EX-99.2 3 q32022financialsupplement.htm EX-99.2 Document







 

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AXIS CAPITAL HOLDINGS LIMITED








INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2022











AXIS Capital Holdings Limited
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Mei Feng A. Zhang
Investor Contact
 (212) 940-3312;
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. Losses Reserve Analysis  
  
  
V. Share Analysis  
  
  
VI. Non-GAAP Financial Measures  
  
VII. Reinsurance and Group Consolidated Segment Data - Catastrophe and Property


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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 sheet at December 31, 2021 and consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020.
•Amounts may not reconcile due to rounding differences.
•Unless otherwise noted, all data is in thousands, except for ratio information.
•NM - Not meaningful is defined as a variance greater than +/- 100%; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential", "intend" or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates for 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 including our exit from property reinsurance business, our expectations regarding pricing, other market conditions and economic conditions including inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates.

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

COVID-19
•the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition, and liquidity;

Insurance Risk
•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, including the potential increase of our exposure to natural catastrophe losses due to climate change;
•actual claims exceeding loss reserves;
•the failure of any of the loss limitation methods we employ;
•the effects of emerging claims, coverage and regulatory issues, including increasing litigation and uncertainty related to coverage definitions, limits, terms and conditions;
•the failure of our cedants to adequately evaluate risks;
•the adverse impact of inflation;

Strategic Risk
•losses from war including losses related to the Russian invasion of Ukraine, terrorism and political unrest, or other unanticipated losses;
•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;
•the loss of business provided to us by major brokers;
•a decline in our ratings with rating agencies;
•the loss of one or more of our key executives;
•difficulties with technology and/or data security;


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

Liquidity Risk
•the inability to obtain additional capital on favorable terms, or at all;

Operational Risk
•changes in accounting policies or practices;
•the use of industry models and changes to these models;

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

Risks Related to Taxation
•changes in tax laws.

Readers should carefully consider the risks noted above together with other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. 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 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 and corporate 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 public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
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 business 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, specialty health products for employer and affinity groups, and pet insurance.


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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. The Company announced its exit from this line of business in June 2022.

Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is to property damage but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company announced its exit from this line of business in June 2022.
Credit and Surety: provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Mortgage reinsurance is provided to mortgage guaranty insurers and U.S. government-sponsored entities for losses related to credit risk transfer into the private sector.
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.
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.
Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. The Company exited this line of business in 2020.
Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis.
Marine and Aviation: 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 a proportional and catastrophic or per life excess of loss basis.

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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
  Three months ended September 30,Nine months ended September 30,
  20222021Change20222021Change
HIGHLIGHTSGross premiums written$1,707,808 $1,646,489 3.7 %$6,455,899 $6,123,156 5.4 %
Gross premiums written - Insurance77.2 %71.5 %5.7 pts63.7 %57.9 %5.8 pts
Gross premiums written - Reinsurance22.8 %28.5 %(5.7)pts36.3 %42.1 %(5.8)pts
Net premiums written$1,036,784 $996,471 4.0 %$4,166,502 $3,979,215 4.7 %
Net premiums earned$1,284,866 $1,211,427 6.1 %$3,820,163 $3,472,090 10.0 %
Net premiums earned - Insurance60.9 %56.2 %4.7 pts60.3 %55.6 %4.7 pts
Net premiums earned - Reinsurance39.1 %43.8 %(4.7)pts39.7 %44.4 %(4.7)pts
Net income (loss) available (attributable) to common shareholders$(16,947)$47,385 nm$151,904 $391,028 (61.2 %)
Operating income (loss) [a]
$2,507 $1,044 nm$331,323 $254,289 30.3 %
Annualized return on average common equity [b]
(1.7 %)3.9 %(5.6)pts4.7 %10.9 %(6.2)pts
Annualized operating return on average common equity [c]
0.3 %0.1 %0.2 pts10.2 %7.1 %3.1 pts
Total shareholders’ equity$4,343,423 $5,335,055 (18.6 %)$4,343,423 $5,335,055 (18.6 %)
PER COMMON SHARE AND COMMON SHARE DATAEarnings (loss) per diluted common share($0.20)$0.56 nm$1.77 $4.59 (61.4 %)
Operating income (loss) per diluted common share [d]
$0.03 $0.01 nm$3.86 $2.98 29.5 %
Weighted average diluted common shares outstanding84,660 85,336 (0.8 %)85,674 85,191 0.6 %
Book value per common share$44.80 $56.45 (20.6 %)$44.80 $56.45 (20.6 %)
Book value per diluted common share (treasury stock method)$43.50 $54.86 (20.7 %)$43.50 $54.86 (20.7 %)
Tangible book value per diluted common share (treasury stock method) [a]
$40.64 $51.89 (21.7 %)$40.64 $51.89 (21.7 %)
FINANCIAL RATIOSCurrent accident year loss ratio, excluding catastrophe and weather-related losses57.1 %55.4 %1.7 pts55.5 %55.4 %0.1 pts
Catastrophe and weather-related losses ratio16.6 %20.7 %(4.1)pts8.9 %11.3 %(2.4)pts
Current accident year loss ratio73.7 %76.1 %(2.4)pts64.4 %66.7 %(2.3)pts
Prior year reserve development ratio(0.4 %)(0.9 %)0.5 pts(0.4 %)(0.7 %)0.3 pts
Net losses and loss expenses ratio73.3 %75.2 %(1.9)pts64.0 %66.0 %(2.0)pts
Acquisition cost ratio18.7 %19.1 %(0.4)pts19.5 %19.3 %0.2 pts
General and administrative expense ratio [e]
12.3 %13.1 %(0.8)pts12.9 %13.8 %(0.9)pts
Combined ratio104.3 %107.4 %(3.1)pts96.4 %99.1 %(2.7)pts
INVESTMENT DATATotal assets$27,119,753 $27,935,137 (2.9 %)$27,119,753 $27,935,137 (2.9 %)
Total cash and invested assets [f]
$15,640,704 $16,470,740 (5.0 %)$15,640,704 $16,470,740 (5.0 %)
Net investment income$88,177 $107,339 (17.9 %)$271,744 $326,174 (16.7 %)
Net investment gains (losses)$(146,458)$10,932 nm$(414,231)$113,868 nm
Book yield of fixed maturities2.9 %1.9 %1.0 pts2.9 %1.9 %1.0 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.
[b]    Annualized ROACE is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders’ equity determined using the
common shareholders’ equity balances at the beginning and end of the period.
[c]    Annualized operating ROACE is calculated by dividing annualized operating income (loss) for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
[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
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
Three months ended September 30,Nine months ended September 30,
2022202120222021
Revenues
Net premiums earned$1,284,866 $1,211,427 $3,820,163 $3,472,090 
Net investment income88,177 107,339 271,744 326,174 
Net investment gains (losses)(146,458)10,932 (414,231)113,868 
Other insurance related income1,092 7,665 9,998 16,262 
Total revenues1,227,677 1,337,363 3,687,674 3,928,394 
Expenses
Net losses and loss expenses941,911 911,369 2,444,196 2,292,559 
Acquisition costs240,511 231,712 746,443 669,654 
General and administrative expenses158,245 157,960 492,872 478,820 
Foreign exchange gains(135,660)(28,032)(236,934)(4,316)
Interest expense and financing costs15,915 15,954 46,720 46,759 
Reorganization expenses6,213 — 21,941 — 
Amortization of value of business acquired— 1,028 — 3,083 
Amortization of intangible assets2,729 3,149 8,188 9,163 
Total expenses1,229,864 1,293,140 3,523,426 3,495,722 
Income (loss) before income taxes and interest in income (loss) of equity method investments(2,187)44,223 164,248 432,672 
Income tax (expense) benefit 363 (1,186)5,304 (49,827)
Interest in income (loss) of equity method investments(7,560)11,911 5,040 30,871 
Net income (loss)(9,384)54,948 174,592 413,716 
Preferred share dividends7,563 7,563 22,688 22,688 
Net income (loss) available (attributable) to common shareholders$(16,947)$47,385 $151,904 $391,028 




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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021Q3 20202021
UNDERWRITING REVENUES
Gross premiums written$1,707,808 $2,113,483 $2,634,608 $1,562,828 $1,646,489 $1,331,178 $7,685,984 
Ceded premiums written(671,024)(796,636)(821,736)(615,420)(650,018)(515,196)(2,759,360)
Net premiums written1,036,784 1,316,847 1,812,872 947,408 996,471 815,982 4,926,624 
Gross premiums earned2,012,426 1,971,208 1,902,508 1,936,521 1,879,280 1,680,529 7,281,709 
Ceded premiums earned(727,560)(694,156)(644,262)(698,761)(667,853)(589,217)(2,571,859)
Net premiums earned1,284,866 1,277,052 1,258,246 1,237,760 1,211,427 1,091,312 4,709,850 
Other insurance related income1,092 2,213 6,693 7,033 7,665 1,440 23,295 
Total underwriting revenues1,285,958 1,279,265 1,264,939 1,244,793 1,219,092 1,092,752 4,733,145 
UNDERWRITING EXPENSES
Net losses and loss expenses941,911 769,587 732,699 716,225 911,369 879,677 3,008,783 
Acquisition costs240,511 257,582 248,352 252,180 231,712 230,564 921,834 
Underwriting-related general and administrative expenses [a]
132,570 135,403 145,096 140,379 134,826 117,835 536,834 
Total underwriting expenses1,314,992 1,162,572 1,126,147 1,108,784 1,277,907 1,228,076 4,467,451 
UNDERWRITING INCOME (LOSS) [b](29,034)116,693 138,792 136,009 (58,815)(135,324)265,694 
OTHER (EXPENSES) REVENUES
Net investment income88,177 92,214 91,355 128,128 107,339 101,956 454,301 
Net investment gains (losses)(146,458)(173,263)(94,508)20,410 10,932 55,609 134,279 
Corporate expenses [a]
(25,675)(30,183)(23,945)(44,105)(23,134)(20,988)(126,470)
Foreign exchange (losses) gains135,660 57,000 44,273 (4,632)28,032 (60,734)(315)
Interest expense and financing costs(15,915)(15,241)(15,564)(15,543)(15,954)(15,574)(62,302)
Reorganization expenses(6,213)(15,728)— — — (1,413)— 
Amortization of value of business acquired— — — (771)(1,028)(1,028)(3,854)
Amortization of intangible assets(2,729)(2,729)(2,729)(3,260)(3,149)(2,838)(12,424)
Total other (expenses) revenues26,847 (87,930)(1,118)80,227 103,038 54,990 383,215 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS(2,187)28,763 137,674 216,236 44,223 (80,334)648,909 
Income tax (expense) benefit363 4,965 (24)(12,557)(1,186)12,056 (62,384)
Interest in income (loss) of equity method investments(7,560)1,050 11,550 1,213 11,911 2,896 32,084 
NET INCOME (LOSS) (9,384)34,778 149,200 204,892 54,948 (65,382)618,609 
Preferred share dividends(7,563)(7,563)(7,563)(7,563)(7,563)(7,563)(30,250)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$(16,947)$27,215 $141,637 $197,329 $47,385 $(72,945)$588,359 
[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.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS
Year ended December 31,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021Q3 20202021
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio, excluding catastrophe and weather-related losses57.1 %55.3 %54.2 %54.3 %55.4 %58.5 %55.1 %
Catastrophe and weather-related losses ratio16.6 %5.3 %4.7 %4.3 %20.7 %22.2 %9.5 %
Current accident year loss ratio73.7 %60.6 %58.9 %58.6 %76.1 %80.7 %64.6 %
Prior year reserve development ratio(0.4 %)(0.3 %)(0.7 %)(0.7 %)(0.9 %)(0.1 %)(0.7 %)
Net losses and loss expenses ratio73.3 %60.3 %58.2 %57.9 %75.2 %80.6 %63.9 %
Acquisition cost ratio18.7 %20.2 %19.7 %20.4 %19.1 %21.1 %19.6 %
General and administrative expense ratio [a]
12.3 %12.9 %13.5 %14.8 %13.1 %12.8 %14.0 %
Combined ratio104.3 %93.4 %91.4 %93.1 %107.4 %114.5 %97.5 %
Weighted average common shares outstanding84,66085,17384,96184,77484,77184,30884,707
Weighted average diluted common shares outstanding  [b]
84,66085,84385,80885,59185,33684,30885,291
Earnings (loss) per common share($0.20)$0.32$1.67$2.33$0.56($0.87)$6.95
Earnings (loss) per diluted common share($0.20)$0.32$1.65$2.31$0.56($0.87)$6.90
Annualized ROACE(1.7 %)2.5 %12.0 %16.4 %3.9 %(6.2 %)12.2 %
Annualized operating ROACE0.3 %13.7 %15.3 %15.1 %0.1 %(5.5 %)9.1 %
[a]    Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[b]    Due to the net loss attributable to common shareholders recognized for the three months ended September 30, 2022 and September 30, 2020, the share equivalents were anti-dilutive.























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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
 Nine months ended September 30,Year ended December 31,
 20222021202020212020
UNDERWRITING REVENUES
Gross premiums written$6,455,899 $6,123,156 $5,478,519 $7,685,984 $6,826,938 
Ceded premiums written(2,289,397)(2,143,941)(1,927,559)(2,759,360)(2,490,529)
Net premiums written4,166,502 3,979,215 3,550,960 4,926,624 4,336,409 
Gross premiums earned5,886,143 5,345,188 5,032,802 7,281,709 6,768,733 
Ceded premiums earned(2,065,980)(1,873,098)(1,748,861)(2,571,859)(2,397,424)
Net premiums earned3,820,163 3,472,090 3,283,941 4,709,850 4,371,309 
Other insurance related income (loss)9,998 16,262 (5,270)23,295 (8,089)
Total underwriting revenues3,830,161 3,488,352 3,278,671 4,733,145 4,363,220 
UNDERWRITING EXPENSES
Net losses and loss expenses2,444,196 2,292,559 2,464,012 3,008,783 3,281,252 
Acquisition costs746,443 669,654 697,716 921,834 929,517 
Underwriting-related general and administrative expenses [a]
413,069 396,455 361,623 536,834 477,968 
Total underwriting expenses3,603,708 3,358,668 3,523,351 4,467,451 4,688,737 
UNDERWRITING INCOME (LOSS) [b]226,453 129,684 (244,680)265,694 (325,517)
OTHER (EXPENSES) REVENUES
Net investment income271,744 326,174 240,098 454,301 349,601 
Net investment gains (losses)(414,231)113,868 45,777 134,279 129,133 
Corporate expenses [a]
(79,803)(82,365)(74,915)(126,470)(101,822)
Foreign exchange (losses) gains236,934 4,316 (8,760)(315)(81,069)
Interest expense and financing costs(46,720)(46,759)(59,641)(62,302)(75,049)
Reorganization expenses(21,941)— (822)— (7,881)
Amortization of value of business acquired— (3,083)(4,111)(3,854)(5,139)
Amortization of intangible assets(8,188)(9,163)(8,564)(12,424)(11,390)
Total other (expenses) revenues(62,205)302,988 129,062 383,215 196,384 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS164,248 432,672 (115,618)648,909 (129,133)
Income tax (expense) benefit5,304 (49,827)6,030 (62,384)12,321 
Interest in income (loss) of equity method investments5,040 30,871 (13,579)32,084 (3,612)
NET INCOME (LOSS)174,592 413,716 (123,167)618,609 (120,424)
Preferred share dividends(22,688)(22,688)(22,688)(30,250)(30,250)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$151,904 $391,028 $(145,855)$588,359 $(150,674)
[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 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.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS
 Nine months ended September 30,Year ended December 31,
 20222021202020212020
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio, excluding catastrophe and weather-related losses55.5 %55.4 %57.8 %55.1 %57.7 %
Catastrophe and weather-related losses ratio8.9 %11.3 %17.5 %9.5 %17.7 %
Current accident year loss ratio64.4 %66.7 %75.3 %64.6 %75.4 %
Prior year reserve development ratio(0.4 %)(0.7 %)(0.3 %)(0.7 %)(0.3 %)
Net losses and loss expenses ratio64.0 %66.0 %75.0 %63.9 %75.1 %
Acquisition cost ratio19.5 %19.3 %21.2 %19.6 %21.3 %
General and administrative expense ratio [a]
12.9 %13.8 %13.4 %14.0 %13.2 %
Combined ratio96.4 %99.1 %109.6 %97.5 %109.6 %
Weighted average common shares outstanding84,930 84,684 84,235 84,707 84,262 
Weighted average diluted common shares outstanding [b]
85,674 85,191 84,235 85,291 84,262 
Earnings (loss) per common share
$1.79 $4.62 ($1.73)$6.95 ($1.79)
Earnings (loss) per diluted common share$1.77 $4.59 ($1.73)$6.90 ($1.79)
Annualized ROACE4.7 %10.9 %(4.1 %)12.2 %(3.2 %)
Annualized operating ROACE10.2 %7.1 %(4.4 %)9.1 %(3.7 %)
[a]     Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[b]     Due to the net loss attributable to common shareholders recognized for the nine months ended September 30, 2020, and year ended December 31, 2020, the share equivalents were anti-dilutive.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA
Three months ended September 30, 2022Nine months ended September 30, 2022
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
UNDERWRITING REVENUES
Gross premiums written$1,317,890 $389,918 $1,707,808 $4,114,776 $2,341,123 $6,455,899 
Ceded premiums written(540,101)(130,923)(671,024)(1,623,656)(665,741)(2,289,397)
Net premiums written777,789 258,995 1,036,784 2,491,120 1,675,382 4,166,502 
Gross premiums earned1,331,887 680,539 2,012,426 3,850,444 2,035,699 5,886,143 
Ceded premiums earned(549,786)(177,774)(727,560)(1,546,804)(519,176)(2,065,980)
Net premiums earned782,101 502,765 1,284,866 2,303,640 1,516,523 3,820,163 
Other insurance related income151 941 1,092 470 9,528 9,998 
Total underwriting revenues782,252 503,706 1,285,958 2,304,110 1,526,051 3,830,161 
UNDERWRITING EXPENSES
Net losses and loss expenses519,006 422,905 941,911 1,346,585 1,097,611 2,444,196 
Acquisition costs139,436 101,075 240,511 422,979 323,464 746,443 
Underwriting-related general and administrative expenses108,072 24,498 132,570 330,598 82,471 413,069 
Total underwriting expenses766,514 548,478 1,314,992 2,100,162 1,503,546 3,603,708 
UNDERWRITING INCOME (LOSS)$15,738 $(44,772)$(29,034)$203,948 $22,505 $226,453 
Catastrophe and weather-related losses, net of reinstatement premiums$112,799 $99,170 $211,969 $173,518 $165,646 $339,164 
Net favorable prior year reserve development$2,558 $2,177 $4,735 $12,396 $5,236 $17,632 
KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses52.6 %64.2 %57.1 %51.6 %61.6 %55.5 %
Catastrophe and weather-related losses ratio14.1 %20.3 %16.6 %7.4 %11.1 %8.9 %
Current accident year loss ratio66.7 %84.5 %73.7 %59.0 %72.7 %64.4 %
Prior year reserve development ratio(0.3 %)(0.4 %)(0.4 %)(0.5 %)(0.3 %)(0.4 %)
Net losses and loss expenses ratio66.4 %84.1 %73.3 %58.5 %72.4 %64.0 %
Acquisition cost ratio17.8 %20.1 %18.7 %18.4 %21.3 %19.5 %
Underwriting-related general and administrative expense ratio13.8 %4.9 %10.3 %14.3 %5.4 %10.8 %
Corporate expense ratio2.0 %2.1 %
Combined ratio98.0 %109.1 %104.3 %91.2 %99.1 %96.4 %

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AXIS CAPITAL HOLDINGS LIMITED
GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS
Nine months ended September 30,Year ended December 31,
 Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021Q3 2020202220212021
INSURANCE SEGMENT
Property$282,242 $386,350 $284,937 $281,105 $273,548 $238,640 $953,529 $855,759 $1,136,864 
Marine108,215 126,952 198,551 80,355 87,463 82,810 433,718 389,472 469,826 
Terrorism15,295 14,179 22,982 9,868 14,167 14,767 52,456 46,250 56,117 
Aviation32,446 26,844 25,967 27,711 32,954 22,702 85,256 83,098 110,809 
Credit and Political Risk47,483 47,085 47,499 55,360 27,651 24,473 142,068 108,242 163,602 
Professional Lines499,441 496,275 435,865 549,011 465,576 340,249 1,431,582 1,267,105 1,816,116 
Liability266,615 306,541 253,162 267,726 228,497 172,914 826,318 663,272 930,999 
Accident and Health66,153 65,396 58,301 43,927 46,644 39,262 189,849 134,971 178,899 
TOTAL INSURANCE SEGMENT$1,317,890 $1,469,622 $1,327,264 $1,315,063 $1,176,500 $935,817 $4,114,776 $3,548,169 $4,863,232 
REINSURANCE SEGMENT
Catastrophe$21,227 $62,077 $138,396 $19,957 $88,396 $74,656 $221,700 $472,441 $492,397 
Property2,173 20,386 76,323 4,042 38,584 58,925 98,882 209,364 213,406 
Credit and Surety53,944 76,872 103,876 31,667 55,807 38,109 234,692 176,441 208,108 
Professional Lines27,575 173,056 133,579 49,739 24,279 31,752 334,210 303,932 353,671 
Motor22,035 35,814 151,714 4,511 12,151 (2,148)209,563 275,455 279,966 
Liability156,500 190,072 284,348 104,956 166,085 137,043 630,921 617,975 722,931 
Engineering(984)444 10,065 (874)(660)1,408 9,525 (5,590)(6,464)
Agriculture39,312 49,971 27,826 10,822 11,992 7,455 117,108 75,306 86,128 
Marine and Aviation8,823 25,198 50,485 3,484 12,428 6,341 84,506 70,484 73,968 
Accident and Health59,313 9,971 330,732 19,461 60,927 41,820 400,016 379,179 398,641 
TOTAL REINSURANCE SEGMENT$389,918 $643,861 $1,307,344 $247,765 $469,989 $395,361 $2,341,123 $2,574,987 $2,822,752 
CONSOLIDATED TOTAL$1,707,808 $2,113,483 $2,634,608 $1,562,828 $1,646,489 $1,331,178 $6,455,899 $6,123,156 $7,685,984 








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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED DATA
Year ended December 31,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021Q3 20202021
UNDERWRITING REVENUES
Gross premiums written$1,707,808 $2,113,483 $2,634,608 $1,562,828 $1,646,489 $1,331,178 $7,685,984 
Ceded premiums written(671,024)(796,636)(821,736)(615,420)(650,018)(515,196)(2,759,360)
Net premiums written1,036,784 1,316,847 1,812,872 947,408 996,471 815,982 4,926,624 
Gross premiums earned2,012,426 1,971,208 1,902,508 1,936,521 1,879,280 1,680,529 7,281,709 
Ceded premiums earned(727,560)(694,156)(644,262)(698,761)(667,853)(589,217)(2,571,859)
Net premiums earned1,284,866 1,277,052 1,258,246 1,237,760 1,211,427 1,091,312 4,709,850 
Other insurance related income1,092 2,213 6,693 7,033 7,665 1,440 23,295 
  Total underwriting revenues1,285,958 1,279,265 1,264,939 1,244,793 1,219,092 1,092,752 4,733,145 
UNDERWRITING EXPENSES
Net losses and loss expenses941,911 769,587 732,699 716,225 911,369 879,677 3,008,783 
Acquisition costs240,511 257,582 248,352 252,180 231,712 230,564 921,834 
Underwriting-related general and administrative expenses132,570 135,403 145,096 140,379 134,826 117,835 536,834 
  Total underwriting expenses1,314,992 1,162,572 1,126,147 1,108,784 1,277,907 1,228,076 4,467,451 
UNDERWRITING INCOME (LOSS)$(29,034)$116,693 $138,792 $136,009 $(58,815)$(135,324)$265,694 
Catastrophe and weather-related losses, net of reinstatement premiums$211,969 $67,119 $60,076 $54,209 $249,830 $240,025 $442,859 
Net favorable prior year reserve development$4,735 $3,940 $8,956 $9,270 $11,012 $584 $32,410 
KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses57.1 %55.3 %54.2 %54.3 %55.4 %58.5 %55.1 %
Catastrophe and weather-related losses ratio16.6 %5.3 %4.7 %4.3 %20.7 %22.2 %9.5 %
Current accident year loss ratio73.7 %60.6 %58.9 %58.6 %76.1 %80.7 %64.6 %
Prior year reserve development ratio(0.4 %)(0.3 %)(0.7 %)(0.7 %)(0.9 %)(0.1 %)(0.7 %)
Net losses and loss expenses ratio73.3 %60.3 %58.2 %57.9 %75.2 %80.6 %63.9 %
Acquisition cost ratio18.7 %20.2 %19.7 %20.4 %19.1 %21.1 %19.6 %
Underwriting-related general and administrative expenses ratio12.3 %12.9 %13.5 %14.8 %13.1 %12.8 %14.0 %
Combined ratio104.3 %93.4 %91.4 %93.1 %107.4 %114.5 %97.5 %

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AXIS CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA
Year ended December 31,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021Q3 20202021
UNDERWRITING REVENUES
Gross premiums written$1,317,890 $1,469,622 $1,327,264 $1,315,063 $1,176,500 $935,817 $4,863,233 
Ceded premiums written(540,101)(600,203)(483,352)(548,369)(469,008)(390,960)(1,968,347)
Net premiums written777,789 869,419 843,912 766,694 707,492 544,857 2,894,885 
Gross premiums earned1,331,887 1,285,275 1,233,281 1,212,644 1,142,550 948,478 4,445,035 
Ceded premiums earned(549,786)(516,551)(480,465)(490,275)(461,542)(378,294)(1,793,696)
Net premiums earned782,101 768,724 752,816 722,369 681,008 570,184 2,651,339 
Other insurance related income151 237 82 227 468 688 1,662 
Total underwriting revenues782,252 768,961 752,898 722,596 681,476 570,872 2,653,001 
UNDERWRITING EXPENSES
Net losses and loss expenses519,006 421,836 405,745 383,246 442,681 443,389 1,514,998 
Acquisition costs139,436 144,732 138,812 136,172 123,529 114,569 484,344 
Underwriting-related general and administrative expenses108,072 108,577 113,950 121,505 104,905 94,379 429,282 
Total underwriting expenses766,514 675,145 658,507 640,923 671,115 652,337 2,428,624 
UNDERWRITING INCOME (LOSS)$15,738 $93,816 $94,391 $81,673 $10,361 $(81,465)$224,377 
Catastrophe and weather-related losses, net of reinstatement premiums$112,799 $27,989 $32,730 $22,654 $104,873 $131,853 $174,559 
Net favorable prior year reserve development$2,558 $2,773 $7,062 $5,008 $5,418 $270 $18,360 
KEY RATIOS
Current accident year loss ratio, excluding catastrophe and weather-related losses52.6 %51.6 %50.5 %50.8 %50.8 %54.7 %51.4 %
Catastrophe and weather-related losses ratio14.1 %3.6 %4.3 %2.9 %15.0 %23.1 %6.4 %
Current accident year loss ratio66.7 %55.2 %54.8 %53.7 %65.8 %77.8 %57.8 %
Prior year reserve development ratio(0.3 %)(0.3 %)(0.9 %)(0.6 %)(0.8 %)— %(0.7