8,378 $7,101 $677 $14,045 $1,426,313 
Commercial MBS311,698 972,222 64,459 1,608 2,375 1,225 1,353,587 
ABS— 1,438,131 78,364 65,344 61,791 76,448 1,720,078 
Total mortgage-backed and asset-backed securities$1,597,907 $2,520,256 $151,201 $74,053 $64,843 $91,718 $4,499,978 
Percentage of total35.5 %56.0 %3.4 %1.6 %1.4 %2.1 %100.0 %










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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
Reinsurance recoverable on paid losses and loss expenses:
Insurance$265,494 $234,072 $205,112 $200,990 $196,334 $159,347 
Reinsurance168,707 139,359 190,878 156,195 131,461 121,112 
Total$434,201 $373,431 $395,990 $357,185 $327,795 $280,459 
Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance$878,107 $874,612 $898,849 $892,354 $890,036 $791,215 
Reinsurance505,437 452,201 406,723 482,347 468,904 327,067 
Total$1,383,544 $1,326,813 $1,305,572 $1,374,701 $1,358,940 $1,118,282 
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance$2,339,557 $2,258,508 $2,151,986 $2,127,989 $1,933,657 $1,919,002 
Reinsurance797,251 775,187 723,950 617,843 603,116 484,754 
Total$3,136,808 $3,033,695 $2,875,936 $2,745,832 $2,536,773 $2,403,756 
Allowance for expected credit losses:
Insurance$(21,298)$(20,369)$(19,025)$(17,203)$(16,720)$(18,191)
Reinsurance(2,413)(2,456)(1,962)(1,751)(1,237)(2,404)
Total$(23,711)$(22,825)$(20,987)$(18,954)$(17,957)$(20,595)
Reinsurance recoverables on unpaid and paid losses and loss expenses:
Insurance$3,461,860 $3,346,823 $3,236,922 $3,204,130 $3,003,307 $2,851,373 
Reinsurance1,468,982 1,364,291 1,319,589 1,254,634 1,202,244 930,529 
Total$4,930,842 $4,711,114 $4,556,511 $4,458,764 $4,205,551 $3,781,902 










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AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
At December 31, 2020
CategoriesReinsurance Recoverable, Gross of CollateralCollateralReinsurance
Recoverable,
Net of
Collateral		% of Total
Reinsurance
Recoverable,
Net  of
Collateral		% of Total
Shareholders’
Equity		Allowance for expected credit lossesAllowance for expected credit losses as %
of Reinsurance Recoverable, Gross of Collateral		Reinsurance recoverable on unpaid and paid losses and loss expenses
Top 10 reinsurers based on gross recoverables$2,705,689 $(643,757)$2,061,932 54.7%38.9%$(10,085)0.4%$2,695,604 
Other reinsurers balances > $20 million1,732,492 (363,874)1,368,618 36.3%25.8%(11,008)0.6%1,721,484 
Other reinsurers balances < $20 million516,372 (177,638)338,734 9.0%6.4%(2,618)0.5%513,754 
Total$4,954,553 $(1,185,269)$3,769,284 100.0%71.1%$(23,711)0.5%$4,930,842 
At December 31, 2020, 87.6% (December 31, 2019: 89.1%) of the reinsurance recoverable balances, gross of collateral were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.

 
Top 10 Reinsurers, Net of collateral% of  Total Reinsurance
Recoverable,
Net of Collateral		% of  Total
Shareholders’ Equity
1Swiss Reinsurance America Corporation13.1%9.3%
2Lloyds of London9.7%6.9%
3Harrington Re Ltd.9.2%6.6%
4Transatlantic Reinsurance Co5.7%4.0%
5Hannover Ruck SE5.1%3.6%
6Partner Reinsurance Co of US4.3%3.1%
7Everest Reinsurance Company3.6%2.5%
8Munich Reinsurance America, Inc3.2%2.3%
9SCOR Reinsurance Company3.2%2.2%
10Third Point Reinsurance (USA) Ltd.2.3%1.6%
59.4%42.1%










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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES
 Quarter ended December 31, 2020Year ended December 31, 2020
 Reserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expensesReserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expenses
Reserve for losses and loss expenses
Beginning of period$13,653,488 $(4,337,683)$9,315,805 $12,752,081 $(3,877,756)$8,874,325 
Incurred losses and loss expenses1,342,602 (525,363)817,239 5,195,709 (1,914,457)3,281,252 
Paid losses and loss expenses(1,278,242)399,366 (878,876)(4,235,762)1,298,361 (2,937,401)
Foreign exchange and other208,918 (32,961)175,957 214,738 (2,789)211,949 
End of period [a]
$13,926,766 $(4,496,641)$9,430,125 $13,926,766 $(4,496,641)$9,430,125 
[a]    At December 31, 2020, reserve for losses and loss expenses included IBNR of $8,595 million, or 62%, (December 31, 2019: $7,891 million, or 62%).









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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT
 Quarter ended December 31, 2020Year ended December 31, 2020
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
Gross paid losses and loss expenses$683,379 $594,863 $1,278,242 $2,238,874 $1,996,888 $4,235,762 
Reinsurance recoverable on paid losses and loss expenses(273,686)(125,680)(399,366)(900,765)(397,596)(1,298,361)
Net paid losses and loss expenses409,693 469,183 878,876 1,338,109 1,599,292 2,937,401 
Change in:
Gross case reserves(34,344)104,547 70,203 (11,938)348,063 336,125 
Gross IBNR132,082 (137,925)(5,843)754,356 (130,534)623,822 
Reinsurance recoverable on unpaid losses and loss expenses(62,987)(63,010)(125,997)(383,513)(232,583)(616,096)
Total net incurred losses and loss expenses$444,444 $372,795 $817,239 $1,697,014 $1,584,238 $3,281,252 
Gross reserve for losses and loss expenses$7,310,498 $6,616,268 $13,926,766 $7,310,498 $6,616,268 $13,926,766 
Net favorable prior year reserve development$4,417 $2,142 $6,559 $8,937 $6,972 $15,909 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses92.2 %125.9 %107.5 %78.9 %101.0 %89.5 %
Net paid losses and loss expenses / Net premiums earned69.5 %94.3 %80.8 %58.2 %77.2 %67.2 %
Change in net losses and loss expenses / Net premiums earned5.9 %(19.4 %)(5.6 %)15.6 %(0.8 %)7.9 %
Net losses and loss expenses ratio75.4 %74.9 %75.2 %73.8 %76.4 %75.1 %










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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
INSURANCE - QUARTER
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
Gross paid losses and loss expenses$683,379 $502,517 $543,599 $509,378 $575,688 $676,665 
Reinsurance recoverable on paid losses and loss expenses(273,686)(203,805)(218,928)(204,348)(254,044)(254,452)
Net paid losses and loss expenses409,693 298,712 324,671 305,030 321,644 422,213 
Change in:
Gross case reserves(34,344)(68,443)72,563 18,286 (31,996)(40,794)
Gross IBNR132,082 277,499 (35,502)380,280 27,839 117,212 
Reinsurance recoverable on unpaid losses and loss expenses(62,987)(64,379)(24,365)(231,784)(253)(70,106)
Total net incurred losses and loss expenses$444,444 $443,389 $337,367 $471,812 $317,234 $428,525 
Gross reserve for losses and loss expenses$7,310,498 $7,135,537 $6,865,343 $6,814,171 $6,496,568 $6,426,309 
Net favorable prior year reserve development$4,417 $270 $420 $3,832 $10,455 $32,257 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses92.2 %67.4 %96.2 %64.7 %101.4 %98.5 %
Net paid losses and loss expenses / Net premiums earned69.5 %52.4 %56.3 %54.3 %57.5 %71.5 %
Change in net losses and loss expenses / Net premiums earned5.9 %25.4 %2.2 %29.6 %(0.8 %)1.1 %
Net losses and loss expenses ratio75.4 %77.8 %58.5 %83.9 %56.7 %72.6 %










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AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
REINSURANCE - QUARTER
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
Gross paid losses and loss expenses$594,863 $467,319 $466,692 $468,015 $660,948 $611,056 
Reinsurance recoverable on paid losses and loss expenses(125,680)(69,218)(100,748)(101,950)(132,719)(92,279)
Net paid losses and loss expenses469,183 398,101 365,944 366,065 528,229 518,777 
Change in:
Gross case reserves104,547 65,919 97,573 80,024 3,236 199,227 
Gross IBNR(137,925)59,996 (92,099)39,492 89,173 42,084 
Reinsurance recoverable on unpaid losses and loss expenses(63,010)(87,728)(32,524)(49,320)(80,478)(161,270)
Total net incurred losses and loss expenses$372,795 $436,288 $338,894 $436,261 $540,160 $598,818 
Gross reserve for losses and loss expenses$6,616,268 $6,517,951 $6,313,823 $6,268,102 $6,255,513 $5,854,460 
Net favorable prior year reserve development$2,142 $314 $2,235 $2,281 $3,426 $7,321 
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses125.9 %91.2 %108.0 %83.9 %97.8 %86.6 %
Net paid losses and loss expenses / Net premiums earned94.3 %76.4 %69.4 %69.5 %86.2 %83.1 %
Change in net losses and loss expenses / Net premiums earned(19.4 %)7.3 %(5.1 %)13.4 %2.0 %12.9 %
Net losses and loss expenses ratio74.9 %83.7 %64.3 %82.9 %88.2 %96.0 %










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AXIS CAPITAL HOLDINGS LIMITED
NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF JANUARY 1, 2021

  Estimated Net Exposures
(millions of U.S. dollars)
TerritoryPeril50 Year
Return
Period		% of Common Shareholders' Equity100 Year
Return
Period		% of Common Shareholders' Equity250 Year
Return
Period		% of Common Shareholders' Equity
Single zone, single event
SoutheastU.S. Hurricane$286 6.0 %$408 8.6 %$625 13.2 %
NortheastU.S. Hurricane42 0.9 %115 2.4 %262 5.5 %
Mid-AtlanticU.S. Hurricane90 1.9 %263 5.5 %520 11.0 %
Gulf of MexicoU.S. Hurricane175 3.7 %263 5.5 %431 9.1 %
CaliforniaEarthquake193 4.1 %396 8.3 %504 10.6 %
EuropeWindstorm136 2.9 %182 3.8 %240 5.1 %
JapanEarthquake103 2.2 %179 3.8 %336 7.1 %
JapanWindstorm113 2.4 %186 3.9 %220 4.6 %
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 January 1, 2021. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.
As indicated in the table above, our modeled single occurrence 1-in-100 year return period PML for a Southeast hurricane, net of reinsurance, is approximately $0.4 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.4 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.4 billion.
We have developed our PML estimates by combining judgment and experience with the outputs from the catastrophe model, commercially available from AIR. Additionally, we have included our estimate of non-modeled perils and other factors which we believe provides us with a more complete view of catastrophe risk.
Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, foremost by ensuring that management’s judgment supplements the model outputs. We also perform ongoing model validation both within our business units and through our catastrophe model validation unit. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.
Our estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, which include but are not limited to, updates to vendor catastrophe models, changes in our own modeling, changes in our underwriting portfolios, changes to our reinsurance purchasing strategy and changes in foreign exchange rates.









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AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, U.S. GAAP
 Quarters ended December 31,Years ended December 31,
 2020201920202019
Net income (loss) available (attributable) to common shareholders$(4,819)$(9,897)$(150,674)$282,361 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding84,341 83,957 84,262 83,894 
Dilutive share equivalents:
Share-based compensation plans [a]
— — — 579 
Weighted average diluted common shares outstanding84,341 83,957 84,262 84,473 
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share($0.06)($0.12)($1.79)$3.37 
Earnings (loss) per diluted common share($0.06)($0.12)($1.79)$3.34 
[a] Due to the net loss recognized for the the quarters ended December 31, 2020 and 2019 and year ended December 31, 2020, the share equivalents were anti-dilutive.










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AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTER
 
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q4 2018
Net income (loss) available (attributable) to common shareholders$(4,819)$(72,945)$112,477 $(185,390)$(9,897)$(198,448)
COMMON SHARES OUTSTANDING
Common shares - at beginning of period84,309 84,306 84,298 83,959 83,947 83,557 
Shares issued and treasury shares reissued83 5 11 489 23 53 
Shares repurchased for treasury(39)(2)(3)(150)(11)(24)
Common shares - at end of period84,353 84,309 84,306 84,298 83,959 83,586 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding84,341 84,308 84,303 84,094 83,957 83,582 
Dilutive share equivalents:
Share-based compensation plans [a]
— — 297 — — — 
Weighted average diluted common shares outstanding84,341 84,308 84,600 84,094 83,957 83,582 
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share($0.06)($0.87)$1.33 ($2.20)($0.12)($2.37)
Earnings (loss) per diluted common share($0.06)($0.87)$1.33 ($2.20)($0.12)($2.37)
[a] Due to the net loss recognized for the quarters ended December 31, 2020, September 30, 2020, March 31,2020, and December 31, 2019 and 2018, respectively, the share equivalents were anti-dilutive.










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AXIS CAPITAL HOLDINGS LIMITED
BOOK VALUE PER DILUTED COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a]
 At December 31, 2020
 Common
Shareholders’
Equity
Common Shares Outstanding
net of
Treasury Shares		Per share
Closing stock price$50.39 
Book value per common share$4,745,694 84,353 $56.26 
Dilutive securities: [b]
Restricted stock units1,790 (1.17)
Book value per diluted common share$4,745,694 86,143 $55.09 
 At December 31, 2019
 Common
Shareholders’
Equity
Common Shares Outstanding
net of
Treasury Shares		Per share
Closing stock price$59.44 
Book value per common share$4,769,008 83,959 $56.80 
Dilutive securities: [b]
Restricted stock units1,530 (1.01)
Book value per diluted common share$4,769,008 85,489 $55.79 
[a]    Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]    Excludes cash-settled restricted stock units.











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AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
 
 Quarters ended December 31,Years ended December 31,
 2020201920202019
Net income (loss) available (attributable) to common shareholders$(4,819)$(9,897)$(150,674)$282,361 
Net investment (gains) losses [a]
(83,356)(42,712)(129,133)(91,233)
Foreign exchange losses (gains) [b]
72,309 52,827 81,069 (12,041)
Reorganization expenses [c]
7,059 8,074 7,881 37,384 
Interest in (income) loss of equity method investments [d]
(9,967)(4,073)3,612 (9,718)
Income tax expense (benefit)
2,529 131 13,023 6,656 
Operating income (loss)$(16,245)$4,350 $(174,222)$213,409 
Earnings (loss) per diluted common share$(0.06)$(0.12)$(1.79)$3.34 
Net investment (gains) losses
(0.99)(0.50)(1.53)(1.08)
Foreign exchange losses (gains)0.86 0.62 0.96 (0.14)
Reorganization expenses
0.08 0.10 0.09 0.44 
Interest in (income) loss of equity method investments
(0.12)(0.05)0.04 (0.12)
Income tax expense (benefit)
0.03 — 0.15 0.08 
Operating income (loss) per diluted common share$(0.20)$0.05 $(2.08)$2.52 
Weighted average diluted common shares outstanding84,341 84,631 84,262 84,473 
Average common shareholders' equity$4,730,795 $4,789,939 $4,757,351 $4,512,040 
Annualized return on average common equity(0.4 %)(0.8 %)(3.2 %)6.3 %
Annualized operating return on average common equity(1.4 %)0.4 %(3.7 %)4.7 %
[a]    Tax cost (benefit) of $9 million and $5 million for the quarters ended December 31, 2020 and 2019, respectively, and $18 million and $12 million for the years ended December 31, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
[b]    Tax cost (benefit) of $(5) million and $(4) million for the quarters ended December 31, 2020 and 2019, respectively, and $(4) million and $1 million for the years ended December 31, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions
[c]    Tax (benefit) of $(1) million for the quarters ended December 31, 2020 and 2019, respectively, and $(1) million and $(7) million for the years ended December 31, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
[d]    Tax cost of $nil for the quarters and years ended December 31, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.









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AXIS CAPITAL HOLDINGS LIMITED
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE

TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE - TREASURY STOCK METHOD [a]
December 31,September 30,June 30,March 31,December 31,December 31,
202020202020202020192018
Common shareholders' equity$4,745,694 $4,715,895 $4,747,820 $4,289,578 $4,769,008 $4,255,071 
Less: goodwill(100,801)(102,003)(102,003)(102,003)(102,003)(102,003)
Less: intangible assets(219,633)(222,362)(225,092)(227,821)(230,550)(241,568)
Associated tax impact45,991 46,333 42,515 42,857 43,199 43,814 
Tangible common shareholders' equity$4,471,251 $4,437,863 $4,463,240 $4,002,611 $4,479,654 $3,955,314 
Diluted common shares outstanding, net of treasury shares86,143 86,132 86,178 86,170 85,489 85,229 
Book value per diluted common share$55.09 $54.75 $55.09 $49.78 $55.79 $49.93 
Tangible book value per diluted common share$51.90 $51.52 $51.79 $46.45 $52.40 $46.41 
[a]    Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding. Cash-settled restricted stock units are excluded.












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AXIS CAPITAL HOLDINGS LIMITED
RATIONALE FOR THE 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"), tangible book value per diluted common share which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, 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 underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations - Quarter' and Consolidated Statements of Operations - Year' 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 (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

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










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

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

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

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

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

Operating Income (Loss)
Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments.

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

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. In addition, we recognize unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities in net investment gains (losses). We also recognize unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss). These unrealized foreign exchange losses (gains) generally offset a large portion of the foreign exchange losses (gains) reported in net income (loss), thereby minimizing









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the impact of foreign exchange rate movements on total shareholders’ equity. As a result, foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a fair representation of the performance of our business.

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, this income (loss) is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

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

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

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









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Acquisition of Novae

On October 2, 2017, we acquired Novae. At the acquisition date, we 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. In addition, the allocation of the acquisition price to the assets acquired and liabilities assumed based on estimated fair values at the acquisition date, resulted in the write-off of the deferred acquisition cost asset on Novae's balance sheet at the acquisition date as the value of policies in-force on that date are considered within VOBA. Consequently, underwriting income (loss) for the quarter ended December 31, 2019 and years ended December 31, 2020 and 2019 included the recognition of premiums attributable to Novae's balance sheet at the acquisition date without the recognition of the associated acquisition costs.











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AXIS CAPITAL HOLDINGS LIMITED
EX-PGAAP DATA - QUARTER AND YEAR
Year ended
December 31,
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018Q2 2018Q1 2018Q4 201720202019
Insurance
Underwriting income (loss)$(66,002)$(81,465)$34,397$(122,630)$29,683$(17,892)$11,309$20,919$(36,914)$(11,711)$56,479$69,442$37,788$(235,701)$44,019
Acquisition costs adjustment(52)286364781,5181,5632,8566,20215,77528,80138,12538,31325,5711,09012,139
Ex-PGAAP underwriting income (loss)$(65,950)$(81,493)$33,761$(123,108)$28,165$(19,455)$8,453$14,717$(52,689)$(40,512)$18,354$31,129$12,217$(236,791)$31,880
Combined ratio111.3 %114.4 %94.2 %121.9 %94.9 %103.5 %97.8 %96.6 %106.3 %102.2 %90.4 %88.1 %93.9 %110.4 %98.1 %
Acquisition cost ratio adjustment— %— %0.1 %0.1 %0.3 %0.3 %0.5 %1.1 %2.7 %4.7 %6.6 %6.6 %4.4 %— %0.6 %
Ex-PGAAP combined ratio111.3 %114.4 %94.3 %122.0 %95.2 %103.8 %98.3 %97.7 %109.0 %106.9 %97.0 %94.7 %98.3 %110.4 %98.7 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
92.0 %91.3 %91.4 %92.3 %93.5 %98.8 %99.5 %97.5 %98.8 %99.0 %97.2 %93.8 %96.8 %91.7 %97.3 %
Reinsurance
Underwriting income (loss)$(14,833)$(53,859)$53,015$(74,137)$(78,937)$(60,826)$67,350$56,903$(157,750)$70,737$59,247$74,295$(11,658)$(89,816)$(15,512)
Acquisition costs adjustment—————5(2)652575431,5162,1377,075—67
Ex-PGAAP underwriting income (loss)$(14,833)$(53,859)$53,015$(74,137)$(78,937)$(60,831)$67,352$56,838$(158,007)$70,194$57,731$72,158$(18,733)$(89,816)$(15,579)
Combined ratio102.3 %110.5 %90.2 %112.3 %113.5 %109.9 %89.1 %91.0 %124.0 %89.5 %90.7 %88.4 %102.0 %103.8 %101.2 %
Acquisition cost ratio adjustment— %— %— %— %— %— %— %— %— %0.1 %0.2 %0.4 %1.1 %— %— %
Ex-PGAAP combined ratio102.3 %110.5 %90.2 %112.3 %113.5 %109.9 %89.1 %91.0 %124.0 %89.6 %90.9 %88.8 %103.1 %103.8 %101.2 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
86.4 %89.5 %86.5 %89.6 %94.2 %92.2 %87.6 %91.8 %96.3 %89.9 %94.3 %93.0 %91.9 %88.0 %91.5 %
Total
Underwriting income (loss)$(80,835)$(135,324)$87,412$(196,767)$(49,254)$(78,718)$78,659$77,822$(194,664)$59,026$115,726$143,737$26,130$(325,517)$28,507
Acquisition costs adjustment(52)286364781,5181,5682,8546,26716,03229,34439,64140,45032,6461,09012,206
Ex-PGAAP underwriting income (loss)$(80,783)$(135,352)$86,776$(197,245)$(50,772)$(80,286)$75,805$71,555$(210,696)$29,682$76,085$103,287$(6,516)$(326,607)$16,301
Combined ratio109.6 %114.5 %94.7 %119.8 %107.3 %109.4 %96.1 %96.9 %117.3 %97.9 %93.1 %90.8 %100.7 %109.6 %102.6 %
Acquisition cost ratio adjustment — %— %0.1 %0.1 %0.1 %0.1 %0.3 %0.5 %1.3 %2.4 %3.3 %3.5 %2.7 %— %0.3 %
Ex-PGAAP combined ratio109.6 %114.5 %94.8 %119.9 %107.4 %109.5 %96.4 %97.4 %118.6 %100.3 %96.4 %94.3 %103.4 %109.6 %102.9 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
91.8 %92.4 %91.5 %93.6 %96.4 %97.7 %96.3 %97.8 %99.4 %96.6 %98.3 %95.9 %96.9 %92.2 %97.1 %
Amortization of VOBA and intangible assets3,8553,8664,1834,6974,9546,89110,09316,00227,64840,66456,32859,89252,64716,60137,939
Further information regarding ex-PGAAP historical data is available in the Company's Investor Financial Supplements for the fourth quarter 2017 through the first quarter 2020









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