FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

The Company's subsidiaries, AXIS Insurance Company and AXIS Surplus Insurance Company are members of the Federal Home Loan Bank of Chicago ("FHLB").

Members may borrow from the FHLB at competitive rates subject to certain conditions. At December 31, 2022, the companies had admitted assets of approximately $3 billion which provides borrowing capacity of up to approximately $750 million. Conditions of membership include maintaining sufficient collateral deposits for funding, a requirement to maintain member stock at 0.4% of mortgage-related assets at December 31st of the prior year, and a requirement to purchase additional member stock of 2.0% or 4.5% of any amount borrowed.

At December 31, 2022, the Company had $81 million of borrowings under the FHLB program, with maturities in 2023 and interest payable at interest rates between 2.3% and 4.7%. The Company incurred interest expense of $1 million for the year ended December 31, 2022. The borrowings under the FHLB program are secured by cash and investments with a fair value of $91 million.